5 Steps to Salary Negotiation

5 Steps to Salary Negotiation

Negotiating salary while on a job search remains a mystery to a lot of people. Job seekers sometimes quote good information but apply it at the wrong time, or skip steps in the negotiation process. The same applies for people seeking a raise. To demystify it, here are five basic steps - in order of the way they should be done.

Step 1. Research Your Market Value Then Decide Your Salary Range.

Don't be caught off guard if asked about salary early in the interview process. A prospective employer could ask you about salary at any point, even in the first conversation. While your aim is to not disclose that information (Step 2), it would be negligent of you to not know the answer for your own benefit or if pressed for an answer. Salary research is particularly important for people who have worked in the same organization for several years; it's possible that new hires have gotten significantly higher salaries than the 2-3% annual raise you've gotten. Glassdoor.com is a good place for information on salaries, company culture and even interview questions.

Step 2: Don't Reveal Salary Range To An Employer Unless Absolutely Pressed.

If asked about salary before being offered the position, your response should be, "I'd like to focus more on the position than on the salary at this stage" or "I'll have a more accurate sense of my requirements when I learn more details about the job." Most will accept that. If they don't, it's not because they're evil - it's because they don't want to waste your time and the interviewers' time going through an interview process only to find that salary expectations are far apart and can't be bridged. If pressed, you should give an answer. Generally though, you should avoid salary. You don't want to risk stating a number lower than what they would have given you. Wow them during the interview process and see what they offer in the end. If you've experienced a lot of frustration by going to the end of interview processes only to be continuously low-balled, or if you're very inflexible about salary, you may want to discuss salary early.

Step 3: If Pressed to Discuss Salary Before The Offer, Give A Range - Not A Number.

If your salary is below six figures, you should give a $10,000 range. For example, if $55,000 is your target, your range should be $50,000-$60,000. That's low enough to be competitive with other candidates who give a low number but high enough to negotiate more if you learn during the interview that the department, your boss or your position are a mess. If your salary is between $100,000-$200,000, your range should be $20,000, then broader ranges for higher salaries. You also have to be comfortable with the fact that, even with a range, you and the employer may still not agree. In that case, if you've done your research (Step 1) and the employer still says your numbers are too high, you may need to walk away because you're being low-balled.

Step 4: Upon Offer, ALWAYS Negotiate For A Higher Number.

[Remember: Your aim is to not discuss salary before the offer.] When the offer is made, keep in mind that an employer rarely puts forth their best number. They anticipate a negotiation and start with a lower number. So, even if the offer is higher than you expect, always ask for more. That does not mean that you give a counter-offer. *Candidates should not be in the business of giving numbers.* You risk low-balling yourself. Just say you are excited about the position but were hoping for a higher salary. The recruiter may give another number or may ask what you expect. At that point, give a number equal to the range you had in mind, ie: $10,000 or $20,000 more than the offer. You'll likely meet midway. Women should pay special attention to the admonition to negotiate. Research shows that one reason for the gender wage gap - though there are certainly others - is that most men negotiate offers while most women don't, often because women feel "grateful" or don't want to seem "difficult" while their male counterparts feel deserving and advocate for themselves. See Linda Babcock and Sara Laschever's book, "Ask For It: How Women Can Use the Power of Negotiation to Get What They Really Want."

Step 5: If You And Employer Still Have Differing Numbers, Ask To Meet In Middle.

Let's say you're offered $75,000 but the range you had in mind was $85,000-$95,000. When you tell the recruiter you're excited about the position but were hoping for a higher salary, s/he replies with an offer of $80,000. Don't stop. Say, "That's certainly better, and I appreciate it, but the minimum I was thinking is $85,000." (You could say $90,000.) The recruiter may say yes or s/he may say that's higher than they're willing to pay. At that point, you say, "I understand. How about we meet in the middle? You've offered $80,000 and I was hoping for at least $85,000. Let's split the $5,000 difference and make it $82,500. Does that sound fair?" A lot of people will say yes. You've just raised the offer from $75,000 to $82,500.

Salary negotiation isn't easy but it's not the unbreakable code. Do 'role plays' with friends, family or your alma mater's career services office to practice becoming comfortable with the steps and language - and then go get the salary you deserve!


Donna Hay-Jones, JD, MA, is Managing Director of Maplewood H68, a company that works with Advancement teams of nonprofit colleges and universities to engage alumni by providing career/professional development programming to alumni and through inclusion strategies to reach underrepresented alumni.

Walton Jones

Pastor at Greater Antioch Missionary Baptist Church

7y

Thanks, Donna!

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Tristan Alltimes

Global Engagement & Strategy | Alumni and Supporter Relations and Individual Giving Leader | Networker, Relationship & Community Builder | Advancement Ambassador and Thought Leader | Chairman | Volunteer | Mentor-Tutor

7y

John Gurskey

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Morolake Thompson

User-centered experience advocate at Google

7y

Thanks for this Donna! It's fantastic!

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Jason Evans

Global Business Process Expert, Order Management at Philips

7y

Great insight Donna! Thank you...

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