How to Negotiate a Job Offer and Get a Higher Salary?

Congrats, you just received an offer after spending a lot of time searching for a job!

You worked insanely hard through the interview process and are excited about starting this new chapter in your career.

But the big question is: should you ask for more? Or should you be happy with the job offer as is?

Negotiating a job offer can be intimidating, but it's a key step in securing the salary and benefits you deserve.

In this article, we'll teach you how to negotiate a job offer to get the best possible salary. We'll also explore the importance of salary negotiation and preparation steps.

Why Is Salary Negotiation Important?

Negotiating your salary sets the stage for your future earnings and job satisfaction. Here’s why you should negotiate your job offer:

Improve Financial Stability

Negotiating a higher salary can significantly impact your financial health. Even a small increase can add up over time, which boosts your savings and helps you manage expenses better.

This extra income can help you save for retirement, pay off debts, fund vacations or hobbies, and build an emergency fund.

Remember, your salary isn’t just a number. It plays a crucial role in your financial well-being.

Set a Positive Tone for Future Earnings

If you don’t ask for more, you could be missing out on thousands of dollars in your first year, and potentially more than $100,000 throughout your career due to compounding.

Let’s say you ask for an extra $5,000 on top of the original salary offer. That’s already a lot of additional cash in your bank account in the first year. 

Then, imagine getting a 5% average salary raise over the next 15 years of your career. That one simple ask amounts to a whopping $118,287 in additional earnings.

Plus, you'll find that there’s very little risk in asking for a slight increase in your job offer. You won’t always get your desired salary, but if you don’t ask, you’ll never know. And not asking could cost you down the line in your career. 

Many employers expect you to negotiate. In fact, they will often have ~3-5% “cushion” pre-approved. They do this based on the assumption that you will ask for more. And if you do, it will save them from having to put your offer through the entire approval process again.

Show Confidence and Professionalism

Negotiating your salary also demonstrates confidence. It shows that you understand your value and are not afraid to ask for what you deserve.

Hiring managers are likely to be impressed by your negotiation skills and ability to communicate clearly. These indicate that you are professional and prepared to contribute significantly to the company.

Increase Job Satisfaction and Motivation

When you believe your salary reflects your worth, you’re more likely to feel motivated and engaged at work.

Studies show that candidates who negotiate for higher average salaries usually have higher job satisfaction. They also have higher productivity levels.

So, if you want to feel good about your job and your contributions, you can negotiate salary and additional benefits, like flexible working hours.

How to Prepare for Salary Negotiation?

You can’t negotiate what you don’t understand. After all, a job offer can have many different components.

Preparation is key to a successful salary negotiation. Here are the essential steps to follow:

Research Industry Standards

It’s important to know how compensation is structured for the position, especially if the role has a variable compensation structure. For example, tech sales roles often receive bonuses and commissions on top of the base salary.

You must also research which parts of the package are most easily negotiable to give you the best chance of improving your position. These usually include the following:

• Base salary + commissions and bonuses
• Signing bonus
• Schedule or location flexibility
• Equity
• WFH stipend
• Continuing education
• Relocation costs

Even better, you should look up salary data on websites like Indeed, Glassdoor, Payscale, and RepVue. These platforms provide insights into how much other candidates in your field earn.

By conducting deep research, you can set realistic salary expectations and strengthen your negotiation position.

Assess Your Value

Knowing your value is about understanding what you bring to the table. You should list your skills, experience, and accomplishments. Ask yourself:

• What unique skills do I offer?
• How have I contributed to past employers?
• What positive feedback have I received?

You should quantify your achievements where possible. For instance, "Increased sales by 20% in six months" or "Led a team that completed a project ahead of schedule." 

This self-assessment helps you communicate your value during salary negotiations and justify your salary request.

Gather Supporting Evidence

Backing up your salary request with evidence makes your case stronger.

You can compile performance reviews from previous roles and highlight positive feedback.

Also, show any relevant certifications or training for the job. For example, obtaining certifications related to business administration can make you a stronger candidate in the tech sales job market.

You can even mention any professional awards or recognition.

Lastly, bring data that supports industry benchmarks. Having concrete evidence shows that your request is reasonable and based on facts.

