4 Salary Negotiation Strategies to Use Right Now
Salary negotiation is a widely accepted practice during the job hunt process: about 70% of employers expect job candidates to negotiate. Despite that, a recent study from Fidelity found that 58% of young professionals accepted job offers without negotiating. Many people don’t negotiate because it’s uncomfortable or they fear how they will be perceived, but by not negotiating, you could be leaving money or other benefits on the table. The same study found that 87% of job seekers who negotiated received at least some of what they asked for.
Try these strategies to put yourself in the best position for a successful negotiation:
Use your network
We often lean on our networks for connections and recommendations during a job search, but we shouldn’t stop there. Doing your research on what salary is competitive for the job, field, and location of the work you’re seeking is an essential part of the salary negotiation process. There are many great websites out there that can help you identify reasonable salary ranges, but talking to people who are within the industry and at least a level above you is even more valuable. Reach out to mentors or other people in your industry who you think may be willing to share what salary range is reasonable for the roles you’re considering.
Know your Wish, Want, Walk numbers
Every hiring process is different so it’s key to be prepared with your salary requirements even early on in the interview process. In particular, you should have three salary numbers in mind: your Wish, Want, and Walk numbers. Your Wish number is the highest salary you can say with a straight face that is still attainable for the role you’re applying for. This number should make you excited (and a little queasy) when you think about asking for it. Your Want number is your target salary. You’d feel content with this salary and still feel valued. Your Walk number is the lowest salary you’d be willing to accept without feeling like you got the raw end of the deal.
Budget for your salary increase
While a $10,000, $20,000, or $30,000 pay bump sounds exciting, you need to remember that not all of that is going to end up in your own pocket. It’s easier to understand the actual impact of a pay raise when you visualize what it means for your monthly budget. Estimate how much extra you’ll have per month with each of your Wish, Want, and Walk numbers with this formula:
Gross salary increase X 0.65 / 12 = Estimated Net Monthly Increase
For example, with a $20,000 salary increase, you could expect to have an extra roughly $1,100 per month to work with in your budget. Plan out exactly what you would do with that increase. Visualizing your new budget so clearly can motivate you to ask for what you’re worth.
Be specific
Giving a salary range is tempting because it feels like you’re covering more ground and it can make you feel more comfortable throwing out a higher number. The problem is that you will anchor to the higher end of the scale while the employer anchors to the lower end. By giving a single salary ask, you’ll both be negotiating from the same starting point.
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