How to Negotiate Your Salary: 10 Tips to Earn More 

You just got a job offer, but the salary isn’t quite what you wanted. Should you take it? Or should you ask for more?

Learning how to negotiate your salary effectively can help you get the pay that matches your skills, experience, and knowledge and set you up for future earning potential. Successful negotiation skills help remove the trepidation that might come with asking for higher pay and attractive benefits, and it is often a necessary way for both new hires and current employees to meet their personal, professional, and financial goals. 

Learn what you can do to prepare for salary negotiations and how to be effective during them. You worked hard to get where you are, so make sure you don’t sell yourself short by leaving money on the table.

Preparing to negotiate salary

Before you jump into negotiating your salary, you need to do your homework and prepare for the conversation. Follow the tips below to help you get ready.

1. Research your market value.

The first step to successfully negotiating your salary is to learn the salary range for your position and identify your target salary. The salary range is your “market value,” or the price people are willing to pay for the kind of work that you do. 

Many factors can impact your salary range, including your geographic location, experience level, and market demand for qualified individuals. 

By knowing the market value for your position, you are better able to assess how you are paid compared to others doing the same job. Are you paid in the high range for this work? About average? Or well below average?  The answer to this question will greatly impact how much of an increase you can realistically target and the strategy you will employ during your negotiation. 

Try one of the many ways to find this market data. Some of the most common ways include: 

• Research salaries online: Websites like the US Bureau of Labor Statistics, Glassdoor, and Zippia feature easy-to-use tools that allow you to find salary ranges for many jobs in different geographic locations. 

• Ask a coworker, friend, or relative already employed in the position: One of your best resources is your existing network of acquaintances. If you already know someone in the position, contact them and ask for the typical pay range. It is even more helpful if you can ask multiple people the same question.

• Set up an informational interview with someone doing the job: If you don’t know anyone in the same position, consider setting up an informational interview with an already-established professional to discuss the pay range you can expect. 

Once you have identified the salary range for your position, you can now identify a reasonable target price. 

Pay gaps: Know your rights and keep watch

A wealth of research has shown that women, people of color, LGBTQ+ individuals, and members of other underrepresented groups are often paid less than average for their work [1,2,3,4]. 

However, in the United States, the practices leading to these pay gaps are potentially illegal. The US Equal Employment Opportunity Commission (EEOC), for instance, notes that “[t]he laws enforced by EEOC prohibit employers from paying employees differently based on race, color, religion, sex (including pregnancy, gender identity, and sexual orientation), national origin, disability, age (40 or older), or genetic information” [5]. 

While it can be difficult to know—or even prove—that you are encountering pay discrimination, members of underrepresented groups should be on the lookout for such practices. Whoever you are, you deserve to be compensated appropriately for your work. 

2.  Consider additional (and alternative) benefits.

During your negotiation, you can aim for more than just a higher salary – you can talk about benefits too. 

Depending on your goals, increased benefits, such as more vacation time or flexible hours, can be compelling additions or alternatives to a higher salary. As a result, it’s worthwhile to spend time before you meet with your hiring manager to consider some of the work benefits you might like to increase. 

Some of the benefits that you can target include the following: 

• More paid time off (PTO)

• Improved insurance benefits

• Stock options

• The ability to work remotely

• Signing bonus

• Parental leave

• Childcare assistance

• Office space or position

• Reimbursements for work-related education, travel, or products

Ultimately, the benefits that you decide to target will be based on your own life circumstances. While a parent with a toddler might request the opportunity to work from home, a single person who loves to travel might request more vacation time. 

Thinking about the benefits that matter to you can help you negotiate a salary and benefits package that meets your personal and professional needs.

Build job-ready skills with a Coursera Plus subscription

Start 7-day free trial

• Get access to 10,000+ learning programs from world-class universities and companies, including Google, Yale, Salesforce, and more
• Try different courses and find your best fit at no additional cost
• Earn certificates for learning programs you complete
• A subscription price of $59/month, cancel anytime

Start 7-day free trial

3. Craft your pitch. 

Now that you have identified your target salary and benefits, you can begin to craft the pitch you will make to your current or soon-to-be employer. 

This is one of the most important parts of the process. Rather than entering your negotiation with just some ideas in mind, it’s wise to take time to think about the most compelling way to make your case to your employer. 

Read more: 5 Elevator Pitch Examples + Templates

Here are some key points to keep in mind as you are creating your pitch: 

• Make a one-page brag sheet that highlights your concrete achievements, skill sets, and qualifications. One of the best ways to convince your employer that you’re worth more is by focusing on what you have to offer. By listing your key achievements and qualifications at either your current or a previous job, you can effectively highlight the value you bring to the company—and what you’re worth. 

Read more: 8 High-Income Skills Worth Learning

• Base your argument on your market value rather than personal circumstances. It can be tempting to base your negotiations around your personal struggles, such as rent increases or childcare costs, but such circumstances are not usually convincing to employers. Instead, focus on how a higher pay better reflects your experience and market value.  

• Highlight the pain points that you are uniquely positioned to solve for your employer. Your employer is simply looking for someone to fix their problems, so by outlining their pain points and how you will solve them, you can simultaneously demonstrate both the value you add and your understanding of the role. 

4. Set a strategic date and time.

Once everything is laid out, you can schedule a time to talk with your hiring manager or employer. The most strategic time to schedule your negotiation will depend largely on whether you are being offered a new job or asking for a raise in your current role. 

