How To Negotiate Your Salary (13 Tips With
Examples)
When an employer extends a job offer, they’ll usually present you with a compensation
and benefits package verbally or in writing with a proposed salary. If you don’t feel the
pay aligns with your education, career level, skill set and experience, you may choose
to negotiate for more money. You may also suggest another form of compensation,
such as equity or stock options, or additional perks such as extra vacation days.
Knowing how to negotiate salary offers is a valuable skill that can help ensure you’re
fairly compensated for the work you do. However, like any skill, it takes preparation and
practice to do well. In this article, we cover how to negotiate the salary you want in ten
steps with examples of how to initiate the discussion.
Related: How to Talk About Salary in a Job Interview
Why you should negotiate your salary
The idea of negotiating a job offer and discussing your pay may feel intimidating and
uncomfortable to you, and you’re not alone. In a recent Indeed survey, more than half
(58%) of respondents claim to never, or rarely ever, negotiate their pay.¹ However, not
discussing your salary and benefits can negatively affect your lifelong earning potential.
For example, if the average U.S. annual salary increase is 3% and you accept a starting
salary that is 10% below your expectations, it could take over two years just to regain
those earnings.
It may ease your nerves to know that when it comes to salary negotiation, employers
expect candidates to negotiate. One survey found that 70% of managers expect
candidates to negotiate their salary and benefits. So while the idea of the conversation
may feel stressful, know that negotiations happen often—and when done right, can set
your lifetime earning potential on the right trajectory.
Related: 40 Tips for Improving Salary Negotiation Skills
When to negotiate your salary
Typically, it’s best to negotiate your salary after you receive an offer rather than during
earlier stages of the interview process. You have the most leverage after you’ve proven
that you’re the best candidate for the job and you fully understand the employer’s
expectations. Negotiating early on might also harm your chances of securing a job offer.
It's important to only counter the offer once or twice at the most. You should also avoid
revisiting a compensation package that you've already agreed upon. Doing so shows
you respect the employer's time and have boundaries around what you will and won't
accept.
If your initial offer is presented on the phone, it’s okay to ask for some time to process
the information. If necessary, let the employer know you appreciate their offer and are
excited about the opportunity. Then, ask if you can take time to review it and get back to
them within a set time frame—ideally no more than 48 hours. If you decide to negotiate,
it’s best to do it over the phone so there’s less room for miscommunication. It’s also
appropriate to email your negotiation requests if that feels more comfortable.
Related: Salary Negotiation Scripts to Successfully Counter a Job Offer (With
Examples)
13 tips to prepare for salary negotiation
1. Start by evaluating what you have to offer
It’s important you know exactly how much value you can offer an employer before you
begin the process of negotiating a salary. There are several factors that can influence
your compensation, such as:
Geographic location: Consider the cost of living in your geographic
location. For example, you might require a higher salary in San
Francisco than Minneapolis for the same set of responsibilities because
it generally costs more to live there.
Years of industry experience: If the job description requires 3-5 years
of experience and you meet the higher requirement, it might warrant a
higher salary.
Years of leadership experience: Similar to industry experience, if the
employer prefers or requires leadership skills and you meet or exceed
their expectations, it may be justification for higher pay.
Education level: Relevant bachelor’s, master’s, PhD or specialized
degree programs can impact your compensation depending on the role
or industry.
Career level: In general, you might expect a higher pay range as you
advance further in your career.
Skills: Niche or technical skills that take time to master may attract
higher salaries.
Licenses and certifications: An employer may require or prefer that
you have specific licenses or certifications. If you already have them,
you might be in a good position to request greater compensation.
When you begin your salary negotiation, be sure to reiterate why you’ll
be a valuable employee and consider using the above factors to justify
your desired salary.
2. Research the market average
Having this data can help support a more successful negotiation and can be found by
using Indeed Salaries. Knowing the market average can give you a good baseline for
your salary request and can even be used as justification. This tool uses salaries listed
from past and present job postings on Indeed as well as data submitted anonymously
by other Indeed users. Here are some questions to consider as you begin your market
research:
What is the national average salary for the position?
