Negotiating a better salary is something that everyone should be focused on.

No matter when the last time you negotiated for a better salary was, the time will come again when the value of work you do is not reflected in the compensation you receive for that work.

When this time comes, it’s important to approach the issue objectively, build an evidence-based case for your desired salary and negotiate for this salary.

• What is Salary Negotiation
• Why Should You Negotiate Your Salary
• How to Know Your Worth Before Negotiating
• What is an Expected Salary
• How to Negotiate Salary With Current Employer
• What to Say When Negotiating Salary
• How to Negotiate Salary Increase
• How do You Negotiate Salary After Receiving a Job Offer
• Can You Lose a Job Offer by Negotiating Salary?
• How Long do Salary Negotiations Take
• Do Employers Expect You to Negotiate
• How do You Respond to a Low Salary Offer
• Does HR Decide Salary
• Should You Accept The First Salary Offer
• When Should You Ask About Salary and Benefits
• Can You Negotiate Salary With no Experience?
• How to Respond to an Email Job Offer
• 7 Steps to Help You Negotiate Your Salary to Get What You Worth

What is Salary Negotiation

Salary negotiations are discussions between yourself and a representative of your current or prospective company that aim to help you secure a higher salary.

It doesn’t matter if you’re a long-time employee or a new hire: if you feel that your salary isn’t enough, you should feel empowered to negotiate in order to get what you deserve.

When you decide that you want to negotiate for a better salary, be prepared to:

• Build your case: You will need to prove that you are worth investing in, with specific examples of value you’ve given to employers in your career.
• Face some resistance: Even air-tight cases for a salary increase can face resistance, so be prepared to answer questions, especially, “Why do you deserve this salary?”
• Strike a Balance Between Firm and Flexible: Your salary negotiations won’t go well if you refuse to give any ground or say “yes” to a minimal salary increase. Be prepared to go back-and-forth during negotiations and be sure that any compromise reached is acceptable.

Why Should You Negotiate Your Salary

It’s important to understand that negotiating your salary is a perfectly normal part of the employment process and that getting the salary you deserve is part of advancing in your career.

Your salary is more than a deposit to your bank account: it’s how your company shows you that they appreciate your work and value you and your skills.

Your salary is also how your company supports your work-life balance, with career development, work flexibility and health-related perks.

Negotiating for some of these perks will help you to get the complete salary and benefits package you need:

• University Tuition Reimbursement: College tuition is only getting more expensive, and negotiating for tuition reimbursement is highly appealing for people who want to continue their education.
• Training, Professional Development + Certifications: Not every company offers effective professional development and/or certification programs, and career-minded professionals should be sure to negotiate for professional development resources.
• Mentoring + Coaching: This perk is nearly priceless because it can lead to both professional growth and growth of interpersonal relationships with talented leaders in the company.
• Childcare: The costs and time requirements of childcare add up quickly, and negotiating for childcare is a great way for parents to secure a better working arrangement.
• Health + Fitness: Other than medical and/or dental insurance, negotiating for health and fitness benefits (such as fitness stipends, healthcare/dental coverage, etc.) can add value to your bottom line.
• Flexibility: Being able to work from home, work while traveling or work on a different schedule can be more attractive to some people than a higher salary.

While dollar signs definitely matter when negotiating your salary, these forms of compensation that should be considered before taking a new offer or re-signing on a dotted line.

How to Know Your Worth Before Negotiating

Before you go into a salary negotiation, it’s crucial that you find out, objectively, how much someone in your position, with your experience and in your location, should be paid.

Salaries range greatly by industry, seniority, and geography, and getting the salary you want will depend on asking for a realistic compensation package.

Define Your Range and Do Online Research

First, you need to find out what people in your position, with your level of experience, are making in your area.

Being an office manager in Topeka, Kansas, for instance, yields a different average salary than being an office manager in San Francisco does.

To get a sense of what the ballpark salary is for your job title, a simple search on Glassdoor’s salary search tool will give you baseline information.

Know Your Worth

After researching the compensation range for the job, the next step is comparing the average compensation with your market worth.

 Use Glassdoor’s Know Your Worth™ tool, which gives you a personalized estimated market value, what others in your field are being paid, and available job listings.

Once you have a ballpark for your market worth, you’ll be able to compare that with what the average salary for the position you’re vying for is. Plus, many job openings on Glassdoor will reveal a salary estimate which shows you how much a role could pay before you even apply.

For instance, if you see the compensation rage for web developers in your area is 67,000-114,000 and your personalized estimate is 75,000, your realistic salary range is between 70,000 and 80,000.  

