Have you made it past the interview process and been offered a job? What comes next? How do you negotiate salary?
Receiving a job offer after an interview is exciting—but it’s not the end of the hiring process. Next, it’s time to negotiate your compensation package.
Here are four tips for negotiating salary from Knock ’em Dead Job Interview by Martin Yate.
Negotiating Your Salary & Benefits
When you receive a job offer, it’s time to negotiate your compensation package to ensure you’re getting paid what you’re worth. By using strategic approaches, you can successfully conclude the negotiation process and secure the best possible deal. Here are four tips for negotiating salary.
(Shortform note: The suggestion to negotiate salary after receiving a job proposal assumes that all candidates are in a position to negotiate, which may not be the case for individuals with less leverage due to economic circumstances, industry norms, or other factors.)
1. Know Your Worth
To negotiate effectively, you need to understand your value and determine a range of potential earnings. Research the standard practices in your industry and assess your unique value within your field of expertise. During compensation discussions, highlight your commitment to ongoing professional development and emphasize any recent educational activities that demonstrate your up-to-date skills. Use salary estimation tools, analyze job postings, and seek advice from hiring experts to gather the necessary data to establish a salary range that accurately reflects the value of your skills and experience in the market.
2. Set Your Range
When you receive a job offer, it’s time to start negotiating salary and terms. In the early stages of compensation discussions, it’s best to suggest a broad range of salary expectations or avoid committing to a specific number to keep your candidacy for the position open. Be transparent about your current earnings and use that as a starting point to negotiate a significant salary increase. Focus your salary discussions within the range from your median to the highest figure you’ve determined. Show your understanding of the role’s responsibilities and steer the conversation in a way that encourages the interviewer to offer a salary range.
3. Look Beyond Base Salary
When evaluating the overall compensation package, consider more than just the initial salary offered. If the starting salary falls short of your expectations, consider shifting your focus to negotiating enhanced benefits and other forms of compensation. During later discussions or in a formal setting, ask about signing bonuses, review systems, advancement opportunities, and additional perks such as profit sharing or health insurance, all of which can increase the attractiveness of the job offer.
(Shortform note: The recommendation to consider all forms of compensation beyond base salary is important, but it may not take into account that some candidates, especially those in entry-level or precarious employment situations, may prioritize immediate cash compensation over long-term benefits due to financial necessity.)
4. Negotiate Benefits
During your salary discussions, inquire about the possibility of receiving a signing bonus, determine the timeline for potential salary increases, and explore the paths for career advancement and eligibility for performance-based bonuses. Discuss various aspects of the compensation package, from stock options, retirement plans, and overtime pay, to insurance benefits and paid time off. Choose to discuss the benefits at a later time, when conditions are more favorable for negotiating reasonable requests. After negotiating improvements to your benefits package, re-evaluate the starting salary to see if further adjustments can be made, completing the negotiation of your total compensation.
By following a systematic approach that starts with understanding your worth, progresses through effectively communicating your compensation expectations, and ends with a comprehensive evaluation of the overall benefits package, you can negotiate terms that benefit all parties in your professional engagement.
