Negotiate Your Salary More Effectively

I've used this strategy - it didn't pay out right away, but within a month I saw a 10% raise. I didn't need to push hard, I didn't need to beg, I just needed to reflect.

Well written article - the power of silence is often underrated and I can attest to it's power. Be patient and you'll reap the benefits.

Salary negotiation is not a science... it's mostly tradecraft you have to learn the hard way. It doesn't matter how many books you read about it, it all comes down to the moment you have to actually sit and negotiate.

For my last salary negotiation, I took an interesting approach. When asked about the figure I was aiming at, instead of replying with an actual figure (say, "$96,000 a year, plus 401k"), I came up with an answer like:
"I'm currently giving consideration to offers between $XX and $YY a year, plus 401k".
The trick is that $XX was the absolute minimum I was willing to accept (and higher than my previous salary). We eventually ended up agreeing in something in the middle of $XX and $YY (a LOT more than I wanted in the first place) and they threw in the 401k which the company usually deducted from the gross salary... in my case they gave it as a plus, just because I asked.

jlarroulet

The best negotiating tool is budgeting. Nothing is better for negotiating salary than how that salary is going to be used. If you don't have a personal budget start one now, and shame on you. Adjust it for cost of living if you are moving to a new area. Always aim a little high when doing the budget, but keep realistic.

If your budget is good you'll be seen as financially responsible, and able to plan ahead which will cause the company to be willing to pay more.

On the rare chance they actually want to closely look at your budget (most will take your word) make sure your budget is good, and makes sense. If you're over spending in certain areas, or cooking the books to increase your salary it won't look good. Also if you forget to include things like savings, retirement, or insurance it can look bad also. Also if a company won't bend from their salary ask if there's places they can help w/ your budget. Though it's a long shot this could be any number of perks like a company car, paid trips, food, ect.

Jr Hawkins

I walked into my bosses office yesterday and asked for a 25% raise (granted I'm severely underpaid right now, but still, that's a hefty sum).

She looked at me and said "Ok, I think you're right."

It helps that I have a handlebar mustache for Mustache May.

idrumgood

@iamnotafish:
2 points.
1)Get some third party information such as salary.com and payscale.com. Telling the recruiter "my buddy got X" versus "I have researched the position and according to XYZ people in my position are receiving YY$" works wonders. (They can then justify your salary to their superiors)
2) You need to understand your position in the market place. If there are other competing for the job(likely the case), then it maybe a Buyers(employers) market. In that case you may not be able to stay as firm as you like. If you wish to remain firm about your salary, then you should have reasons to defend this stance, i.e. i have X skill which none of your other candidates have, thus I deserve that salary. Since you do not have prior experience that may not be the case, and not an option for you.

emanresu

@fosphen: "These are not the writers you are looking for..."

Here is a question for Lifehackers - I'm a graduate student, about to enter the workforce. I'm decently qualified compared to my peers, but I don't have any experience in the field I'm in.

I know what people who have graduated from my program have got as a starting salary - should I shoot higher and hope to meet at that amount, or say that this is what people have got and I expect the same and don't budge? Does aiming higher but then conceding work better than aiming lower and not budging?

Wow, you guys are asking for it. You post a job opening then a couple of days later, an article about salary negotiations. Your interviewees are going to be Jedi mind tricking you into more money.

Interestingly, I took a pay CUT to take my current job. Less benefits, less salary, less vacation. This was in 2007.

My previous job, no pay raise for 2 years. I hated the job by the time I left. This job was something I wanted to do.

Currently (less than 2 years later), I have all my vacation back, benefits aren't as great still, but I'm also making more than I was at my previous job.

Sometimes happiness is more important than salary, but sometimes when moving jobs, you can take an initial hit for something better.

I don't know if I was a bad negotiator. I got them to raise their initial offer twice on the grounds I was losing a week of vacation.

The only experience/thought I have on this is if you are cornered and feel like you have to give a number, shoot high but also mention that you are very interested in the position and don't want them to eliminate you as a candidate due to your salary requirements. Though again it still feels like you're on the losing side here. I HATE salary negotiations especially when the HR person is just as stubborn as you are in giving a number.

Where the hell was this article when I did the negotiations for my new job on Monday. *Shakes fist*

Seriously though, all great tips and suggestions that I'll have to remember to reference in the future.

The Man with No Name

Right now I'm at a job where the big boss doesn't give any sort of formal review or annual raises or anything.

It's up to the employees to grow a pair and walk in when they feel the time is right.

At the risk of seeming greedy, I walk in for that talk between 1 and 2 years since the previous talk.

I hatehatehate having to ask for one. It almost goes against everything my personality naturally stands for. Even if the boss may not see it that way, it makes me feel like I'm all ego sitting there asking for a raise.

My previous jobs involved annual reviews. At least I knew where I stood, and if I was deserving of a raise or not.