What is an Expected Salary

When a recruiter or hiring manager asks, “What are your salary expectations?” there are a few ways you can answer. Here are some suggestions, with example responses:

• Provide a range: If you don’t feel comfortable providing a single number, you may choose to offer a range instead. Keep in mind, however, that the employer may opt for the lower end of your range, so make sure your target number is as close to the bottom number as possible. Also, keep your range somewhat tight with a variance of no more than $5,000 to $10,000.Example: “I am seeking a position that pays between $75,000 and $80,000 annually.”
• Include negotiation options: In addition to your salary, there may be other benefits, perks or forms of compensation you consider just as valuable. Including these as possible opportunities for negotiation is an option, too. For example, while the employer may not have budgeted enough for your ideal salary range, they may be willing to offer equity in the company to make the compensation package more attractive to you. Example: “I am seeking a position that pays between $75,000 and $80,000 annually, but I am open to negotiate salary depending on benefits, bonuses, equity, stock options and other opportunities.”
• Deflect the question: If you’re still early in the hiring process and still learning the specifics about the job duties and expectations, you may want to deflect the question for later in the conversation. However, keep in mind you’ll still eventually have to discuss salary expectations. Either way, it’s a good idea to be prepared with a well-researched number in mind—even if you’re still factoring in additional information. Example: “Before I answer, I’d like to ask a few more questions to get a better idea of what the position entails. That way, I can provide a more realistic expectation.”

How to Negotiate Salary With Current Employer

Negotiating salary makes even the most seasoned professionals nervous. The idea of walking into a room to face off with your boss or manager in an attempt to justify why they should pay you more is not a pleasant thought. There’s high potential for emotions to boil over, and things can go awry quite quickly. In addition, many professionals wonder if they even know how to correctly negotiate salary with their current employer.

Before you set up a meeting with your boss, a whirlwind of questions may rush through your mind: Is my claim justified? What if my boss gets upset and lets me go? Will this change my relationship with the company? What happens if my employer says no? Do I even deserve a raise? Can I support my lifestyle if I don’t get this raise in pay?

This tips will help you to gain confidence when negotiating your salary with a current employer

1. Do your research

Research the market rate for your current role, using sites such as Glassdoor, Salary.com, or PayScale. What is the average salary for the role when you factor in your years of experience, your industry, the size of your company, and the company’s location? How does your current salary compare? Use this information to help you create a target salary that you can share with your boss.

2. Create your brag book

Often times, your boss’ or manager’s knowledge of all of the positive contributions you’ve made to the company will be limited. It’s not that they don’t care about what you do; they are just busy and don’t have the bandwidth to keep track of every little thing you do each day. If your boss is any good at their job, they learned to empower and trust their team, which means they aren’t 100 percent in touch with your day-to-day contributions to the company.

Because of this, it will be your job to make sure that your supervisor is aware of the value you add to the company. In the weeks leading up to the salary negotiation meeting, you’ll want to compile a list of the things you do within your role that add value, also known as creating your brag book. Rank your achievements in order of the impact they have on the bottom line, highlighting areas where you go beyond your general responsibilities.

3. Quantify your achievements

Within your brag book, if there’s a number you can attach to a line item, make sure to do so. For example, if you developed a process that eliminates paper waste and thus saves the company $200,000 annually, that’s something you’ll want to note.

The more details you can provide, the better position you’ll be in to negotiate effectively. Compiling this list will help you present yourself as a serious asset to the company — one it can’t afford to lose to the competition. Use this as leverage in your negotiations.

You have to be careful with what you say, though. Don’t embellish and certainly don’t make anything up. There’s a good chance your facts will get checked, and if you make too bold a claim that turns out to be false, you not only won’t get the raise, but you’ll end up being under suspicion for the remainder of your time within that role.

4. Don’t Make a Decision Immediately

You don’t have to take the first offer that’s laid out on the table. One common mistake in negotiations is that one of the parties falls in love right away. By telling your employer how much you love being at the company and how you’d never consider leaving, you’ve already left a lot of dollars off the table.

The idea is to let the company know you do enjoy working there, while at the same time making it clear that you know your services are so valuable you’d be an asset to any company who’d hire you.

When the first offer comes across the table, it’s important that you don’t get too excited (or at least that you don’t show it). You can always go back to that original offer if you don’t get what you want.

Give it a shot and let your employer know you think you’re worth more by putting a counteroffer on the table. This shows your employer that you possess assertiveness — but don’t be rude or pushy about it. Be sure that you do it with respect, but it’s definitely worth a shot. The worst that could happen is that the company sticks with the first offer.

Not accepting too quickly can also set the tone for future salary negotiations. If an employer senses that you’ll cave at the first offer, future negotiations just got a lot more difficult for you.

Instead, let your employers know that you understand the process and you know you have options. The first offer will typically be lower than the actual amount your supervisor has been approved to offer you, and possessing that knowledge can put you in a much better position when you enter into negotiations.

5. Don’t Destroy Your Working Relationship

It’s important for you to keep in mind that whatever the outcome of negotiating salary may be, you’ll still be working in that same job the next day with that same individual as your boss. For that reason, it’s important that you don’t go into negotiations with an arrogant attitude or otherwise paint yourself in a negative light.

One of the best tips on how to negotiate salary with your current employer is to watch what you say and avoid saying the wrong thing. It can be difficult to turn things around once you’ve gone down a bad path. If you let your emotions get the best of you, you risk saying something you’ll regret.

Salary negotiations aren’t personal, so be sure to avoid looking at them in that manner. Don’t burn bridges by saying something you can’t take back. Unless you have a counteroffer on the table from another company, the person with whom you’re negotiating will most likely be overseeing your work for at least a little while longer. There’s no reason for you to make your supervisor-employee relationship uncomfortable.

