How to Negotiate Salary

You’ve landed a job offer, or maybe it’s time for a raise. Your excitement plummets when you see the number. Do you take it, or do you ask for more?

“Most job seekers are thrilled to receive a job offer, which makes them apprehensive to negotiate salary," said Sonja Moffett, a career engagement partner at Southern New Hampshire University (SNHU). "Successful negotiators can secure a raise before they ever start their new job. But the process isn't necessarily comfortable to engage in, and there is a fear that salary negotiations could result in an offer being rescinded.”

That same hesitation also shows up in raise conversations, even though the stakes are just as high: Fair pay impacts job and overall happiness, and avoiding the conversation can cost you hundreds of thousands over your career.

The good news is negotiation tends to work. A recent Fidelity survey found that 85% of Americans who negotiated for salary or benefits received at least some of what they requested. Moffett’s advice? “Go for it. You have nothing to lose if you handle the negotiation effectively,” she said.

So how do you negotiate your salary comfortably and confidently, and how do you know what to ask for and when it’s the right time?

Do Employers Expect You to Negotiate Salary?

Many employers expect some level of salary negotiation, according to Moffett. For current employees, that conversation usually happens during an annual review, but it could also occur after completing a major project, learning a new skill, earning a certification or degree or when personal circumstances change.

For new hires, Moffett said that while the first offer could be the employer’s best, more than likely, there is room to negotiate. “As long as you understand the rules and overcome some hesitation, most employers fully expect you to counteroffer,” she said.

There are exceptions, Moffett noted, such as government agencies, municipal jobs or teaching positions, where salaries follow a set pay scale. But even still, you may still have some room to negotiate, she said. For example, you could request placement on a higher step of the scale based on your experience, training or advanced degrees.

It’s also important to remember that the employer will never ask you to negotiate, said Moffett. “Their goal is to hire the best talent at the lowest price. Your goal is to be offered the highest salary," she said. "Creating the opportunity to negotiate rests entirely on you.”

How Do You Know if You Should Negotiate Salary?

Generally, you should negotiate salary if you feel underpaid, according to Colleen MacBride, a career advisor at SNHU. That can come up both in your current role or with a new job offer.

Figuring out whether you’re underpaid, or your new offer is too low, starts with research. “Even if you love your job, it will feel discouraging to find out that the person doing the same thing at the company next door makes 15K more than you,” said MacBride. “This is one of the reasons research is so important.”

Beyond identifying pay gaps, MacBride said research helps you to recognize your worth and understand your market value. When those numbers don’t line up with your pay, that’s a good sign it’s time to negotiate.

What Else Can You Negotiate in a Salary Negotiation?

Many additional areas of your job offer can be discussed, especially if the pay is non-negotiable. The key, according to Moffett, is determining what's important to you.

"We spend so much of our time physically, mentally and emotionally invested in our work," she said. "Many aspects of the total compensation package will directly impact your level of career satisfaction.”

Benefits that can often be negotiated include:

• Additional paid time off
• Remote or hybrid flexibility
• Signing, retention, or annual bonuses
• Stock options, tuition reimbursement or professional development stipends
• A title adjustment

Read more about how to negotiate.

What is the Process of Negotiating Salary?

While every negotiation looks a little different, MacBride said the overall process follows a few clear steps. 

Review the Offer and Ask for More Time

"If you’re negotiating the details of a new position, it’s standard to ask for time to review the offer, but if you plan to negotiate, it is best to communicate that as soon as possible," said MacBride. She suggests a response like, 'Thank you for the offer. I’ll need until tomorrow to review the details and get back to you.'

When you're ready to negotiate, follow up and let them know you’d like to talk through the offer. “Both HR and your hiring manager will be part of that decision,” said MacBride. A simple approach, she says, might be: 'I appreciate the offer and would like to review and negotiate a few aspects of the position. Could we schedule a time to discuss?'

For current employees, the process is similar, just internal. Request a meeting with your supervisor to discuss your role and compensation, and prepare your case ahead of time.

Do Your Research

Before any negotiation, it’s important to understand your market value — meaning the going rate for your role in your region and where your own experience and skills fit within that range.

According to Moffett, how much room you have to negotiate can also vary by field. “If one is seeking a career in nursing, these candidates are in the position to negotiate easier due to a demand for nurses,” she said.

To get an accurate sense of your value, Moffett recommends researching the low, median and high salary ranges in your area for your profession and considering how your education, certifications and experience factor in. “While job seekers desire to be offered the highest salary, it is wise for them to request a salary that is commensurate with their local market,” she said. “Research is key to effective salary negotiations.”

