Negotiation

Remember, salary is the amount the market will support for your services. Most organizations, both large and small, establish salary ranges for every position based on standards and general practices for the field. Organizations determine where an employee falls in the salary range based on experience and special expertise or knowledge. It is in the organization’s best interest to hire you for fair market value for several reasons. First, the hiring process can be long and expensive. It would be inefficient for an organization to make low offers only to be rejected and have to begin the recruiting process all over again. Second, organizations want to hire and retain good employees. It is unproductive to pay you less than other employees.

The What, Why, and When of Salary Negotiation 

What is it?

Salary negotiation is the process of reaching an agreement on what an organization will pay for your skills, knowledge, and experience. Contrary to popular belief, this is not an adversarial process. It is both in the organizations and your best interest to come to a mutually beneficial agreement. 

Why or Why Not Negotiate? 

The only reason is to get fair market value for your skills, experience, and knowledge. The process is important for future earning because most raises will be based on your starting salary. However, it is unwise to negotiate for negotiation’s sake. For example, sometimes job seekers think a hiring manager expects them to negotiate, or that salaries should be negotiated as a general principle. Although organizations respect employees who can articulate the value they add, recent grads (or anyone else) can quickly alienate potential hiring managers if they are inappropriate and overzealous in their approach to negotiating their salary to “get a fair deal.” 

When Should You Negotiate? 

Two things need to happen before you negotiate. First, begin discussing salary only after you have received a formal offer; preferably in writing. Initiating a discussion regarding salary before this point could eliminate you prematurely from hiring consideration. Second, negotiate only after you have researched what the market will pay for your services in this field. This research will arm you with the evidence you need to know if the salary offered is reasonable or whether you should make a case for a higher salary. The fact that your friend has received a higher salary for a similar job at a different company is insufficient data for negotiation