What to Say When Negotiating Salary

Situation #1: Prying During the Prescreen

How should you respond when you’re asked about salary right off the bat? You want to demonstrate that you’re enthusiastic and cooperative, but you don’t want to tip your hand. Doody explains: “It’s a salary negotiation tactic disguised as a gatekeeper-type interview question.”   

Recruiter: What’s your current salary?

You: “I’m not really comfortable sharing that information. I would prefer to focus on the value I can add to this company and not what I’m paid at my current job.”

If the interview team doesn’t know your salary, they can’t use it as their starting point. Doody writes, “that’s probably going to mean a higher initial offer for you.”

Recruiter: What’s your expected salary?

You: “I want this move to be a big step forward for me in terms of both responsibility and compensation.”

Doody points out, “sharing your current salary or your expected salary is not in your best interest. . . They’re interviewing you because you’re a qualified candidate, and they need a qualified candidate. . . They would also like to get a good deal… They’re not going to stop interviewing you just because you don’t make it easier for them to get a good deal on you.”

If they pass because you won’t acquiesce, that’s a red flag. Doody says, “then they’re extremely motivated to get a bargain…That’s bad news for you even if you get the job.”

One last thing, resist the temptation to tell a white lie when asked for your salary during the prescreening process. If you underestimate what they’re willing to pay, you’re leaving money on the table. If the real answer is that they would compensate someone like you up to $75,000 dollars, and you guess they would pay a salary of only $65,000, you very literally may have just cost yourself $10,000.

If you overestimate and tell them your salary expectation is $85,000, you may set off red flags that cause them to rethink the interview process altogether. This is pretty rare, but you could disqualify yourself by being “too expensive” for them. If your expected salary is well above their budgeted pay range, they may just move on to other candidates with lower salary expectations.

The bottom line is you probably aren’t going to guess what their salary structure looks like and if you try to guess you may cost yourself a lot of money.

Situation #2: Savvy Counter Offering

After you’ve secured an offer, Doody recommends using this formula:

“The counter offer calculator accounts for four factors—the base salary of your job offer, your minimum acceptable salary (“walk away” number), how badly the company needs you to accept the job offer, and how badly you need the job.”

Use “firm and neutral” language like this:

“Tom offered $50,000 and I would be more comfortable if we could settle on $56,000. I feel that amount reflects the importance and expectations of the position for ACME Corp’s business, and my qualifications and experience as they relate to this particular position.”

Or, if you had a competing offer:

“Thank you so much for the offer. As I mentioned during my interview process, I am speaking with a couple of other companies. If you’re able to move the pay to [insert your number], I’d be eager to accept.”

Doody explains that email is the perfect medium for this message. This way, the hiring manager can share it in a format that clearly makes your case to each person with whom it’s shared. Your case won’t get the same treatment if it’s restated recollections of a conversation.   

The hiring manager will likely come back with a figure between your base salary and your counteroffer. For Doody, the distance between these figures represents your “salary negotiation window.” He recommends compartmentalizing this window into increments. In the example above, the window is $6,000, so he recommends devising a response for each possible offer.

If, for example, the offer is $55,000 or above, Doody says it’s a taker.  

“If the company comes back with $53,000, then you say ‘If you can do $54,000, I’m on board!’ If they stick with $53,000, then you would say, ‘I understand the best you can do is $53,000 and you can’t come up to $54,000. If you can do $53,000 and offer an extra week of paid vacation each year, then I’m on board.’”

Decide which benefits, like vacation time or flexible working hours, are most important so that you can apply them to bolster the deal. Rank those benefits in your mind and use those in your bargaining. 

1. Extra vacation time
2. Work from home
3. Signing bonus

If they do not accept your second-priority benefit, you move on to your third-priority benefit. Regardless of whether they accept your final response, then you’re finished; don’t get nit-picky or greedy. You have maximized your base salary and maximized your benefits as well

Situation #3: Raises & Promotions

Doody explains: “Your primary reason for requesting a raise is that the salary you’re being paid doesn’t reflect your current value to the company. That salary was set sometime in the past, so your argument is that you are more valuable now than you were. . . ” You have a fair justification. Now you need the right plan.

Start by mentioning, via email, to your manager that you’d like to discuss compensation in your next private meeting. After that conversation, Doodly advises preparing a strategically constructed, easily sharable salary increase letter.

“As we discussed, it has been [amount of time] since [“my last significant salary adjustment” OR “since I was hired”], and I would like to revisit my salary now that I’m contributing much more to the company. I’ve been researching salaries for [job title] in [industry] industry, and it looks like the mid-point is around [mid-point from your research]. So I would like to request a raise to [target salary].”

The letter should also highlight your accomplishments and accolades. Doody notes that if your proposal isn’t accepted on the first try, you can work with your manager to create an action plan.

“I would love to work with you to put together a clear action plan and timeline so we can continue this discussion and monitor my progress as I work toward my goal.”

Always remember, your talent is precious, and you deserve to be compensated for it. Learning to foster conversations about compensation is a vital skill that yields rewards.  

How to Negotiate Salary Increase

Here’s how to plan your pitch and get the pay you deserve.

