First, don’t be too hard on yourself. It’s much harder to negotiate for yourself than for a third party because your emotions naturally enter in, especially when you’ve been out of work for awhile. (The difficulty of negotiating for yourself is why top performers and athletes have agents. Goodness knows, we all could use them.)
Here is a step by step guide for negotiating salary, and the steps can be applied to other negotiations, too.
1)Preliminary Research. Research the market for salary ranges for the job, calibrated to experience levels.
2)Set Expectations. Create a schedule of salaries that you will/will not accept. Be realistic in light of the market and your experience. An entry level worker has less leverage than an experienced one. Your schedule of acceptable/unacceptable salaries should include:
Stretch target (you will be extremely happy with this figure or anything above this)
Acceptable range (the salary range that you think is fair, based on your market research and your experience level)
Walk-away Point (you will not accept a salary at this figure or below)
3)Get the Company’s Salary Range if They Ask Your Salary Expectations. The company should state its proposed range or salary first. If you are asked your salary expectations, respond: “Market. What is your range for this position?” This step saves you from underpricing yourself. The hirer will always have a range that they can quote. Never state your salary expectations before the company has quoted its salary range.
*If the company’s salary range is at or below your walk-away point, you may not want this job. Feel free to respond politely that your research indicates that the market salary is up to (cite the top or something toward the top of your acceptable range. If you have considerable experience, cite your stretch target or above.) If the company says it can’t make any improvements, you might want to walk away at this point.
*If the company’s range is within or above your acceptable range, your goal is to get the highest figure possible, if they make you an offer, depending on your experience.
4)Responding to the Initial Offer. When the company makes you an offer, you need time to consider it. You should not accept on the spot. Express enthusiasm for having received an offer (“Thank you, I’m so pleased that you’d like me to join your team”) and that you’ll get back to them in (name a date 2-4 days in the future.) If they say they need an answer now, you can say (if you’d like) that you’ll get back to them the next day. You can also stick to a longer period (“I really need to discuss this with my family.” “My partner/spouse is traveling and we’ve agreed to make these decisions together, so I can’t respond until (date.)” “I have a really hectic week and need until (date) to give your offer the careful attention that it deserves.” ) Asking you to respond on the spot is a pressure tactic, so do deflect politely. If they don’t want to give you at least overnight to think about it, you probably don’t want to work for this company.
5)Considering the Offer. Review the offer in light of the market and refine your salary expectations. How much more salary can you reasonably expect? (It is probable that the company can offer you a higher salary than first offered.) What are market norms for hours and vacation? If you are highly experienced or a senior executive, what perks do you want (expense account, profit-sharing, performance bonus, additional vacation, flexible schedule, accelerated salary review)?
6)Countering the Offer. If you feel that the base salary can go higher (it probably can, within reason), counter the offer respectfully. (“Thank you so much for the offer. I’m really excited to join the team, but would the company consider a base salary of (cite higher salary.)”) Make your counter offer somewhat on the high side, to give you room for negotiation. Calmly bolster your reasoning with your market research on salary and/or a restatement of the value you bring to the table: special skills, training or education, strong results at past job/s that relate to the company’s goals.
*Negotiated Offer. In most cases, the company will counter your counteroffer with a salary between what it originally proposed and your counter. This usually gets you to a deal or close to one. If you’re still not happy, you can counter again: “I can accept (state counter amount) to start on (name date.)”
*Best and Final Offer. If the company can’t/won’t improve on its offer, you need to decide if you will accept it, walk away or negotiate further. If you want to negotiate further (you have less latitude if you are any entry level worker or if the job is a government position), you can respectfully propose that the offer be improved by a performance bonus, an accelerated salary review, and/or perks (additional vacation, flexible schedule, etc.) If the company still says no, they’ll probably re-state the great points about the job. At this point you can accept, walk away or, if you are still not happy, politely ask the recruiter, HR person or hiring manager if they could check and see if what has been proposed is the company’s best and final offer, stating that you would love to join the team and very much hope that an agreement can be reached.
*Once the company’s best and final offer has been proposed, the negotiation is over. You can then accept or walk away.
Recruiters versus HR versus Hiring Manager. Recruiters get paid only when the deal is finalized, so they have an incentive to reach an agreement with you. HR might be a little less flexible, but will want to get this wrapped up, which can work to your advantage. Hiring managers who do their own negotiations will want to save face, so be especially pleasant to them.
Share your insight
Join an authentic community that helps women support each other at work. Share your professional experience or ask for advice — you can even post anonymously.
13 Comments
Join the conversation