New job offers

If you were just offered a job, you should schedule a time to talk only after receiving and evaluating your compensation package. 

Typically, potential employers will give you a deadline to get back to them about the position. During this short period, you have the most leverage because the business has already expressed interest and invested resources in you. As a result, you should take some time to review the job offer and then reach out to them several days before the deadline to discuss your desired salary. 

In your message to them, be clear that you are interested in the position but that you would like to discuss your salary and benefits. This will give them time to prepare for the discussion and possibly put together another package that is more attractive to you. 

Current jobs

If you are negotiating a pay increase with a current employer, you should aim to schedule salary negotiations when you are best positioned to attain your target pay. 

First, you should consider the state of both the company and your place in it. You are better positioned to make your case, for example, if you have recently achieved a concrete goal that has been recognized by your employer. On the flip side, if your employer has recently laid off many employees due to financial issues, then you will likely be more successful if you wait for the company to stabilize. 

Secondly, you should schedule the conversation before salaries are set and decided for the year. Many experts advise that you schedule salary discussions at least three to four months before performance reviews because it is during that period when many employers typically consider pay increases. 

5. Rehearse your pitch. 

Before your meeting, you should schedule a time to rehearse your pitch. You can do this alone or with a friend, partner, or family member. 

To help you become more comfortable, you should strive to make the rehearsal as real as possible and run through the negotiation several times. Between each practice run, you should also take time to ask your rehearsal partner for feedback on your delivery and identify ways to improve. 

If you are practicing alone, meanwhile, you can gain feedback by simply reflecting on your own performance and noting whether you hit all your talking points. Sometimes, you might even find it helpful to record yourself to see how you came across during the practice negotiation and make adjustments. 

Whatever method you use, simply going through your talking points aloud will help you vocalize your pitch to your employer. 

Negotiating and beyond

You’ve done your homework, identified your target salary and benefits, crafted your pitch, scheduled a time to talk with your employer, and rehearsed your case. Now, it’s time for the negotiation.

As you are making your case, keep the following tips in mind.  

6. Be confident. 

You want to approach the negotiation process with a confident mindset and demeanor. By embodying confidence, you convey your value to both your employer and yourself, effectively creating a virtuous cycle that will help you make your case and be heard. 

Some common ways to express a physical sense of confidence during your negotiation include: 

• Keeping an upright posture throughout the negotiation 

• Maintaining eye contact

• Speaking in a clear and deliberate manner 

• Emphasizing key points with clear hand gestures 

• Maintaining a sense of openness by keeping your arms uncrossed and your chest open 

7. Politely negotiate.

Throughout the negotiation, you should also maintain a sense of kindness to both your employer and yourself. Despite the different goals that you both might have, negotiation isn’t about creating conflict but instead about resolving it. 

As a result, you should stay positive throughout the negotiation to convey that you aren’t there to make unreasonable demands but to ensure that both parties are happy. To embody a sense of kindness through the discussion, you can do the following: 

• Open the conversation by thanking your employer for taking the time to talk with you.

• Reiterate your interest in the position and your desire to work with them.

• Before jumping into business, ask them how their day has been going to show that you care about their well-being. 

• Smile when appropriate. 

• Maintaining a calm tone throughout the conversation, even if a disagreement arises. 

• Practice active listening. 

8. Start high and negotiate down.

You should expect your employer to likely counter your initial pay increase with a counter-salary offer. As a result, it’s wise to open the negotiations by pitching a salary higher than your target salary so you can negotiate down to it. 

At the same time, you also want to be the one first to suggest a number. By doing so, you are essentially dictating the terms of the conversation. In the world of psychology, this is called the “anchoring effect,” a term that describes the mind’s tendency to place more importance on the first piece of information it receives about an event. 

By putting out a slightly higher salary than you are targeting and doing so first, you anchor the discussion around that price point. 

9. Be firm, but stay flexible.

During the negotiation, remain firm about your goals during the conversation rather than folding right away. This will show the other party that you are serious about what you are asking and encourage them to meet your target. At the same time, you should also be flexible in crafting solutions that work for both of you. Remember: you are trying to resolve a conflict, not exacerbate one. This means that you should be open about your willingness to make concessions in some areas. 

How to counteroffer:

Employer: “At the moment, I don’t think we can do that number.” 

Employee: “I understand that it can be difficult to come up with another package, but the current salary isn’t reflective of my experience and skill level. I’d like us to come to some resolution that works for both of us.” 

Employer: “Okay, I can see what we can do. It might not be as high as you asked, but we could possibly find something more.”

10. Focus on your future.

After your negotiation, you will find out whether you successfully achieved your target salary and benefits. 

If you get what you want, congratulations! If you don’t, you will need to consider whether the job meets your personal, professional, and financial goals. In many cases, however, you will probably find that you got some of what you wanted but not all. 

Only you can decide if the offer is worth it for you.

Whatever the outcome, keep your attention on your future. There will be other negotiations in the future and by taking the first step here, you better prepare yourself for the next time. 

Read more: How to Improve Your Negotiation Skills

Learn more about how to negotiate salary. 

Whether you want to be better equipped to obtain a higher salary or improve your relationship with your colleagues, negotiating is a skill that can help you throughout your life and career.

To help improve your negotiating abilities, you might consider taking Successful Negotiation: Essential Strategies and Skills offered by the University of Michigan.