When an employer extends a job offer, they’ll usually present you with a compensation and benefits package verbally or in writing, along with a proposed salary. If you don’t feel the pay aligns with your education, career level, skill set and experience, you may choose to negotiate for more money. You may also suggest another form of compensation, such as equity or stock options, or additional perks, such as extra vacation days.
In this article, we explain how to negotiate the salary you want in 13 steps with examples of how to initiate the discussion and frequently asked questions about salary negotiation.
Key takeaways:
- Research industry salary trends and evaluate what you have to offer when negotiating your salary. Consider presenting a salary range rather than just one number.
- Your geographic location, years of experience, managerial experience, education level, career level, skills, licenses and certifications can influence your salary.
- Don’t be afraid to walk away from a job offer if the employer can’t meet your minimum salary requirement or offer additional benefits that make it worthwhile.
Here are a few tips to help you prepare for salary negotiation:
1. Start by evaluating what you have to offer
Knowing how much value you can offer an employer is important before beginning the salary negotiation process. Several factors can influence your compensation, such as:
Geographic location: Consider the cost of living in your geographic location. For example, you might require a higher salary in San Francisco than in Minneapolis for the same job because living there generally costs more.
Years of industry experience: If the job description requires three to five years of experience and you meet the higher requirement, it might warrant a higher salary.
Years of leadership experience: Similar to industry experience, if the employer prefers or requires leadership skills and you meet or exceed their expectations, it may be justification for higher pay.
Education level: Relevant bachelor’s, master’s, doctorate or specialized degree programs can impact your compensation.
Career level: Generally, you can expect a higher pay range as you advance in your career.
Skills: Niche or technical skills that take time to master may attract higher salaries.
Licenses and certifications: An employer may require or prefer that you have specific licenses or certifications. If you already have them, you might be in a good position to request greater compensation.
When you begin your salary negotiation, be sure to reiterate why you’ll be a valuable employee and use the above factors to justify your desired salary.
2. Research the market average
The market average salary is a good baseline for your salary request and can even be used as justification. Here are some questions to consider as you begin your market research:
- What’s the national average salary for the position?
- What’s the average in your geographic location and cities nearby?
- How much do similar companies in your area pay employees in this position?
3. Prepare your talking points
As you’re developing negotiation notes, it might be helpful to answer the following question as a framework for your conversation: Why do you feel you deserve a higher salary than the one the employer is offering?
Kate Palmquist, who’s held various roles in HR over the last decade, offers this advice about asking for additional compensation:
“When asking for additional compensation, be sure to provide one to two solid examples of why the company should invest more in you. It’s important to avoid asking for more money without any reason, much as you wouldn’t spend more of your money without understanding the value of the product. Provide a relevant example from your past that can persuade the hiring manager to increase your income. Outside of income, you can also negotiate benefits, time off or other valuable perks.”
Put together a few talking points before you contact the employer, and be as specific as possible. You might include information such as:
- Results you’ve achieved in previous roles, including goals you’ve met, the revenue you’ve helped generate or awards you’ve earned. If possible, use actual numbers
- Years of industry experience, particularly if you have more experience than the employer stated as a minimum requirement
- Skills or certifications, especially if they are in high demand within your industry
- Average salaries being offered by other employers for similar roles
4. Schedule a time to discuss
Contact the recruiter or hiring manager to set up a time to speak over the phone. While it’s acceptable to negotiate over email, it’s more effective to have a verbal exchange. Speaking over the phone, in a video call or in person allows you to have a back-and-forth conversation, express gratitude and clearly communicate your requirements. Be respectful and clear, as the recruiter or hiring manager will be the ones advocating for your salary to the decision-makers.
5. Rehearse with a trusted friend
Practicing your talking points can help you gain confidence and identify areas for improvement. The best way to practice is in front of a trusted friend or colleague who can provide helpful feedback. You can also try recording your conversation on camera or speaking in front of a mirror.
This step is especially important because talking about money can sometimes feel uncomfortable, but the more you practice, the more comfortable you’ll feel when it’s time for the conversation.
6. Be confident
Speaking with confidence is as important as the words you say. The more confidence you convey, the more confident the employer will be in their consideration of your feedback. Lack of confidence can also result in over-explaining or apologizing for your request, neither of which is helpful in a negotiation scenario.
Confidence, an appreciation of our own abilities and qualities, should not be confused with arrogance, an exaggerated sense of our importance. Appearing overconfident or arrogant always gives a negative impression. Instead, confidently and simply state your requested salary with a brief summary of your talking points.
7. Lead with gratitude
Once you reach the job offer phase of the hiring process, you’ve probably invested a great deal of time and energy applying and interviewing for the position. The employer has also invested time in the process, so it’s crucial you recognize this and thank them for considering you. Be sure to share specific reasons why you’re excited about the job, such as the culture or the product.
Be courteous and cautious when requesting additional compensation with the company. You never want to come across as entitled or offend them with a salary far above what they initially offered.
—Kate Palmquist
Even if you end up declining the offer, it’s important to do so in a friendly and professional manner. After all, you never know what opportunities they may have available for you in the future.
8. Ask for the top of your range
One fundamental rule of salary negotiation is to give the employer a slightly higher number than your goal. This way, if they negotiate down, you’ll still end up with a salary offer you feel comfortable accepting. If you provide a salary range, the employer will likely err on the lower end, so be sure the lowest number you provide is still an amount you feel is fair.
9. Consider job-related expenses
Another reason you may ask for an increased salary is to cover any costs associated with taking the job. For example, if you’re relocating to a new city for the job, you’ll have to pay moving expenses as well as any costs associated with selling or leasing your current home. If you’re taking a position further away from home, you’ll have to factor in commuting expenses such as train fare or gas and wear and tear on your vehicle. It’s not unusual for candidates to ask employers to adjust their salary to account for expenses related to accepting the position.
10. Prepare for tough questions
Recruiters and hiring managers negotiate often, so they will likely be prepared to ask important, sometimes intimidating, questions to determine your motivation. It’s important not to get rattled by these questions and to remain honest. Some questions you can expect include:
- Are we your top choice?
- If we come up in salary will you accept the position immediately?
- Do you have any other offers?
11. Be flexible
Even if the employer cannot provide the salary amount you want, they may be able to offer other forms of compensation. For example, you may be able to negotiate benefits, extra vacation days, a sign-on bonus or additional work-from-home days to combat a lengthy commute. Be ready to ask for alternatives if the employer immediately lets you know they cannot increase the salary offer. Sometimes, the alternatives may be just as valuable as a paycheck.
12 Ask questions
If the person you’re negotiating with seems surprised, reacts negatively or immediately rejects your counter, try to remain confident and calm. Meet their reaction with open-ended questions to find out more information and keep the conversation going. Examples of questions include;
- “What is the budget for this position based on?”
- ”What information do you need from me to make a decision?”
- ”Are there other negotiables available besides salary?
13. Don’t be afraid to walk away
Sometimes, an employer may not be able to meet your minimum salary requirement or offer additional benefits that make it worthwhile. Or the employer may counter-offer with a higher salary than their first offer but not as high as your request. In this case, you’ll need to decide if the job is worth the lesser amount.
If it’s less stressful than your current position, closer to home or offers you more flexibility or more free time, you may be open to a lower salary. If not, consider declining the job offer.