10 Pro Tips for Setting Your Price: Get the job you want at the salary you deserve!

Last week, we talked about the “product” element of a marketing mix. Our product, in business terms, is the service we market to employers during a job search. Another key element of the mix is our price—the salary, hourly wage, or consulting fee employers pay us for our services. It is crucial to get this piece right because we can wind up earning less than our services are worth or being unemployed for too long because our price is too high.

Several of my clients over the last 25 years have still been unemployed for six months or more because they refused to accept realistic compensation based on their skills and experience. Research shows that employers are less likely to interview candidates that have been out of work for six or more months. It is also costly to be unemployed, and unhealthy to remain in a toxic work environment when you are employed. That means it is important to decide whether the pay offer on the table is reasonable.

To help you negotiate successfully, let’s look at 10 tactics you should consider.

Research Market Rates

Researching market rates for your job and geographic area is an important part of salary negotiation. This provides a good idea of the salary range for your particular role, allows you to set realistic salary expectations, and helps you understand pay inequities between companies and locations. Look for salary surveys, industry averages, and job postings that list pay information to help you figure out the median salary for the job. 

Strategize Before Negotiating

Before diving into salary negotiations, it’s a good idea to plan ahead. Think about the arguments you’ll use to justify your target salary and come up with a plan of action. Consider potential counter offers you may receive and decide ahead of time how you’ll respond. This will prevent you from getting caught off-guard during the negotiation and give you the confidence to stand your ground.

This may especially be a challenge for those transitioning from the Federal Government to corporate or not-for-profit employment because there is little room for negotiation in the government. You may be accustomed to narrow salary ranges set by law and regulations, but your new industry could have more flexibility.

Know Your Value

Understanding your own worth will help you find a suitable starting point for the negotiation and make sure you don’t undersell yourself. Consider factors such as your skills, experience, education, and other assets that you bring to the job. By understanding your value and setting a realistic target salary, you’ll be better equipped to negotiate the best possible pay for your work.

Set Your Target Salary

Setting a target salary will give you something to aim for and provide a benchmark for the negotiation process. When deciding on your target, consider factors such as your skills, experience level, market rates, and other benefits included in the package. Be sure to keep realistic expectations in mind and avoid setting a figure that is too high or low.

Avoid assuming that you were underpaid in your last job. As Federal Government employees 30 years ago, my coworkers and I felt we should earn more outside of the government. This is not necessarily the case for federal employees being downsized today. Employees in certain specialized jobs such as public health physicians may be earning more than their counterparts outside of the government.

Prepare for Counteroffers

Be prepared for potential counter offers from employers. This could include offering added benefits in lieu of a higher salary or offering an alternative benefits package. It’s important to be flexible and consider counter offers but also stay firm in your position and don’t accept something significantly lower than your target salary.

Stay Professional

Remain professional throughout the process. This means avoiding personal attacks or making threats that won’t benefit either party in the long run. Instead, stay focused on facts and present your case in a way that is both clear and concise. Maintaining a positive attitude will go a long way toward proving your worth and may help you get a better outcome in the end.

While businesses and not-for-profit organizations tend to be less structured than the Federal Government, hiring managers still have to follow pay and benefit rules set down by their HR departments and headquarters offices. Sometimes these rules can work for your benefit. For example, they may require that you be paid more if you have a certain degree or certification. Put all your relevant qualifications on the table before the company makes you an offer.

Ask for More than You Expect to Receive

When negotiating salary, it is often a good idea to ask for more than you expect to receive. This will give you room to negotiate and could result in a higher compensation package than if you had asked for the exact figure that you wanted. It’s important to be realistic when considering your target salary, but don’t be afraid to ask for a bit more than you initially expected.

Today, because of state and local pay transparency laws, more employers are listing salary ranges in their job postings. Make sure you know this range and keep your request within it, so the employer does not walk away.

Consider Other Benefits Besides Salary 

Consider other benefits that may be included in the package besides salary. These could include things like healthcare, vacation time, flexible working arrangements, or even stock options. By taking the time to consider these added benefits, you’ll ensure you get the best possible compensation package.

Don’t Make Empty Threats

When negotiating salary, avoid making empty threats or ultimatums. This includes things like threatening to walk away from the negotiation or refusing to accept certain conditions. Making empty threats will only damage your reputation and put you in a weaker position during the negotiation process. Focus on staying professional throughout and politely express your concerns if necessary.

Don’t Be Afraid to Walk Away 

Remember that you’re not compelled to accept any offer. If an employer offers a package that is significantly lower than your target salary or doesn’t include all the benefits that you were hoping for, don’t be afraid to walk away from the negotiation. This shows you’re serious about your target salary and shows employers they need to try if they want to secure your services.

Concluding Comments

Sir Robert Wolpole, a British statesman, once said “all those men have their price.” Our price is the salary we ask employers to pay us. When you do your research before an employer offers you a job, you have the best chance of landing the job you want at the salary you deserve.