Earn What You're Worth: A Guide for Salary Negotiation
Salary negotiation can be stressful, but with some knowledge and some modern tools like Kin, it doesn’t have to be.
In the post-pandemic job market of remote work, being able to negotiate salaries effectively is not just a valuable skill—it's essential for career growth and financial well-being. According to a study by Glassdoor, the average U.S. employee could be earning about $7,500 more per year than their current base salary by simply negotiating a salary increase during their job offer.1
Despite potential higher salaries, many job seekers shy away from salary negotiations (in their current position or otherwise), because they don’t want an uncomfortable conversation, or to needlessly extend their job search by accidentally getting the opportunity terminated.
To tackle that, this article opens up the art salary negotiation, covering everything from fundamental principles, to effective strategies, to how new tools like Kin can help. And that starts with the golden rule.
The Golden Rule of Salary Negotiation
Never accept the first offer. This golden rule forms the foundation of effective negotiation strategy, and is the basis of salary negotiation.
This works because most potential employers make their initial offers with room for negotiation, in case the candidate counter-offers. In fact, a survey by recruiters Robert Half found that 70% of hiring managers expect candidates to negotiate salary2—which also means, employers aren’t going to terminate a job offer if a candidate makes use of their negotiation skills to ask for a reasonably higher salary. The worst they’ll say is no, and offer to compromise in other ways.
In fact, some employers even see it as proof that a candidate is passionate about their job, knows the value of their experience, and will do work worth the higher starting salary. It also gives a chance for a candidate’s interpersonal and negotiation skills to be assessed in real time.
So, with that on the line, how is salary negotiation done?
How to Start Negotiating for Higher Salaries
Preparing for the Discussion
Before entering any negotiation, thorough preparation is key. Conduct comprehensive market research to find job postings with common salary ranges for similar roles and experience on the job market. Websites like Glassdoor, LinkedIn, PayScale, and Salary.com can provide valuable insights into salary ranges for specific roles and industries.
Some professions, like writing, even have organizations like unions, who will provide pay range guidelines. For writers in the UK, for example, these are provided by the Writers’ Guild of Great Britain. This gives an idea of what baseline should be negotiated for if it isn’t offered, as well as what realistic upper ceilings are.
Also account for skill sets and certifications, whether seemingly relevant to the job offer or not, and whether they may provide extra leverage during salary negotiation. For example, a candidate with strong IT skills applying for a teaching role could argue those skills would aid their interactions with pupils, smoothen the teaching experience, and take pressure off of the IT department.
Lastly, think of and prepare for difficult questions ahead of time. Questions about whether the money is all that matters, why a higher salary should be given to someone moving industries, or whether that company is your top choice—to name a few—are common. The higher salary offer may even be rejected outright. It’s important to have ready-made responses for these situations, so they can be answered without panic or loss of leverage.
Now preparations are made, how does that turn into a request?
Crafting a Counteroffer: How Much is Too Much?
A counteroffer is the higher salary being proposed, and it should be based on the research above—and realistic expectations. It’s generally best to counteroffer 10-20% above the initial offer, assuming it aligns with market rates for similar roles, with a survey by the UK government finding the average salary increase for someone changing jobs is about 10%.3
Additionally, remember that total compensation isn't just about base salary. Most companies will offer a varied benefits package, including perks (like gym memberships or company laptops), signing bonuses, stock options, and vacation days. Sometimes, if there's limited flexibility on salary, there may be more room to push for additional benefits.
Lastly, factor in how the new role compares to right now in terms of responsibilities and growth potential. Though counterintuitive, sometimes a lower salary can be an investment, if the role offers training and experience for new skills desired for an aspirational career—just make sure to approach these opportunities with a growth mindset, which we discussed here.
With that all set, when should a negotiation be started?
Timing and Initiating a Negotiation
Timing is one of the most important parts of salary negotiation, so we’ll look at it both during the job interview process and during a current position.
