How To Negotiate a Salary: 7 Tips

As a job seeker in today’s competitive market, negotiating your pay can be intimidating.

While accepting an employer’s initial offer to avoid an uncomfortable situation is often tempting, doing so can result in a missed opportunity if the salary doesn’t align with your expectations.

Here’s an overview of why you should negotiate a higher salary and seven tips to help.

Should You Negotiate a Higher Salary?

Research shows that salary is the primary piece of information job seekers focus on when looking for new opportunities. However, just 30 percent of U.S. employees tried to secure higher pay with their last offer.

So, why don’t more people negotiate their compensation? According to the Pew Research Center, 38 percent of professionals say it’s because they don’t feel comfortable asking for higher salaries, and 39 percent are content with their existing pay. Most people aren’t comfortable negotiating their salary, whether because of a lack of confidence or job security. Yet 85 percent of those who do receive at least some of what they ask for.

If you want to elevate your earning potential, keep the following seven tips in mind.

Check out the video below to learn about essential negotiation skills you should develop, and subscribe to our YouTube channel for more explainer content!

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Salary Negotiation Tips

1. Know Your Value

Before talking numbers, explore the standard pay for someone with your education, skills, and experience level. Extensive preparation is crucial before any negotiation, and that information can help justify why you want higher compensation.

Here are tips for determining your value to your company or prospective employer:

• Do your research: Know how much others in your industry with similar experience make. Harvard Business School's MBA Career & Professional Development office suggests using sites like Salary.com, PayScale, and Glassdoor to search across companies and locations.
• Consider your contributions: Outline what you’ve contributed to your company and why it warrants a salary increase. If negotiating pay with a job offer, consider your contributions in prior roles, too.
• Think about your future work: Identify what you’ll bring to your company if you continue working there. If your employer knows your value, they’re more likely to take steps to avoid losing you.

By understanding where you fit in the job market, you can build a strong foundation for your bargaining position.

Related: 6 Negotiation Skills All Professionals Can Benefit From

2. Set a Baseline, But Be Ambitious

Use the data you’ve gathered through research to establish a baseline compensation package you’d be willing to accept. Then, envision several modified versions to identify your priorities and consider where you could make trade-offs.

It’s equally important to set a stretch goal—a result that’s difficult to achieve but isn’t outside the realm of possibility. Head into the negotiation aiming for that outcome while keeping your baseline parameters in mind to limit how far you’re willing to compromise.

Related: What Is the Negotiation Process? 4 Steps

3. Practice Your Talking Points

It’s one thing to craft your negotiation strategy; it’s another to implement it. Before speaking with your potential employer, enlist a trusted friend or colleague to listen to your pitch and present counterarguments. This role-playing will allow you to practice quick thinking and prepare for different scenarios.

Rehearsing your talking points can also help you become more comfortable in your delivery, enabling you to enter the negotiation with confidence and poise.

4. Take Time to Respond

Once you receive an offer, don’t rush to accept it. Thank the hiring manager for the opportunity and request time to consider it. Ask if there’s a deadline to answer so you know how long you have to respond.

In some situations, a period of inaction can substantially pay off. Take the case of former professional hockey player Derek Sanderson, who’s featured in a free online lesson taught by Negotiation Mastery Professor Michael Wheeler. While engaging in a contract negotiation in the early 1970s, Sanderson’s silence at the bargaining table enabled him to land a better deal than he initially thought possible, becoming the highest-paid athlete of his day.

Use the time granted to fully evaluate whether the salary on the table meets your expectations. If it doesn’t, draw from your research to construct a counteroffer that better suits your needs.

Related: 3 Ways to Create Value in a Negotiation

5. Don’t Bargain Against Yourself

One of the most important negotiation pitfalls to avoid is bargaining against yourself. When asked for your salary expectations, it may seem like a good idea to propose a figure from the low end of your range to avoid ruffling any feathers—although it could compromise your chance of getting a better deal.

Let the hiring manager know you’re flexible and willing to work toward an agreement, but keep your stretch goal in mind to avoid landing in an unsatisfactory position.

6. Prepare to Answer Tough Questions

In addition to common interview questions, be prepared for tough conversations during the salary negotiation process.

Hiring managers may ask:

• Do you have any other offers?
• Are we your top choice?
• Why should we increase our offer?

It's easy to become unnerved by these questions. By preparing your answers in advance, you can be a better negotiator, maintain your confidence, and deliver a compelling argument for increasing your salary.

7. Consider the Full Package

Money isn’t the only factor to consider when weighing a job offer.

“Salary is important, but there are other forms of compensation beyond just cold hard cash,” Wheeler says in a blog article.

If there isn’t much wiggle room with pay, see if there are other ways the employer can sweeten the deal. Options to consider include:

• A more flexible schedule
• A signing bonus
• Increased stock options
• Professional development opportunities

These are just some avenues that can ensure you attain the greatest value possible in the agreement.

Boost Your Earning Potential

You don’t have to take salaries at face value. With adequate preparation and a well-crafted strategy, you can advocate for higher pay at the negotiation table and secure a compensation package that aligns with your professional qualifications and goals.

Negotiation also plays a vital role in your personal life. From buying a car to resolving interpersonal conflicts, improving your negotiation skills can help you maximize and create value in daily conversations.

By taking an online course, such as Negotiation Mastery, you can learn tactics and frameworks to use throughout the rest of your career and life.

Do you want to hone your negotiation skills and advance your career? Explore Negotiation Mastery—one of our online leadership and management courses—and download our free e-book about how to be a more effective leader.

This post was updated and republished on June 13, 2023. It was originally published on April 4, 2019.