Do you get nervous when it comes time to talk about money? Are you unsure about what to say when the salary expectation question comes up during the interview process? If you feel confused as to the best time to bring that up, read on for answers to all the burning questions around salary negotiations.
Here are the four main reasons you should always negotiate your salary:
1. Did you know that you could potentially be leaving up to $500,000 worth of income on the table if you do not negotiate, and if you are a woman of color, you could be leaving up to $1 million on the table over your career? This number alone should provide an incentive for you to consider negotiation as part of your career and job-hunting journey.
2. Furthermore, as a hiring manager myself, I actually expect candidates to negotiate, and this is a rule of thumb for a lot of other hiring managers. They will respect you for asking about the possibility of the salary being a little higher, and remember — it’s just a question. The worst that can happen is that they’ll say, “Sorry. That is the max in our budget.”
3. Remember, rarely ever will the offer be rescinded because you are negotiating. If an offer does get rescinded, there are probably other underlying issues causing the manager to pull that offer away, but not for the mere fact of you negotiating. And if that is really the case, then you do not want to work for a company like that to begin with.
4. Lastly, the average salary increase in the U.S. is very low. So, let’s say that you accept and don’t negotiate in hopes that the salary will increase over time. Well, you’d have to wait at least six months to a year for that potential increase, and only expect a 2% to 5% increase then. That being said, you want to make sure that you’re leveraging your time when you first enter the company. It is going to be your best chance at getting paid the better market rate.
Big Don’ts
1. Don’t give a number first, unless extremely necessary. The person to give a number first loses.
Imagine this: You tell the recruiter you expect $75,000 for the role you are interviewing for, but the company had budgeted $90,000. You are potentially leaving up to $15,000 on the table just because you gave that number first. Do not undervalue yourself.
2. Don’t give a number if you do not have a target that you’ve thoroughly researched. The key here is to have three numbers:
• Laugh-it-off money: The highest number to come to mind.
• Happy-dance money: The actual amount you want — the amount you’d dance to.
• Get-out-of-here money: The absolute lowest you could accept that would only pay necessary bills.
3. Don’t skip the question in the applicant tracking system.
This might sound confusing considering the first point, but if the online site in which you are applying is asking for a range for the salary, you can’t leave that empty. The recruiter is most likely using that field as a way to filter candidates. Even if you give a number on the lower end, this is not set in stone because it was a number you gave based on what you knew about the role at that moment. This can change as you get further along in the process and learn more about the responsibility of the role.
Big Do’s
1. Be prepared. Don’t roll your eyes yet — I mean be prepared with a strategy behind it. If you are being pushed into saying a number, you’ll want to say something along the lines of, “I would love to discuss this as we get closer in the interview process and I learn more about the role. However, I would consider any reasonable offer.” This is a great way that career coach Heather Austin recommends to change the conversation. You should practice this and feel prepared to say it with ease and a casual tone.
2. When you do give a number, make it specific. When hiring managers and recruiters are given a specific number instead of a range, the chances of you getting what you want are higher. For example, instead of saying, “My range is $85,000 to $95,000,” you can say, “My desired salary for what I currently know about the role is $93,000.”
This is the strategy that helped me calculate my market price after researching peers and understanding industry trends. I compared those with my years of experience, education and certifications.
Here are the primary and most reliable sources for you to research your number:
• The Bureau of Labor Statistics.
• Your network of peers, those in similar careers and mentors.
• Third-party recruiters, if you are working with them on your search.
• Annual salary reports within your industry. Be mindful that these are lengthy and data-driven.
• Sites like Glassdoor, Indeed and LinkedIn.
Remember, confidence is going to make or break your negotiation. If you are not confident in your skills and abilities, it is going to be very difficult to convince someone else. Confidence comes from clarity, and that clarity will only be apparent if you take action toward achieving your goal. So do it! Take a stand. Do the research. And just ask! We all need to start somewhere.
