Are you negotiating a job offer or a raise in pay in your current role? If so, a lot depends on what you do right now, before you even begin salary negotiations. Do your homework and learn about these salary negotiation tips, and you could wind up with more money in your pocket and maybe some life-changing perks and benefits, too.
How Much Are You Worth?
Especially if you’re negotiating with a prospective employer, you need to find out how much your skills and experience are worth in today’s job market. Take the time to research salaries long before you even begin discussing pay. That way you will be prepared to make your case and land a job offer that’s realistic and reasonable.
What Are Salary Negotiations?
Salary negotiations involve discussing a job offer with a potential employer to settle on a salary and benefits package that’s in line with the market (and hopefully, that meets or exceeds your needs).
The most productive salary negotiations occur between people who realize that they have a common goal: to get the employee paid appropriately for their skills and experience.
Negotiations can include all aspects of compensation, including salary, bonuses, stock options, benefits, perks, vacation time, and more.
How to Calculate Your Take-Home Pay
When you’re considering a job offer, it’s important to know the bottom line. How much will you be bringing home after taxes, FICA deductions for Social Security and Medicare, and contributions to health insurance and retirement benefits?2 That number is your net pay.
You can use free salary and paycheck calculators to estimate your net pay and figure out roughly how much you’ll bring home in your paycheck. It’s important to get a ballpark figure before you negotiate or compare job offers.
Salary Negotiation Tips
1. Know Your Responsibilities: If you are negotiating for your current role, you should review your current job description and note what you are doing above and beyond that.
2. Wait for the Appropriate Time: Once you know what you should be earning, how do you go about getting it? Start by being patient. When interviewing for a new position, do your best not to bring up compensation until the employer makes you an offer.
3. Resist Throwing out the First Number: If you’re asked what your salary requirements are, say that they are open based upon the position and the overall compensation package. Or tell the employer you’d like to know more about the responsibilities and the challenges of the job prior to discussing salary.