How to negotiate a higher salary

Got a Job Offer? Here’s How to Negotiate the Salary Higher

So you put your best game on during the interview process and convinced a company to extend you a job offer. Huzzah! All that hard work has paid off and now you can relax and congratulate yourself, right? Only partially. First, you have to negotiate that offer so that you get exactly what you want and need in terms of salary and other benefits.

Once you’re a little more comfortable with negotiating in general, utilize the following job offer-specific tips — broken down into the different stages of the process — to get the best possible “deal” on your salary and benefits.

Interviewing/Receiving an Offer

The following tips should be heeded before and during the process of interviewing for a job and receiving an offer.

1. Do Your Homework

“If you walk into a salary negotiation without a number, you’re at the mercy of an experienced hiring manager.” —Ramit Sethi

Most companies aren’t posting salaries in their job listings, and as Ramit Sethi noted above, if you haven’t done your homework, you give the folks hiring total control over negotiations from the outset. Not a good move.

2. Be Non-Committal/Vague About Salary History and Expectations

In the past, even up to just a few years ago, it was common for hiring managers to ask a candidate about their salary history and expectations. It’s an awkward question, particularly for the job seeker. You might be embarrassed to share what you’ve previously been making if you think it will sound low. If you’re expecting a hefty bump over what you currently earn, you might be worried about answering with too high a number. The job seeker is really in a lose-lose situation, and is perhaps prone to fudge things a bit.

In the past couple years, though, the tide has turned, and some states and cities have started banning employers from asking about salary histories. The impetus behind this legislation has been to shrink the gender wage gap, but it really helps all job candidates. When that question is asked, the benefits package offered is almost always determined from what you’re currently making rather than from industry and market standards; if you’re making an unreasonably low salary now, that inequity will simply repeat itself.

Even in states and cities where the question of salary history is still legal, more and more companies are enacting internal policies to do away with it. This isn’t necessarily for the benefit of potential employees, of course. It’s simply that hiring managers now have access to better data than ever before about the types of salaries paid in a given industry and geographic area; they already have a ballpark idea of what you’ve previously been making, without having to inquire.

All that said, you might still be asked, “What’s your salary history?” or “What was your salary in your previous position?” Don’t you have to answer? Nope! In that case, stick with something vague: “I’ll be happy to discuss compensation details further once I’ve learned more about the position.” Or, “I’d rather not discuss previous compensation; I’m looking forward to the future and this company and position is perhaps part of that.” Might you miss out on an opportunity or two? It’s possible, but not likely. Not offering up a previous salary isn’t going to keep a company from hiring the person they want.

All of this advice goes equally well when asked about salary expectations : “What are you hoping to earn in this position?” “Do you have a salary range in mind?”

Again, keep it vague and give as much of a non-answer as you can: “I’ll consider any reasonable offer” or “I’d rather not answer that right now. If given an offer, I’ll consider the benefits package as a whole.” Whatever you do, don’t give a range; this is Negotiation Tactics 101: you never say the first number. If you do, you’ll most likely be offered the low end of the range rather than the top end.

3. Don’t Blindly Accept the First Offer

When you get an official offer in writing with your name on it, you might be giddy regardless of the details of the accompanying benefits package. Understandable! Getting a job offer, whether it’s your first or you’re moving into a new career, is really exciting.

But accepting the first offer given is lowballing yourself, plain and simple, and not only in the immediate future. Remember, you’re not only sacrificing money up front, but in the long-term as well, as raises are often calculated as a percentage of your previous salary. You could be losing out on hundreds of thousands of dollars over the course of a career simply for the mistake of accepting a low salary offer in your 20s. Ouch.

Further, most companies don’t actually expect candidates to accept the first offer, so what they present is lower than what is probably in the budget. In most cases, offers are made with wiggle room built in.

(Some companies, particularly very large ones, do have tight budgets for certain positions, leaving little to no flexibility. But, you should still ask — it doesn’t hurt to ask! — and they’ll usually be upfront that there’s a salary ceiling that they can’t go above.)

