Ask EDN Question
Hi EDN! I’ve enjoyed the Ask EDN series and thought it’s time to shoot my shot! I am leaving my current job soon and I applied to and interviewed for different positions. I need some good advice about salary negotiations. I’ve heard many things including you should always negotiate your salary and that you should buff up your previous salary for better leverage, while others have told me to just accept what’s offered and move on. In my current position, I just took the salary and benefits that were offered. It was my first job after college. But this time around, I want to approach this conversation proactively, what is the best way to negotiate your salary when you start a new job? What should I consider? Is there such a thing as asking for too much?
Dear Reader:
Thank you for asking this important question. Our thoughts are that you should always try to negotiate your salary when possible. Unless the employer explicitly states that negotiation isn’t possible. Money is an uncomfortable thing to talk about, but closed mouths don’t get fed. Remember that!
You may not feel very powerful before you’ve officially signed a job offer to accept a position. After all, you aren’t even working at the company yet. But the fact is that you have the greatest negotiating power during that short window of time between being offered a job and formally agreeing to take it.
Employers generally expect some negotiation in the hiring process and have built that into their offer by initially pitching a number that is lower than they can ultimately go. Someone with hiring experience stated that he generally had a around 15%-20% more in his budget that he could play with in terms of negotiating a salary for new hires. It may not always be that percentage at every company, but there’s room.
So how do you go about negotiating a salary that reflects what you’re worth? The first step is to arm yourself with some market data on average salaries for your position, keeping in mind that certain parts of the country pay more than others. Do your research. Look on websites like payscale.com, glassdoor.com or scale.com to get a feel for how much the company would pay for each position.
Next, factor in your own level of experience and unique attributes that you bring to the table – it’s possible that as a highly valued candidate, you can command even more than the market average. Additionally, consider your own expenses and what you need to cover the necessities and some fun. Build in a small cushion of cash that goes slightly above the actual number you want, so that if they offer less than you ask for, you’ll still be happy with the results.
Also take into consideration your benefits packages- they can make up to 30% of your salary! Benefits such as full health care coverage, an impressive 401K package, and ample paid time off should not go unnoticed, especially if there’s a minimal salary difference between a similar job that does not. This becomes especially relevant when considering your lifestyle and what accommodations might come extremely handy. Also note that you can negotiate benefits. Many people successfully request an extra week of vacation or a hiring bonus.
Remember: The main reason employees aren’t “paid what they’re worth” isn’t because they don’t deserve it. It’s because they don’t ask. So Ask.
For specific negotiation tactics check out the Noteworthy Links section of May’s Professional Development Newsletter!
Let us know how it turns out.
Best of Luck,
EDN PD.
If you would like to ask the EDN PD Team a question, you can do so here.