How to Negotiate Salary – Tips for Success

You got the job…congratulations! Now it’s time to consider the offer. In this two-part series, Marchon Partners discusses both how to negotiate salary and how to evaluate the entire compensation package.

In Part One, we tackle the salary conversation. Salary is an important measure of value and achievement in your career, and for many, the most important part of a job offer. Here are our top salary negotiation tips for success.

Know Your Worth

The first step preparing for a successful salary negotiation is knowing your worth relative to the market pay rate.

Several factors influence what you are worth to a company. Obvious items include your level education, certifications and years of experience in the field. Don’t discount work in different fields but be prepared to connect that experience to the needs of the hiring organization. Also, think about unique skills you may have (coding languages, for example) that are scarce in the job pool.

The market rate for your potential role will also influence the salary offer. Unfortunately, no matter how experienced you may be, certain job categories will hit a salary ceiling. It’s important to understand that in advance. Geography and cost of living also impact salaries; for example, the same job will pay more in New York City than in a small, Midwest town. Finally, supply and demand will always come into play: companies will pay more for skillsets that are tough to find.

If you are working with an experienced staffing firm, like Marchon Partners, your consultant will be an expert on compensation rates and can be a great resource in this process. If you’re not so lucky, there are several ways to learn about compensation.

• Ask friends or former colleagues, especially if they are in managerial positions or human resources. Traditionally, salary has been a taboo topic, but if handled tactfully, it is a very valid point of discussion with your professional network.
• Look at similar job postings that include salary.
• Consult with online resources and calculators such as Glassdoor or PayScale.

How to Discuss Salary

Discussing salary can be uncomfortable. The reason? Many feel ill-prepared for the conversation. If you know what you are worth, you have already taken an important step forward. Here are some scenarios to help you further prepare your approach.

Target Salary – You may be asked what salary you seek. The number-one rule in salary negotiations is to keep your options open. Exact numbers can be limiting, so stick with ranges to give yourself negotiating room. Of course, the low end of your range should still be strong enough for you to accept. If asked why you have a range, explain that you are considering the total compensation package (see Part Two in the series) and would be willing to compromise on salary for other benefits.

Previous Salary – If you are asked, be honest about your previous salary. If your salary was low, acknowledge it, but also explain why. You may have stayed in that lower paying role for a reason, but don’t let it define your next salary.

Multiple Offers – If you have multiple offers, it’s perfectly acceptable to use this to your advantage in conversations with hiring managers or HR contacts. Of course, integrity is a big factor in this bargaining chip—always be honest with the information you share and your intentions.

Be Your Own Advocate

Among salary negotiation tips, this one often gets overlooked: if the offer is low, make a case for why you deserve more. Do you have a specific skill they need? Have you solved the same problem they seek to solve? Through the interview, you will have learned about the organization and can speak to specifics. Put together an email, with examples and preferably portfolio pieces, to show why you deserve the investment. Give the hiring manager the ability to champion you with senior executives to get approval for more money.

Should You Ask About Salary Early?

As we already mentioned, salary has traditionally been a taboo question during the interview. But one camp of professional recruiters actually encourages interviewees to ask about salary early to avoid wasting time.

Those against this approach, say that interviewees who bring up salary appear too money motivated. More importantly, they say that forcing a salary discussion early in the interview may end the process prematurely. Candidates miss opportunities to have a company “fall in love with them” and shift the balance of power in the conversation. Companies have been known to offer more money or other benefits for the right person.

The best answer? Unfortunately, it depends. If you are employed and not actively pursuing a job, perhaps you feel emboldened to cut to the chase in the interview conversation. But, if are on the job hunt, waiting until the offer is definitely less risky. And, if you do your homework on how to negotiate salary, chances are you’ll end up with the salary you deserve anyway.

Of course, salary isn’t everything. Check out Part Two of our series for discussions about other areas of compensation and intangibles you should consider in a job offer.