Negotiating Salary with a New Employer

In considering a new position compensation is a very important piece. You know the experience and value you bring and should not be afraid to quantify it. Your future employer will likely have a similar thought process. With budget constraints, established pay ranges, internal equity, salary bands, etc., employers are very aware of what they can afford to pay for each position they create or backfill. Salary negotiation is a common step in the hiring process and need not be as intimidating as you may believe.

4 Pieces of Advice For Favorable Salary Negotiations

1. Be prepared to discuss your salary the FIRST time the subject arises.

This can vary significantly throughout your job search. Some companies will mention a position’s salary range prior to the face-to-face interview in an effort to filter out those with minimum salary requirements that fall outside of the range. Others will wait until the first face-to-face meeting. And there are some companies that will not explicitly state anything until an official job offer is made.

The most important thing for you to do is communicate. Don’t be afraid to ask questions upfront and don’t be afraid to state your current compensation and state how much of an increase you require in order to make a move. In situations where you are currently employed it’s perfectly acceptable to adopt a stance requiring a 15-20% increase.

2. Consider that your reason for applying for the new position is not solely financially motivated.

There is no debating the importance of money. However, applying for a new position based on that reason alone can have a negative impact on the salary negotiation process, making it a bit one-sided. Do your best to focus on the culture fit and where the position fits on your career map . Earning a salary you desire will not be enough to help you endure a bad culture fit long-term. And if you are serious about moving your career forward, it’s essential that you consider factors beyond financial motivation. Have legitimate interest in the job itself as well as the company.

3. Be honest and reasonable.

When a company asks about your compensation history, answer truthfully. This is a great opportunity for you to follow up with your own questions about compensation. Know your minimum number. Prior to even beginning your job search, you should be mentally prepared to identify a minimum salary that you are comfortable with. Keep your current salary in mind along with the market average. If you’re earning $100k and you just received a 10% raise two months ago, do you need another 10% to prevent you from leaving your current employer? If the company offers you $112.5k and you want $115k, be able to provide legitimate backup to support why you should be paid more. You don’t want to give the appearance that you pulled your salary requirement out of your hat or that your just “trying to get all you can”. And for the record, responses like, “I want to live in a bigger house,” are not recommended!

4. Create a win-win situation.

It may be tempting to only consider your own needs in negotiating your salary. However, keeping the company’s well-being in mind is also key. If this company were to become your employer in the near future, how would your manager and co-workers feel about you once the hiring process is complete? Coming in as the highest paid person in the department or at that level in the company creates a significant level of expectation and in some cases animosity.

Make sure you really have a perspective on what you’re doing. When negotiating your salary, it’s not always about getting every last nickel. Ideally, you want a salary that:

• Fits within the company’s compensation structure and makes the hiring manager comfortable
• Makes you excited about working for the company and leaves you feeling valued

Finalizing Your Salary Negotiation

Every situation is unique and there is no one correct way to negotiating compensation. Negotiating your pay doesn’t have to give you ulcers. Communicate. Communicate. Communicate. It will save you a world of time and worry. With proper preparation and a little common sense, you will have enough confidence to tackle any salary negotiation. And remember, if you are satisfied overall with the position but are just a little reluctant to accept the salary, keep in mind you can always ask for a raise  in the future, if conditions require. If you play hard ball at the beginning and refuse to accept a number the company is initially comfortable with your next raise could very well be next to nothing. Find comfort in the fact that salary is not static and should increase over time as you prove your value to the company.