When it comes to managing your finances, one of the most straightforward ways to get a handle on your money is to make more of it! Easier said than done but given that your salary is likely to stick for a few years, it’s worth the time and effort to make your case and negotiate well for your next role. Let’s look at a 4 step strategy to help streamline the process.
- Do your homework.
When researching salary ranges try to gather all available information. This includes publicly available data on aggregation sites like salary.com and glassdoor.com. If you are part of industry groups or alumni networks, they often house additional stats for members. It’s equally as important to get a feel for what real roles among comparable companies are paying. This is where it’s key to have your own personal network and mentors where you can discuss this topic, at least in general ranges. It’s also important to adjust for regional differences. Perhaps post-covid where work from anywhere becomes more normal, this will equalize more but as of today, roles in rural Midwestern states, do not pay the same as San Francisco and NYC.
Arm yourself with all sorts of data points. Not just the salary ranges you have researched, but information on the company, its mission and values, the business unit you will join, the existing team as well as information on the actual role and responsibilities. Don’t forget to prepare examples and case studies of similar wins you have that align with this role’s responsibilities.
- Be confident and make your case.
If it all possible, you are going to want to avoid putting out numbers during your introductory calls on the role. Simply say that you will need to learn more about the opportunity and responsibilities before you can give compensation expectations. No reasonable person should expect you to price something until you have the necessary details on it. Use the time as you gather intel on the role, in order to better price yourself. However, it is important to bridge that conversation at some point before an offer. Neither side wants to waste hours and hours and rounds and rounds of interviews if your range is 2x their budget. Fortunately, HR doesn’t often let that happen. And if you are forced to give expectations sooner than you prefer, don’t sweat it too much.
When it comes time to start throwing out numbers, hopefully after you have had a conversation or two on the opportunity, be confident in yourself and your research. If you can get them to put out the range first, great. Flat out ask them what they have budgeted for this position. If not, don’t make yourself look insecure by not be willing to put out your worth. Most hiring managers already have a range slotted for the role, irrespective of the range you put out. If you are afraid your ask is too high, you can always come down later should you chose. It’s a lot harder to come back with a higher number. If you are still a bit nervous about putting out your ask, you can add that you may be willing to be flexible for the right opportunity to give yourself some room.
Thankfully most companies are moving away from flat out asking what you are currently making. In some areas its against employment laws to do so. It doesn’t matter where you currently are when looking at a new opportunity. Don’t sell yourself short! Even if it’s the same company. Do not anchor your next salary to your current salary. Your next salary should be a reflection of what similar opportunities are paying, regardless of where you are today.
- Give yourself room.
Always negotiate within a range. The range should ideally mirror generally what is publically available in case you need to support your case further. Know that most firms have their own private data they are working from, which may differ. The public data is simply an indicative range that’s easy to reference if needed but don’t treat it like it’s the end all be all. There are times where the ranges you have found from your private conversation may differ significantly. If this is the case be prepared to discuss this and why this role and your skill set, do not match the neat boxes and titles laid out on salary websites if they question your range. When it comes to putting your actual range out there, you are going to want to put the low end at a number you would still accept. You are going to want to put the high end above publically available information, and one that you would be thrilled with. Let’s say that a public website shows a role as typically earning $80 to $100K a year. You may want to throw out a range of $90 to $120K. Its important to negotiate from within a range, but do make sure you are comfortable with the full range you are putting out.
- Lay the foundation for future negotiation.
While this article is all about pure compensation, when it comes to accepting a new role there are obviously many other important factors around the opportunity. Are you getting a title promotion? The opportunity to travel more? Meet with clients more? Own your own accounts? Work with a great team? Have a better work life balance? The list is endless. If the company has presented you with a financial offer that is acceptable to you, but you are less than thrilled, you may still want to move forward. What can make a big difference though is saying something to the effect of, “While I am really excited about the organization and this opportunity, this is on the lower end of my salary expectations. I would like to revisit my ask of $XX dollars at my first annual review. I think you will see that my skill set and accomplishments will warrant my higher ask.” Putting a specific dollar ask and time to review gives you a concrete point to revisit the discussion. This is helpful as you will have already laid the foundation for the conversation and you won’t have to make your case from scratch again. Consider this pre-negotiation for a future date.
While the thought of negotiating salary can be a nerve racking experience for many, it is key to your financial future and well worth the time to approach it with a solid plan. You are worth it!