Know Your Worth. Only 29% of Job Seekers Negotiate Their Salary When Offered a New Job
By Kristin Hodgkinson, Lois Hines, and Wendy R. Weidenbaum
So, you’ve landed a new job. Congratulations! After going through a long (and sometimes stressful) interview process, there’s no better feeling than landing that offer. However, before you begin the celebrations, remember that being offered the job is often only half the battle.
The next hurdle to overcome is salary negotiations.
While many would consider a salary negotiation the obvious next step after getting a job offer, the reality, according to CNBC, is only 29% of job seekers negotiated their salary at their most recent job. However, according to that same article, 84% of individuals who did negotiate their salaries were successful in securing higher pay. The difference between those willing to negotiate and those who are not lies in whether or not the individual is comfortable asking for more money. Now, you may be thinking that feeling confident having these conversations is purely a matter of personality. However, like most things in life, all it takes is a little practice to ensure a level of preparedness. So, what are the steps for you to take to successfully negotiate your next salary?
Negotiation Is Expected
An important thing for strong job candidates to remember during the hiring process is that negotiation is expected and you have bargaining power. The hiring manager has likely put a considerable amount of time into screening you, setting up interviews, and architecting your offer. The bottom line, the company wants you for this job.
Consequently, when they present you with a salary amount, often times they’ve built in a little wiggle room to account for negotiations. Keep this in mind to prevent leaving money on the table that could’ve ended up in your pocket.
Do Your Homework
When the offer is made, respectfully tell your prospective employer that while you’re interested in accepting the role and excited about working at the company, you’ll need time to consider the offer before giving them a final commitment. By giving this conditional acceptance you will bond with the person making the offer, and ensure she knows you want to continue this discussion. She has spent a significant amount of time, effort, and money recruiting you, and she will not want to lose you now that the company has committed.
If you haven’t done this already, and before going back to negotiate, take some time to research the industry and get a better understanding of what the average pay is for the role you’ve been offered. Try using job sites like glassdoor.com that crowdsource salary information from professionals in a variety of fields. This will give you a better idea of the acceptable range you can negotiate within for your potential new role.
Next, take some time to not only look into the types of skills that your employer is looking for, but also skills that help individuals in this field be successful. That way, after taking inventory of the skills you possess and comparing them against what your employer is looking for, you can understand if there are areas where your value surpasses those originally laid out in the job description.
Be Up Front and Start a Dialogue
Once you understand the range that you can negotiate within as well as where you fall on the skills spectrum, pick a number and don’t be afraid to ask for it. Just remember to be realistic.
If your potential employer comes in with an offer that falls short of your expectations, don’t become defensive or defeated. Start a dialogue by saying, “I’m so excited about joining the team. However, when it comes to compensation, I was hoping for a bit more. Would you be open to discussing this?”
This way you can let the hiring manager know you are interested in the role, yet you’d like to work together to settle on a number that works for both parties. If there is no room for salary negotiations, be creative. Explore what else the hiring manager could offer you that will make you happy to start the job. Whether it be a signing bonus, commuting costs reimbursement, or restricted stock, be sure to think through what other non-salary benefits will adequately make up for the lower salary offer. Remember, if the position is bonus eligible, ask for a guarantee on the first year’s. This will allow for you to avoid any possible prorating of this bonus.
Be Prepared to Prove Your Value
After you’ve opened up the dialogue and requested more money, be prepared to prove your value. The hiring manager will likely want to hear why it is she should pay you more. An important thing to remember is to never say “because I’m the best person for the job.” The hiring manager is well aware of this, because she has already offered you the job.
Instead, be prepared to present 2-3 examples, rooted in data, that demonstrate why you are valuable enough to be paid more. Did you increase sales by 40% at your last job? Or did you lead a campaign that won multiple awards and recognition for your employer? Then don’t be shy about it! State these fact-based reasons as proof that you are worth the salary you requested.
Keep Yourself “Whole”
When it comes to any job negotiation, it’s important to consider what you need to be “whole.” In other words, what will make you completely satisfied with your decision to work there? The goal is not to just get a job; the goal is to get the job that will help you gain needed technical, strategic, or managerial experience and skills.
It is always recommended that you take a long-term view. Will this position help you strategically get what you want in the next job? If there is no room for negotiation and the position really doesn’t fit with your long-term career plan, are you prepared to walk away? Go into all negotiations with a game plan and keep what will make you “whole” in sight.
Asking for more money can be uncomfortable. By following these tips, you can ensure you’ll be prepared to not only ask for what you’re worth, but also be successful in your negotiation.