Should you negotiate salary? Absolutely!
Based on the time and resources that employers dedicate to the hiring process, if they offer you a job they want you! That’s just one thing to keep in mind as you engage in the exciting (and possibly nerve-wracking) process of salary negotiation. Although you’ve successfully navigated the hiring process thus far, don’t take your foot off the pedal until it’s a done deal. Salary negotiation is an important part of the journey to a new job that will impact both your personal and professional lives. How important is it? Consider this scenario. A company presents job offers to two individuals, with very similar skills and experience, that represent identical roles at a company. Candidate Joe doesn’t negotiate and accepts the initial offer of $35,000/year. Candidate Mary receives the same offer and effectively negotiates to secure a $40,000/year salary to start. If both Joe and Mary receive a 3% annual raise, Mary will have earned $250,000 more than Joe over the course of her lifetime. That’s a lot of money! Best practice is to negotiate in order to establish a salary that takes into consideration the skills, experience, and value you bring to a new employer. Here are three things you need to know when negotiating salary.
First of all, identify what you can negotiate. Many people believe that they can only address pay rate when negotiating a job offer. This is not true! Of course salary amount is your main concern, but there are many other valuable benefits that you can include in the conversation. Other elements include a signing bonus, relocation funding, stock options, retirement funding, start date, vacation/other time, office space/location, telecommuting options, educational reimbursement, commuting expenses, health/dental/life/optical/disability insurance, access to recreation facilities, work-related equipment (computers, etc.), performance review timing/frequency, child care expenses, and a housing allowance. Identify negotiating points that are valuable to you, and introduce them to the conversation when appropriate.
Next, it is essential to do your research. You should research and identify your target salary, minimum amount you’ll accept, and the corresponding range based on these numbers. Create a budget and consult a resource that will calculate the cost of living in your target city or state. A salary of $45,000/year goes a lot further in Atlanta, GA, compared to New York City. Research and identify your actual value; what are you worth to perform that job? You want to be compensated fairly, but also want to submit a salary request that is in alignment with your value, the job, and the industry. That leads us to conducting research about the job and industry. Consult salary guides and especially your network. Talk to professionals in the field regarding salary levels and how you can maximize your earnings. Understand industry standards, but also ways that you are uniquely qualified and can deliver exceptional value (which of course, should be identified as a point of leverage in your negotiation).
Lastly, be able to communicate your value with confidence and engage in a productive negotiation. When you negotiate salary, it is possibly the beginning of a long-term and mutually beneficial relationship for you and the employer. Be honest and positive throughout the process, as this will be a way you will build a foundation at that company. The employer should begin the conversation about salary, not you. This gives you a chance to build your candidacy so you’ll have leverage as you enter the negotiation process. Be mindful of your body language and don’t lose your cool! When possible, salary negotiation should take place in-person, and you should always get an offer in writing. Although it may be stressful, for best results take your time and don’t rush the process. Operate in good faith, and don’t enter the salary negotiation phase with a potential employer if you don’t have any intent on accepting the position. To best prepare, practice with a friend, family member, or with your university career services center. Anticipate scenarios and how you will react.
Remember, if they offer you a job they want you! Focus on your value and how you can make a positive contribution to the company. As you approach the process, do your research and understand you can negotiate more than money. Practice the process until you feel comfortable with how you present yourself and how you can navigate the negotiation process when the pressure is on. Work hard now so you won’t leave money on the table that could be in your pocket!