If you accept the first offer given, especially if you think it’s somewhat low or even mid-range, it’s possible you’ll come to feel resentful or that you aren’t appreciated enough, and that can ultimately poison your satisfaction in the job. But really, you accepted the offer! You only have yourself to blame for not asking for more from the get-go.

4. Take Some Time to Consider the Offer and Gauge the Value of the Salary/Benefits as a Whole

Rather than immediately saying yes, pump the brakes a bit and let the hiring manager or supervisor know that you appreciate the offer and would like a day or two to think things over. This is totally normal and expected. Even if it’s double what you were hoping for, take a couple days. To immediately and excitedly accept an offer shows the company that perhaps they offered you too much and that they could have gotten you with much less. You don’t want them thinking that.

First, you want to gauge the overall monetary value of the offer. A job with a lower salary but more benefits can actually be worth more overall than another offer with a higher salary but fewer benefits.

Insurance is another variable to factor in when computing the monetary value of the offer. Insurance plans offered through your employer cost money, but it usually comes out of your paycheck pre-tax, and many employers pay a portion of those premiums. They tend to be far better plans than what you could get on your own for the same amount of money. Do your homework on a company’s insurance benefits and learn how to read the fine print in order to calculate its real value.

In addition to assessing a job offer’s monetary value, you should also weigh its non-financial benefits. How many vacation days do you get? How flexible are the work hours? Can you work all or part of the time at home? Job offer negotiations aren’t just about salary; they’re also a chance to ask for more of these work/life balance benefits as well.

As you examine the entirety of the benefits package that’s offered, really think about what you value and want in life. Once you’ve got a handle on that, you’ll know exactly what to ask for in your counteroffer.

Counteroffering and Negotiating

Whether the salary and benefits package you’re offered is lower than you wanted, right around what you expected, or higher than you’d hoped, you should try to negotiate it higher. In the first case, it’s a necessity in order to get what you need/deserve; in the latter situations, you might as well try to nudge the needle higher.

5. Ask for 10-25% More Than What Was Offered

When counteroffering, it’s hard to know exactly how much to ask for. If you were legitimately looking for a job that offered upwards of 30% more than what was offered, it’s quite possible this position isn’t for you.

Otherwise, in general, ask for more than what you actually want to make, so that the employer’s counteroffer — which should land somewhere between the two numbers — gets you right where you want to be.

Frankly, you might as well always ask for

20% more, because you just never know. You’re not going to lose a job offer for asking for that amount. Worst case scenario, you’ll run into a situation where they actually can’t, for whatever reason, offer any more and they’ll ask if you can work for the amount originally offered. From there, the choice remains in your hands.

And remember, as noted above, you can not only negotiate the financial terms of a job offer, but its other benefits as well. While some benefits are pretty set in stone — namely health care — others are often flexible. Rather than asking for 20% more on your paycheck, ask for another week of time off or if you can work from home on Fridays.

6. Justify Your Ask

It can be tempting to bring up mortgages and childcare bills when asking for more money. “I have two young kids and daycare is crazy; any chance we can do more on salary?” Sure, it might inspire a touch of sympathy, but the reality is that everyone is dealing with that stuff. Every job candidate has bills to pay. That’s quite possibly the very reason they’re looking for a new job! Don’t play those cards.

Rather, justify your ask by citing market/industry standards, and most importantly, your value and what you bring to the table: “While I appreciate your offer, I believe my experience managing a team of 10 employees brings a level of unique value to your company that would be better reflected in a salary along the lines of __________.” Frankly, the hiring manager doesn’t care about your house or family; they care about what you’re adding to the company.

What Do You Do If the Potential Employer Doesn’t Accept Your Counteroffer?

If you present your counteroffer, but the company won’t budge and sticks with their original offer, you obviously have two choices: you can accept the offer anyway or decline. It’s possible that in walking away, the employer may suddenly find some money in the budget to meet your requests. But don’t count on them calling your bluff; only say you’re walking away if you’re fully prepared to do so.

Obviously, the decision to accept or decline will come down to individual factors: How desperate are you for the job? Do you have any other offers lined up? How close was their offer to what you wanted? How much do you want to work for this particular company? Might the outstanding culture of the company make up for a lower salary? Will taking this lower-paying job now ultimately set you up for greater success later?