What is the average in your geographic location and in cities nearby?
How much do similar companies in your area pay employees in this
position?
Visit Indeed's Salary Calculator to get a free, personalized pay range based on your
location, industry and experience.
3. Prepare your talking points
As you’re developing negotiation notes, it might be helpful to answer the following
question as a framework for your conversation: Why do you feel you deserve a higher
salary than the one the employer is offering? Put together a few talking points before
you contact the employer and be as specific as possible. Those details might include
information like:
Results you’ve achieved in previous roles such as goals you’ve met,
revenue you’ve helped drive or awards you earned. If possible, use
actual numbers.
Years of industry experience, particularly if you have more experience
than the employer stated as a minimum requirement.
Skills or certifications, especially if they are in high demand within your
industry.
Average salaries being offered by other similar employers for similar
roles
Related: Base Salary and Your Benefits Package
4. Schedule a time to discuss
Reach out to the recruiter or hiring manager to set up a time to speak over the phone.
While it’s acceptable to negotiate over email, it’s highly encouraged for the conversation
to happen over the phone. Speaking over the phone or in-person allows you to have a
back-and-forth conversation, express gratitude and clearly communicate your
requirements. Try to be respectful and clear as the recruiter or hiring manager will be
the ones advocating for your salary to the decision-makers.
5. Rehearse with a trusted friend
Practicing your talking points can help you gain confidence and identify areas of
improvement. The best way to practice would be in front of a trusted friend or colleague
that can provide helpful feedback. Alternatively, you can try recording your conversation
on a camera or speaking in front of a mirror.
This step is especially important because talking about money can sometimes feel
uncomfortable, but the more you practice, the more comfortable you’ll feel when it
comes time to have the conversation.
6. Be confident
Delivering your negotiation with confidence is as important as the words you say. The
more confidence you convey, the more confident the employer will be in their
consideration of your feedback. Confidence, an appreciation of our own abilities and
qualities, should not be confused with arrogance, an exaggerated sense of our
importance. Lack of confidence can also result in over-explaining or apologizing for your
ask, neither of which is helpful in a negotiation scenario. Instead, confidently and simply
state your requested salary, including a brief summary of your reasoning.
Remember that you’re bringing an important set of skills and experience to the
organization. The pay an employer offers should account for the value you provide. If
you feel the employer’s original offer is below the value that aligns with your skills and
experiences, be prepared with researched market salary research and personal value
data that supports your ask and be confident in your decision to ask for more.
Related: The Importance of High Self Worth in the Workplace
7. Lead with gratitude
Once you reach the job offer phase of the hiring process, you’ve probably invested a
great deal of time and energy applying and interviewing for the position. The employer
has also invested time in the process, so it’s crucial you recognize this and thank them
for considering you for the opportunity. Be sure to share any specific reasons why
you’re excited about the job, such as the culture or the product.
Even if you end up declining the offer, it’s important to do so in a friendly and
professional manner. After all, you never know what opportunities they may have
available for you in the future.
Related: How to Ace Your Final Interview
8. Ask for the top of your range
One fundamental rule of salary negotiation is to give the employer a slightly higher
number than your goal. This way, if they negotiate down, you’ll still end up with a salary
offer you feel comfortable accepting. If you provide a salary range, the employer will
likely err on the lower end, so be sure the lowest number you provide is still an amount
you feel is fair.
9. Share job-related expenses you’re incurring
Another reason you may ask for an increased salary is to cover any costs you’re
accumulating by taking the job. For example, if you’re relocating to a new city for the
job, you’ll have to pay moving expenses as well as any costs associated with selling or
leasing your current home. If you’re taking a position further away from home, you’ll
have to factor in commute expenses such as train fare or gas and wear and tear on
your vehicle. It’s not unusual for candidates to ask employers to adjust the salary to
account for expenses related to accepting the position.