Useful tools include:

• Career websites
• Internal job boards
• Job postings
• Professional networks

If you're a student, your school might have additional resources. For example, SNHU offers Career 360, a virtual career center that provides resources, tools and personalized support for students and alumni. Moffett recommends its new AI Prompt Library to help with leveraging AI for research.

Back Your Counteroffer With Context

This is where your research comes in handy.

“When you propose a counteroffer, justify it as maintaining purchasing power, not just asking for more money,” said Moffett. For example, she suggests saying something like: 'Given inflation and rising cost of living locally, I’m targeting a salary range of X to reflect market value and stay aligned with economic factors.'

You also want to identify what sets you apart. “Focus on what saves the company money,” said Moffett. “If you’re a web designer who can also handle graphic design, that might prevent the need to hire an additional specialist since you are skilled in both competencies.”

Moffett recommends using your research to counter with a salary range instead of a single number, which gives the employer flexibility to meet you where you are. If you do end up taking the first offer, she said, you could negotiate to have your salary revisited after six months based on your performance. "The goal is to remain flexible and create a win/win for themselves and their new employer," Moffett said.

As for current employees negotiating a raise, Moffett said that you should be prepared to discuss improvements you’ve made in your role, such as increasing efficiency of work processes, driving sales, retaining customers or managing tough relationships or situations. “You’ll want to provide specific examples of accomplishments benefiting the company,” she said.

Keep the Conversation Positive

“Have a good attitude. Maintain positive, respectful (and) professional conversation,” said Moffett.

Remaining flexible is also important. "Aim high, but be willing to work toward a middle ground. Make the employer feel like they win also," Moffett said.

She also recommended ending on a positive note. “You definitely want to reaffirm that you’re excited to work with the employer and join the team, (and that) you’re giving the offer serious consideration and hoping to negotiate a win-win agreement," she said.

Confirm the Details in Writing

Once the terms are agreed upon, request an updated offer letter — or an updated confirmation letter if you’re a current employee. "Get the agreement in writing, and inquire about when you might see the change effective," said MacBride.

She said it's also important to express gratitude and thank them for their time and support.

Job hunting, applying and interviewing all come before the offer. Learn more about how to get the job.

What Not to Say in a Salary Negotiation

There are several things to avoid saying in a negotiation, according to MacBride and Moffett. 

Don’t be the first to name a number.

“Specifically in a salary negotiation, don’t be the first to throw out a number,” said MacBride. “Whether or not it’s included in the job description, a company already has an idea of what they plan to pay, and it’s okay to find that out.”

A good starting point, she said, is to ask: 'What is the salary range for this position?'

Don’t disclose your salary history.

“Sometimes employers will request your salary history," said Moffett. "An important note is that you are not required to disclose this information. In fact, several states have passed laws prohibiting an employer from asking for your salary history.”

MacBride suggests redirecting the conversation: 'I’m currently interviewing for positions that pay between 70K and 80K. Does that align with your budget for this position?'

Sharing your salary history can unintentionally limit your earning potential, according to Moffett, especially for career changers. She shared an example of a student who accepted what seemed like a strong offer, only to find out later that others in the same role were earning more through different hiring channels.

"He was devastated," said Moffett. "This is why it is important not to disclose your compensation, but to negotiate for the job you are applying for."

Don’t rely on emotion to make your case.

“It is important to be objective about why you want a salary increase, and this is where numbers can really help,” said MacBride. “Bring up your market value, cite performance metrics (and) mention salary figures you see in equivalent positions.”

Avoid statements like 'I need more money' or 'My rent went up.'

Don’t ask about salary too early.

“Timing is important,” said MacBride. “If the first question you ask in an interview is ‘how much does this pay?’ you won’t leave the best impression.”

Instead, she said, wait until rapport is established. “You might ask at the end of your interview, 'What is the salary range for this position?'"

Don’t lose professionalism.

“Above all, be professional and respectful in how you ask questions, deliver concerns and express your needs,” said MacBride.

And if things don't work out, that's ok. "No matter the case, don’t let rejections discourage you," said MacBride. "A career is complex and dynamic. If you take charge of your career, potential changes and new opportunities will constantly come and go."

Rebecca Cahill is a content marketing assistant and writer at Southern New Hampshire University (SNHU). She is completing her bachelor’s in creative writing and English and plans to pursue a Master of Fine Arts in Creative Writing. Based in Ohio, she also writes for FreshWater Cleveland and serves on the board of Literary Cleveland. When she’s not writing, you’ll find her with a good book, dogs at her side, and surrounded by way too many houseplants. Connect with her on LinkedIn.