Ultimately, negotiating, and then accepting or declining a job offer is all about finding exactly what’s right for you and where you’re at in life. Know what you want, don’t be afraid to ask for it, and heed this bit of advice from Ralph Waldo Emerson: “Nothing is beneath you, if it is in the direction of your life; nothing is great or desirable if it is off from that.”

Be sure to listen to our podcast on all things haggling, with a former FBI hostage negotiator:

How to Negotiate a Higher Starting Salary

This article was co-authored by Jonathan Soormaghen and by wikiHow staff writer, Jennifer Mueller, JD. Jonathan Soormaghen is a Career Coach and Founder of Resume Advisor, a career counseling firm that specializes in creating personalized products such as resumes, CVs, cover letters, and online branding tools to propel clients toward their next career milestone. Jonathan holds a BA in Political Economy from the University of California, Berkeley, where he was honored to serve as the Valedictory speaker of general commencement. Prior to founding Resume Advisor, he worked in management consulting and finance at companies including Accenture, Target, and Ernst & Young. Jonathan’s clients have landed job offers from leading firms including Netflix, Google, Microsoft, Amazon, Facebook, Apple, Uber, Deloitte, KMPG, Accenture, and Merrill Lynch.

wikiHow marks an article as reader-approved once it receives enough positive feedback. In this case, several readers have written to tell us that this article was helpful to them, earning it our reader-approved status.

This article has been viewed 641,700 times.

You’ve been offered the job of your dreams. There’s just one problem: the pay. Don’t let a low starting salary get in your way! Many employers’ initial offer is lower than what they’re willing to pay, so you can absolutely negotiate a higher starting salary—you just need to be confident that you’re worth it. We’ve pulled together lots of tips to help you negotiate your ideal compensation package, from the initial offer to your counter-offer to the employer’s response.

15 Tips to Negotiate a Great Salary

This article was co-authored by Jessica Notini, JD and by wikiHow staff writer, Janice Tieperman. Jessica Notini is a Negotiation and Mediation Coach practicing in California and internationally in many Latin countries. She is also a Lecturer at Stanford Law School and an Adjunct Professor at Boalt School of Law, Hastings College of the Law, and Mills College’s MBA Program. She is the past Chair of the California State Bar Alternative Dispute Resolution Committee, served as the President of the Association for Dispute Resolution of Northern California (formerly NCMA), and was a member of the Board of Directors for the Mediation Society of San Francisco. She was recognized for her leadership and years of dedication with the California Dispute Resolution Council’s 2012 Don Weckstein Award. She has a BA in Psychology from Wesleyan University and a JD from the University of Michigan.

There are 18 references cited in this article, which can be found at the bottom of the page.

This article has been viewed 23,065 times.

Whether you’ve just gotten a job offer or are looking for a pay bump, the same question remains: how do you get paid what you’re worth? In a salary negotiation, people often make the mistake of underestimating their leverage and power. That may be why 40% of Americans feel like they’re underpaid. [1] X Research source No worries, though. We’ve put together a comprehensive guide to help you prepare and know exactly what to say. Read on to find out how to get the salary you deserve—and to learn why you might have more of a negotiation advantage than you think.

How to Negotiate Salary After You Get a Job Offer

It’s not surprising that many people aren’t comfortable asking for more money once their job search has ended and they have an offer in front of them. If the salary is reasonable, they don’t want to jeopardize the opportunity now that they’ve gotten this far.

But as the 2022 Salary Guide From Robert Half points out, hiring has reached or even exceeded pre-pandemic levels in many markets. On top of that, there’s a shortage of skilled professionals, which is increasing competition for top talent and driving up salaries.

If you have specialized skills and an impressive resume, you could be leaving money on the table if you don’t negotiate a salary offer.

Most hiring managers will give you the opportunity to do some thinking about the offer and won’t expect an immediate answer. So, do it! Here are eight tips for how to negotiate a salary that can help you tactfully and confidently ask for what you want.

1. Become familiar with industry salary trends

You need to enter a salary negotiation as informed as possible. Information is your strongest ally. To get a current, realistic view of the compensation landscape in your field, consult the Robert Half Salary Guide. You’ll find the going rate for your position and experience level, and can adjust national figures for your geographic area.

