Tuesday, June 7, 2011

Salary Negotiation Tips

by Jessica Crawley, Esq.
LCS Graduate Fellow

  1. Create a budget to determine your “target” salary (what you desire) and “bottom line” number (the minimum annual salary you can afford to accept).
  2. Research the average salary range for the geographic area, type of position and level of experience. Refer to the Salary Range Websites handout in the Resource Library on LCSonline for resources to help you with this step.
  3. Do not discuss salary until you receive an offer. If a prospective employer asks for salary information before offering you a position, try to politely postpone the issue by saying you will consider any reasonable offer or provide a range based on your research with your “bottom line” figure as the lower end of the range.
  4. Negotiate: Maintain a professional demeanor and communicate enthusiasm for the position and firm/organization during the negotiation process.
    • Determine your power to negotiate by considering all the factors, including the state of the economy, the employer’s financial health and the supply of candidates comparable to you.
    • If you request an increase in the salary offer articulate why you believe you are worth the extra money.
    • If salary is not negotiable or your efforts to negotiate a higher salary have been unsuccessful:
      • Request performance reviews at three or six months, which offers the opportunity to negotiate salary increases in the future based on performance.
      • Don’t overlook other components of the compensation package other than salary such as bonuses, benefits (i.e., insurance, 401(k), paid vacation, continuing education expenses), perks, billable hours requirements, flexible working hours, etc. For example, negotiating an annual bonus or incentive plan which could increase your annual income.
  5. After you reach an agreement with an employer request written confirmation of your salary and benefits.