Mastering the Art of Salary and Benefits Negotiation
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With many households still struggling to keep their personal finances in check in the wake of a global pandemic and historical inflation, income is an important aspect of personal finance to consider. A higher salary or better benefits package could be exactly what you need to face the high costs of consumer goods while still maintaining your savings goals.
While it would be nice if everyone got the raise they asked for (when they asked for it), the art of negotiation can be daunting. This is true whether you’re looking to ask for a raise higher than your current salary or if you’re starting a new job after a great job interview.
From market value research to practice your negotiation skills with a friend or family member, there are all sorts of things you can do to set yourself up for success when it comes to salary negotiation. Keep reading for tips, tricks, and strategies to help you master the art of salary and benefits negotiation.
In this article
Research
Research is the first task you should perform when preparing to negotiate a raise or salary for a new job offer. It’s important to understand the job market and what sorts of salaries and benefits are in the industry you’re applying to.
Research the company
Thanks to websites like Glassdoor and PayScale, job seekers can learn information to help inform their negotiation process. This information, submitted anonymously by current employees, can help you see what salary ranges are like for the role or department you’re applying for at the company.
Researching the company during the interview process also helps you learn more about the different perks the business offers its employees—including things like health insurance and vacation time. This can be helpful to leverage as well. For example, a company may only offer you their average salary as a new hire; however, you may be able to negotiate additional vacation time as part of your compensation package.
Determine your own market value
Before you head into negotiations with a hiring manager or your existing boss, it’s important to do some research on your own market value. Take stock of your achievements, and pay specific attention to certain qualifications or certifications that make you a more attractive employee.
From project management courses to Google Analytics, there are plenty of opportunities to bolster the special skills line on your resume. Once you’ve completed these training courses and are certified in new methodologies, you can point to these as reasons that you deserve to be paid more than the average salary.
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Negotiation preparation
The best advice you can get when entering salary and benefits negotiations is never to accept the first offer. From stock options to a more flexible work schedule, it’s important to explore any and all possibilities when negotiating. After all, when a company gives you a job offer, they are trying to get the best deal, too, so there’s always something else on the table.
Goals
As part of your negotiation prep, it’s important to outline your goals. These can be paramount when it comes to deciding whether or not you’ll settle for the counteroffer you get. If you know what you need regarding vacation time or a salary range, you’ll be far more comfortable if you have to walk away. Even in a tough job market, it’s important to stand up for yourself and stick to your needs when negotiating.
Pitch
Once you’ve determined your goals, it’s time to practice your pitch. The more concise and simple you can keep, the better. This is because when you present your argument for a raise, higher starting salary, or additional benefits, it will feel very high stakes. Focusing on delivering a straightforward and effective pitch that can be said in under 30 seconds is key.
If you really want the job but are just trying to get more money, one formula to use when pitching your salary requirements uses a bit of psychology to get more money from the hiring manager while still making it seem like they have control.
For example, let’s assume that, based on your research, you believe that you deserve to be paid $60,000 a year at the company you’ve applied for a position. If the offer is for $55,000, giving a range of $60,000 to $70,000 (assuming that the high-end is fair based on your research) makes it seem like you have some flexibility and aren’t asking for the moon. However, since the bottom of the range is the number you actually want, even if they “low-ball” you, you get what you need.
One way you can couch this phrasing is in the idea of comfort. A simple statement like, “I’m excited about starting this position with you; however, I do feel like, based on my past experience, I’d be more comfortable accepting this position in the pay range of $60,000 to $70,000” can help you net more money without shooting yourself in the foot and losing the offer altogether.
Preparing for counter-arguments
Sometimes, the hiring manager or your boss will come at you with counter-arguments for why you don’t deserve to make more money. In these situations, you can rebut their concerns with more data and research about their company, position, or your worth at other jobs.
Another option is shifting the focus to a different perk or benefit. For example, if you’re told they can’t get your salary to $60,000, ask about stock options, starting a vested 401k match earlier, or even getting extra vacation time. Giving you five extra days of vacation doesn’t always have the same tax liability as a higher salary, so you may be surprised at what you can get that provides value without costing the company as much.
This is where it’s helpful to practice with a friend or family member. Providing them with common counterarguments you think you may face can give you more certainty and confidence when it comes to pivoting. If you’ve done your research and practiced, you can often find something to leverage to get more out of your current position or a job offer.
