Salary Negotiation Guide: A Playbook For Real Results

You did it, you got the offer! Now what? We've spent years thinking about and studying salary negotiation to bring you the best guide for different situations. No fluff, no filler, just what you need to do to get what you're worth.

The Two Rules of Salary Negotiation

Did you know that the average salary negotiator gets an 18% pay raise? Can you imagine how happy you'd be if you received a check for nearly 1/5 of your yearly salary on your doorstep tomorrow? You can begin celebrating, because you are probably worth more than your employer offers you. Salary negotiation has historically been a great benefit only for those who are confident and persuasive, but it doesn't have to be this way. Just mind the two rules of salary negotiation:

• Mind the needs of both yourself and your employer: There are actual hard limits for a manager, and employment is a deal between you and the company, so don't treat it like it's all for your taking, and nobody will be offended if you believe you're worth more.
• Treat this like any other negotiation, your employer will use persuasion to sway you: Imagine a used car salesman, they want you to leave with a good car, but also want to get the most money out of you possible. Your manager probably feels the same way. They know you need a job, and they also need you to accept the offer. Interviewing somebody is a painstaking process, and going through approvals to send an offer takes time. You do have leverage, even if you don't think so.

Take your negotiation seriously, and you will be rewarded in not just this job, but for the rest of your career. Your success depends on it.

Why You Shouldn't Negotiate Over Email

Most people are tempted to be impulsive and send a counter-offer over email. This makes intuitive sense, as it stays in writing and is easier to reference. This is a bad idea! Always start by scheduling a meeting with the person who sent the offer. Typically, this will be HR. They should have the ability to negotiate salary, and this is something they are trained to do. Getting a meeting, even over the phone, puts pressure on them and allows you to set tone in the conversation, which you can use to your advantage.

"You don't get what you deserve, you get what you negotiate."

Chester L. Karrass

The Negotiation Process

Preparation is the foundation of successful negotiation. Before you enter any salary discussion, you need to arm yourself with data, practice your delivery, and anticipate objections.

Internal Reflection

Before going into your meeting, you'll want to have 3 numbers in mind:

• What you'd be very happy to get.
• What you'd like to have.
• The minimum you'd be okay with.

Remember that the employer wants you to be happy, while getting a good deal for themselves. There is nothing wrong with your “very happy” number being a lot higher than what is offered, but it shouldn't be much higher than the high end of the range of average salaries for your field, experience, and location.

The Meeting

Don't begin the call with the salary negotiation. Get a feel for the person you're talking to. If you can make them laugh, that's even better. Nobody wants to be barked at as soon as the phone gets picked up (plus you might wind up working with this person). Once you feel a bit more comfortable, bring up the salary.

"I'm really excited about this opportunity and I can see myself making a significant impact here. Before I accept, I'd like to discuss the compensation package to make sure it reflects my experience and the value I'll bring."

When you bring up your compensation, express your gratitude for the offer at the beginning. Then, start around your “very happy” number, while expecting to get your “what you'd like” number in the end. Make sure to cite any applicable averages, and provide a good reason why you are the best fit for the job (experience, team fit, and education are strong for this). Remember, this isn't free money, so remain respectful of everybody's desires while not forgetting your worth.

Leveraging a Competing Offer

This is a tricky operation, because while a competing offer is leverage, it also provides an "escape hatch" for both parties. This should absolutely not be the first thing you bring up, and should fall later in the conversation.

I'm weighing another opportunity right now. What appeals to me about it is the 401k match, they provide a 1:1 match for the first 10%. I'd prefer to work here, but I think we need to look at this offer and see if we can get the base compensation closer to the number I threw out.

A competing offer is only useful if the competing offer has a better Total Compensation Package, or some aspect of compensation you really want. Having a competing offer is not leverage in and of itself.

Responding to a Lowball Offer

Sometimes employers will offer you a low salary to see what you think you're worth, and sometimes they actually can't afford to pay more. It's important to know your industry, the company, and averages for your local area.

It's also important to not feel pressured into accepting a lowball offer. Employers will generally know what the position is worth, and a lowball becomes a sort of test to see what you'll accept; they know you'll probably negotiate.

The offer I recieved shows an $75,000 per year base compensation, but given the averages on GlassDoor and Indeed, most people with this same title in Denver are around $125,000, with the low end at $80,000. I'd like to make a comparable amount given my...

Common Mistakes Costing People Thousands

Even experienced professionals make negotiation mistakes. Here are the most common pitfalls and how to avoid them.

• Revealing your current salary: In many places, employers can't legally ask this. Focus on your target salary instead.
• Accepting too quickly: You can always take time to consider an offer. Saying "I'd like 24 hours to review this" is completely normal.
• Focusing only on salary: Total compensation includes many components. You can be creative with what you negotiate. Often, the hiring manager has wiggle room in some areas and not others.
• Avoiding negotiation at all: 73% of employers expect it. You're not being difficult, it's completely normal.

Take Action Today

Salary negotiation is a skill that pays dividends for your entire career. The discomfort of a difficult conversation is nothing compared to years of being underpaid. Start with research, practice your approach, and remember that employers expect you to negotiate.

Whether you're negotiating your first job offer or asking for a raise after years at a company, the principles remain the same: know your worth, communicate your value, and don't be afraid to ask for what you want.