Pay particular attention to the «hottest jobs» and «most in-demand skills» sections of the Salary Guide. You can respond more confidently if you find you’re in the running for one of those hot jobs. The employer may be having a tough time finding someone with enough skills and experience, and that opens the door to negotiate higher pay.

2. Build your case

Once you receive the salary offer, don’t just counter with a higher number. Even if your research supports it, you’ll be more successful if you explain why you feel you deserve more. Highlight your strengths, detailing all the extras the firm would get from someone with your track record.

Before negotiating your salary, jot down concrete examples of how your skills and experience will benefit your new company’s bottom line. Possessing certifications or specialized technical skills, for example, can enhance your ability to do the job, so don’t fail to mention them. By tying your strengths to the role you’ll be taking on, you’ll make a solid case for why you should be paid more than the initial offer.

3. Tell the truth

Complete honesty is paramount when negotiating salary. There’s no better way to see your offer withdrawn than having a hiring manager find out you invented a competing job offer or inflated your salaries from past jobs.

4. Factor in perks and benefits

Salary negotiations often include some give-and-take on employee perks and benefits. It may be less costly than a bump in salary for the employer to give ground on extra vacation days, flexible hours or, especially today, a work-from-home schedule.

Consider what’s valuable to you and what would make an offer more attractive. If you’re considering multiple offers, remember to directly compare health insurance coverage, retirement savings plans and other benefits to make an informed decision. Also factor in perks such as professional development opportunities with the potential employer.

5. Practice your delivery

This may sound like overkill to some people, but it’s a good idea to ask a friend or mentor to practice with you the conversation you’re likely to have with the hiring manager. The ideal partner is someone from the corporate world — a business-savvy person who can coach you on projecting confidence and answering unexpected questions. Running through your delivery several times can make you feel more sure of yourself heading into the salary discussion.

6. Know when to wrap it up

A reasonable employer won’t withdraw an offer just because you tried to negotiate. But dragging out the salary negotiation can frustrate the hiring manager and start out your relationship on a sour note. If the company can’t meet your requirements after a few discussions, respectfully withdraw and focus on opportunities that better match your compensation expectations.

7. Get everything in writing

Once you and the hiring manager settle on a compensation package, ask for written documentation. Besides the salary amount, it should include any special arrangements, such as a signing bonus or allowance for moving expenses, and a job description and a list of responsibilities for your new role. Ensure the document is signed by both you and the employer. Some companies may provide this automatically as part of an employment contract, but if not, request some type of informal documentation.

8. Stay positive

Remember that most managers don’t love negotiating, either. Your future employer is not your adversary. Keeping your tone positive while negotiating salary and perks will help you more effectively navigate these discussions.

If you’d like to get a better starting salary offer, you have to ask for it. Job seekers too often accept the first number that’s put on the table. But whether the economy is strong or uncertain, employers are eager to bring on team members with specialized skills and expertise that can help them the most. Homework, tact and confidence are the keys to your success in salary a negotiation.

How to Negotiate a Higher Salary After a New Job Offer (With Scripts)

Not negotiating the job offer puts you at a disadvantage for the duration of your career in a new company. There’s a snowball effect because your performance raises and after-promotion salary are all affected by what you accept. It also affects the next job offers you get when you move companies.

Are you ready to negotiate a higher salary for a new job offer? (graphic source)

There’s no question that everyone wants a higher base salary, the problem is it’s not exactly clear how to negotiate a salary after a job offer. You can’t just blurt out a number and expect your future employer to agree with you.

Fear of having the job offer rescinded doesn’t help, either.

What you need is a strategy and the right mindset. In this tutorial, you’ll lean how to negotiate a higher salary and additional benefits during a job offer negotiation. This process starts with researching information to back up your request for a higher salary.

Finding the Average Salary and Compensation Package for Your Position

Assuming the job offer you received is lower than the market average will never work. You need data to prove your claims.

1. Salary Databases and Other Online Sources

Websites like PayScale and Glassdoor have salary estimates for just about any position. Some of these sites allow users to filter the information based on location. You can also go to the Bureau of Labor Statistics, which provides a comprehensive database of salary information for different jobs.

