How to Negotiate Salary: 4 Essential Tips for College Grads
Published on May 11, 2021
- Salary negotiation can be frightening and uncomfortable for many, especially recent grads.
- Historically underrepresented groups are less likely to negotiate their salaries.
- Tips for negotiating salary include researching similar salaries and assessing your value.
When an employer extends a job offer, a compensation and benefits package usually accompanies it, presented either in writing or verbally. Candidates should always negotiate at the time the job is offered — when they have the most competitive edge and leverage.
Studies show that a college degree significantly increases employment prospects and earning potential. Still, for many college graduates and entry-level candidates, negotiating a salary can be frightening. Many candidates believe that they have to accept the first offer or that initiating a conversation about increasing one's salary is inappropriate.
According to research, underrepresented groups are less likely to negotiate their salaries, with women negotiating less often than their male counterparts.
Additionally, biases and discrimination in the workplace serve as barriers for women of color and people with disabilities who try to negotiate their salaries, placing them at a disadvantage and negatively impacting their chances of promotions and advancement.
Many candidates believe that they have to accept the first offer or that initiating a conversation about increasing one’s salary is inappropriate.
Knowing how to negotiate your salary is a skill, and many candidates report that they lack the know-how to do so properly. According to an Indeed survey, more than half (58%) of respondents claim to never negotiate their pay. Choosing not to negotiate your salary can significantly impact your earning potential and can lead to decreased job satisfaction, work-life balance, and overall happiness.
So how do you work with an employer to get the wage you want? Below, we introduce our top four tips for negotiating a salary offer.
4 Salary Negotiation Tips for Recent College Grads
When differentiating salaries, employers consider many factors, such as position demand, job requirements (e.g., skills and degrees), and cost of living. You may find that a software engineer makes more money in Silicon Valley than in Columbus, Ohio, due to the former's higher living expenses and greater demand for engineers.
Researching comparable salaries can help you understand your market value as well as how your desired salary aligns with those of similar positions. Tools like the Indeed Salary Calculator, Salary.com, and Buffer can give you a clearer idea of the average pay for a given job.
Researching comparable salaries can help you understand your market value as well as how your desired salary aligns with those of similar positions.
While salary research can serve as a useful baseline, you should also take into account the type of company you're seeking work from. Smaller, lesser-known companies tend to have smaller budgets and less room to negotiate, whereas larger firms often have more flexibility.
As you search for comparable salaries, ask yourself the following questions:
- What is the national average salary for this position?
- What is the average salary in your geographic location and surrounding cities?
- How much do companies similar in size and brand reputation pay their employees?
When you decide on your desired salary, make sure you negotiate starting at the top of your range. That way if you have to come down because an employer can't meet your desired salary, you should still end with a salary you feel is fair.
An excellent salary negotiation pitch includes an assessment of your skills and qualifications, as well as what in your background makes you deserving of a higher salary. In your pitch, highlight how your skills and experience will benefit the employer, their organization's success, and, most importantly, their bottom line.
The easiest way to assess your skills is to compare them with the job requirements posted in the position's description. When you assess yourself, consider the following factors:
Sometimes factors beyond your control — such as company size, geographic location, and budget — preclude you from securing a higher salary. But if you believe the organization will provide you with the personal and professional growth you need, it's important not to leave the negotiation table without asking about other benefits and perks.
Here are some other items you might include in your negotiation pitch:
When offered a job, don't hesitate to request a few days to evaluate and think over the offer. It's also best not to negotiate over email; instead, ask to speak to the hiring manager over the phone or in person. Talking directly with this person should allow you to clearly communicate your needs.
Once you've secured the extra time to prepare, practice your talking points in front of a mirror or with a friend. Don't think of negotiation as being arrogant or rude — it's a completely normal part of the hiring process. Practice speaking confidently and articulating your points.
Show that you've done your research, that you understand the market value, and that you know how your skills and experience will benefit the company. And don't forget to convey why you're excited about the position.
Salary negotiation can be uncomfortable and even frightening for recent graduates just entering the workforce, but with a little practice and confidence, you'll set yourself up for success now and later in your career.
Feature Image: laflor / E+ / Getty Images