Negotiating a salary is a crucial part of accepting a new position, but botching this step can cost a you the job or affect your ability to succeed at work.
On the one hand, if you don't ask for the salary you think you deserve, you may be paid less than you'd like and feel unsatisfied in your job. However, if you negotiate your salary the wrong way, it could backfire.
Learn more about negotiation strategies to avoid because they have the potential to backfire.
Key Takeaways
- Avoid bringing up salary negotiations in the hiring process until you have a firm offer.
- Don't try to get one company to match another company's offer.
- You can turn to a salary website for information, but don't rely only on the estimates for salary negotiations.
- Include other perks and benefits such as vacation days in your salary negotiation.
- Don't try to negotiate a salary after you've accepted a verbal offer.
Negotiating Too Early
One common mistake you may make during the hiring process is trying to negotiate a salary before the company has even extended an offer of employment.
“The best time to negotiate your starting salary and other components of your total compensation is after receiving, but before accepting, the offer of employment,” Steven Rothberg, president and founder of College Recruiter in Minneapolis, MN, tells Investopedia,
Approaching the topic of salary negotiations too soon in the interview process could be a deal-breaker. Instead, wait until you receive (but before you accept) a salary offer before countering with the salary you believe you should earn.
Trying to Leverage a Counter Offer
You may have interviewed with more than one company. However, don’t assume that a company is willing to match another employer’s offer, and don’t make the your other salary offer a determining factor.
Kristin Scarth, Vice President of Recruiting and Development at Spark Talent Acquisition in Michigan, warns that trying to leverage one job offer against another offer might be a short-sighted approach.
“No two jobs are apple-to-apple, and if you're trying to get one company to come up another $5,000 just because you have a better offer, it doesn't mean that they’re going to comply—and it doesn’t mean that you should choose the highest-paying job," Scarth says.
Instead, weigh the pros and cons of each company and choose the organization that offers the best overall employment situation.
Relying on Published Estimates
It's important to do your homework on a company you're about to interview with. However, don't rely strictly on the estimates published on salary websites, or try to use them as a bargaining tool.
Dennis Theodorou, a managing director at JMJ Phillip Executive Search, says that many people request a certain amount because a salary website stated it as the going rate. “This never works out. If you're making $65,000, and the new job is offering $70,000, and your rebuttal is that Google says that you should be making $82,000, this situation will likely not end well,” he says.
Note
Salary websites can be useful research tools, but they don't claim to be providing precise figures for every opening. They are only estimates.
Various factors determine starting salary offers, including experience, company size, industry, and location. “You should know if what you are asking for is at or above competitive compensation for your location," says Katie Weigel, a division director with Robert Half Finance & Accounting,
If your requirements seem unreasonable to the potential employer, Weigel says, it could cost you that job. That's especially true if the hiring manager has interviewed other candidates that made favorable impressions.
Regarding a salary range, Theodorou warns that asking for more than a 5% to 10% raise when switching jobs may not produce the desired result, depending on where the new job is located. “We see roughly 3% to 5% when getting a new job that's local, and 5% to 10% when having to relocate," she says. In general, you can reasonably expect a higher pay if your new position requires more responsibility.
Negotiating Solely for Money
If more money is out of the question, Rothberg recommends negotiating other aspects of the job, particularly those that can help you achieve a healthy work-life balance.
“Rather than asking for Friday afternoons off, ask if you can work an extra hour the other four days of the week so that you're still working 40 hours a week," he suggests.
Asking For A Higher Salary Too Late
One salary strategy to avoid is asking for more money after you've already agreed to an offer, says Steven Lindner, executive partner of The WorkPlace Group in New York City.
"Agreeing to a lower compensation just to get a foot in the door, hoping that once they meet you and see how terrific you really are that they will pay you what you really want is a waste of everyone's time,” Linder says, With this move, you can easily have the job offer rescinded.
Once you have the job, don't threaten to quit to get a pay raise. Your employer may take you up on the offer. Even if you get the raise, you'll be seen as someone with one foot out the door.
Missteps on the Job
Sometimes employees try to renegotiate their salaries by threatening to leave if they don’t get a raise. Lindner says this is a sure way to end up in the unemployment line. “Managers prefer to advocate for individuals who are engaged, passionate, and committed to them and the business,” he says.
If you show that money is your primary concern, your managers will know you will leave as soon as a better offer appears.
By failing to follow the company’s guidelines for promotions and raises, these workers may end up jeopardizing their careers. "Sure, you may get the raise from your current employer but according to most companies polled, they will make note of this occurrence, never forgetting it, and will likely be looking to replace you,” says Lindner.
What Do You Say When Asking for a Raise?
When you're asking for a raise, always pose the request as a question, not a demand. Underscore your contributions to the company and specify how you deliver value. If possible, you can point to specific metrics that demonstrate how you have helped drive profits for your employer. Aim to maintain a grateful disposition instead having an angry or upset tone.
What Should You Not to Say When Asking For a Raise?
When you ask your employer for a raise, avoid comparing your salary to your co-worker's salaries. Avoid basing the reasons for your raise on emotions or a need for more money because of your personal circ*mstances. Instead, focus on your accomplishments and values as reasons for the company to pay you more.
Can You Lose a Job Offer by Negotiating Salary?
While you can potentially lose a job by negotiating a salary the wrong way, you will never know if you could get a higher salary if you don't ask. The key is to use the right strategies, such as providing logical reasons why you deserve more and avoiding emotion-driven cases.
The Bottom Line
While salary is an important part of accepting a new job, don’t let it become an obstacle that prevents you from seeing the overall goal of getting the position you want. While it’s normal to want a job that pays well, failing to understand when, how, and why to negotiate your salary may cause the company to move on to other candidates.