Below are different sources for salary research.

Other Salary Comparison Websites

Another way to find the average salary is to look for job ads that display salary information on different job sites.

2. Dig Deep to Learn All About the Company

Find out if the company has job grades or bands, and what band your target position is in. If they have a job grade system, you have to accept that it’s almost impossible to go above their imposed upper limit.

The salary also differs based on the company’s size and industry. A mom and pop shop will have a smaller budget compared to a multinational conglomerate, and it’s the same case if you compare a Wall Street firm with a local restaurant.

Investigate the benefits and perks they offer, too.

3. Ask Other Employees in Similar Positions

Ask your friends, family, professors, former colleagues, and mentors to give you feedback on the job offer you got. Ask them if it’s fair based on what they receive. People are, in general, uncomfortable talking about their income, but you’ll be surprised how open some friends are.

If you don’t want to ask directly, give them an estimate of the job offer, then ask if it’s in-line with industry standards for someone with your experience.

4. Gather Salary Info From Unions

Unions exist to protect the welfare of their members, that’s why they also keep information about acceptable salary ranges for different jobs in your industry.

5. Compare Cost of Living of Your Location

Compensation is also affected by the job’s location due to cost of living and talent demand. Big cities like New York and Silicon Valley have higher compensation, as opposed to small rural towns.

How to Negotiate Salary Perks

A 2020 study from the BLS states that the remaining 30% of compensation packages is comprised of benefits.

So focusing solely on a job offer’s base pay can lead to as much as a 30% loss on your part. This is also your best bet of getting a higher compensation package overall, if the employer’s base pay has a small wiggle room.

Consider Negotiating

Also, training and professional development programs.

Other Perks to Consider

These are non-negotiable perks, because negotiating them involves more decision makers and wider company changes. All of these benefits are still worth considering though, because they can affect your expenses and overall enjoyment of the company.

If you’re creative enough, you can also negotiate certain aspects of the job. For instance, you can negotiate access to exciting projects a tad outside your current description.

The Importance of Choosing the Right Time to Negotiate

Timing is critical when negotiating a new job offer. Negotiating too early gives the impression that you’re arrogant and selfish.

Anna Runyan, Founder of Classy Career Girl, explains, “You don’t want to send a signal that you only care how much you can get. So always wait for the employer to make an offer, and never be the one to start the discussion about salary.”

This is a basic rule of negotiation, you have more power when the company has narrowed down their prospects to just one candidate—you. Sure, they probably have a second choice, but they prefer you more than the second pick, and a lot more than the other candidates. That’s leverage you can use.

You don’t have this leverage during the interview process.

When It’s Too Late to Negotiate

You can’t take your word back after you agreed to the job offer. Even if you realize the commuting expenses are terrible, and the money isn’t enough to pay your loans, your chances of winning that negotiation are slim to none.

The employer, the HR manager, and all your co-workers will think you’re either not serious about the job, or a total diva. Either reputation isn’t appealing when you’re starting out with a new company.

That’s why it’s important to ask for a day or two to consider the job offer. Don’t give in to pressure, even if the employer says they want someone to start right away.

How to Negotiate a Higher Starting Salary

1. Know That the Offer Isn’t Final

This isn’t one of the steps on how to negotiate salary, but it’s important that you have this mindset. Don’t let your fear of negotiating or talking about money stop you from getting what you deserve, and what you will work hard for during your career with that company.

Employers expect you to know how to ask for more money in a job offer. For some jobs, such as sales and business development, not negotiating shows a certain degree of incompetence.

2. Show Enthusiasm

But don’t be desperate. Always show that you’re excited about the job and remain positive even if the base offer isn’t what you expected.

Show them you want the job by starting the negotiation with positive phrases like, “I’m excited to work with your team” or “I’m eager to start working and I know that I’d make a good contribution to the company.”

Complaining about the salary right off the bat shows disregard for the opportunity they gave you, and that you’re difficult to work with.