Related: Interview Question: "What Are Your Salary Expectations?"
10. Prepare for tough questions
Recruiters and hiring managers negotiate often, so they will likely be prepared to ask
important, sometimes intimidating questions to figure out your motivations. It’s important
not to get rattled by these questions and to remain honest. Some questions you can
expect include:
Are we your top choice?
If we come up in salary will you accept the position immediately?
Do you have any other offers?
11. Be flexible
Even if the employer is unable to provide the salary amount you want, they may be able
to offer other forms of compensation. For example, you may be able to negotiate
more stock options, extra vacation days, a sign-on bonus or additional work-from-home
days to combat a lengthy commute. Be ready to ask for alternatives in the situation
where the employer immediately lets you know they cannot increase the salary offer. In
some cases, they may be just as valuable (or more so) than a paycheck.
12. Ask questions
If the person you’re negotiating with seems surprised, reacts negatively or immediately
rejects your counter, try to remain confident and calm. Meet their reaction with open-
ended questions to find out more information and keep the conversation going.
Examples of questions include, “What is the budget of this position based on?”, ”What
information do you need from me to make a decision?, ”Are there other negotiables
available besides salary?
13. Don’t be afraid to walk away
In some cases, an employer may not be able to meet your minimum salary requirement
or offer additional benefits that make it worth your while. Or the employer may counter-
offer with a salary that’s higher than their first offer but not as high as your request. In
this case, you’ll need to decide if the job is worth the lesser amount.
If it’s less stressful than your current position, closer to home or offers you more
flexibility or more free time, you may be open to taking a lower salary. However, if not,
you should consider walking away and seeking other opportunities elsewhere. You can
find detailed information in How to Decline a Job Offer: Email Examples.
Salary negotiation email examples
Here is how you might approach the situation if you want to begin the negotiation
process via email:
Ms. Jackson,
Thank you for sending over the job offer package for the Marketing Director position. I
want to state again how honored I am to be considered for this exciting position and
appreciate you sharing these details.
Before I can accept your offer, I want to address the proposed compensation. As I
shared with your recruiting manager, I have more than ten years of experience in digital
marketing and have worked in leadership positions for the past six years. In my last
role, I increased the number of marketing-influenced leads by nearly 40% year over
year and helped secure the company a 25% higher annual revenue. Given my
experience and expertise, I am seeking a salary in the range of $125,000 to $130,000,
which is slightly higher than your offer of $115,000.
I know I can bring a great deal of value to ABC Company and help you exceed your
revenue expectations this year. Please let me know when we can discuss the salary
further.
I look forward to hearing from you soon!
Thank you,
Oliver Perez
Related: Average Salary by Age
Salary negotiation conversation example
Here is how you might approach the situation if you are negotiating face-to-face or via
phone:
"Thank you for sending over the job offer package for the Regional Sales Manager
position. First and foremost, I want to reiterate how excited I am about the opportunity. I
believe in your product and know I could help you drive even greater results.
Before I accept the offer, I do want to address the proposed salary.
As I shared during the interview process, I have more than 12 years’ experience in
sales, including eight years of experience in medical equipment sales, and two more
years of management experience than stated in the job description. In my last role, my
team exceeded the monthly quota by 15% for two years in a row and landed three of
the largest accounts in company history.
Given my background, I am seeking a salary in the range of $145,000 to $150,000. I
am definitely open to discussing alternative compensation, such as opportunities for
additional stock options or increased performance-based bonuses. I’d love to hear your
thoughts."
Related: What Is a Competitive Salary?
Salary negotiation is a critical step in the hiring process. By taking the time to talk
through why you feel you need more compensation, you can help employers better
understand the value you provide. As with any new skill, the more you negotiate, the
more you’ll improve and the easier it will become. By using the above tips to negotiate
your salary, you can walk into the conversation confident, prepared and ready to secure
the pay you deserve.