Slightly unrelated, the first 3 reviews on this book's Amazon page look like plants. Or maybe this book is just that good.

The main thing is making sure the person you're talking to actually has some negotiating power, which is not always the case: I've worked several places where you have the hiring/raise conversation with a supervisor who's been told what the salary is, and if you ask for more than that, they have to go ask various people's permission and come back to you. But you're not allowed to negotiate directly with the person who has the purse strings. It's a system that's meant to make it hard for you, but can be dealt with by making the supervisor want you badly enough--and LIKE you enough--to go to bat and use up some political capital to get what you want.

Also works in that situation to ask the supervisor outright what his/her constraints are, so you can help find a way around them. For example, if the supervisor admits that it will be hard to get you more than the original offer because the department is already over budget for salary, you can sympathize--and then offer some movement in your salary request in return for something unbudgeted (extra vacation) or from a non-salary budget (benefits, perks).

maines19

This reminds me of "The Negotiations" from season 2 of the Office US.

@Jr Hawkins: Wait, are you suggesting you share you personal budget with your employer? I've never heard of anyone doing that.

SamburgerHandwich

Compensation is a function of supply and demand. If there are plenty of people like you on the streets, it doesn't matter what Jedi mind tricks you pull on me: you will not get that "so deserved" raise. Period. (OK, maybe you will, but only if you truly stand out from your colleagues and want you around).

Micho

Wait! People can still negotiate salaries? Instead of whether or not they'll be allowed to continue having a job at all?? Tell me where and when!

SterlingCrispinus

@SamburgerHandwich: Agreed, I think that's just weird.

I think a better idea is look at the budget of the company.

Are they paying an outside consultant $70/hr for work that you could be doing? Or maybe the work that you do used to go to an outside consultant. Your skill skill set saves them money, so you should perhaps make a bit more.

@Micho:

That's not always true. More often then not it's cheaper to give employee X a 10% raise than it is to have him/her leave the company and then have to replace and train him/her. Training is a really high expense for a company.

Dustin Charest

@jlarroulet:

Wow. That's a really good idea. Amazing how something so simple is one of the things a person never thinks of. Thanks for sharing!

Dustin Charest

@iamnotafish: It's all about your value in the marketplace. If you have excelled in your field and have shown a propensity to exceed expectations, then going in with higher than average expectations is reasonable. Know any alumni in the field you can reach out to? They can be a tremendous source of information.

Also, remember that anything not in writing is just hot air. Recruiters can say anything but, if it's not in writing, it means nothing.

thelastnamehere

@emanresu:
Of course, if you do say you have X skills which your other candidates don't have, there's the possibility you come off as either arrogant or over-qualified, unless you can justify the skill for the job and it really is a rare skill..or they may turn out to have other candidates with the skill that you think no-one else at that interview has. ;)

sylvane

@chiieddy: Sometimes a job you enjoy is worth taking a salary knock over (eventually you'll get it back because of performance etc). I would rather be happy at my job then earn bucket loads of cash..no wait, I retract that :P. Bucket loads of cash is always good

davebm

The cardinal rule of negotiations is that once all the cards are on the table and both parties have fallen silent, the first one to speak loses. This works, seriously.

Keter

Read "Getting to Yes" by Fisher before any negotiation - helps you declare your value much more effectively.

shahnr

Management does not negotiate salary. There is no such thing. Jobs pay what they pay, and the offer is what it is. You either take it, or you don't. If I make you an offer, and you negotiate back, I will simply repeat the offer and turn down your counter proposal with a deadline by which you must respond.

This is bad advice. Do not follow.

24fc

As a former civil servant, I can say from personal experience that in plenty of jobs the salary is not negotiable.

@Jr Hawkins: I would have to respectfully disagree on this recommendation. If anything, using your personal budget to justify a raise is usually seen as a BAD reason to give you a raise. You're basically telling them, "I'm not asking for a raise because I deserve it for working hard, I'm asking for a raise because I want my personal life to be better."

mrbofus

@idrumgood: Kudos to you, in this environment. I'm due for one, and it's been clearly discussed with our President, but the company simply isn't in financial shape to give raises. I'm not going to press the issue until I see a reversal of that fact.

I disagree with 24fc. I think it varies from job to job, company to company. If I were hiring IT and the folks were basically a dime a dozen, I wouldn't negotiate. If I were hiring economists, I might have to have some leeway.

Management frequently negotiates salary. If not salary, then fringe. Consider fringe worth negotiating, as it can be as valuable as salary.

Consider: The salary is set at $70K/year. But, since this is below my market value (graduates from my program typically get $85K plus bonuses), we can talk about vacation. You are offering a week. But you can budge on this. I would like four. You give me four, and hold the salary line at $70K. We have both won. You can go back to your manager and say, we got $85K worth of employee for $70K, and I can tell my wife that I managed to take my weekly salary from $1375/work week to $1460/work week. 6% up. It's not $85K, but it's not the same $70K.