3. Pick a Range instead of a Specific Number

“Most people will low-ball themselves at the first opportunity. They think they’re being humble, when in reality they could have made more money,” says Lisa Rangel of Chameleon Resumes.

To fight this, mention a pay range instead of giving an exact number so you have a cushion.

Start the lower limit of the pay range at 5% higher than your current salary if you’re moving to a similar position. This way, you won’t be severely affected if, for some reason, you don’t get an increase in your first two years at the company. Start your pay range at 8% to 10% higher than your current salary if you’re accepting a job for a higher role.

Of course, the above strategy assumes that your current salary is at par with the market pay for your job, based on location and other factors. If it isn’t, you have to consider the going rate for your salary first.

4. Aim Higher Within Reason

Your salary demands should always be within reason.

Rangel explains, “Applicants need to accept a certain level of reality when negotiating salaries. There’s a big difference between asking for a 10% increase and asking for some extra zeroes.”

Your experience plays a big role in the negotiation process, too. If you’re new to the workforce or the job itself, you will definitely earn less than someone doing the job for years. Fresh graduates for saturated industries will have less negotiating leverage than applicants in booming markets.

5. Explain the Why and How of Your Request

Every employer knows that you’ll want a fair job offer, but you also need to show genuine care for the job and the company’s interest. So always explain why you want a higher salary, and then back it up with why you think you’re worth that extra money.

Higher Salary Example

Non-Monetary Negotiation Example

“Given my pending relocation to work here, I would like to start on August 25 instead of the 18 th. That would give me extra time to finish my move-in, so I can start the job totally focused on my work.”

6. Focus on the ‘We’

Negotiation isn’t a you v.s. them battle. You have to be mindful of how you’re coming off to the recruiter or hiring manager. Smile and always be pleasant and polite, even if the discussion isn’t going your way. You don’t want them to feel as if they’re dealing with a spoiled kid asking for more candy.

Where possible, use phrases like “I understand” or “I see where you’re coming from.” The way you talk should show that you empathize with the employer and understand whatever hesitations they have about giving you a higher salary.

7. Embrace the Awkward Pauses

Silence is uncomfortable for lots of people, especially during negotiations. But what you consider as awkward pauses are only natural breaks in the communication process. This is the time when the other party is digesting what you just said, or is in the process of formulating a response.

Keep quiet and wait for the HR manager to talk after you’ve said your piece. Desperately trying to fill the silence shows lack of confidence. It also makes you prone to saying something you don’t intend to.

8. Know When to Stop

Employers expect you to counter offer, but nobody wants a haggler who will negotiate everything down to the last cent.

What you can do now is negotiate other perks to make up the difference, such as more vacation time or an early performance review. Again, the key is to balance what you want and the employer’s interests.

Negotiation Scripts

You want to be ready to handle common salary negotiation scenarios, be ready with counter offers, and responses that will help you secure more income for your new job. Use these scripts to prepare for your phone or in-person salary negotiation:

1. A Counter Offer

2. “We don’t have the budget for that” or “That’s the maximum we offer for this position”

3. If You Have an Offer From Another Company

4. “The budget is fixed”

If they don’t agree to the extra performance bonus, try asking for extra vacation days, training allowance, or another benefit.

5. “Your salary history shows this offer is already an increase for you”

“Yes, I made less at my last job. But the additional training and experience I’ve gained during that period warrants an increase. What I’m paid right now is also below the market rate, and that’s the number one reason I’m in the market for a new job.”

6. “You would be overpaid compared to our other employees”

Be Prepared to Walk Away

You have to decide whether you’re prepared to walk away before the negotiation even starts. Knowing you’re ready to decline the offer will give you a sense of confidence, so you don’t appear desperate.

Having this mindset doesn’t mean you have no power over the negotiation outcome. It just means you accept that some things are beyond your control. The best you can do is practice how to ask for more money in a job offer way before the negotiation starts.

You can also try negotiating via email:

Discover more career tutorials on Envato Tuts+, that will help you secure a new job, earn more income, and level up your career. Or browse through our professional resume templates on Envato Elements or GraphicRiver to find a great resume design.

Editorial Note: This content was originally published in 2017. We’re sharing it again because our editors have determined that this information is still accurate and relevant.