5 Tips for Effective Salary Negotiations

personaltouchcareers

4 days ago

3 min read

Have you seen our viral Instagram video yet?

In it, I explain why you should never give your salary number first during an interview.

For people who have never negotiated their salary, it can feel like playing annoying mind games. However, when you realize that the ENTIRE job search is a game, you're more likely to win, including securing a higher salary.

Here are five tips to help you out.

1. Don't Say Your Salary Number First

The old interviewing rules said you should never discuss salary during an interview. However, that's not how the game works anymore.

HR now uses salary requirements to screen candidates, often during the initial phone interview. Look out, it's a trap.

Never give your salary requirements without discovering the company's range first.

So how do you find out? Just ask.

If HR asks about your requirements, say, "Well, I'd like to know a bit more about the job first. Can you tell me what your salary range is?"

Once you know their range, you can confirm whether it meets your expectations or walk away before wasting time on an undesirable position.

If HR doesn't bring up salary, you can still ask about their range. Discussing salary ranges early in the process is perfectly acceptable.

One unfortunate exception is the dreaded salary requirement field on an application, especially when it won't accept a range. In that case, enter a number near the middle of your acceptable salary range.

2. Know Your Worth

The employment market is constantly changing, including salaries. When was the last time you researched comparable salaries in your area?

NOTE: Looking at LinkedIn or Indeed job posts is NOT statistical analysis.

Instead, check sources that provide more reliable salary data rather than relying solely on what companies or employees report. Some of our favorites include:

Salary.com
Payscale.com
U.S. Bureau of Labor Statistics (for you hardcore data nerds)

Many job seekers are surprised to discover how much more they could earn when comparing salaries based on geographic area, industry, and experience level.

3. WAIT. Timing Is Important

When you get that job offer call, do NOT accept immediately. Even if it's your dream job at your desired salary, ask for at least 24 hours to consider the opportunity.

Why? Because you need to build anticipation as well as clear your own mind.

Most companies will happily give you 24 hours to consider an offer. Plus, you'll have time to evaluate the company's reputation, job duties, and every part of the offer. If they are not willing to let you consider the job, that may be a red flag.

After all, there's more to an offer than salary. That's why you need to...

4. Get It in Writing

Verbal offers are great, but they're only as good as the paper they're written on.

Before accepting anything, get the offer details in writing.

You don't need a formal contract. A simple email outlining the essentials works just fine:

Salary amount.
Basics of the benefits package.
Vacation amount.
Start date.

With these details in hand, you can start formulating your counteroffer.

5. Always Counteroffer

Here's my number one tip in salary negotiations: Always counteroffer.

Even if the company offers your target salary, you can still ask for more. If they can't increase the salary, consider creative negotiations, such as additional vacation time, bonuses, perks, or a hybrid work arrangement.

For salary, your counteroffer should not exceed 15% of the original offer. If you need more than that, you probably should have vetted the company's salary range earlier. Of course, you probably won't get the full 15%. Remember, it's a negotiation. Expect some give and take.

Many job seekers are afraid to counteroffer, especially when money is involved. However, most companies are prepared for negotiations, particularly with top candidates.

Sometimes the company cannot offer more salary. That is fine, so long as they are still being honest with you. Honesty at this phase of the hiring process is actually an indication of an honorable employer.

However, if the company completely rescinds the offer because you tried to negotiate, it means they don’t respect job seekers - or, by extension, their current employees. Congratulations. You dodged a bullet.