Negotiating Salary - Key Tips

Salary negotiation is an integral part of any successful job search. If you are a job candidate, particularly in this economy you may think that the initial salary offer is a "take-it-or-leave-it" proposition. Or, you may fear that asking for more can make you seem grasping and or not a team player.

However, negotiating salary is a standard practice, something employers expect to do with their chosen candidates. Remember, your goal is not to "win," but to arrive at a mutually acceptable agreement. Follow these tips to negotiate a higher starting salary.

The key to successful salary negotiations is to know what you want and how to ask for it, as well as what alternatives you can comfortably accept. When you approach salary negotiations in this way -- armed with factual information and a clear idea of what you need - you are likely to find that it's easy to reach common ground and clinch the deal in a manner that satisfies everyone.

Being prepared is one of the key ingredients to making you a salary negotiation star. The first thing you need to do is to calculate and develop a clear idea of what your minimum salary requirements are. How much do you need to make a month in order to keep and support yours and your family's lifestyle and meet your financial goals? There's no point wasting your time -- and the company's -- interviewing for a low-paying job in a company or industry that may not be able to offer the wages you need.

You want to get an unambiguous idea of both the total monthly number but also have the components and have a cost figure assigned to each. This amount becomes your Walk-Away Number, the minimum salary that you can accept. From your research you should also develop a target number, the total package cash value of salary and benefits you are aiming for.

The next step is to research salaries and benefits for the types of jobs you are interested in applying for as well as company specific salary and benefits information. You need to research salaries for the career field and the geographic areas you're interested in. Fortunately the web provides an abundance of free resources to help you. Turn to our Negotiating Salary Research article for complete details.

Next you need to calculate your market value. This indicates where you are along the salary continuum for the job. Your research should give you a continuum of salary possibilities for the job you want. Now you need to figure out where on that continuum you fit.

However, there are several other factors including: geographic location, industry, company size -- and sometimes even who you report to that can effect the determination of your worth. You are worth different amounts in different markets. And, you may be worth more to one company than you are to another. All this means is that you need to be flexible in your approach.

Have a Firm Job Offer Before You Negotiate. You should have this information available before you go to the interview. During the interview it is important to talk about the job before you talk about or begin negotiating salary. The proper time to discuss your starting salary is after the job position has been defined and you are sure the employer understands what you are bringing to the table. Once you have negotiated the job and have an offer in hand, that's the time you should start salary negotiations.

Convey that you are flexible depending upon your more complete understanding of the job requirements and responsibilities. However you do it you want to turn the conversation to the job requirements and your qualifications. Part of your preparation should include practiced responses to politely deflect the salary question until the offer is made.

Once the topic is on the table what should you do? Let the employer broach the subject of salary first. That way you have a firm starting point that you can be assured of, when it is your turn. In the worst case scenario, if they go first, you certainly won't get less than their initial offer. Additionally, there is always the chance that they will exceed the starting salary figure you were planning to mention.

Your first response should be to repeat the amount of the offer and then remain silent as if you are thinking about it. Don't jump at the first offer. People value what they have to work to get. And, if they have given you a low-ball offer, now is the time for them to increase their offer. You also want to give yourself a chance to digest their offer.

Don't haul out your research too soon! Give yourself time to understand and evaluate the total compensation package including benefits that is being offered. If you have been thorough in your preparation you should be able to compute the dollar worth of those benefits and add this figure to the base salary for a more accurate compensation amount.

Look at the total package. In evaluating the proposal, take into account the dollar value of benefits and leaves, stock option and 401(k) plans, tuition reimbursement, employee assistance programs or vacation days. as well as such non-monetary aspects as title or free employee assistance programs. If the starting salary is not as high as you'd like, are there bonuses, performance-based raises or promotion opportunities that sweeten the deal? If accepting the offer will require you to move, tally up projected relocation expenses so that you can negotiate who will be the responsible party.

Before you start negotiating you want to understand the value of the total compensation package. So ask questions. You can be up front about what you are doing. You need a certain amount of compensation in order to pay your mortgage and/or provide for your family and you are trying to understand the complete offer.

Now is the time to share your research. Share your research for starting salary range and establish your individual value. Make sure your requested salary range is within the local market value for your profession in the geographic area. Be prepared with facts and figures. If you don't have justifications for what you are asking; if you can't answer why you're worth something, you won't be successful in salary negotiations.

You might start your response by saying: "Based on what others in this role are making at similar companies, the 15 years of experience I bring to the job and the commitment I'd like to make to the company, I believe your offer is on the conservative side." Compare your research with your offer. Are you under market, over market, or right in the range?

Make the case for your value as an employee: include a record of your contributions that defend the amount of compensation you are requesting. If you're in demand elsewhere, you have leverage. Draw attention to it, but be careful not to emphasize it too much.

Emphasize The Benefits Of Your Skills. Talk about your past experiences and have ready a list of what you have to offer. When you talk about your last job, describe your accomplishments and quantify your successes in terms of cost savings, increased productivity and overall contribution to the company. If you earned performance bonuses or incentive awards, mention those so that you'll be viewed as an achiever, well worth top dollar.

Keep in mind that an employer will likely view compensation data differently than you do. Two common points employers raise about this kind of research are the sources used to obtain the data, and whether the data matches your job profile, the company profile, and job location. So work out answers to both in advance.

Be prepared to trade. Decide which issues of compensation are most important - paid vacation time, for instance - and which are negotiable (for example, tuition reimbursement). Expect to make trade-offs.

And, Don't Bid Against Yourself. Once you've tabled your proposal wait for a response and don't back away just because you are uncomfortable with the uncertainty. Always have a reason for any concession you make and get something in return.

Negotiate in a respectful manner. Make it a friendly experience because if you decide to accept the offer, this individual will very likely be your new boss. People confuse asking for hard things with being stubborn and unyielding. They are not the same. Never be confrontational. You can be perfectly charming and still ask for difficult things. In fact in doing so, you demonstrate a key business skill that makes you an even more attractive employee.

Don't Get Discouraged During Salary Negotiations. The road to negotiating salary is filled with ups, downs and doubts, but persistence pays. Don't head for the hills if an employer doesn't immediately meet your expectations. Studies show that the person who hangs in and lives with the uncertainty the longest generally does much better than those who cave quickly.

Get It In Writing. Once you've agreed on terms, ask your future employer to draw up a letter of agreement that outlines the specifics of the offer, such as the position's key responsibilities, salary and any special arrangements that resulted from the negotiations.

Be Reasonable and Flexible. Negotiating means giving up some things in order to get other things that matter more to you. Decide which issues of compensation are most important - paid vacation time, for instance - and which are negotiable (for example, tuition reimbursement). Be willing to make and accept tradeoffs.


Marsha A. Ostrer is a mediator, conflict resolution trainer and lawyer who practices privately through Family Mediation of Cape Cod. Her conflict resolution specialty is successfully entering and defusing highly charged conflicts using a targeted mix of training and consulting.

She is also the founder and developer of all-things-conflict-resolution-and-adr.com website from which this article was developed. To view the complete article go to: . All-Things-Negotiating-Salary .