Practice Your Pitch

You should rehearse what you plan to say during the salary negotiation. Doing so reduces the chance of being caught off guard during the actual negotiation.

Consider practicing your pitch with a friend or mentor. Then, ask them for feedback to help you refine your approach.

Here are key points to practice:

• Opening statement: You must rehearse how you introduce the topic of salary.
• Justification: You should also explain why you deserve a higher salary.
• Responses: Prepare to handle potential objections or counteroffers.

Choose the Appropriate Time for Negotiating Salary

Timing is everything when negotiating salary. Choosing the right time shows respect for the employer’s schedule and can set a positive tone for the negotiation.

It's best to bring up salary discussions after you’ve received a job offer but before you’ve accepted it.

Avoid busy periods when your potential employer is swamped with several tasks. If possible, discuss salary negotiations in person or via video call for a more personal touch.

You must also be flexible. Show that you are willing to find a convenient time to negotiate salary.

How to Negotiate Salary?

If you don’t ask, you don’t get your desired salary. To effectively make your ask, you should follow these tips:

Be Specific

When negotiating your salary, be specific about what you’re asking for.

Avoid vague statements like "I want a higher salary" or "My desired salary ranges from (low amount) to (high amount).

Instead, state a clear number based on your research. For example, if you want an extra $5,000, you can ask for $10,000 and hope to land in the middle.

For most people pursuing a typical entry-level tech role, asking for an additional 5-10% on top of on-target earnings (OTE) is reasonable.

Show Your Appreciation

You always want to start the negotiation by letting the hiring manager or recruiter know how much you appreciate the opportunity to join their team.

Asking for more compensation won’t be off-putting to the employer if you’re reasonable, appreciative, and polite in your request.  

Provide Justification

Justifying your salary request is critical. This is where your preparation pays off.

Use your research and evidence to support your case.

For example, you can say: "Based on current industry standards for this role, the average salary is around $70,000."

You can also mention your previous achievements to help the employer understand why your requested salary is fair. Say something like, "My previous role involved increasing sales by 20%, which significantly impacted the company’s revenue."

Be Confident

Confidence is key during salary negotiations.

You must speak clearly and assertively. Having a confident approach can positively influence how the employer perceives your request.

Avoid sounding hesitant or unsure. Hiring managers are likely to turn down your offer if you can't justify the value you'll provide to their company.

Salary Negotiation Email Samples

Following the tips above, here are great examples of a salary negotiation email.

Sample #1

 “[Name], thank you very much for your consideration – I’m thrilled to be offered this opportunity and appreciate all the time and effort you all have put into this process. Through research I’ve done, the current market average compensation for this position is around $###,### – $###,###.  What steps can we take to make up the difference to get the total compensation to $###,###? How can I help?”

Sample #2

“[Name], thank you so much for this offer! I thoroughly enjoyed getting to know you and the [Company] team throughout my interview process. However, before accepting this role, I would like to discuss the salary. I would like to request $###,###. I believe this amount aligns with my experience and skill set as well as the market rate for this role. How can we work towards this amount?”

Let Better Career Help You Highlight Your Value

Need further help in negotiating your salary and securing your dream job? Here's how Better Career can assist you:

• 1-on-1 Career Coaching: Work closely with former tech leaders turned career coaches to land your next Sales or Sales Engineering role, or advance your career. We'll customize the program to meet your unique goals and needs.
• B2B Tech Job Board: Connect directly with key people at hiring companies through our curated job board for B2B tech positions. This includes direct LinkedIn profiles and posts for each listing.

Have other questions? Fill out our contact form, and we'll get in touch with you soon!

FAQs About How to Negotiate A Job Offer

How much of a salary increase should I ask for?

When negotiating a job offer, aim to ask for a salary increase of 3-5% above the initial offer. This range is typically reasonable and reflects the value you bring to the company. You can research industry standards and adjust your request accordingly.

Can I negotiate other aspects of the job offer besides salary?

Yes, you can negotiate other aspects besides just the salary. Consider discussing healthcare benefits, retirement plans, paid time off, remote work options, and professional development opportunities.

What to avoid in a salary negotiation?

Avoid being too aggressive or demanding when negotiating salary. You should also refrain from comparing your offer to others in a negative light. Stay professional, respectful, and well-prepared throughout the discussion.