WHY SHOULD I NEGOTIATE MY SALARY AND BENEFITS?
Although negotiating for a salary and benefits package that reflects your skills and experience may feel intimidating, not discussing your salary benefits can affect your lifelong earning potential. For instance, if the average U.S. salary increases 3% each year and you accept a starting salary that is 10% below your expectations, it could take over two years just to regain those earnings. Most employers expect you to negotiate, so take the opportunity to set yourself up for success.
While many employers (and lawmakers) are moving toward pay transparency, some still fail to list a salary range on the job posting. As a general rule, you should reach out to the employer’s Human Resources (HR) department to ask about the salary range. You can simply say, “To be respectful of your organization’s time, I would like to ask about the salary range for the _____ position.” That way, you avoid wasting your time and theirs on an application for a position that pays less than what you need.
Tip: If they still refuse to give you a salary range, think very carefully before applying—this could be an indication that their organization lacks transparency.
Compensation includes more than just your salary
Typically when an employer extends a job offer, they present you with a compensation and benefits package along with a proposed salary. Employee benefits are a form of compensation that you receive in addition to your regular salary, and can add a lot of value. Examples of these benefits include medical insurance, dental insurance, vision coverage, life insurance, retirement planning, and more (see our benefits list for details).
Because there are so many employee benefits to choose from, and because each employer will offer something different, be sure you do some research before accepting an offer. For instance, some employers offer tuition assistance/reimbursement that can help you with graduate school, or pay off your undergraduate tuition.
Note that your job offer may be given verbally or in writing. If they make a verbal offer, be sure you write down the details, including the name of the person and the date and time they made the offer. This way you have a record to refer back to if anything changes.
The offer starts the negotiation process
As a general rule, you should always ask whether a higher starting salary and/or additional benefits may be available. This is not rude—the employer wants to pay you the lowest amount possible, and they know that you want to get paid the highest amount possible.
If the benefits and pay do not align with your skills, qualifications, career level or education, you can negotiate for more money or better benefits. It is also acceptable to suggest other forms of compensation, such as the opportunity for hybrid work or extra vacation days.
HOW DO I NEGOTIATE MY SALARY AND BENEFITS?
Determine your value as an employee
Knowing what you can bring to the table will help you evaluate the type of compensation you should receive. Take note of skills such as your years of industry experience, years of leadership experience, education level, skills, licenses, and certifications. All of these qualifications will influence your salary and benefits. Be sure to reflect your experiences in your resume and be prepared to talk about them in an interview setting.
Ask questions
Although you should research your industry before negotiating your salary and benefits, it may be appropriate to ask questions throughout the negotiation process. You may meet your employer with open ended questions to find out more about the role and how you may be compensated
Examples of questions include:
- “What is the budget of this position based on?”
- “Are there other benefits available besides salary?”
- “What information do you need from me to make a decision?”
When should I negotiate?
Typically, it is best to negotiate your salary and benefits after you have received a written job offer. You have the most leverage once you have proven yourself an asset to the company, and have demonstrated you fully understand the employer’s expectations. If you are awarded the position during the interview process, it is acceptable to offer a wide salary range you are comfortable with or ask the employer for the salary range they are considering for the position. Be transparent with your expectations.
How much should I ask for?
Be prepared to do some research about the salary expectations within your industry. Negotiating for the highest salary you believe you deserve when you’re hired will allow for future raises and benefits to be calculated using that base salary.
There are several online tools available to help you research your salary range. Consider using Indeed’s salary search tool, Payscale, or Glassdoor’s salary search tool to get started. For tech-based roles, consider looking at Levels.fyi and Comparably.
When should I avoid negotiating?
It is important to be realistic when negotiating salary. While you should be compensated for your skills and qualifications, if you are asking for a salary higher than what the company can afford, it might not be worth negotiating for because you could lose the offer entirely. If you continue to negotiate higher than what the employer can offer, they may assume you’ll be unsatisfied with the lower pay.
It may also be inappropriate to negotiate pay if the employer has made it clear that salary is non negotiable. In some industries, such as the state or federal government, employers have strict salary bandwidths and cannot offer more money.
What should I say when negotiating salary?
If the salary offered is lower than you expected, here is an example of what you could say:
“I know I’d be the right fit for the team and look forward to working in this position. I’m excited about your offer! Having discussed skills and experience during the interview, I’m wondering if we could explore a slightly higher starting salary of $65,000? My research shows this as the industry average for this area.”
The employer may come back with a response like this:
“It’s great that you’re interested in the position. We are excited to possibly have you on the team. However, the position is budgeted at $50,000.”
You might respond something like this:
“I understand budgeting issues can be tough. I want to be as flexible as possible with your team. I’m still interested in joining the team and would like to explore whether $60,000 is given my skills and experience.”
The employer may not know immediately if they can raise their offer. They may say something like:
“I’m not sure whether this will work with our budget, but I can look into it. We can get back to you with an offer.”
There is a chance the employer may not be able to offer a higher salary. If this is the case, at least you will have tried. If you feel as if the pay does not reflect your skills and experience, you can always walk away from the offer. More than likely, the employer will take the time to negotiate your salary. After looking into the budget, they may say something like:
“I was able to get approval for a starting salary of $57,000 considering how much our team would like to work with you.”
What should I say if the employer asks for my salary history?
A growing number of cities and states are banning salary history questions to fight back against pay inequity and ensure that everyone can negotiate competitive salaries based on their actual skills and qualifications.
Disclosing your salary information could put you at a disadvantage when interviewing for a job. If your salary from your previous employer was lower than the suggested salary for the job you are applying for, the employer could offer you a salary based on your previous job rather than using your skills and experience to determine your pay.
What you could say:
- “I’d rather not disclose my current salary, but I would be open to having a discussion about negotiating my salary based on my skills and what I can offer the company.”
- It’s important to be kind, but you can be firm and say your salary is personal and confidential information.
Tip: If a job application asks you for your salary history, you do not have to disclose this information. You can type “0” as a placeholder and discuss salaries in person during the interview process.
NEED MORE HELP?
We want to help you prepare for the future! Whether you are a St. Mary’s College student or alum, you can meet with our team in person, online, or by phone for help with your graduate school preparation and application—or any other career preparation.
