Written by Linda L. Barkacs
As a university professor who teaches negotiation, I encourage my undergraduate students to ALWAYS negotiate salary — yes, even their very first salary. And yes, even when it is not clear whether salary is negotiable. Sometimes this advice is contradicted by other well-meaning professors in other disciplines.
One year I had a student taking my negotiations class as well as an accounting class from a good friend and colleague of mine. The student showed up in my office in a quandary — my advice about negotiation was in direct contrast to that of his beloved accounting professor who advised him and others to “never negotiate your first salary.”
He didn’t know what to do. So, I said, “negotiate your salary!” We sat down and came up with a plan. Two weeks later, he reported that the employer would not negotiate salary — but he was thrilled with the $5,000 signing bonus he received (our “plan B” in case of their refusal to negotiate salary). Lesson: you can always negotiate something.
But how many people attempt to negotiate their pay, whether it be an increase in their current salary or the amount of salary at a new job?
According to a recent study by Glass Door, 17% of full, or part-time workers negotiated their salary and got more money at their current or most recent job.
In a survey by global staffing firm Robert Half, 55% of total job seekers attempted to negotiate salary (this is actually substantially higher than what other surveys have shown in recent years), while 70% of managers surveyed expect candidates to negotiate! Broken down by gender, of those who negotiated salary, 68% were men and 45% were women. There are at least two problems here: 1) both men and women are leaving money on the table, and 2) substantially more women than men are being underpaid based on failure to negotiate.
There are several reasons why people don’t negotiate salary: lack of information, not wanting to feel like they are bragging (especially women), being grateful just to be offered a job, fear, and inability to articulate their personal value. The good news is that Millennials and members of Generation Z are the most likely to talk about their salaries with co-workers (68% each). This is more than Generation X (55%) and the Baby Boomers (49%). It is also becoming more common for women to negotiate, particularly in the 18-34 age range.
So, how do you negotiate salary?
Begin by researching salary ranges for similar jobs in your industry. Don’t just go to one website. Visit as many websites as you can find, but also talk to friends and family (and their friends and family — go beyond just your own network). Review trade journals, search academic journals, talk to current (and former) employees of the company with which you are negotiating. Consider non-monetary compensation (tuition remission, childcare, assistance with buying a home, etc.) Then prioritize everything (what is essential? What are you willing to concede?). Prepare copies of graphs, charts, and surveys regarding salary amounts to take to the interview. Consider every possible question that might be asked. Do mock interviews with trusted friends or family members.
When the day of the interview finally arrives, imagine this scenario: You are at the interview and it’s going well. The interviewer suddenly asks, “what kind of salary did you have in mind?” Do you give a number? Or a range? The answer is “neither.” What you need to do is CLARIFY. Your response should be somewhere along the lines of “does that mean you are offering me the job?” Why this response? Because you never have more power than when they have decided on you for the position. Resist negotiating salary until you have an offer (or as close to one as they will give).
Suppose the interviewer responds to your question by stating “you wouldn’t be here if you were not one of our top candidates.” Consider a reply such as “why don’t we continue talking so that I can convince you that I am the right person for the job.”
Let’s assume the interview is continuing to go well. The interviewer again asks, “what kind of salary did you have in mind?” Now what? One possible and super-classy response is to DEFER. Convey your interest (e.g., “I was hoping we would get to this point”), then follow up by asking something about the company — thereby demonstrating you are interested in more than just collecting a salary.
When at last you are offered the job (or close to it), respond with STANDARDS. In other words, convey your salary requirements in terms of the objective criteria revealed by your pre-interview research. If questioned or challenged about your salary request, now is the time to share the graphs, charts, and surveys that justify your ask. Be prepared for trade-offs, such as my student who ultimately accepted the offered salary, but with a $5,000 bonus. Have a plan “A,” but also plans “B, C, & D.”
Once you have an offer, do not immediately accept. Request that they extend the offer in writing. Thank the employer for the opportunity and give them a time and date when you will contact them with a firm answer (e.g., end of business day on Thursday). In the stress of the interview, you may have forgotten to ask certain questions, so this gives you the time to reflect and follow up if necessary. You can do this—now go out and negotiate that salary!