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Key Salary Negotiation Strategies
- Delay salary and benefit negotiations for as long as possible in the interview process. You'll have more power to negotiate when the field of candidates has been reduced to just you -- when the employer is completely sold on you as the best candidate for the position.
- Remember that you'll have your greatest negotiation leverage between the time the employer makes the original offer and the time you accept the final offer. Once you accept an offer, you have little to no room to negotiate.
- Don't negotiate at the time the initial job offer is made. Thank the employer for the offer and express your strong interest and enthusiasm in the job, but state that you'll need time to evaluate the entire compensation package. Most employers are willing to give you a fair amount of time to review -- and if you run across an employer who wants a decision immediately, consider long and hard whether you want to work for such a company.
- Do your research. The greatest tool in any negotiation is information. Make sure you have done a thorough job of determining your fair market value for the job you are seeking, the salary range of the job for this specific employer, and geographic, economic, industry, and company-specific factors that might affect the given salary. Also try to obtain information on the employer's standard benefits package so that you have information beyond salary.
- Just do it. While a large percentage of corporate recruiters (four out of five in one study conducted by the Society for Human Resource Management) are willing to negotiate compensation, only a small percentage of job-seekers actually do so. You don't have to be an expert negotiator to get a sweeter deal; you just need to know the rules and strategies of negotiation.
- Negotiate to your strength. If you are a smooth talker (an extravert), call the employer and ask for a follow-up meeting to discuss a counter proposal. If you communicate better in writing, follow our guidelines for writing a counter proposal letter (below).
- Always ask for a higher salary (within acceptable limits) than you are willing to accept so that when the employer counters your proposal, the salary should be near your original goal. And when possible, try and show how your actions (once on board) will recoup the extra amount (or more) that you are seeking -- through cost savings or increased sales revenue, productivity, efficiencies.
- If the salary you're offered is on the low end -- and the employer has stated that salary is not negotiable (probably due to corporate salary ranges or pay grade levels), consider negotiating for a signing bonus, higher performance bonuses, or a shorter time frame for a performance review and raise. Always negotiate base salary first, and then move on to other elements of the job offer.
- When presenting a counter proposal to the employer, be sure and include a few benefits that are expendable so that you can drop them in a concession to the employer as negotiations continue.
- Remember that even if all salary issues are "off the table," there are still numerous other benefits you can negotiate, such as moving expenses, paid vacation or personal days, professional training, and more. See the sidebar for the entire list of negotiable items.
- Never stop selling yourself throughout the negotiation process. Keep reminding the employer of the impact you will make, the problems you will solve, the revenue you will generate. And continue expressing interest and enthusiasm for the job and the company.
- If you have no intention of accepting the company's offer, don't waste your time or the company's by entering into negotiation. Negotiation is a process designed to find common ground between two or more parties.
- If you have multiple job offers, don't put the companies into a bidding war for your services; it rarely works out.
- Don't enter negotiations with the wrong attitude. Always have in the back of your mind that your goal with these negotiations is a win-win situation. You want to get a better deal, but you also need to let the employer feel as though they got a good deal as well.
- Given a number of factors, such as the strength of the economy, the size and vitality of the company, and the supply of job candidates with similar qualifications, some employers simply will not negotiate.
- Never make demands. Instead, raise questions and make requests during negotiations. Keep the tone conversational, not confrontational.
- Be prepared for any of a number of possible reactions to your counter proposal, from complete acceptance to agreeing to some concessions to refusal to negotiate.
- You have to be willing to walk away from negotiations. If you don't have a strong position (a good current job or one or more current or potential job offers), it will be harder for you to negotiate. If you really need or want the job, be more careful in your negotiations.
- Once the employer agrees to your compensation requests, the negotiations are over. You cannot ask for anything more -- or risk appearing immature or greedy and having the employer's offer withdrawn or rescinded.
- Always be sure to get the final offer in writing. Be extremely wary of companies that are not willing to do so. Note: one advantage of writing a counter proposal letter is that you list the terms of the offer in your letter.
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