How To Negotiate Salary

Ahh, you finally got that coveted job offer.  But what about salary?  Most companies, understandably, will attempt low-ball you on the first offer.  Their goal is to get the best talent possible for the lowest price.  Your goal, on the other hand, is to get the most money possible for the least amount of work.  Here’s how to go about getting the most out of your new job.

Salary Negotiation Tips

• Educate Yourself – The most important thing you can do going into a salary negotiation is know what your skills are worth.  Websites like salary.com can give you a decent overall idea of how much your skills are worth, but if possible you should go one better and ask friends in the industry or former colleagues what they think the position is worth locally.  Don’t ask them what their salary is, but ask for their opinion on how much you should go in asking for.  Chances are, they have a pretty good idea, especially if they’re in a management position.
• Let The Employer Make The First Offer – Don’t volunteer salary requirements right off the bat.  If possible, you want them to make an offer first.  Usually if nothing is discussed beforehand, the offer letter will include an initial offer and it will likely be a bit on the low side.  If so, make a reasonable counter-offer, but don’t just say “I won’t accept any less than $xx per year.”  Rather, back your request up with relevant statistics from the research you did above and emphasize how your skills will help the employer reach their goals.  Employers expect you to negotiate salary and as long as your counter-offer is reasonable, will probably be willing to compromise.  You might not get what you asked for, but you’ll probably at least get a moderately-higher counter-offer in response.
• If Asked About Salary Requirements Up-Front, Give A Range – Never say “I want $xx per year.”  You lose all negotiating leverage when you do this, because the employer now knows you’ll accept $xx per year.  But what if the employer had been willing to pay even more?  You’ve lost out.  The best response is something vague like “I’d like to earn at least the average market rate for my skill-set” or if pressed, give a range where the lower-end is moderately-higher what you want to be earning.  This gives you room to negotiate and “make a sacrifice” if need be.
• Never Lie About Your Past Salary – A reference check might expose your lie, and that’s an automatic red flag.
• Don’t Make Demands – Never say “I won’t accept any lower than $xx.”  When you do, you come across as militant and difficult to work with.  The goal is to command the respect of your counter-part and work towards a win-win situation.
• Be Confident! – I cannot stress the importance of self-confidence enough.  If you come across as truly believing you are valuable and have a lot to offer the organization, the hiring manager will unconsciously begin to share that view.  It is a fact of human psychology that people tend to value those who value themselves more highly than they would otherwise.
• Know What You’re Worth And Don’t Back Down – If you are desperate or looking for work in a recession, you might have to accept somewhat less than you’re worth just to pay the bills.  But under ordinary economic circumstances, there is no excuse for this.  If you knowingly accept less than you’re worth, you set the tone for being undervalued as long as you work there.  This is related to the principle above:  you’ve shown a lack of self-confidence and so will be valued less by those around you.  They will naturally assume you have some inadequacy to feel insecure about and treat you accordingly.