Negotiate Your Way to a Significant Pay Raise
We know that getting a new job is one of the fastest ways to get a pay raise. A Pew Research Center analysis found that employees who change jobs average a 10% salary increase, as opposed to the 2% raise given to those who stayed in the same role. Previously, we discussed the elements of pay and how to identify a competitive salary for yourself using compensation data from sources like Randstad and Glassdoor (Check out the Triangulate Your Market Value Worksheet to run the numbers for yourself!). In this post, we’ll explore how to stick with the salary range you’ve identified by promoting your experiences and negotiating with confidence!
Negotiate Like You Would for a Friend
According to the Harvard Kennedy School, Women and Public Policy Program, “laboratory and survey evidence has suggested that men are significantly more likely to engage in salary negotiations than women. However, when women negotiate on behalf of another person they are as successful as men.”
It’s not that women CAN’T negotiate, it’s that when they do it for themselves, they’re more likely to accept what is offered in the first round. Consider your negotiation history, do you ever ask for more? Or do you sign the offer right off?
When it comes time to negotiate for yourself, come armed with the knowledge that you’ve performed market research on your pay using reputable data sources and enumerate why you should be paid at the requested rate. This will help you feel empowered at the negotiation table.
Keep any reasoning you’re using in negotiations relevant to the role. If you have a PhD but a qualified candidate only needs a Bachelor's degree, the employer may not see the benefit of your advanced degree.
They Asked for My Current Pay, What Do I Say?
NEVER justify yourself when it comes to pay, and avoid disclosing your current salary. Your future pay should be based on your future role, not the current one.
A growing number of states prohibit employers from requesting salary information from job applicants at all. Do your research, and highlight your relevant skills, qualifications, education, and experience as evidence as to why you DESERVE the pay you’re asking for.
The Bold Benefit
Negotiating for yourself can feel nerve-wracking. “What if they pull the offer?” is a fear I frequently hear from clients. The fact is, that rarely happens. If you’ve gotten to the point of receiving an offer letter, it’s cheaper for the business to increase your rate of pay than it is for them to go find another candidate. Are there hiring teams who will do it? Sure. But don’t let this fear keep you from negotiating for yourself, even if it’s an Incentive or Benefit addition!
If the organization has a kind of culture that would rather close the door on you than pay you a reasonably requested wage, you don’t want to work in that environment anyway and you dodged a bullet.
This is a clear sign the company will always choose Profit over People. If you’ve received an offer, you are the TOP candidate! You know it, and they know it – now make them pay you for it.
A Sample Negotiation Timeline
Not all negotiations will go this way, but if you’re looking to decouple from a default of accepting the first offer, this timeline will give you an idea of the back and forth to expect.
In the earliest interview:
Ask for the expected pay range for the role.
Share your salary expectations, but never your current pay. If your expectations are outside of the stated pay range for the role, ask if that will be a problem up front or if there is room for negotiation.
When you receive an offer:
Celebrate! 🎉
Take a beat. Don't accept right away, instead ask for a few days to consider the offer. An employer with a positive culture won't pressure you to accept something on the spot.
Respond promptly to the hiring team with:
Dear [Recruiter],
I am so thrilled to receive this offer and am excited about the prospect of working at [Company]! I’d like a few days to review the compensation package you have shared and will be in touch [by the end of the week.] Thanks for your time.
Best,
[Top Candidate <- That’s you]After you’ve reviewed the offer, revisited your Pay Negotiation Worksheet, and are feeling confident about your ask, respond to the hiring team with something like this:
Dear [Recruiter],
Thanks for your patience while I considered the offer for [Role] from the [Company] team. I have carefully reviewed the packet you sent over, and given my market rate and [specific skills and experiences relevant to the role that make you the most qualified candidate], my salary expectations are [Provide a $10k range centered on your Reaching Rate of Pay. For example, if your Reaching Rate of Pay is $100k/year, ask for a range of $95-$100k/year, plus $5k bonus to come to a Total Compensation Package of $105k/year.] Please share this range with the hiring team and let me know next steps. Thanks for your time and I look forward to joining the [Company] team!
Best,
[Top Candidate]When they respond to your pay negotiation offer, it will be in one of a few ways:
Accepted Reaching Rate of Pay: Awesome! They agreed that you’re a badass and should be paid like one. Pat yourself on the back, you just negotiated yourself a higher salary. Sign the offer and get excited about your new gig.
Offer lower pay, but with amendments: If there’s not the wiggle room in the pay band or the team doesn’t have the budget, they’ll come back with a lower pay offer. If that’s the case, shift your strategy to negotiate for non-monetary benefits and incentives like more time off, WFH stipends, or an increased amount of equity to pad out your Total Compensation Package. Once they agree to your amendments, sign it and know you worked your butt off to get the maximum offer for yourself. Crushed it.
Hardball: No offer change. You’ve met with the negotiation edge of the company and the offer is already maxed. Try to negotiate for non-monetary benefits and incentives, but if they hold firm, your options are to take the offer as is, or keep looking, or, do both! Take the offer if it’s still higher than your current salary and keep applying to other roles. If you get a higher salary offer, bring that to your current employer and ask them to match it. If they still won’t, at least you’ve got another higher paying job lined up!
“Pay compounds over a lifetime – what you’re making now sets the tone for what you’ll make in the future.”
To Sum It Up
Salary negotiation is stressful, it can quite literally feel like your life's on the line. Don’t let excitement for a new opportunity and a chance to get out of your current situation keep you from thinking critically about your pay.
Pay compounds over a lifetime – what you’re making now sets the tone for what you’ll make in the future. Be careful that your desire to be in a new role doesn’t cloud your reasoning and keep you from asking for the pay you deserve. When women and minorities negotiate for themselves, it helps close the gender pay gap for everyone!
Keep in mind that you don’t get what you don’t ask for.
Remember, you got this!
Check out Part 1: Know What You’re Worth, Then Ask For It!
This post was written in partnership with Olga Hasty, Compensation Consultant. Thanks Olga!
Morgan
Morgan McCaughey | Career Coach
CEO, Braggin Right
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