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.
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