How to talk about salary

Knowing how to negotiate a salary is one of the trickiest aspects of looking for a new job. Knowing how to talk about salary can add up to hundreds of thousands of dollars in additional income over the course of your working life. You don’t get to have these salary conversations very often, so it’s important to get it right when you have the chance.

Don’t get pinned down

There’s an old saying in negotiations: “the first one to name a number loses.” In general, it’s in your best interest to avoid giving a specific salary target until as late as possible in the conversation with the prospective employer. If the employer asks you for your salary requirements during the first screening call or initial phone interview, try to (politely) defer the conversation – say, “I’m willing to discuss salary once we’re closer to having a job offer,” or, “I’m willing to work for a competitive compensation package compared with my previous/current job.”

If they try to pin you down, say, "I'd be happy to hear what this position is worth to the company.” Put the ball back in their court – the job might be worth more to the company than you had initially expected. Don’t commit yourself to working for $50,000 a year if the company was willing to pay $60,000.

Or if there is a posted salary range for the position, refer to the posted range and say, “I’m interested in the upper end of the range that you posted.” This keeps you from being limited to an exact figure, but it sends a signal that you’re a higher-value prospect.

Look at the total package

Another good thing to say during initial salary discussions: “Before we talk final salary numbers, I want to make sure I understand the total compensation package.”

It’s crucial to consider salary in the larger context of the job’s total package of salary and benefits – some companies might offer slightly higher salaries but with less comprehensive health insurance, or less generous retirement plans. Before you commit to a salary or accept a job offer, make sure you’re comparing “apples to apples.” If your new job’s salary is $5,000 higher than your previous one, but you’re paying an extra $6,000 in health insurance premiums and retirement contributions, then you’re no better off.

The point of this exercise is not to be vague or frustrating, but to protect your interests – you don’t want to commit to a certain salary figure until you’ve had a chance to learn more about the company and the position, and learn how valuable the position is to the company.

Don’t put yourself on sale

When you get to the point where you’re ready to share your salary target, don’t limit yourself to one exact number: instead, give a range. Say, "I'm looking at a salary range of X to Y” - where Y is significantly higher than you made at your previous job, and X is a good number you'd be willing to work for.

Don't lowball yourself or put yourself on "sale" - even in a bad job market, you need to be your own best advocate. Even if the employer isn’t prepared to offer as high of a salary as you’ve indicated, if you’re the right candidate for the job they might be willing to meet you halfway – or at least give you the chance to accept a lower salary.

Good employers know that they have to pay good people well. If an employer is really interested in you, they’re not likely to be scared off by a few thousand extra dollars of salary. Even in a weak job market, you still have power in deciding whether to accept a job offer, and in deciding how to name your price.

Ben Gran is a freelance writer based in Des Moines, Iowa. He is an award-winning blogger who loves to write about careers, personal finance and the future of work. Ben can be reached at http://benjamingran.com/



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