During my 15-year experience as a talent acquisition specialist, I have come to realize that the salary you are offered for the first time is almost always the lowest amount within the salary range of the company for the job. Companies typically start low on purpose. They assume that you will negotiate, and so they have room to increase your offer. Even if you don’t do salary negotiation successfully, your willingness to negotiate often builds your relationship with the hiring manager.
Since I was a Talent Acquisition Specialist, I have been involved in hundreds of job application processes. While I understand that negotiating is stressful, it is common to leave tens of thousands of dollars on the table. This article provides a recruiter’s playbook to help you confidently negotiate for the compensation you are worth.
Why Do You Need Salary Negotiation? (Recruiter’s Perspective)
While research has indicated that the vast majority of hiring managers expect candidates to negotiate, many young professionals feel intimidated and will accept the initial salary offer out of fear of being perceived as “difficult” or of losing the opportunity.
From my perspective as a hiring manager, a successful salary negotiation is indicative of several positive attributes:
Professionalism: Shows you know your true value in the marketplace.
Strategic thinking: Indicates you have done research and are not asking for a random increase.
Communication: Demonstrates that you can handle a difficult business conversation in a polite and respectful way.
We are impressed with candidates who negotiate professionally. Candidates who demonstrate professionalism in the negotiation process do not frighten us.
Step 1: Research Yourself (Your Salary Negotiation Ammo)
You will not be able to negotiate unless you have solid research behind you. Simply saying “I want more” is a red flag. “Based on my research of the market rate for this type of job in this area for someone with my level of education and experience, I believe the appropriate salary for this job is between $X and $Y.” is a professional business proposal.
How to Determine Your Market Value
Salary Resources: Use websites such as Glassdoor.com, Payscale.com, and LinkedInSalary.com to determine a starting point. Filter by location, years of experience, and company, if possible.
Network: Ask your informational interview contacts what you believe is a fair salary range for this type of job in this area. People enjoy helping others.
Think About All Components of Compensation: Salary is just one component of the compensation package. Think about bonuses, 401(k) contributions, additional vacation time, opportunities for professional development, and flexible work arrangements (e.g., telecommuting).
Recruiter’s Tip: If the employer is unwilling to budge on base salary, try to negotiate other aspects of the compensation package. For example, ask for a signing bonus or an earlier performance evaluation (e.g., after three months instead of twelve).
Step 2: Timing (Know When to Speak)
There is only one golden rule of negotiation: Don’t say a number first!
If you say a number first, you run the risk of creating a lower anchor for the negotiation. If the number you say is too high (not realistic for the job), you may scare off the employer and lose your chance to be hired.
Here are some of the ways I suggest avoiding the salary question in the early stages of an interview:
When asked, “What are your salary expectations?” Here is how you can respond:
“I’m really interested in this opportunity, and I believe I will be able to add significant value to your organization. Based on my background and qualifications, I believe that we will agree on a salary commensurate with the requirements of the job and the qualifications I bring to the position. What is the determined salary range for this job?”
This response allows you to give the employer the opportunity to provide the salary range, providing you with the information needed to make a decision on whether to counteroffer later in the process.
Step 3: The Fine Art of Counter-Offering
Once the employer formally extends an offer, your response should never be a simple yes or no. “Thank you” should always be your first response.
Step-by-Step Guide to Counter Offering:
Be Enthusiastic: Demonstrate your enthusiasm for the opportunity to join the organization and contribute to its success.
Request Time: Request at least 24 hours to review the offer. This is considered normal and demonstrates that you are being cautious.
Determine Your Counter-Offer Amount: Based on your research, determine a counteroffer amount that is 10–15% above the original offer. Make sure that this amount falls within the salary range for this type of job in this area for someone with your qualifications and experience.
Example Counter-Offer Email Script:
“Thank you very much for offering me the [Job Title] position at [Company Name]. I am extremely excited about the possibilities of becoming a member of your team and adding value to the organization.
After reviewing the overall compensation package, I would like to discuss the salary. Based on my [one-two-three key skills/experience that you bring to the position] and my research on the market rate for this type of job in [your location], I believe a salary of [Your Desired Salary] better reflects the value I will bring to this position.
I am very eager about joining your company and trust we can reach an agreement.”
Step 4: Responding to Common Employer Objections
Employers may present you with a variety of reasons for not accepting your counteroffer. Here are some of my examples of common objections employers may raise and how to respond to these objections:
Objection: “That is outside of our budget for this job.”
Your Response: “I understand that. Would we be willing to revisit the salary at my 3-month review to see if there are any changes based on my performance? Or could we consider a signing bonus to bridge the gap?”
Objection: “This is the same package we offer all new employees.”
Your Response: “I appreciate that you are consistent. However, I believe my [specific skill] brings additional value to this job. Could we adjust the offer to reflect this added value?”
Step 5: Determining Whether to Accept or Reject the Job Offer
Negotiating is a two-way conversation, not a battle. If you have had most of your requests fulfilled or if the employer has provided a valid explanation for why they cannot fulfill any additional requests, it is time for you to make a decision.
Review the entire package: salary, benefits, company culture, etc. If you believe the package represents your value fairly, then you should accept the offer graciously. If you do not believe the package represents your value fairly, then you should be prepared to decline the offer in a professional manner.
Again, this is a discussion of the business and not the person. Hiring managers regard applicants who can demonstrate their own value and represent themselves professionally during a negotiation as highly respectable. With data and a collaborative attitude, you not only secure a higher salary, but you also set a higher bar for the remainder of your career.
From now on, I encourage you to retain those salary resources so you won’t have to endure a multitude of headaches.
About The Author
