What is Salary Negotiation?

Salary Negotiation:
The process of coming to an agreement about salary and benefits in a new position. Gather information, plan your approach, and consider alternative viewpoints. Communicate clearly and specifically to reach the goal. Understand your strengths and resources; respond to the other party’s needs.

Back to the top

Things to Consider before Negotiating

There are three critical factors to consider when negotiating: Power, Time, & Information.

1. Power: As a negotiator, you need emotional intelligence (EI) to recognize areas of strength and weakness. What does the company need? What can they provide you? Knowing this information makes you a strong negotiator.
2. Timing: The best time to negotiate is after a serious job offer and before you accept it. Ask questions about the initial offer and ask for time to consider it. Employers expect you to ask for time to consider the offer.
3. Information: Do your homework, research, and have facts to back up your negotiation plans. You can obtain national economic information from the Bureau of Labor Statistics, US Department of Commerce, and US Bureau of Economic Analysis. Local economic information can come from state websites and city chamber of commerce sites; current trends in housing prices can be found on websites such as local realtors’ associations or online realty sites.

Determining how much you should ask for: 

Salary is typically not the only type of compensation that is offered. It is important to consider the total compensation package, paid and unpaid benefits and the business cycle.

• Total Compensation Package: Not just annual salary; includes the monetary value of other benefits (i.e., health insurance, vacation time); salary plus benefits.
• Paid and Unpaid Benefits: Employers make a distinction between benefits they do or do not pay for. Research the monetary value of both paid and unpaid, and the necessity of unpaid benefits. 
• Business Cycle: How developed is the company/organization? Identify the stage of development: start-up, growing, stable, or in need of a turnaround. Knowing the stage of the business cycle will allow you to determine how likely the employer might be open to negotiation. 
  • For example: If the company is a a start-up, they are less likely to be able to accommodate additional salary or other compensation requests.

Back to the top

How to Prepare

Negotiating your salary can feel intimidating. Here is how to prepare for a negotiation with confidence:

1. Do Your Research

Before the interview, know your worth.

• • Utilize websites such as NACE Salary Calculator, www.onetonline.org, Bureau of Labor Statistics, www.salary.com, ttu.steppingblocks.com, Glassdoor, and Payscale.
  • Gather information about the prospective employer before, during, and after the application process and before interviewing.
  • Use LinkedIn to network and connect with people who know the area and the company and are willing to share this information.
  • Consider your marketability. Review your education, skills, knowledge, experience, certifications, or anything that adds value. 

2. Determine your Desired Compensation Package

Figure out what matters most to you and what your desired salary is. 

• • Develop a target salary range based on your research.
    • Range should be realistic to the average salary or industry standard
    • Consider cost of living, geographic locations, education and experience, and long-term earning potential. 
      • Identify your deal-breakers: what is your walk-away price?
  • Consider other things that can be negotiable
    • Comp time (time off for overtime worked), Participation in the company's 401(k) plan, Immediate vesting in the company's savings plan, Stock or equity in the company, Paid life insurance, Continuing education or tuition reimbursement, Flexible work schedule, Child care benefits, Elder care benefits, An expense account, Parking reimbursement, Personal use of frequent flyer miles, Subscriptions to professional publications, Dues for professional organizations, A better office

3. Practice your Pitch

• • Talk with one of our Career Development specialists to help you understand how to communicate your salary expectations and to help you prepare your salary range.
    • Book an appointment with the Career Center to help you practice and gather research 

Back to the top

Communicating Salary Expectations

1. Interview Stage:

• Know your target salary range
• Practice responding to interview questions, such as “What is your desired salary for this position?”
  • Don’t give out your desired salary number first. Ask the interviewer, “What is the budgeted range for the position?” Allow them to disclose numbers first.

2. Received Offer

• Show appreciation and excitement for the offer
• Don’t accept right away. Ask for a timeline of when they need to receive and answer. Ask for an offer letter and benefits package.
  • Example: “Thank you so much for the offer- I am excited about this opportunity. Would it be possible to review the details and get back to you with an answer by the end of the week?”
• Further your research. Reevaluate your desired salary price and develop a range that is realistic to the offer they have extended.
• Identify the person of contact for negotiations
• When considering negotiations, identify the person of contact. This might be the hiring manager, HR representative, etc. 

3. Ready to Negotiate?

• Research has been collected, you have your desired salary and range determined, and you are ready to negotiate.
  • Reach out to your person of contact. Once again, always show appreciation. Thank them for the offer and express your excitement for the opportunity. Ask them if the offer is negotiable.
  • Here are some sample phrases you can use:
    • “Thank you again for the offer, I am excited about the opportunity and the skills I can bring to this position. After reviewing the offer package, I was wondering if there is any flexibility in the starting salary?”
    • “I am excited about the opportunity and appreciate the offer. I have reviewed the offer package and wanted to ask if the salary was negotiable?”
  • After asking to negotiate, you will likely be asked, “What did you have in mind?”
    • Be prepared to respond with your range. Ex: “Based on my background and research, I feel comfortable falling in between ____ and ____.” Remember, you should be able to provide evidence of background and research (experience, skills, average salary, etc.)  Highlight your skills and knowledge for positive impact and contribution. Be prepared to explain how your skills and knowledge align with the needs of the position and company.
  • If they cannot budge on salary, consider the other things that might be negotiable.
  • The employer will likely come back with a counteroffer. You will now need to evaluate that offer and where it falls in your range. Be prepared to make your final decision. 

Back to the top

sALARY nEGOTIATION tIPS

• Be Professional
  • During the negotiation process, remember that in some capacity, you are forming a working relationship with the other person. This is a colleague that you may work with each day or who supervises you. Be professional in your interactions, not confrontational. It is important to recognize your walk-away price or reservation price (lowest price acceptable). Understand when to end the negotiation process to either accept or reject the offer and move on with the job search.

• Consider Long-term Goals
  • Salary negotiation should not depend on short-term goals. As you think and plan, keep in mind long-term goals. Companies with these types of benefits will use them as selling points to keep you interested.

• Identify Factors of the Position
  • What opportunities for growth, education, and upward movement are offered by the company?
  • Are there additional benefits that outweigh a lower salary?
  • Do you have a network deep and broad enough to help in identifying opportunities?
  • What are the risks? Relocation, growth opportunity, or dead-end job.
  • Do you have the financial depth to negotiate for weeks or months prior to starting work?
  • Do you have lots of options, such as multiple job offers or the ability to relocate?

Do's and Don'ts

Dos

• Do conduct salary research before the interview
• Do wait for an official offer before negotiating
• Do express appreciation and enthusiasm about the offer
• Do be specific- prepare a clear salary range based on your research and experience
• Do consider the whole package
• Do stay professional and respectful
• Do schedule an appointment with the Career Center to prepare for a salary negotiation

Don’ts

• Don’t initiate salary discussions
• Don’t be the first to mention salary numbers, and don’t reveal your bottom line too early
• Don’t negotiate without preparation
• Don’t accept an offer on the spot

Back to the top