How to negotiate your salary

Salary negotiation 101: the basics

Have you ever heard the expression: “Everything is negotiable”? In many cases, it’s true—especially when it comes to workplace compensation. So, if a prospective employer offers a salary and benefits package that is less than you hoped, it is perfectly acceptable for you to come back with a counterproposal. The key is to make sure you have all the facts and figures needed to make a compelling case.

Why negotiating your salary is so important

Your earning potential—the amount of money you stand to make during your career—is a significant financial asset. In fact, it’s probably the single largest asset you will ever have. That’s why negotiating your salary is so important—especially early in your career. Since future raises and compensation often build on each other, failing to negotiate could cost you as much as $600,000 in lifetime earnings.¹

Tips to use when negotiating with an employer

If you are uncomfortable negotiating with a prospective employer, it should help you to know that there are some established techniques you can use to help pave the way and avoid making mistakes. Here are just a few you may want to explore:

1.   Pick the right time

While employers often expect to negotiate salaries, there is a right and wrong time to go about it. According to the experts at Indeed.com, the best time to do it is after you’ve received a written offer. That way, you’ve already established yourself as the best candidate and will have more leverage.²

2.   Know your worth

If you want to command the highest salary, it’s important to demonstrate the unique value you bring to the position. Be prepared to discuss your skills and qualifications and, if possible, have examples ready that illustrate your knowledge of the business and the ways that you are prepared to help them succeed.

3.   Come prepared

Do your homework. Before you meet with your prospective employer, try to find out as much as you can about the business, the industry they are in, and even their competitors. Also, use online resources to see what other companies are offering for comparable positions for your qualifications so that you can be sure the offer you receive is competitive or that the salary you’re requesting is reasonable.

4.   Aim high

In any negotiation, it’s usually best to aim high and work your way down as necessary. Be sure to ask what the salary range is for your position and request something near the top. That way, if your employer pushes back, you will hopefully end up in a place that still meets your needs.

5.   Don’t overlook benefits

While your salary is certainly important, it’s only part of your overall compensation package. In some cases, you might be better off taking a bit less salary and enhancing your benefits package instead. Some easily negotiated perks could include extra vacation days, a flexible work schedule, or an accelerated bonus structure.

How to make a salary counteroffer

If you receive on offer that’s too low, it’s important to remember that hiring managers expect candidates to negotiate and prefer to begin somewhere near the bottom of the salary range. When this happens, it’s important to take it in stride and treat it as a starting point. Here are a few tips that can help keep things moving in a positive direction.

1.   Be professional—Keep in mind that negotiation is a normal part of doing business and the hiring manager may be looking to see how you handle it. If you negotiate in good faith and can make a solid case to back up your counteroffer, you should be able to improve your starting salary.

2.   Be grateful—If you’ve gotten this far, you can assume that you are the company’s top choice for the position. Be sure to express your gratitude for the offer, how excited you are to take the next step, and politely introduce your counteroffer. If you have to respond in writing, be sure to follow this same format and let the company know that you would be happy to talk further if they need additional information.

3.   Stay grounded—When you meet with the hiring manager, it’s best to have two figures in mind: how much you would like to receive (ideal scenario) and how much you are willing to accept (bottom line). When negotiating your salary, start with the ideal figure and work your way down. Just make sure you are prepared for the company to pull their offer if you ask for too much, or conversely, that you will be willing to walk away if the company won’t meet your minimum demands.

4.   Ask questions—One of the best ways to improve your bargaining position is to ask probing questions about the salary range. For example, you could ask “What skills does someone need to have in order to get the top of the salary range?” That way you know exactly how to position yourself or address any perceived shortcomings.

Don’t sell yourself short

Negotiating your salary is never easy, but it’s an important skill to have if you want to maximize your income potential. With the right approach, and a little practice, there’s a good chance you will be able to convince your prospective employer to enhance your compensation package.

How to negotiate your salary FAQs

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¹Kwame Christian, “Salary Negotiation: This Mindset Shift Can Make All the Difference,” LinkedIn, February 17, 2022.

²Jennifer Herrity, “How to Negotiate Salary After a Job Offer (With 13 Tips),” Indeed.com, May 21, 2024.