Five tips for negotiating a better salary

February 26th, 2008 | By SebWorking

negotiation.jpgSalary negotiations are often the most stressful part of the job application. After all, the salary you agree to when you start your new job will directly affect you throughout your career at your new company. Each time you get a raise, it will be based on your current earnings. The higher your salary, the greater your potential raises.

But how do you get the most money for the job? I recently started a new position a few months ago, and managed to add almost $10,000 to my salary just by negotiating for a few minutes. Here are five tips I discovered to help you lock in a great income.

Know what you’re worth
Before you even walk in for your first interview, do you research on the salary for the position. There are plenty of helpful websites out there that track salaries for thousands of positions. Salary.com, Payscale.com, and Indeed.com’s Salary Search are all great tools to figure out what you’re worth to potential employers.

Don’t be the first to spill the beans
During the interview process, you might be asked what your salary requirements are. When asked, always deflect the question. You should try to hold off the discussion of salary for as long as possible, preferably until after an offer has been extended. The reason you should never state your salary requirements is because you might be shooting yourself in the foot. If the job pays between $45,000 and $55,000, and you state that you are looking for around $45,000, you just lost yourself $10,000 a year in income.

Never accept the first offer
If you’re extended an offer for a position, do not accept it right away (tempting as it might be). Politely thank them for the offer and ask if you can have a day to think it over and discuss it with family members. Then, crunch the numbers and call them back. For example, if you know a position typically pays between $45,000 and $55,000, and your offer is for $50,000, push back for the full $55,000. The worst they can say is no. And what most likely will happen is that your potential employer will offer to meet you halfway.

Negotiations don’t stop with the salary
After you’ve locked in a salary that you can live with, it’s time to move on to benefits. Sick time, vacation, even a sign on bonus might be available to you. You’ll never know what was budgeted for your position unless you ask.

Ask for a salary review after three to six months
Finally, after your salary and benefits are in the can, ask for a review at the end of three to six months that includes a re-evaluation of your salary. Just like extended benefits, the worst they your new employer can say is no.

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  1. Carnival of Personal Finance #142 - The Homeless Edition — The Baglady

    […] from Pinching Copper writes Five tips for negotiating a better salary. This is a very basic article on how to get a better salary, and it should be helpful for those who […]

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