1. Make a list of your specific accomplishments. Think you deserve more money? Be prepared to prove it. You need to show your boss the value you add to the team and point out specific instances you went above and beyond the call of duty.

Ideally, you should keep a personal log of significant contributions you made to your job from day one. If you haven’t, start now. For example, note how you saved the company money or boosted sales, how you decreased hassle or stress on a project, and how you showed leadership under pressure.

Use as many details as possible, such as numbers and facts. You’ll want to take five to seven of your most recent or biggest-impact contributions and present them in a bulleted list.

If your job description has changed over the past year, or you’ve taken on added responsibilities, include those with your list of accomplishments. If you’ve recently completed training, received credentials or obtained an advanced degree that will benefit your employer, make sure to point that out as well.

To drive home your case, you might want to make copies of any e-mails, memos or notes you’ve received from higher-ups, clients or colleagues that praise your performance, advises Teena Rose, president of Résumé to Referral, a résumé writing service provider.

Remember: your pay raise is based on your contribution to the company. Do not bring your personal financial situation into the discussion at all — your boss doesn’t care that your rent has gone up, you’ve got a wedding to pay for or you’re expecting a new baby.

When handing out raises, he or she only cares about the bottom line of the company. You should only ask for a raise if you feel you truly deserve it — not because you need it.

2. Find out how your salary compares. You’ll need to tell your boss exactly how much you’d like to get paid. When you know what others in your field are paid and what your position is worth, you can use that figure as a starting point for negotiations.

3. Consider negotiating benefits and perks. A raise doesn’t have to come in dollar signs. So before entering negotiations, think of other areas you are willing to negotiate such as vacation time, flexible work hours, stock options or tuition reimbursement. You might also consider bargaining for the right to telecommute, a more prestigious title or a week at a professional conference in Hawaii, suggests career coach Marty Nemko.

If the benefits and perks are as important or more important to you than money, you can include them in the forefront of your pitch. But if you prefer the dough, keep a couple of possible perks in your back pocket just in case your boss says “no” to a monetary raise. They’ll give you something else to bargain with if negotiations stall.

4. Time your pitch right. If your annual performance review isn’t any time soon, approach your boss after you’ve done well on a project or taken on extra responsibilities. This will make your case much easier to present because your boss already will have a positive taste in his or her mouth. You don’t want to allow him or her time to forget what an asset you are.

5. Broach the topic professionally. Set up a meeting with your boss and approach the subject like two parties trying to reach a compromise. Come with your list of accomplishments neatly typed for your boss to reference and your salary request printed at the top.

When making your case, don’t compare yourself to co-workers — stick to the field in general. And don’t be cocky or greedy. If you’ve only been at your entry-level job for a year or two, expecting a hefty bonus, substantial raise or prestigious promotion is probably unrealistic unless you really, truly outdid yourself. Going into the negotiations with a sense of entitlement may actually hurt your chances.

Oh, and don’t threaten to quit unless you really mean it. If you give your boss an ultimatum — “Give me a raise or else” — you just may find that “or else” is your only option.

How do You Negotiate Salary After Receiving a Job Offer

1. Be ready

As mentioned above, a responsible applicant will not come to the interview without having the knowledge of what to expect salary-wise. Research greatly helps, as there are a lot of websites that indicate the average salary for various positions in different cities.

2. Be vague about salary expectation and history

It is common for employers to ask about an applicant’s salary history and expectations after they have offered the job. Answering can be risky, as it may turn off the employer if the figures given are too high. To be on the safe side, an employee can say that it would be better if he knew first what the job entails so that the salary can then be discussed.

3. Don’t jump right into the first offer

This is especially true if the first offer doesn’t seem high enough. We already mentioned at the beginning that salaries are raised based on the previous rate. With that, an employee can carefully ask what the company’s ceiling salary rate is and then go from there.

4. Don’t only negotiate salary

Though salary is the greatest motivation in doing one’s job, it is not the only thing that can compensate for hard work. For example, a new hire can ask for a more flexible working environment or schedule, or for a professional organization membership. The outcomes of negotiating non-salary benefits cannot be underestimated.

Can You Lose a Job Offer by Negotiating Salary?

Negotiating is an artform and a science paired together. And generally speaking it must be done tactfully in order to maximize your chances of success. If you have the art but no science (e.g., no educated structure for how you do it) you are unlikely to succeed. If you have the science but no art (e.g., the general attitude and quick wittedness necessary) you will risk coming across as impersonal or cold.

How you begin negotiating, how you persist in negotiating, and how you finish negotiating all matters. And all along the way, just as importantly, is how you come across while negotiating. Are you humble but confident? Or are you a jerk or visibly uncomfortable? It all matters.

So will you lose a job offer by negotiating? Fairly unlikely, and if you did you probably wouldn’t want to work for that company anyway. But could you lose a job offer by negotiating badly? Definitely.

How Long do Salary Negotiations Take

Salary negotiation is stressful sometimes a stressful process, but in reality, the process takes less than 10 minutes. You might hear job seekers asking, “If you were offered $10,000 to be slightly uncomfortable for 10 minutes, would you take it?” Of course, the person always says Yes. 

