How to Negotiate Your Worth

Let’s Talk About Money, Baby!

Okay, raise your hand if the thought of negotiating your salary makes you want to run and hide. You’re not alone!

For many, the idea of discussing compensation feels incredibly awkward; it’s almost like a taboo subject. But here’s the thing: it doesn’t have to be. Think of salary negotiation as a conversation, a strategic dance where you advocate for your worth. And in today’s shaky economic climate, knowing how to navigate this conversation is more important than ever.

I’ve made it my mission to help employees know that they have options. You always have options. And understanding the process of a thing helps take off the edge. So, how do we make this often-dreaded process feel less like a showdown and more like a successful collaboration? Let’s talk about it.

Do Your Homework (And Then Some!)

Before you even step into an interview, or certainly before the salary talk begins, you need to be armed with knowledge. This means researching salary expectations for your role, industry, and even your specific geographic location. Professional organizations are a great starting point, but don’t stop there. Explore salary sites (think Glassdoor, LinkedIn Salary, or Payscale). You can also go to the Bureau of Labor Statistics Occupational Outlook Handbook: bls.gov/ooh. Talk to people in your network who are in similar roles.

Once you have a solid range in mind, take a good, hard look at your own financial needs. How much do you need to live comfortably, cover your expenses, and save for your future? Remember, the number on your offer letter isn’t what hits your bank account. Roughly 30% of your gross pay will go towards taxes and deductions, so factor that in when you’re calculating your monthly cash requirements. Knowing your “must-have” number will give you a firm foundation for any negotiation.

Understand Your Unique Value Proposition

Each of us brings a unique set of skills and experiences to the table. What are yours? More importantly, what are they worth to an employer? Think about the specific problems you can solve, the efficiencies you can create, or the revenue you can generate. Different industries and even different companies within the same industry value skills differently.

Once you truly understand your value in the current employment market, you’ll feel more confident in articulating your worth. And when discussing your desired salary, avoid simply stating what you currently make. Your past salary is just that—your past. Your focus should be on your market value and the value you’ll bring to this new role. Of course, always be truthful about your past compensation if asked, but shift the focus to your future contributions. It’s perfectly fine to provide a salary range, perhaps one that extends about $6,000 above their initial offer, showing flexibility while still aiming for more.

Look Beyond the Base Salary: The Whole Package Matters

A salary offer isn’t only about the number at the end of the pay period. It’s about the entire compensation package. Before you agree to anything, weigh all the elements. Consider:

• Bonuses and equity: Are there performance bonuses, stock options, or profit-sharing opportunities?
• Benefits: What’s the health, dental, and vision insurance like? What about disability or life insurance?
• Time off: How many vacation days, sick days, and personal days are offered? What’s the policy for holidays?
• Retirement plans: Does the company offer a 401(k) or other retirement plan, and do they offer a match?
• Perks: Think about things like professional development opportunities, tuition reimbursement, gym memberships, remote work options, or even commuter benefits.

Sometimes, a lower base salary can be offset by incredible benefits or growth opportunities. So finding the combination that best supports your overall life goals and financial well-being.

Subtly Showcase Your Superpowers

You’re confident and know what you can bring to the company. But you don’t need to shout it from the rooftops during a salary discussion. Instead, let your skills and potential shine through your interview answers and your overall demeanor. If you’ve demonstrated how your expertise aligns perfectly with their needs, (and perhaps even goes above and beyond), the interviewer will naturally understand that a higher compensation might be appropriate for someone with your background. It’s about planting the seed of your value, not demanding a specific price.

Keep a Positive and Collaborative Vibe

Remember, negotiation is a conversation, not a competition. You’re not trying to “win” against the employer; you’re trying to find a mutually beneficial agreement. Go into the discussion with a positive attitude, an open mind, and a willingness to understand the company’s needs and your own. Collaboration breeds trust and improves outcomes for all involved.

Recognizing “The End”

There comes a point in every negotiation when a final offer is on the table. Be aware of this moment. Once you’ve reached a deal, pushing for more can actually create a negative impression, and they may rescind the offer. You want to leave them with the feeling that they’ve made a great decision in hiring you, not that you’re difficult to satisfy. Trust your preparation and know when to accept gracefully.

Prove Your Worth, Every Single Day

Getting the offer and negotiating a great salary is just the first step. Once you’re in the door, it’s time to truly show what you’re made of.

Deliver quality work, exceed expectations, and consistently demonstrate your value to the company. Your performance in the role can lead to future raises, promotions, and even more significant compensation discussions down the line. The initial negotiation sets the stage, but your continued contributions are what solidify your worth.

Negotiating in a Challenging Economy

Now, let’s address the elephant in the room: What if the economy feels shaky? Does that mean you should just accept whatever is offered? Not necessarily! While the landscape may be different, the core principles of negotiation still apply.

I made the mistake of settling for low pay and not negotiating. It was one of the most horrible experiences of my career. My supervisor micromanaged me and they always wanted to add more tasks without the increased salary. The excuse was always they could not afford it, but stick with them. I finally quit after I was told that I could not study in the break-room during my lunch break. Really?

So by all means, negotiate. Here’s how to adapt:

• Be Even More Thorough with Your Research: In a tougher market, companies might be tighter with budgets. Your research needs to be hyper-specific. Are there certain industries or companies still thriving? Are some roles more in demand than others? This will help you target your efforts.
• Highlight Cost-Saving or Revenue-Generating Skills: If you can articulate how your skills will directly save the company money or generate new revenue, you become incredibly valuable, even in a downturn. Focus on quantifiable achievements from your past.
• Flexibility on Benefits: If the base salary isn’t moving as much as you’d hoped, consider negotiating other aspects of the compensation package. Perhaps more vacation time, a sign-on bonus, or increased contributions to professional development could be valuable alternatives. Think creatively about what truly matters to you.
• Emphasize Your Long-Term Commitment: In an uncertain economy, companies value stability. If you can convey your genuine interest in the company’s mission and your desire for a long-term role, it can make you a more attractive candidate.
• Practice Empathy, But Don’t Undervalue Yourself: Acknowledge that the company might be operating under financial constraints, but don’t let that entirely dictate your worth. You still have valuable skills. Frame your request in a way that shows you understand their position but also that you’re confident in the value you bring.

According to the Society for Human Resource Management, four out of five employees are willing to negotiate their compensation. So, you’re in good company! Understanding these basic tips, then tailoring your approach to the current economic climate, you’ll be well-equipped to enhance the terms of your new job and feel more confident in advocating for your financial future.

What’s one thing you’re going to implement in your next negotiation?