Yahoo Finance How to Negotiate a Salary
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Somewhere between scrolling through job listings to determine what you want and need in a role, and wondering if you can finally close your LinkedIn tab, the question lingers: Should you accept the first offer a company extends?
Not only is negotiation an important means of ensuring you’re getting everything a role has to offer, it’s a meaningful step in setting the tone for your working life, according to employment experts. “Negotiation serves as practical training for learning to advocate for yourself,” Keni Dominguez, workplace consultant and salary negotiation coach, tells Teen Vogue.
Perhaps because of the power dynamics inherent in an employer-employee scenario, the act of asking for an increase in pay or other benefits can sometimes feel daunting, especially if you’re early in your career. Here are some practical tips from experts on what to ask for, how to ask and more.
When to Ask About Money
If it’s difficult for you to advocate for yourself, Kerrie Carden, founder and CEO of Equip Advisory, suggests thinking about what it would look like if you did it for a friend. “What would you want to see them have in this working situation,” she asks.
Thinking through what you need in terms of compensation and experience is one part of doing your homework, and getting context for what’s out there for similar roles is another, they add. In addition to using Glassdoor, LinkedIn, Payscale, or even Reddit to get a sense of salary ranges, experts including Carden suggest talking to people directly. If possible, Carden suggests reaching out to professionals in the field or at the organization on LinkedIn. Some of the questions she suggests asking are: What are the things that you enjoyed? What do you wish you had known before you joined the company? And, if you feel comfortable, you can ask them to give you an idea of what salary range is typical for the role you’re interested in.
Once you’ve researched and secured a job interview, expert opinions vary on when you should have initial salary discussions.
Rellie Derfler-Rozin, an associate professor at the Smith School of Business at the University of Maryland, advises candidates not to discuss money until employers have made an offer. The professor says in her many years of studying workplace negotiation she’s found employers might be less likely to hire candidates they’ve deemed less “intrinsically motivated.” (This is a bias, she notes. You can enjoy a job and appreciate the salary and benefits.) Handshake, a platform connecting students and employers, also suggests waiting to negotiate until you have an offer.
Meanwhile, Dominguez believes you should clarify the salary range in initial conversations to understand growth potential and avoid mismatches. Avoid disclosing your previous salary during this time, she says. (Some states even restrict or outright ban hirers from asking potential employees about current or previous salaries). Instead, the salary negotiation coach suggests flipping the question on potential employers by asking “Could you share the salary range budgeted for this position?”
“This not only deflects the need to state a number first but also opens the dialogue about compensation based on the employer’s terms,” Dominquez says.
How to Ask
If employers don’t mention a salary for the position, Dominguez suggests asking about the compensation package early in the interview process. “For example, you might ask, “could you explain the company's compensation strategy and how the salary range for positions [are] determined?”
It’s not just about when you ask, she notes, but also how you ask. Approaching the subject with tact sets the tone for open, constructive discussions, the workplace consultant notes, and doing so allows you to better understand what might be negotiable.
Once an offer has been extended, the Dominguez suggests using language such as: “Thank you for the offer. I am truly excited about the possibility of joining the team. I appreciate the transparency regarding the salary range. Having researched the role and assessed the contributions I can make from the start, I would like to discuss the possibility of a starting salary that reflects X. I am eager to bring my skills to the table and start contributing effectively right away” or “I appreciate the job offer and am excited about the role. I’ve looked into the typical salary range for this position in our industry and location, and I was hoping we could discuss adjusting the starting salary to better reflect these factors. I'd like to talk this through, when would be a good time?”
Pia Owens, an attorney who teaches negotiation and writes the newsletter Negotiation for the Rest of Us, says it’s important not to view this process as a point of contention. “I encourage people to view negotiation as a group problem-solving exercise, not an argument,” she says. “Thinking about negotiation as a mutual effort to reach a solution can remove some of the anxiety.”
“Lots of people just starting out undervalue themselves,” Owens adds. “Try your best to figure out what’s reasonable, seek outside perspectives to keep you grounded in reality, and ask respectfully. But ask! You deserve to ask for what you want and need.”
If after researching you aren’t sure what to ask for, Owens suggested considering the offered salary, plus an extra 10%. “That’s a large enough amount to be significant for you, and a small enough difference that it could be doable for them,” she says. If there’s a published salary range for the job, Owens suggests asking for near the top of the range. If they’ve proposed that range, it’s within their budget for the role, Owens explains, so you can ask and make a case for why you deserve it based on experience, education, or skills.
In addition, the attorney says salary range transparency laws are becoming more popular, and while employers don’t always comply, they’re supposed to share a realistic range. You can explore what states have such laws, and what they cover, here.
Salary Isn’t All You Can Negotiate
While salary is usually what comes to mind when you think of negotiating, that’s far from all you can ask for. Sometimes it’s to your benefit to think about what else you want and need out of a position.
Tuition reimbursement, stock options (or owning a percentage of the company, which comes with its own negotiation considerations), vacation time, adjusting your work schedule to a four-day work week, working remotely, or requesting a performance review six months into the role to see if your salary could be increased at that time are all potential factors that can be negotiated. “Salary is just one piece of the puzzle,” Carden says before noting that a transit stipend, additional salary to compensate for the wear and tear on your car and yourself while commuting, and remote work are also good negotiation points.
After receiving an offer, Derfler-Rozin advises taking a couple days to examine everything in-depth, if possible. This includes asking your prospective employer any questions you might have, even beyond salary.
Derfler-Rozin shared the following sample language that can be used when making a counteroffer: “I looked at the offer and it’s very exciting, but I’ve done a little bit of research and I was wondering [if] we could work out some additional benefits. I came up with a couple options. What do you think?”
This lets the employer know you’ve done your homework, and gives you the chance to ask for things that are worthwhile to you. Derfler-Rozin suggests having one option where you might give a little on salary, but ask for a signing bonus or tuition reimbursement, and another with a higher salary. “It's important [that] those two or three options should be equivalent for you,” she adds.
Negotiation Tips from Young Workers
“As you prepare, review the job description and, specifically, the skills & qualifications for the role. If you are proficient in a tool, certified in a particular field or already meet any of the preferred (but not required) skills, that can save the company significant time on training and onboarding. Time is money, particularly when it comes to training and onboarding new employees, and the value of your proficiency can often be leveraged to negotiate for a salary increase.” - Naya Joseph, 26, employee experience manager in HealthTech.
“I always ask for a little more money and if they say no I try for vacation days. When you've been there a few years, it's perfectly acceptable to get another job offer in order to negotiate higher pay/a raise at your current job. I did this a few years ago. I liked my job and wasn't ready to leave, but wanted to make more. It fast-tracked my raise. You should ask your work friends about their salaries, too.” - Julia Oller, 29, copywriter
“I've actually found it more helpful and empowering to think collectively: "If I advocate for myself or negotiate my salary, or ask others what they're being paid, I am raising the floor at this organization for the next person, making it clear to them that we have collective power, and that they cannot use stigma against pushing for more money against me and other workers.” - Sarah Philips, 25, political advocacy
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Originally Appeared on Teen Vogue
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