Timing is Everything
In a perfect world, every job would include a salary range, allowing both parties to move forward without worrying about wasting their time on a low-paying job or a candidate outside their budget. However, in this imperfect world, you may not always know how much the job pays until you invest a significant amount of time in the process.
Note: While this is frustrating, you should resist the urge to ask for salary information in the first interview. If the hiring manager doesn’t mention the range, don’t bring it up first.
Make them fall in love with you first – while you secretly gather information about what the job entails. You may find that the role is more specialized or more senior than the title suggests, which could change your request (and possibly your interest in the job).
If you’re asked to specify a price early on, it is perfectly acceptable to say that you are flexible and interested in learning more about the job and the tasks involved.
Rumors Are Not Research
People love to talk about their salaries with friends and colleagues, and they should – the more transparency around pay can only help workers in the long run. The ambiguity surrounding salary only benefits employers.
However, do not assume that what you hear is the full truth. Even if your office neighbor is being accurately honest while reporting their salary, you won’t know the full context. They may have a hot skill that you’re currently lacking, or several years of experience in a relevant field that make them more valuable to the team.
To compare matters, you need to look at reliable salary data from thousands of anonymous participants who have no reason to stretch the truth. This is where helpful online salary calculators and surveys come in. Use them to compare your salary with peers who have similar skills and experience. Take the time to research what is a good salary for someone with professional credentials similar to yours.
Salary Offers Should Not Be Based on History
Earlier, we stated that employers should not base their offers on previous candidates’ salaries. Why? Because companies should use their compensation budgets to incentivize and reward the things they need to achieve their business goals. For one company, this might mean paying a high salary for a specific skill set. For another company, it might mean rewarding institutional knowledge and customer relationships.
Basing your salary decision on what another company decided to reward is ineffective, at best. But except for the federal law prohibiting salary history questions during the interview process, there will likely always be some employers who choose to go this route anyway.
Your goal as a job seeker is not to make them see the error of their ways. Your goal is to get paid. To do this, try to steer the conversation away from salary history and back to the current topic: appropriate compensation for this specific job.
Avoiding Salary History May Backfire on You
A report from PayScale titled “Is Asking for Salary History… History?” revealed a startling fact about job seekers who refrain from disclosing past salaries. While men receive higher offers when they refuse to disclose their salary history, women actually suffer a financial penalty for doing the same.
Wait, what? Yes, that’s right. From the report:
“Women who are asked for their salary history and refuse to disclose earn 1.8 percent less than women who disclose. If a man refuses to disclose, he gets an average 1.2 percent higher.”
This means that when it comes to salary history, men and women may need to use different tactics to land the highest offer.
Women
They need to take a different approach in salary negotiation
In fact, research suggests that women may need to use different negotiation tactics overall. Studies indicate that negotiators penalize women when they ask for more during the salary negotiation process. Researchers assumed that “perceptions of niceness and assertiveness explain the resistance faced by female negotiators.”
The solution may be to tie the higher request to a collective benefit. For example, a woman negotiating a job offer for a sales role might point out that it wouldn’t be in the company’s best interest to hire a salesperson who accepts the first offer on the table.
Think beyond the current offer
In addition to negotiating for a higher rate, it is important to consider future opportunities. This may mean inquiring about the review schedule and/or bonus eligibility or asking about education benefits that will help you enhance your profile for future negotiations. (Again, hot skills often mean a higher salary!)
It’s about total compensation
Finally, don’t forget benefits like health insurance, 401k matching, and stock options. The number you see on your paycheck is just part of your total compensation. Excellent health insurance or stock options that are trending upwards may add to your net income more than a higher salary. Look at the big picture before accepting or rejecting their final offer.
Source: https://www.thebalancemoney.com/negotiation-secrets-to-get-a-higher-starting-salary-4167634
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