Negotiate for Salary & Benefits
Which of these is true?
- Most new employees negotiate their salaries.
- Asking for a higher salary is usually unpleasant.
- It's tricky to know what salary to ask for, since finding salary information for jobs in your community is so hard.
- Companies and organizations are often shocked when people who receive a job offer ask for more money.
- Getting a slightly higher salary at the beginning doesn't matter that much in the long run.
Actually, all the statements are false. Here's why.
- Almost two-thirds of men negotiate their salary or benefits
when they apply for a job. But fewer than 10% of women do.
Professor Linda Babcock and writer Sara Laschever researched why. In their book "Women Don't Ask: Women and the Gender Divide," they report that women want to get money discussions over as quickly as possible. Employers who realize this may offer lower salaries to women. They think that women will accept a first offer.
Does the idea of negotiating with a new employer make you feel uneasy? Push yourself as much as you can to do it anyway. It's worth it.
- It is possible to negotiate politely for more money or better benefits. Harsh words or confrontation are not necessary.
You can practice what to say. Examples include:
- Can you go higher?
- I was expecting more/that's less than I was expecting. Is that the maximum?
- What can you offer in the range of $____ to $____? That's what similar jobs in our region are paying.
- Let's talk about benefits. Can you increase the vacation days?
- Is there a signing bonus we can discuss? (This is not unusual for hard-to-fill jobs. Or for jobs in small towns where companies want to persuade applicants to live.)
Stay silent after asking one of these questions - for 30 seconds, if you can. It's easier if you look down. This is worth rehearsing with a friend. Let the interviewer fill the silence with a new offer.
Of course, if the offer meets or exceeds what you expect, you can answer honestly. "That's great." "That's in the ballpark." "That's in the range I was thinking of."
- It's usually pretty easy to figure out what salary to ask
for. Give a range. Base the range on what jobs like this one pay
in your area.
Older workers will usually want to move the bottom of that range up, to reflect your experience and the value of your age to an employer.
Knowing what similar jobs in your geographic area pay is one of the best things you can do before your interview. You can find this information easily, for free. The Internet is best, since books with salary information go out of date quickly.
Start your salary search on America's Career InfoNet, sponsored by the U.S. Department of Labor. You can also use private Web sites to refine your search.
- Almost all employers actually expect new employees to
negotiate for a higher salary or better benefits. They prepare
for this. They usually offer you less at first, waiting for you
to request more.
Most government jobs are exceptions. The salary for each pay level is already set. But you can negotiate for a higher level or grade.
- A little more money can add up to a huge difference over
time.
In their research, Babcock and Laschever found that negotiating $5,000 more for a first job could result in $360,000 more in earnings over a career. The difference for you may not be that great - but there will always be a difference.
Think of your salary and benefits as a reflection of the skills you bring to your new employer. Value yourself by knowing what you're worth. Then ask for that.
How to Handle Salary Discussions
Follow these tips to increase your chance of getting the salary and benefits you deserve.
- Before your interview, write down your salary and benefit
priorities.
Making a written list helps you remember later, when you may feel a little tense.
What is the highest possible salary for this job? Stay realistic. But the upper edge of realistic is fine. Know the lowest salary that you will accept.
Figure out the benefits that are most important for you. Know which ones you'll try to change or increase if the salary offer isn't as high as you'd like.
- Do everything you can to postpone a salary discussion until
you have a job offer.
Why? When you have an offer, you know the employer wants you. You are at an advantage then.
It's also important to avoid discussing your past salary. You want your job offer to reflect your future work, not your past. And for older workers, it is more likely that past salary does not show what you can do now.
If you are pressed to give your salary history, you can say:
"It feels a little early to talk salary. First, I'd like to talk more about how I can contribute to the company."
"I've been lucky to work for companies that pay well. I know that you do too."
"I think I bring the skills this organization needs. My salary history doesn't determine the good match we have."
Then, try to change the subject. Ask a question about the job.
If you can't get out of giving some salary history, give the widest range you can. For the low end, tell your lowest salary without benefits added in. For the high end, give your highest salary with every benefit you can think of added in. At this point, you want to avoid under- or overpricing yourself.
If you are pressed to state your salary requirements for the new job, give the range you have researched. If the lower end of that range is too low for you, don't say it. Move the range up. Once you describe your acceptable salary range, it's hard to negotiate higher. - Stay calm and reasonable. Approach the negotiation as a
win-win - for you and for the employer.
Practice some negotiating phrases before your interview. Show the employer that you are a skilled problem-solver and communicator. That's the kind of person they want to hire.
If you're getting nowhere on salary, briefly review your skills and experience. Stress your value to the employer. Refer again to the salary range you've researched.
Or, switch the discussion to benefits. Ask for more vacation days, more flextime, time off for caregiving - whatever your priority is.
Once you've reached an agreement, review it briefly, out loud. Then move on right away. Show your enthusiasm for the job. Stress how much you want to work for this company or organization. - Talk about money or benefits only in person, not on the
phone. And get the job offer, with money details, in writing.
Either a letter or an e-mail is fine. You can ask for this after
you've reached the agreement.
- Ask for a few days, or up to a week, to think about the offer. You can come in again if you need to negotiate more. Give yourself some time to think calmly about the match between the offer and what you deserve.
Additional Resources
Wages and Trends
Find what jobs pay, in any occupation and state. Kept up to date
by the U.S. Department of Labor.
Salary Information
This library surveys salaries, explains how to use salary
information, and tells you how to negotiate.
Salary.com
Use free search tools to compare salaries and benefits.
Books
Find these books online at Barnes and Noble.com
101 Salary Secrets: Negotiate Like a Pro, Daniel Porot, Frances Bolles Haynes, Ten Speed Press, 2001. A small-format book packed with doable tips. Learn how employers think. Get more confidence about negotiating.
Negotiating Your Salary: How to Make $1000 a Minute, Jack Chapman, Ten Speed Press, 2001. If you need to push yourself to negotiate, find the courage and the words here.