There are two scenarios we need to address. The most common scenario is when they offer at least your minimum acceptable salary. The other scenario is when they offer less than your minimum acceptable salary.

Let’s start with the more common scenario.

1. When they offer at least your minimum acceptable salary

Most of the time, they’ll offer something at or above your minimum acceptable salary. This makes sense because your minimum acceptable salary is a conservative number you chose that represents the minimum it would take to get you in the job, whereas their offer is designed to be high enough to entice you to take the job while leaving them some wiggle room to negotiate if you counter.

Since you’ve already got your minimum acceptable salary locked up, you can turn your focus to maximizing your salary before your tenure at the company begins. The first step to maximizing your salary is to make a counter that pushes the company higher into the range of salaries that they’re willing to pay you while not pushing too hard. So how do you do that?

A good range for a counter is between 10% and 20% above their initial offer. On the low end, 10% is enough to make a counter worthwhile, but not enough to cause anyone any heartburn. On the high end, 20% is a pretty big difference between their offer and your counter, but it’s not so big that it will come across as excessive when used in the right situation.

We need to determine where in the typical counter range—between 10% and 20%—you should counter. This is where your aggression factor comes into play. You just add your aggression factor to 10% and that’s how much you should counter above their offer. In the example we did in that section, your aggression factor was 5, so your counter would be 15% above their initial offer (10% plus 5% for your aggression factor).

Let’s look at an example. Say your minimum acceptable salary is $50,000 and the company offered you $55,000. They met your minimum, so now you just need to determine an appropriate counter. Your aggression factor is a 5, which means your counter should be 15% above their offer. In this case, 15% of $55,000 is $8,250, which means your counter should be $63,250. It can be a little easier to work with round numbers, so you might round to $63,500.

2. When they offer less than your minimum acceptable salary

Your goal for the negotiation has now shifted from “maximize my salary before I start this job” to “try to get my minimum acceptable salary or more if possible”. It’s frustrating, but this is why you prepared by choosing your minimum acceptable salary in advance—you know the salary you must get to in order to take the job.

You have two main options in this situation. The most obvious option is to simply tell the recruiter or hiring manager that you can’t accept less than your minimum acceptable salary and see if they’ll agree to that salary. This is the most direct route, but it has the downside that it caps your possible salary at your minimum acceptable salary. So before you do that, let’s see if there’s still a way to get more than your minimum acceptable salary.

The real question is whether you can reasonably counter a high enough salary that a negotiation will lead to a salary greater than your minimum acceptable salary. Here’s our rule of thumb: Use the method in the previous section to determine what your counter would be. If that number is greater than your minimum acceptable salary, then that is your counter. If that number is less than or equal to your minimum acceptable salary, then just tell the recruiter or hiring manager that you can’t accept less than your minimum acceptable salary.

Let’s look at two examples to illustrate this point. For both examples, let’s say your minimum acceptable salary is $50,000 and your aggression factor is 5. That means your counter will be 15% above their offer unless their offer is so low that your counter isn’t at least $50,000.

Scenario 1—When your counter exceeds your minimum acceptable salary: Let’s say they offer you $45,000. Fifteen percent of $45,000 is $6,750, which means your counter would be $51,750, and you should round that up to $52,000. That’s above your minimum acceptable salary of $50,000, so you will counter that amount. Not only might you get a little more than your minimum acceptable salary, but you’ve also left the door open to negotiate other benefits (signing bonus, vacation days, etc.) even if you end up at your minimum acceptable salary.

Scenario 2—When your counter would be less than your minimum acceptable salary: Let’s say they offer $40,000. Fifteen percent of $40,000 is $6,000, which means your counter would be $46,000. That’s below your minimum acceptable salary of $50,000, so you would not counter that amount. Instead, you would say, “I’m sorry, but I can’t accept less than $50,000 for this job.” This may very well be the end of your negotiation, so you’re giving them one last shot to meet your minimum acceptable salary.

If they meet your minimum, then you’ve got the job at that salary. If they can’t meet your minimum, then you couldn’t come to terms and you should probably walk away. This can be a very difficult decision, but this specific scenario is why it was so important to set your minimum acceptable salary before you began negotiating. You were more objective then, and it’s probably best to trust your objectively determined minimum in this situation.

“What if my counter seems ridiculously high?”

The nice thing about this method is that your counter is based on their initial offer, and it is confined to a reasonable range of 10% to 20% above their offer. Further, the way you chose whether to counter closer to 10% or 20% above their initial offer was based on your assessment of how badly the company needs you as compared to how badly you need the job.

A counter of 10% more than the company’s initial offer simply isn’t a big enough difference to raise any eyebrows. And if your counter is 20% above their initial offer, that’s because you’ve determined that the company desperately needs you (10 out of 10 on the “How badly do they need you?” question) while you don’t really need the job at all (0 out of 10 on the “How badly do you need this job?” question).

As long as you have realistically evaluated those two questions, your counter is in a reasonable range.

Do Employers Expect You to Negotiate

In almost every case, the company expects you to negotiate and it’s in your best interest to give it a shot. In fact, a study by Salary.com found 84% of employers expect job applicants to negotiate salary during the interview stage.

