DerrJones Recruiting Solutions

Salary Negotiation Tips

Salary Negotiation Tips

Our salary negotiation tips will give you some great guidelines for negotiating your next job offer. This is more of an art than a science, so we'll give you some do's and don'ts as well as our best advice for striking a good deal.

When heading into a financial negotiation, most people are worried about two polar opposite things: am I leaving money on the table; or, am I pricing myself out of the market. This is a real dilemma, because in most cases, you don't know how the hiring company arrived at their offer.

Here are a couple of general guidelines:

Companies try to bring people in at the midpoint of the salary range. This is, at least in theory, the market price for the job you're being hired for. Large organizations are likely to have people within their HR group dedicated to compensation.

Companies want to be fair. They will know what your compensation in your current job is, and they will try to make a competitive offer that gives you a nice increase. A 10-20% increase is a reasonable expectation for the overall package (base salary and bonus). In a market where candidates are plentiful, the numbers will skew lower. Likewise, when candidates are scarce, it's easier to negotiate a higher package.

Do not play games. Go into a salary negotiation with a firm idea of where you'll compromise and where you won't. Prioritize your wish list. Chances are, you won't get everything you want. Make sure you push for the things that are most important to you.

Against this backdrop, let's take a closer
look at our salary negotiation tips.

Top 10 Salary Negotiation Tips

  1. Be honest. Do not try to inflate your starting point. Some companies will ask for your most recent W-2.

  2. Try not to be first with a number on the table. If asked what you're looking for, tell the hiring manager where you currently are, and indicate that you know that they will make a competitive offer.

  3. Research what others in your field are making. Your trade or professional association can be helpful on this point. You can check out what is saying, or talk to recruiters in your profession.

  4. Know your bottom line. Do not waste the hiring manager's time.

  5. Before you start negotiations, think creatively. Would you be willing to take less in base salary if the company gave you a sign on bonus? Can you accelerate the salary review process (e.g. 6 months vs. 1 year)?

  6. Consider trade offs between money and position. If the new company will be a great addition to your resume, you might want to be a little more flexible on your requirements.

  7. Never go backwards! If a company makes a low ball offer, be gracious, but decline their offer.

  8. Be very clear on how incentive compensation works. Understand what it's based on, when it's paid out, whether you need to be working at the company at the time of the payout (vs. the period the bonus covers), and most importantly, what the company's track record has been in terms of payout. Don't just accept a general answer that bonuses have been paid every year. Have they been paid at the target rate? If not, find out what the percentage has been and why they've missed their targets.

  9. Get it in writing! Never resign from your current employer until you have an offer in hand that is consistent with what you agreed upon.

  10. Don't be afraid to counter. But counter wisely. Do not belittle the offer made, or make demands that are not reasonable. Remember the guideline - 10-20% is really a good bump in compensation when you change companies. When you counter, be prepared to say yes if the company meets your request.

When I'm negotiating an offer, the salary negotiation tips I give to both sides are to be honest, and fair. I will ask a candidate what it's going to take to make a move; I will let my clients know what the candidate is looking for. Playing games in this process is unproductive.

Be honest, be fair,
and you will negotiate a solid offer that's a
win-win for both parties.

Search Jobs

Like Us on Facebook

And Get Your Copy
of Our Free E-book:

Free E-book

  • follow us in feedly
  • Add to My Yahoo!
  • Add to My MSN
  • Subscribe with Bloglines

About Us | Contact Us | Privacy Policy

Copyright© 2017 DerrJones, Inc.
30 Ardmore Avenue, # 71 | Ardmore, PA 19003