Whether you’re embarking on a new job journey or pursuing a promotion at your current position, mastering salary negotiation is crucial. But do we truly understand its importance?
As highlighted in a study by Fidelity Investments, a significant 58% of young professionals shy away from negotiating their job offers. While the apprehension surrounding salary discussions is understandable, what's even more alarming is the missed opportunity: the same survey reveals that 87% of those who do negotiate achieve an average starting salary increase of $5,000.
Consider another compelling statistic: renowned researcher Linda Babcock, in her book Women Don’t Ask, found that just 7% of women negotiate their first salary compared to 57% of men. Those who do negotiate enhance their compensation by more than 7% on average.
Though this percentage may seem modest, Stanford's negotiation expert Margaret A. Neale emphasizes its long-term impact: if you earn $100,000 and your colleague negotiates to $107,000, assuming equal raises and promotions, you could end up working an additional eight years just to match their wealth at retirement.
No matter your gender or job stage, developing strong salary negotiation skills is vital, and we're here to guide you with expert advice to ensure you’re fully prepared.
34 Essential Tips for Negotiating Salary
Discover how to approach salary negotiations effectively. From crafting a standout one-sheet to optimizing dinner choices, explore these invaluable tips for successful salary negotiation.
Preparation for Salary Negotiation
1. Create a One-Sheet
Before quantifying your salary expectations, prepare a one-page document that outlines your exceptional qualities as an employee.
Document your achievements, awards, and testimonials from clients or colleagues, including measurable results from previous roles—backed by specific data when achievable. Highlight contributions like revenue generated or successes attributed to your efforts.
2. Understand Your Value
To secure the salary you deserve, it’s essential to ascertain the average pay for your position in your industry and geographical area. Entering negotiations without a figure puts you at the mercy of a skilled hiring manager.
Conduct thorough market research using platforms like Salary.com or Glassdoor, and investigate salary ranges at competing firms. Talking to peers in your field can also provide valuable insights—seek advice from both genders to address potential biases related to the gender pay gap.
3. Consult Recruiters
Another effective research method is engaging with recruiters. They possess in-depth knowledge about industry pay rates, which you can leverage. Reach out with a concise email, including your resume, and inquire about job responsibilities and compensation. Even receiving a salary range can be beneficial.
4. Aim for the Top of the Range
While researching salary ranges, resist the temptation to settle for a mid-range figure. Always aim for the upper end.
Employers often list artificially low ranges to protect their pay strategies. Moreover, they will likely negotiate downward, so it’s crucial to start with a figure that allows room for negotiation while justifying your value based on your experience.
5. Specify an Exact Number
Research indicates that specifying a precise number—for instance, $64,750 instead of $65,000—increases the likelihood of receiving a satisfactory offer. Employers may perceive this specificity as evidence of thorough market research.
6. Factor Job-Related Expenses
When determining your desired salary, consider any job-related expenses that you may incur.
This might include relocation expenses if moving for the job, or commuting costs if transitioning from remote work. Conversely, if shifting from an in-office role to remote work, site expenses for technology or home office equipment are also worth noting.
7. Establish Your Walk-Away Point
As you strategize, determine a “walk-away point”—the lowest offer you would accept. This can stem from financial necessity, your market value, or a figure that ensures your satisfaction with your earnings.
While walking away may be challenging, it empowers you to say “no” when necessary.
8. Timing is Key (if Asking for a Raise)
Appropriate timing is crucial when requesting a raise. Avoid making this request during company budget cuts or layoffs. Instead, wait for periods when business is thriving.
Most individuals request a salary adjustment during performance reviews. However, by then, management may have already decided on raises. If increases typically occur at the beginning of the year, consider approaching your boss around November to allow time for budget adjustments.
9. Practice Makes Perfect
Rehearse your negotiation dialogue. Write down your talking points and practice in front of a mirror or with a friend until you feel completely at ease initiating the conversation.
10. Schedule the Meeting on a Thursday
Research shows discussing salary on Thursday increases your chances of receiving a raise. People tend to be more agreeable later in the week, making them more open to negotiation and compromise.
11. Choose Your Pre-Negotiation Meal Wisely
Yes, your meal choice matters! Eating foods that enhance cognitive function, energy, and confidence can significantly impact your negotiation success.
Experts suggest a breakfast of whole grains paired with fruit. If your meeting is later in the day, eat prior to the meeting to allow for digestion, opting for meals with protein, carbohydrates, and healthy fats while maximizing hydration.
Starting the Negotiation Conversation
12. Exude Confidence
Before entering the negotiation, consider adopting a “power pose” to boost your confidence.
This involves standing tall, chin up, and feet planted firmly before the meeting. This posture can increase confidence-boosting hormones while reducing stress. Visualization techniques can also help set a positive tone.
13. Sip on Coffee
Research shows caffeine enhances resistance to persuasion, which can aid you in maintaining your position during negotiations. Ensure moderation to avoid feeling jittery, and know your limits.
14. Walk In Exuding Confidence
Your entrance sets the stage for the entire encounter. Approach with your head held high and a smile to create a positive first impression.
15. Begin with Questions
Your negotiation opening should include diagnostic questions to uncover the other party’s needs and priorities.
For instance, inquiries like, “What are your main concerns right now?” can provide insight into the other person’s viewpoint.
16. Demonstrate Your Value
Before delving into numbers, discuss your past accomplishments and, more importantly, what you can contribute moving forward.
This is your opportunity to present the one-pager you prepared, outlining your achievements and the added value you bring to the table.
17. Focus on Future Potential
During salary negotiations for a new position, employers may inquire about your current compensation. However, you are not obligated to disclose this information if uncomfortable. Redirect the conversation to focus on the salary expectations based on the role’s requirements and your expertise.
18. Empathize with Their Perspective
Adopt the viewpoint of the hiring manager during your preparations. Consider their challenges and how your contributions could provide solutions.
19. Advocate for Others
Research indicates that individuals often negotiate better for others compared to themselves. Reflect on how you would advocate for a friend when negotiating salary, and apply that mindset to your own situation.
20. Maintain Positivity
While negotiations can be daunting, ensure your demeanor remains positive. Articulate both your needs and the capabilities you bring to the table and their potential benefits to the employer.
21. Express Gratitude
Gratitude fosters goodwill. Always acknowledge the time and effort your hiring manager has invested and reinforce your professionalism with a simple “thank you.”
Making Your Salary Request
22. Present Your Figure First
In negotiations, the initial numerical offer serves as the foundation for the discussion. Avoid letting the other party set the anchor by ensuring you present your desired salary first.
23. Ask for More Than You Want
When discussing salary, it’s wise to request more initially. This empowers the opposing party to feel they are negotiating down to a favorable deal.
24. Avoid Ranges
Avoid indicating a salary range in your negotiation. Terms like “between $60K and $65K” suggest a willingness to compromise, leading counterparts to default to the lower end.