Why is Salary Negotiation Important?
It does not make economic sense for a company to offer you the maximum salary they can if they can try to get you for a lower price. You need to advocate for yourself to ask for the maximum a company is willing to pay you.
The Impact: Negotiating your first salary can not only impact your income right now, but can also impact future earnings throughout your career. People who negotiate their salaries can, on average, increase their salary by over 7%. So ask for what you’re worth—the worst they can say is no!
Step 1: Give Yourself Time
It can be really exciting when you get the call with a job offer to just say “I’ll take it!”, but it’s beneficial to give yourself some time to consider the options and approach negotiation and accepting an offer with a level head.
Try saying: “Thank you so much for the offer, I’m really excited about this opportunity. I’d like some time to consider, when do I need to let you know by?”
They will likely give you a deadline of a couple of days or a week. At this point, they want to hire you and you have some power in this dynamic.
Step 2: Do Your Research
In order to control the salary negotiation conversation, you need to have a number in mind for your desired salary. Research average salaries for your job title, location, and years of experience.
Step 3: Know Your Worth
Consider the value you bring to the position and organization. Don’t sell yourself short! Ask yourself:
- Do you have years of relevant experience?
- Do you bring particularly valuable skills?
- Do you have language or cultural skills that will enhance the job?
Step 4: Prepare a Counteroffer
Most employers make offers expecting candidates to counteroffer. Come up with a range that represents your market value. It’s not enough to say “I just want $70,000” — this needs to be based on data.
Set a Lower Limit: Decide on a final offer that’s so low you have to turn it down. This could be based on financial need, market value, or simply what you need to feel good about your salary.
Step 5: Practice
Come up with what you plan to say and then ask a friend or mentor to practice the conversation so you can feel more sure of yourself.
You: “Thank you so much for the offer. Is the salary open to negotiation?”
You: “I’m excited about this position because [Reason].”
You: “According to my research, a fair salary range for this job in this area is from $[X] to $[Y]. Given my previous experience/education in [Field], I believe this is a fair salary range for what I can contribute to this position.”
Other Points to Consider
Timing – Salary negotiation starts after you have been offered the job. Avoid discussing salary in an interview unless pressed. If asked on an application, write “Negotiable”.
Consider the Whole Package – It’s not just about the money! Benefits are worth a lot. Consider negotiating:
- Health insurance/dental insurance
- Relocation funds
- Retirement plans
- Tuition reimbursement
- Paid time off (vacation, sick)
- Flexible/Hybrid schedules
- Parking/commuting reimbursement
- Professional development
- Parental leave policies
Declining an Offer You may find that even with negotiation, a position isn’t the right fit. To turn down an offer professionally, contact the employer by phone or email. Keep it positive and gracious—do not ghost an employer!
Dear [Hiring Manager’s Name],
I would like to express my sincere appreciation for offering me the position of [Job Title] at [Company Name]. While I am grateful for the opportunity, I have decided to respectfully decline the offer as I have received an offer that better aligns with my career goals and aspirations.
I enjoyed getting to know you and your team. If there are any future opportunities within your organization that align with my career goals, I would be honored to be considered.
Sincerely,
[Your Name]