If you’re not convinced yet, know this: The hiring manager’s on edge too when it comes to negotiating salary. He’s nervous you won’t accept his best offer—yes nervous, remember, he put a lot of thought into this decision, too and has decided he really wants you to be working there. 

How do You Respond to a Low Salary Offer

Ask for more time to think about the offer

Remember that you don’t have to accept or decline the job offer right away, especially if you didn’t get the offer you wanted. And if you received a low offer, you may need to recoup before continuing the conversation with the hiring manager.

The best way to stay composed during this process is to politely ask for some time to think about the offer and share a timeframe for when you can give a final decision. Giving yourself some time to think about the offer will allow you to weigh the pros and cons.

Negotiate for a higher salary

If the salary you were offered is lower than expected, you shouldn’t always take it as face value. Many employers expect potential hires to negotiate a higher salary, so don’t sell yourself short. Make sure you do your research on your market value before you head into salary negotiations in order to confidently ask for what you want. Then, take it from there based on how the employer reacts.

Consider the company’s overall package

If you’ve already tried to negotiate for a higher salary but the employer doesn’t have the money to give you for the position, you shouldn’t feel defeated. Remember to look at the full package the employer can offer when making your decision.

For example, you can ask your potential employer what their retirement packages and healthcare benefits look like. Do they have a high 401K match, low-cost health insurance or commuter reimbursements? If they have some of those options, you’ll need to do the math and see where your money is going. You may just find that their offer is better than expected.

Negotiate for more benefits

Another tactic you can utilize if the employer is unable to meet your salary requirements is to negotiate for certain benefits that may make the lower salary offer more worth accepting.

Many times, salary is out of the hiring manager’s hands but other non-salary related options can be an important factor that they can control. When speaking to the employer, see if you’d be able to receive more paid time off, stock options, professional development investments, or a more flexible work schedule.

Create a plan for performance reviews

One way to combat a low salary is by setting yourself up for success if you do take the job.  Talk to the hiring manager and see if it’s possible to have scheduled, structured performance reviews more frequently than yearly reviews. With a set schedule in place, you may find yourself earning promotions or bonuses that equal the salary you initially wanted.

Don’t be afraid to walk away

If you go through these negotiation steps and you still feel uncertain or unhappy about the overall offer the employer gives you, don’t be afraid to walk away. If you don’t feel comfortable with the offer, you won’t be able to fully concentrate on the job at hand, and you may find yourself job searching for a higher paying role sooner rather than later. Remember, in today’s candidate-driven market, you are in a good place to wait for the right job for you.

Does HR Decide Salary

The authority of hiring manager in deciding salary varies from company to company.

In some company, there are salary ranges for given roles and then hiring managers decides salary keeping these ranges in mind. The HR involvement & further discussion take place only when hiring manager wants to pay someone outside given salary range.

In some companies it’s opposite. The recruiter decides the salary and hiring manager is more of informed party. They can intervene if they see a major problem.

In other instance, recruiter was paying too low to a candidate as his logic was candidate shouldn’t be given more than x% hike on current pay but that was putting the candidate well below other people in my team so I had to fight to get better offer.

Should You Accept The First Salary Offer

Much of the time there is an opportunity to negotiate, but some hiring managers genuinely give you the only number they can offer. The best way to find out, says Weiss, is to inquire. And don’t just say, “Is that number negotiable?” but dig into what went into calculating the figure.

Weiss suggests asking: Where did the number come from? What did you count as my years of experience? “There are many companies that don’t want you to negotiate but that doesn’t mean you don’t come back with questions,” he says. “If an offer is made, there is an opportunity to explore and expand it.”

But don’t negotiate just to negotiate, advises Malhotra. “Resist the temptation to prove that you are a great negotiator,” he writes. “If something is important to you, absolutely negotiate. But don’t haggle over every little thing. Fighting to get just a bit more can rub people the wrong way — and can limit your ability to negotiate with the company later in your career, when it may matter more.”

When Should You Ask About Salary and Benefits

According to a Robert Half survey cited by this Payscale post, 31 per cent of managers are comfortable with applicants asking about compensation and benefits in the first interview; 38 per cent say it should wait until interview number two; and 9 per cent think it can be discussed during an initial phone interview.

Is this accurate?

“It shouldn’t be up to the candidate to ask this question at all,” says Shawn D’Souza, talent acquisition manager at Workopolis. “If a company is not listing salary on their job posting, it should be discussed during an initial phone interview, before any face-to-face meetings. This lets the company and candidate know if they have the same expectations, and makes sure nobody is wasting their time.”

And if the hiring manager does not bring it up?

“A lot of companies have their own questions during the application process, and salary is usually one of them. If they don’t bring it up, though, it’s valid for an applicant to ask, even during an initial phone discussion. If you’re worried about how it might come across, you can wait for the end of the conversation.

If it’s gone well, and you feel like this is an opportunity you want to continue to explore, it’s valid to ask about the salary range, especially if you’re currently employed at another company,” D’Souza says.

Can You Negotiate Salary With no Experience?

