As a career and salary negotiation coach I’ve helped many people (mostly women) negotiate salary increases up to $55k.
This unique vantage point has given me an in-depth insight into how to negotiate successfully without feeling whiny or guilty. And it all starts with the often overlooked first step in salary negotiation.
I’ve also created a free salary negotiation guide for women to help you ask for more in your next negotiation – it’s available at the end of this post.
The best time to negotiate salary is when you are moving into a new job.
There are several other opportunities to negotiate, like at your performance review, but starting a new job is like hitting the salary negotiation jackpot – this is when you can make the biggest jump in salary.
People are usually so focused on the hiring process that they don’t even begin to think about negotiation until there is a job offer on the table.
Yes, there are many steps to salary negotiation – determining your financial and non-financial ask, preparing various counter offers, reviewing the final paperwork – but it starts much earlier than people realize!
What’s the first step in salary negotiation?
Salary negotiation starts whenever you are asked the dreaded question:
What are your salary expectations?
Employers want to hire the right person but, often, they also want to hire the right person at the lowest cost possible.
Side note: I say “often” because there really are great organizations who genuinely want to give the candidate the compensation they’re seeking. If you work at one of these orgs or hire for them – email me so I can sing your praises.
I’ve created this post because most workplaces don’t ask the salary expectation question for this reason.
Back to business…
When you respond to their question and give a salary range, employers will either offer you the lower end of the range or offer you a mere 5-10% higher.
Don’t leave money on the table by responding at this point.
With the right approach and negotiation skills, you can often negotiate much more than this. When you share your expectations too early, you’re often undercutting your potential salary.
When do employers ask?
You can expect to be asked about your salary expectations at 4 different points in the hiring process:
- You may be asked to include expectations in your cover letter or resume
- The screening interview or phone interview
- The more in-depth interview (there can be up to 5+ in-depth interviews)
- When you are offered the job
This means you need to be prepared to answer the salary expectations question even before you apply for a job.
How to respond
Delay, delay, delay.
Respond by inquiring about their salary range for the role.
If they ask again, delay by explaining that you’d like to discuss the role once you have a better understanding of the scope. Think of this as a chance to start demonstrating your communication and interpersonal skills.
If you can get them to state their salary budget, it will give you a reference point to use later in the negotiation.
Don’t think of this as the ceiling for your negotiation. You can (and should) ask for more – employers expect candidates to negotiate their initial offer.
How to respond if they keep pushing
In an ideal negotiation world, the employer would always give their number first. Sometimes, in the interest of preserving the relationship with your future employer, you need to give a direct answer.
In this situation, respond as if they’ve inquired about the ideal salary you’d like to be making at their organization. Give a salary range based on the scope of role, your research, and the value you offer.
Do NOT base your range on your previous salary
I often have clients who only want to ask for 5-10% more than what they’re currently earning.
Big mistake!
Changing jobs is your best opportunity to make a significant salary increase. What you make now has no impact on what you can be making in a future role.
What is your current salary?
This is another question employers may use to lowball you. Whatever you state, they will most likely only offer you 5-10% more. If you’re working with an amazing organization, they may actually be asking you so that they can offer you significantly more.
Regardless, I suggest that you use the strategies above to help answer this question:
- Delay
- Inquire about their budget
- Respond as if they asked what you would like to be earning
You are also welcome to answer completely honestly but know that it may impact your ability to land the salary you’re aiming for.
That being said, there is no reason why you can’t ask for much more when there is an offer on the table. Remember, your current salary should not influence your salary for a new role.
Be prepared
You don’t know when the salary negotiation question is going to pop up in the hiring process so you need to be prepared. And know that you may be asked more than once.
Outline your response and practice saying them out loud. Do the same for your salary range. Prep for it like you would for an interview.
What if you’ve already stated your expectations but want to negotiate more?
Do not freak out! You can still negotiate, although it may be more difficult. Once the job is offered, state that you’d like to revisit the compensation conversation now that you have a clearer understanding and context of the role.
Will the job offer be retracted?
Sometimes people tend to worry that employers will retract a job offer if the candidate tries to negotiate. I have heard of this happening but this is incredibly rare.
If the employer does retract the offer, ask yourself if you really want to work for an organization like that. Not only does that indicate a harsh work environment, it indicates very low potential for growth.
What if they’re not willing to meet your salary expectations?
Ask what salary range and non-financial compensation they are able to provide. Review their response and decide if it is enough for you.
Be honest with yourself!
Remember, this is only the first step of salary negotiation but how you prepare and respond can set the foundation for the rest of your negotiation process.
Want to learn more about how to negotiate?
If you want to negotiate your salary (or start preparing for a negotiation), check out Ask for More, my self-paced online salary negotiation course for women* (sliding scale price available).
Learn how to negotiate “the big 3” opportunities. Learn when to ask, what to ask for, and what exactly to say.
*Women = anyone who identifies.