Money is a delicate subject for a lot of people, and talking about it can be uncomfortable. If you go into a job interview or salary negotiation with knowledge and practice, though, that conversation can be smooth and successful! This blog post will equip you with a toolbox of knowledge to help you prepare.
Before you interview or negotiate
You need to know the market rate for that role in that location with your level of experience and training. Cost of living for that location, as well as experience and training levels, will massively influence the average salary band for a position.
By knowing what employers in that area are willing to pay people with your experience means that you can walk into salary conversations armed with knowing the market rate for your labor and what others are willing to pay. You also need to know what salary minimum is acceptable for you. Determining both of these numbers requires some research.
Salary band research
You can research average salary a few ways.
- A good place to start is with O*NET. Select your desired job title or a related one, then scroll down to "Wages & Employment Trends," insert the applicable zip code, and see salary averages for that region, that state, and the U.S. all compared both in written and in graph form.
- Once you've looked at those numbers, search online for job postings similar to your title or to the job that you're applying to. Do any of them announce the salary expectations? How does that compare to your initial research?
- Finally, talk to other people. Salary discussions are increasingly socially acceptable, especially among the younger generations. People are often willing to talk about their salaries in job discussion forums online or at networking events.
Your salary minimum
You need to know how much you need to make in order to live a stable life. Keep both your non-negotiable costs and your standard of living expectations in mind.
For non-negotiable costs, that includes things like rent, food, insurance, loan payments, childcare, and more. Standard of living costs are influenced by things like distance between home and work, proximity to public transit or your preferred grocery store, school district, or living with/without roommates, or frequency of eating out—all of these will cost more or less money depending on your location.
You can also think about the entire benefits package, not just the take-home salary. For instance, is the salary a little lower, but they offer a stipend for childcare? What's that worth to you, and how does that change your minimum salary expectation?
If you want help determining your monthly/yearly budget, how much you need to save in order to have the retirement you desire, and more, check out our upcoming Kirstein Business Library & Innovation Center (KBLIC) Classes! We often have financial literacy classes that can help you with the process. The City of Boston also has the Center for Working Families, which has counseling and classes for financial wellness and budgeting.
Salary conversations during the interview process
You asking first
It's best to learn the salary band that the company can offer as early as possible so that neither you nor the company are wasting your time if your expectations don't match. If your absolute minimum is $32 hourly and the company won't budge on a maximum hourly offer of $29 or negotiate on other compensation package benefits, then there isn't much point in continuing to interview for that position.
How you communicate your expected compensation range can be a delicate process. This is where that research you did above comes in handy. Linked below are a few resources that provide helpful scripts. If you know the market value for your labor and your personal minimum number, choosing a script that works best for you should be simple. Feel free to modify or combine them to suit your needs!
- Jeff Su breaks down why it's so important to negotiate
- Swarthmore College has a great overview of everything to do with salary considerations while interviewing
- Indeed offers some good scripts and approaches to get you started in thinking about negotiating salary in the interview process
- Robert Half Staffing Agency's suggestions on when to start the salary discussion
- Harvard Business Review's suggestions on how to respond to salary questions
- More Harvard Business Review suggestions on approaches to discussing salary
- Michael Page offers some suggestions on where to start and how to proceed when negotiating pay
- Ask A Manager covers likely pitfalls when negotiating pay
- Salary Street guides you through scripts and considerations for negotiation
Them asking first
Interviewers or recruiters are also going to ask what your salary expectations are. So even if you aren't interested in negotiating, you still need to go into interviews armed with knowledge on the market rate for that role with your level of experience. If you give too low of a salary expectation, the company might take a second look at considering you for the role since you're undervaluing yourself. The opposite is true, too—if you give too high of a rate, it can communicate that you're arrogant or you don't really know the job market very well. Again, the interviewer might reconsider your appropriateness for the role. If asking for what your worth makes you deeply uncomfortable, you can let the local averages answer for you by saying something like,
"Market rate for my level of experience is [this band]. I would consider that in line with my own salary expectations. Is that also in line with the available salary band for this role?"
This makes you sound confidently informed. People respond well to that.
Interviewers might also ask about your current/previous salary as a way to determine both your salary expectations and what they tell you their salary band is. There is mixed advice for how to handle this approach. You might want to communicate to them your salary expectations and why your experience backs up that range rather than sharing your current/previous salary.
Whatever you do, though, don't lie about your current/previous salary. When checking your references, interviewers can ask about your salary at that organization. If the answers don't match, the company you interviewed for might eliminate you from their interviewee pool or rescind the offer if they've already extended one to you. Like with everything in the job search process, don't lie. You can be selective about what you share and how you share it, but be honest.
If you're desperate for work, even if the pay is below your financial needs
This is a reality for a lot of people. Having a job that pays at least some of the bills is better than no job at all when things are getting desperate. If you're in this situation, you still want to show that you're informed on your market value. You might be pleasantly surprised that the organization responds well to your confidence and offers you a pay rate closer to industry standards. If they then make it extremely clear that they're not budging on the pay and you're still desperate to land the job, you can follow up with something like this:
"While your salary offer is lower than market rate, I'm happy to negotiate with you on additional benefits to make up the difference."
Or if that doesn't get you anywhere in negotiation:
"Your offer is below industry expectations, but I believe deeply in the mission of this company and the positive impact that I could have in this role. Would there be opportunities for salary raises as I meet and exceed expectations for this position?"
If the answer to this one is no, that's definitely not a place you want to stay long term at all. But if you are in a real pickle and still need to take the job, you can communicate your continued interest in the role. Just keep applying for jobs that will get you into a position that lets you pay your bills!
Negotiating salary at your current role
If you're hoping to stay at your current job, but would like to negotiate your pay, the resources below can help. When doing salary research, the suggestions above on salary band research still apply!
- Harvard's Division of Continuing Education offers suggestions on how to prepare when asking for a raise
- Indeed offers a decent breakdown of the full start-to-finish expectations for raise negotiations and some scripts to get you started
Good luck and may you get the salary and benefits that you need to live your life with security and flexibility!
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