Negotiating your salary is important. Start a job with low pay, and, sure, you can eventually move up. But you’ll only move based on that low initial amount. Negotiating a higher salary doesn’t just pay off in the present—it’s also a long-term investment. Anything you negotiate in the future will use that higher amount as a benchmark.

1. Do your research

In addition to using sites like PayScale and Salary.com, Cohen and Streaks say recent graduates should use their friends, mentors and colleagues as resources for determining their pay.

“If you have friends in a similar industry, use them,” says Cohen, who is the CEO and founder of educational consulting firm IvyWise. “You don’t have to ask them exactly what their salary is, but you can ask something like, ‘What’s a competitive salary for an entry level graphic designer position in New York?'”

Aside from using your peers as a resource, Cohen says your college career center can provide guidance because it often has useful data on entry-level jobs in various industries.

Streaks says once you’ve exhausted these resources and gathered an idea of what your pay range should be, you want to be sure to negotiate a salary that is at least in the middle of the two figures.

“If the range is $50,000-$70,000 you don’t want to be at $52,000,” says Streaks, “because that can set the tone for how much you get paid down the road.”

2. Look beyond salary

Data from the Bureau of Labor Statistics show that benefits account for roughly 31 percent of your compensation package. That’s why Cohen and Streaks say you should look at more than just your salary when entering a negotiation.

“You should look at compensation holistically,” says Cohen. “This means reviewing the retirement savings, paid time off, commuter benefits and whatever other benefits are offered.”

She says that in some cases, such as with tuition reimbursement, your benefits can actually help to cut down your monthly payments on a bill. In this situation, Cohen says, it should not be a deal breaker if a company can’t increase its salary offer.

3. Don’t undervalue your past experiences

No one expects a recent graduate to come out of college with years of professional work experience. But, employers are looking for candidates who hold a certain level of skills, expertise and knowledge. Cohen says that’s why it’s important for young professionals to not undervalue the work they did in school.

“If you had internships or volunteer experiences, then you need to explain them,” says Cohen. “Make sure that every component of your job application, from the resume to the interview, is highlighting those experiences and be as specific as possible when referencing your skills and abilities.”

Before an interview, young people should write out the things that set them apart from their competition, she says. Brainstorming these qualities, she says, will help you answer confidently. Those lines will also “serve as a reminder of what you’re bringing to the table.”

4. Don’t make it personal

Before your negotiation meeting, Cohen says, you should practice your approach in the mirror or with a friend so that you’re better equipped for the real conversation.

“Rehearse what you will say and how you will say it,” she says. “And be sure to avoid discussing any personal financial concerns like student loan payments and rent. Instead, focus on the professional aspects that make you worth the salary you’re asking for.”

Cohen and Streaks agree that negotiations are never easy, but they say it’s important for you to know that employers are eager to hire you so the ball is in your court once an offer is made.

“When you come to a company, everything like raises and bonuses are based off what you negotiate so that is why the beginning is so important,” says Streaks, author of “Thrive Affordably.” “You help set that up. So, while you may not have five or six years of work experience, there are other things that you may bring to the company that you need to emphasize.”

How to Respond to an Email Job Offer

Whether you plan to accept, reject, negotiate, or request more time, it’s important to maintain the same level of professionalism in your response as you did in the interview process.

Let’s walk through how to tackle each scenario. 

When you want to accept the offer

When the position and company are a perfect fit and  your current job is driving you crazy, it can be hard to resist sending back an ecstatic Yes! as soon as you receive an offer. 

But, there are many details to consider before accepting . Take a minute to look over the proposed salary, title, benefits, and other terms, such as stock options and travel. If everything checks out and satisfies your needs, then you can begin crafting your acceptance letter.

Remember to:

• Make the acceptance obvious (i.e. use the words, I am please to accept your offer…)
• Repeat the position title and relevant terms
• Give your expected start date 
• Express your thanks
• Clarify anything that needs to be clarified
• Inquire about additional paperwork or information to provide 

When you need to ask for more time

It’s acceptable, and even fairly common, to ask for time to mull over your job offer . You may want time to craft your counter offer , have other offers on the table or family considerations, or just need to take a step back to gain clarity. 

Still, send your initial response within 24 hours and give a date you will deliver your final answer. 

When you want to negotiate your offer

If, upon reviewing the offer, the salary or benefits or job title (or really, anything else) differ from what you expected or if you deserve more, you have the opportunity to negotiate. 

In your response, voice your concerns and request a time for a phone call or meeting with the hiring manager. Be prepared for the conversation with your specific counter offer, but remember to ask questions rather than make demands. 

When you want to decline the offer

If you received a better offer or simply decided this isn’t the job for you, you can decline the offer completely. Keep your letter short but polite.

Wait, do I have to tell them why?

You are not obligated to explain at all if you don’t want to, but it is respectful to give a brief reason. (Especially if you think they might offer a more lucrative counter offer.)

It’s acceptable to tell them you took a different position or that it isn’t the right fit. It’s not the time to tell them how much you decided you would hate the hiring manager.

Why do Recruiters Lowball

There are a few reasons:
1. Recruiters are pretty routinely disrespected and blamed by management for not hiring to plan, even when the plan is impossible (eg hire 30 SW engineers from top companies/universities at 20% below market in one quarter? So some leave seeking new opportunities where people are hopefully more reasonable.