Starting a Discussion during the Hiring Process
Generally, it's best to wait until a formal salary offer has been made before discussing salary details. This is because the offer shows a potential employer values a candidate enough to want to hire them, which means they’ll not just be expecting negotiation, but more open to a higher salary if it means retaining the candidate.
Once it happens, It's important to express enthusiasm for the new role—and not just by saying “I’m excited”; discuss something genuinely exciting about the job—while also saying further discussion of the compensation package would be appreciated.
For some extra encouragement, a study by Salary.com revealed that 84% of employers expect job applicants to negotiate salary during the hiring process,4 so try to fight the feeling that it’s taboo.
What about Salary Expectations?
Some employers ask for salary expectations, or an expected salary range, earlier on in the interview process. This is usually to identify candidates who are expecting something significantly above market value, and to help the company create preliminary estimations of how much each candidate may cost them.
In those situations, it’s best to give a figure or range on or slightly above the average market salary, so that potential employers aren’t discouraged from continuing the job interview process. There will be time for negotiation later, after employers have more context and a salary offer is made.
What if the Negotiation begins outside of a Salary Offer?
If the negotiation happens or needs to happen independent of a salary offer, that’s alright—the tips still apply. These conversations are just most common and expected after a salary offer.
Starting a Conversation during a Current Position
This is the more difficult situation of the two—but not impossible. Even if it might feel unfair, the biggest piece of advice is to wait until at least some impact has been made in the position, which will be useful as evidence during the negotiation tips below.
Outside of that, choose a good time and, if possible, a good person, for the discussion. An employee asking a boss that dislikes them for a higher salary in the middle of the office floor, when said boss is dealing with a tight deadline, likely won’t get it. However, a candidate asking a boss they get on with, during a relatively quiet time, in private, and after the candidate just completed some important work, likely will.
While the world isn’t often so black and white, leveraging potential relationships with higher-ups, choosing advantageous times and locations, and highlighting successful work all improve chances.
In all cases, keep a friendly and professional demeanor with the recruiter, higher-up, or hiring manager, and use the following tips for the discussion itself.
Salary Negotiation Tips: What Should Be Done?
Naturally, negotiation skills will determine the success of a salary negotiation.
There are two golden rules of the negotiation process: always prove value, and be open. The actual question a candidate or employee is answering here isn’t “why do you deserve a higher salary?”, it’s “why are you worth the extra cost, and how can the company best meet it?”
Always Prove Value
The negotiation is all about clearly explaining how that person’s unique skillset and experience will add (or is adding) to the company's bottom line, so that the salary increase becomes an investment in retaining that individual’s crucial abilities.
Therefore, be prepared to justify your ask. Don’t lie, and explain how concrete examples of achievements deserve extra compensation because they were beneficial.
Always Be Open
However, remember that negotiation is a dialogue, not a demand. Be open to discussion, and be prepared to compromise for other compensation, like benefits. It’s extremely important that it’s obvious a solution which works for everyone is possible, and this negotiation isn’t just being had to waste time. The goal is to come to a mutually beneficial agreement, not to win at all costs.
On that note, just being likable is massively underestimated. Work is as social as it is practical, and we’ve spoken before about the value of personable traits like emotional intelligence and conflict management. Recruiters and potential employers are just doing their jobs, and looking for the best-value fit for their company—and we discussed here, relationships are a big part of trust.
These people are rarely aiming to underpay candidates, and are just humans who are often limited by their own bosses, budgets and timeframes, so act accordingly. It’s okay to talk to them like people, and they shouldn’t be blamed if a counteroffer must compromise.
FAQ: What about Pushback?
As mentioned earlier, many people don’t negotiate their salaries for fear of rejection during the negotiation process.
If a counteroffer is turned down, stay polite and professional, and ask why. This will help identify areas that the company may be able to provide alternative compensation, like what was previously discussed.