Similarly, I want flex place. You are indifferent as long as you hold the cost line. I work from home 2 days a week, you don't care, as long as I make my numbers. I work from home, I save a couple commuting hours a week. I save dry cleaning, since I don't have to dress to stay at home. Win-win.

Really, the salary number is a confrontational number, and should be negotiated delicately and with tact. The fringe stuff is a little less adversarial and you can really make some gain when the salary number won't move.

Max Harris

@jlarroulet:
Well done. And correct. Negotiating is a craft. Some are naturally skilled, but if you want to be successful with it, you have to practice.

I would not suggest negotiating a job offer as a first bridge into negotiating. I think it's a little high stakes.

Max Harris

@iamnotafish: I was in exactly this position two years ago. My employer offered me less than I expected, so I told him the range of salary that my fellow graduates received. He gave me the bottom of the range (which was fine-- I had no experience and it's a small company) and then gave me a raise 6 months later, and I didn't even ask for it.

LavenderSoap

Yeah, that might make sense if you were talking about an allowance that your parents give you, but an employer? An employer who wants to look at your budget to determine whether you deserve a raise is just plain creepy.

KayGull

The above shoul read:
Forget the low end of the range right away, "I believe (HIGHEST DOLLAR AMOUNT STATED) would be a good starting point for discussion."

tannerjs

1) Employers will always try to corner you early with, "How much did you make in your previous position?"

Dodge the question elegantly by stating firmly, "I'd rather not go into those details until we've had a chance to speak about this position more and time to discuss what I can offer your company."

2) Employers will always ask you "How much will you require for this position?"

Immediately turn the table on them by asking, "What range do you have in mind?"

Most times the employer will find themselves on the defensive and tell you the accurate range. Once they've spilled the beans there, you can continue pressing. Forget the low end of the range right away, "I believe would be a good starting point for discussion."

I've used this method throughout the years and always felt good about the outcome. Even if you can't press to the top end of the range, you can at least know what they had in mind for your salary before you have to blurt out a number and wonder for the next five years if you could have gone higher.

tannerjs

i use the same tactic when dealing with annoying people at work, it's like a real life jedi mind trick. they think you're actually listening to them and once they've worn themselves out they usually just go away!

i only have one question, how do you negotiate a higher salary when they've frozen all increases for the rest of the year?

@Micho: And, that's precisely why someone like me wouldn't work for someone like you.

You refer to employees as if they were assets on a spreadsheet.

What you fail to understand is, a great employee is well worth the pay and will grow and enhance beyond their original position as they gain experience and become more capable.

Currently, I work few hours and get paid a reasonably high hourly rate. But, it would take 4 employees to replace me and if/when s*** hits the fan, I have no problem staying on until the job is completed. Those traits alone are more than incentive to pay my rate and I have no problem with extending my efforts to earn it.

In your case, I'd say that you take your GS&A position as a layer of protection when you should consider it an added layer of vulnerability.

The fact that you sit in a position that requires you to spend the majority of your time managing resources, hire employees (GS&A stuff), etc..., means that you probably add little or no value that can earn income from your customers/users. If you hire people that are cheap and lacking ambition, they will never make the effort to grow or expand their position/responsibilities. On the contrary, people who don't have the interest to grow and improve often times work harder over time to minimize their role until their position includes little or no responsibilities (and they effectively do nothing).

A person who comes to you seeking better pay has more incentive to improve over time especially if their growth is reinforced with an incentive as they improve.

If you're stuck doing GS&A your employees are the real bread winners and your attitude won't protect your position when your employees walk out during your hard-lining negotiations.

I'm glad you don't work for my company. I'd hate to see you run it into the ground with that attitude.

Evan Plaice

@24fc:
I completely agree with Max Harris, and I think its important to point out that employment is a contract and should be considered no differently than any other contract. I am not going to give blanket advise as your approach to salary should be different based on where you are, and who your talking to. If your meeting with the CEO, he/she has the power to push the envelope, if your meeting with an HR rep, they really don't. Know the playing field. There are lots of considerations e.g., what profession are you in, if your a janitor then chances are you wont be able to negotiate much, if your a high-end flash developer than your chances are better.

Consider what 24FC said, he is not flexible and actually resents the fact that your looking for the best possible situation. If your a janitor with no self worth or desperate, you'll probably accept his bullyish ways and take the offer, on the other hand if your smart and experienced, you'll find his attitude is what you have to look forward to if you take the job, more bullying and inconsideration of the employees. REMEMBER, they are not just interviewing you, YOU are (should be) also interviewing them.

1. Do they treat people fairly
2. Do the other employees appear happy
3. Do they consider the views and opinions of their employees
4. etc

When you choose a mate, do you take just anyone or do they have to meet a criteria...

awnstudio

I have used the "silence" trick in my review. My boss instantly asked me ...Why..? What do you think I should have answered...?

OrlandoVitulus