This is an excerpt from Dollar Scholar, the Money newsletter where news editor Julia Glum teaches you the modern money lessons you NEED to know. Don’t miss the next issue! Sign up at money.com/subscribe and join our community of 160,000+ Scholars.
Remember those childhood dinners when your parents served green beans, and you’d playfully suggest, “What if we had French fries instead?” If your family dynamics were similar to mine, you would likely be met with a firm, “This is not a negotiation.” However, as we grow older, we learn that the art of negotiation is not only acceptable but essential, especially when it comes to discussions about your salary and compensation.
Recently, I’ve found myself reflecting on this concept of negotiation as many of my friends are in the final stages of interviewing for new positions. As the Dollar Scholar, I feel it is my responsibility to encourage them to advocate for better salaries from potential employers. While it can be intimidating to discuss compensation, I firmly believe that they deserve to be compensated fairly for their exceptional skills and talents.
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Master Your Salary Negotiation Skills with These Essential Do’s and Don’ts
To gain deeper insights, I reached out via email to Amy Crook, head of global talent, and Cortney Holt, senior manager of talent, at Glassdoor. They shared valuable advice and strategies that can empower job seekers during salary negotiations.
DO… Embrace Your Power in Negotiating Salaries
Negotiating your salary is a crucial yet often underutilized skill. According to a 2022 survey by Fidelity, a staggering 58% of young professionals accepted job offers without even attempting to negotiate. In stark contrast, 87% of those who did negotiate successfully secured at least some of the compensation they requested. “It is definitely not rude,” Holt emphasizes. “In my experience, I believe most companies are willing to negotiate, but you’ll never know unless you ask.” The statistics support this notion; in 2021, an impressive 89% of employers surveyed by Brightmine revealed they were open to salary negotiations with candidates. Notably, in industries like advertising, marketing, and tech, negotiating your salary is not just accepted but often anticipated.
DO… Maintain Transparency in Your Requests
Being upfront about your salary expectations is critical. During the interview process, avoid introducing a significant number at the last minute; this can lead to misunderstandings and wasted time for both parties. As Crook points out, clarity on compensation expectations can save valuable time. “As a recruiter, I want to know exactly what a candidate is expecting in terms of compensation so I can advocate for them and secure the best possible offer,” Holt states. Establishing this transparency helps create a smoother negotiation process.
DO… Foster a Likable and Professional Image
When entering salary negotiations, you likely have a broad idea of the salary range you are willing to accept. While it’s important to know your worth, it’s equally vital to express genuine enthusiasm for the position. “Reiterate your excitement and interest in the position and company, so they know your ultimate goal is to accept the offer,” Holt advises. Being courteous and respectful in all your communications, whether through email or phone calls, can significantly impact the negotiation process. This approach is beneficial in all professional interactions, not just salary discussions.
DO… Prepare Thoroughly for Your Negotiation
With several states, including California, Colorado, and Washington, enacting laws that require job postings to include salary ranges, it’s essential to conduct thorough research prior to negotiations. Begin by gathering evidence that supports your claim for a higher salary. According to a recent blog post by Indeed, you can substantiate your worth through your years of experience, relevant degrees, specialized skills, leadership abilities, licenses, certifications, and quantifiable achievements from previous roles. This information can effectively bolster your case for increased compensation. Additionally, understanding the industry standards for your role and the cost of living in your area will provide a solid foundation for your salary request. Utilize multiple resources, including PayScale, LinkedIn, and the U.S. Department of Labor, to gather comprehensive data.
DON’T… Resort to Dishonesty During Negotiations
During the interview process, you’ll likely face difficult questions regarding your salary expectations and whether the company is your top choice. Crook stresses the importance of honesty in these discussions; for instance, if you do not have a competing offer, do not claim that you do. “I would be honest with your feelings about the salary and come prepared with the reasoning behind your request for additional compensation,” Holt suggests. Once you present your counter-offer, it’s prudent to ask the recruiter for a realistic timeline regarding a final decision.
DON’T… Feel Obligated to Disclose Your Current Salary
“You should only confirm what your salary expectations would be for the role you are interviewing for,” Crook advises. Disclosing your current salary is not mandatory, and in some jurisdictions, it may even be illegal for employers to ask this question. Focus on discussing the compensation that aligns with the new position rather than your past earnings.
DON’T… Neglect the Value of Additional Benefits
It’s important to recognize that company budgets can be limiting. In some cases, the employer may genuinely be unable to increase your base salary. However, there may be more flexibility in enhancing your overall benefits package. Consider negotiating for additional vacation days, signing bonuses, improved job titles, stock options, or advantages like remote work flexibility, professional development opportunities, or adjusted start dates. All of these aspects can be valuable and worth discussing during negotiations. If you have multiple benefits you wish to negotiate, it’s wise to present them simultaneously to avoid prolonging the process.
DON’T… Hesitate to Walk Away if Necessary
This aspect can be particularly challenging, but it’s essential to be prepared to walk away from an opportunity if the compensation does not meet your expectations after thorough evaluation. “If you have been clear and consistent with your compensation expectations from the start and at the last hurdle they give you a low offer, I would probably decline,” Crook states. “Remember, this process is as much about you assessing the company as it is about them evaluating you.” Being willing to walk away can sometimes lead to better offers or a more suitable job fit.
Key Takeaways for Successful Salary Negotiation
Successfully negotiating your salary takes effort and strategy, but it is within reach, especially when you leverage these practical tips and insights.
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