Similarly, if the entire salary negotiation is rejected, ask why. This information can be valuable for doing better in future negotiations, and for identifying areas where skills can be improved, so that market value can be improved to the desired salary.
What was that about Kin?
Kin is our own personal AI, and is purpose-built for situations like salary negotiation.
With an empathetic conversational style and interactive journaling system, Kin encourages users to talk about themselves, their desired salaries, and their worries about negotiation.
Then, its most powerful feature comes to life: its advanced memory. Kin can remember every detail its users provide, right down to the emotional tendencies of their boss, and can use these to create tailor-made advice, responsive role-play scenarios, and long-term action plans.
This way, Kin’s users have 24/7, 1:1 support in building the skills and confidence needed for a successful salary negotiation. From market research, right down to planning talking points and responses to tough questions, Kin is right in its users’ pocket.
Kin’s memory also allows it to remember how its users like to be supported, track its users’ growth during their time with it, and to set custom reminders for users to keep track of things, or keep Kin regularly updated.
While this means Kin is a powerful assistant for salary negotiation, we understand it requires a lot of personal data. Kin is also purpose-built for data transparency and security, which is further explained here.
In short, though, Kin keeps and analyzes all the data possible on a user’s devices, with only necessary sharing taking place to approved locations. All the while, all of Kin’s knowledge about a user is viewable and deletable by them in a few taps.
And, no matter where this data is, only Kin and the user can see it. Not even we can read it, because Kin is about our users, not corporate greed.
If Kin sounds useful, we’ll let it explain how to start preparing for a salary negotiation with it:
A Word From Kin, Our Resident AI
Hey there! Negotiating salaries is tough, but it’s an increasingly useful skill, so it’s brilliant to see you trying to build your negotiating skills.
If you want to start working with me on your salary negotiation strategy, here's how you could structure your first message so that I have all the context I need to begin:
1. Say Hi: Who are you? Where do you work? What’s your target salary, and why?
2. Share Research: What research you've done so far? Do you know the typical salary range for the role? What skills do the people with the target salary have?
3. Make Reminders: How frequently should we have this conversation? Regular visits let me track and analyze your progress!
Does this sound helpful? click here to download me, and we can start building your salary negotiation skills today!
Conclusion: Securing Your Future with Effective Salary Negotiation
Mastering the art of salary negotiation is a skill essential to the remote-working age.
By understanding the importance of not accepting the first offer, thoroughly preparing for the discussion, timing your negotiation appropriately, and approaching the conversation with tact and professionalism, you can increase your chances of securing a compensation package that truly reflects your worth.
Remember, salary negotiations are not just about the immediate financial gain—they’re an investment in your future professional development. They are with real people, aren’t just about money, and each successful one builds both confidence and a new baseline for your earning potential.
Salary negotiation can be scary—and by following these tips, and building skills with Kin, it doesn’t need to be
Carter, S.M. 2017. “If you skip this step when starting a job, you could miss out on $7,500 a year”. cnbc.com. Available at: https://www.cnbc.com/2017/10/24/if-you-dont-negotiate-salary-you-could-lose-7500-a-year-glassdoor.html [Accessed 10/09/24]
Anon. 2023. “Salary Negotiation.” roberthalf.com. Available at: https://www.roberthalf.com/us/en/insights/research/salary-negotiation [Accessed 10/09/24]
Moore, H. 2022. “Job changers and stayers, understanding earnings, UK”. Ons.gov.uk. Available at: https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/earningsandworkinghours/articles/jobchangersandstayersunderstandingearningsukapril2012toapril2021/april2012toapril2021#earnings-growth-of-changers-and-stayers [Accessed 10/09/24]
Harrison, C. 2013. “Salary Negotiation: Separating Fact from Fiction”. Salary.com. Available at: https://www.salary.com/chronicles/salary-negotiation-separating-fact-from-fiction/ [Accessed 10/09/24]