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Common Negotiation Scenarios
Here are some of the most common situations in the workplace where negotiation comes into play.
Raises
Raises can be some of the most challenging negotiations, even if you’re already invested in the company and have a strong history of good performance on the job. This is because many employers recognize that they are already offering you stability, and it can be challenging to leave a job without something else lined up.
You can try a few strategies to leverage your position and get the salary increase you want.
Go back to your old job description
Have you picked up more job responsibilities post-pandemic? Most people have. Finding the job description for the position you were hired for can be a great reference point for how you’ve gone above and beyond. It’s also a quick and easy way to illustrate to your current employer that you’re doing far more than you agreed to take on for your current salary.
Time it right
Has your company turned into a revolving door? If your business is experiencing a lot of turnovers and you’re not interested in leaving, timing your ask for another employee’s resignation can be helpful. This is because, during these turnover periods, it’s more important than ever for a business to have someone with institutional knowledge and history on-the-job. If they’re concerned you might walk, too, they may be more willing to meet you at the negotiation table.
Leverage another job offer
Sometimes, the best way to get more money is to leverage another job offer. This shows your employer that you’re serious about leaving and have a place to go to. It also underscores that you’re willing to stay for the right price. This doesn’t always work out in your favor if you want to stay at your current job. However, it does allow you to have a backup plan with more money!
Job offers
When you get a job offer, you’ll often talk to the hiring manager about salary, start date, and other benefits. This is the time to negotiate. If they’re already offering you the job and you have an official offer letter, the ball is in your court, and you know they’re interested in you. With preparation and by using the strategies and tips above, you should get closer to the perks and salary you’re seeking.
Know when to walk away
A friend once shared with me some advice from the actor Jim Carrey. He said, “You can fail at what you don't want, so you might as well take a chance on doing what you love.” This is helpful to remember when it comes to looking for jobs. Just because a position has higher pay or better benefits doesn’t mean it’s conducive to the career you’re trying to build.
For example, I once applied for a position and made it far in the interview process for a business that paid twice my current salary. The pay was great, but after reading reviews of the business on Glassdoor, I saw that almost everyone there was bored at work, despite good pay. I would have had an hour-long commute to the job, too, so some of the pay increase would be counteracted by wear and tear on my car, increased gas costs, and a loss of free time to do other things.
I called and canceled my final interview the morning it was scheduled because I knew I couldn’t put up with those aspects of the job, despite the pay.
The previous step about outlining your goals is pivotal to ensuring that you don’t find yourself looking for a new job in six months. If you stay true to your financial needs and the sort of life you’re hoping to marry with the career you’re applying to, you’ll be less likely to compromise and know when to walk away from an offer that just isn’t right. If you’ve done the math and know that you need that extra $5,000 a year to keep making rent payments or get groceries, it is much easier to walk away.
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The bottom line
It’s daunting to try and negotiate a raise. Sadly, most people don’t even ask for raises, even though there’s almost always more money on the table — and in the cases where there isn’t more money, there are at least other perks to explore. Advocating for yourself is hard, but it’s also important, especially if you are trying to improve your financial standing.
Whether you’re negotiating a raise, benefits, or at the final stages of a job offer, some tips and tricks can give you more confidence and improve your chances of getting what you want. Researching the job market, your qualifications’ value and the company you’re interviewing at can be key.
Beyond that, preparing a few simple talking points and counter-arguments and practicing with a friend can help give you an extra boost of confidence. Even if it seems impossible, you’ll be happy to have tried rather than wonder if you could make more money and aren’t savvy enough to ask correctly.
Budgeting gets talked about a lot in the world of personal finance, but the fact is that sometimes you’ve dialed in all of your expenses and still may be struggling to live paycheck to paycheck. In these scenarios, you may have an income problem, too (or need to move). Before uprooting your life, try applying for a new job or asking for a raise using the above negotiation tactics. You may be surprised what a little research and preparation can get you.
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Writer
Brent Ervin-Eickhoff is a Chicago-based writer, stage director, and filmmaker with a background in digital marketing and content creation. In addition to Joy Wallet, Brent has written for Complex, Volkswagen, HowlRound, Picture this Post, and Third Coast Review, among others. He currently serves as the Associate Director of Marketing for Content Creation at Court Theatre at the University of Chicago. Brent graduated from Ball State University with Academic Honors in Writing.
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