2. Recruiters are constantly talking to other people about why they’re looking for work. It makes you think about how much you want to stay at your current job when you’re interviewing people about job changes all the time.

3. Often times, especially in the first 5-7 years in a recruiter’s career, promotion and advancement comes from leaving, and most recruiters are go-getters: they want to see themselves moving up the ladder. Also, the pay differential for each year of experience is crazy, and most companies will just let you go rather than try to match it, since… Recruiters are always looking for work, so while they are annoying to replace, there are people out there.

4. Lastly and perhaps most importantly, recruiters are excellent at putting together resumes, finding job postings where they are likely a good fit, interviewing, and making a good impression during the interview. Normal candidates practice this only when they look for jobs, or maybe during mock interviews. Recruiters get practice daily. The upshot of this is, when they’re ready to leave, it doesn’t take them long to find their next opportunity.

7 Steps to Help You Negotiate Your Salary to Get What You Worth

1. Research salary data for your position

Before you ask for a raise, you should know what a normal salary range looks like for your position and your level of experience. If you are comfortable doing so, you could ask other people in your company who are in similar positions or have a similar amount of experience what they make.

You can also do research online to figure out what the average salary is for your job and location. It is important to make sure that the raise you ask for is within range of what people with your job and experience are making.

2. Consider how your company is doing

Familiarize yourself with your company’s financials and performance over the last few quarters to get a sense of whether or not they are growing. A company that is experiencing a period of stagnation or decline may not be in a position to offer raises.

This research will also guide the actual negotiation process. For example, if your company is growing, but the growth has slowed, you might consider aiming for a lower raise than you would ask for if they were growing more quickly.

3. Reflect on what you have achieved in this role

The best way to convince your employer you deserve a raise is to bring up your specific accomplishments that helped the company achieve its goals. You want to demonstrate that the value you bring to the team is worth the increased salary.

If you have been asked to take on additional responsibilities or roles in the company, this is also a good time to ask for a raise to accompany that extra work.

4. Decide on your target range for the raise

Convincing your employer that you deserve the raise is only the beginning. You also need to be prepared to negotiate the actual amount of that raise, which means that you need to set an appropriate range.

Your range should start with the lowest amount you would be happy with and end with the highest amount you think is reasonable to ask for, based on your research. If your employer agrees to give you a raise, you will reference this range as you negotiate the price.

In addition to a range of salary amounts, identify some other benefits you might be willing to accept instead of a raise or in combination with a smaller raise than you originally wanted. Sometimes, employers might be reluctant to increase your salary but still willing to offer you other benefits in return for your great work. Other benefits you might consider include:

• Additional paid time off
• More flexibility in your schedule
• Stock options
• Remote work days

Having a list of alternative benefits will also be useful in the event that your employer rejects your request for a raise. You may not walk away from the meeting with a raise, but you might still be able to get some additional perks.

5. Prepare your presentation

When you walk into the meeting, you want to be ready with a convincing narrative about why you deserve to get this raise. As mentioned above, you want to tie that to specific accomplishments as much as possible. To keep your arguments organized, it is helpful to structure all of your points in the form of a presentation or sales pitch.

However, you don’t want to actually come into the meeting with a presentation. You can bring notes with you to refer to, but in general, try to keep it more like a conversation than an actual presentation.

Begin with an opening statement where you describe what you are asking for and why you deserve it in two or three sentences. Then, be prepared to respond to questions and counterarguments.

6. Practice negotiating with friends or family

Once you know the most important points you want to discuss with your employer as well as the amount you want to ask for, ask a friend or family member to practice the negotiation with you ahead of time.

If possible, pick someone who either has some experience asking for a raise or is in a management position themselves so that they can provide constructive feedback about how you’re doing and what you could do differently.

7. Schedule your meeting

Timing is extremely important when asking for a raise. This refers to the time of the year, day of the week and time of the day. Here’s how to choose the right timing in each category:

• Time of the year: Generally, you want to ask for a raise when your company is doing well financially. It may also be ideal to ask shortly after you have completed a major project or accomplishment.
• Day of the week: Aim for a date earlier in the week. Tuesday or Wednesday are the most preferable. On Monday, your employer will probably be preoccupied with projects that weren’t finished the week before as well as all the work that needs to be completed in the week ahead. At the end of the week, in comparison, everyone will probably be eager for the weekend, so it is best to ask earlier when there are fewer distractions.
• Time of the day: Ideally, schedule your meeting for 10:00 or 11:00 a.m. This is early enough in the day that your employer is not yet fatigued by work but late enough that they have had their coffee, settled in and likely dealt with any pressing issues that they were concerned about that morning.

Getting the timing right gives you the opportunity to negotiate while your employer is in the best possible mood. This will improve your chances of getting a yes and receiving the amount you were hoping for.

Conclusion

Negotiating on salary is certainly a delicate matter and as such, it’s so important that you prepare yourself and don’t make any major faux pas.

Always appear interested in the position whilst conducting your negotiations!

You don’t want the hiring manager to go off you because they don’t think you’re genuinely interested in the position or because they believe you’re more interested in the salary.