11 Tips for a Successful Salary Negotiation

Whether you just received an offer from a prospective employer or hope to increase your income in your current role, salary negotiation is an uncomfortable, awkward practice for most of us. But why is that? Our pay determines our living standards, our level of freedom, and our financial security, yet only 68% of men and 45% of women engage in salary negotiation. 

As a Career Consultant, I’ve encountered countless excuses first hand from my candidates and friends justifying their reasoning behind not negotiating their pay: fear of rejection, a sense of gratitude for the offer at hand or job they already have, a case of imposter syndrome or a feeling that they are not good enough. My response to these excuses is the same words of wisdom that my soccer coach used to echo to my team before our games: you miss one hundred percent of the shots you don’t take. Seriously, what is the harm of strategically asking? By not taking the initiative to ask, your current or prospective employer isn’t going to just offer you extra money. 

While I can attest firsthand that salary negotiations can be uncomfortable and anxiety-inducing (I’ve had the sweaty palms to prove it), there are many measures that you can take to increase your chances of success. Once you have determined that the timing is right and that the opportunity aligns with your long term goals and values, you can reference the following tips to help ensure that both parties walk away satisfied:

• Do your Research:  Arm yourself with research; the more you know, the more leverage and confidence you’ll have. It seems basic, but it has to be said; if you are aiming to get paid what you are worth, you need to know what that figure is before you take a seat at the negotiating table. It is crucial to understand the market rate for the role you are pursuing. Unfortunately, this is easier said than done. Here at DesignForce, we are skeptical of self-reporting websites like GlassDoor and recommend you avoid relying on these resources for information. We advise you not to cite these websites during negotiation as you may appear misinformed. Instead, I advise you to use your network and ask other industry professionals  (both men and women) or unbiased Career Consultants like the ones at DesignForce for their take. Be warned; some mindful wordsmithing is recommended when doing this. Lastly, many industry associations, such as ASHRAE, ASCE, SWE, often publish salary reports that can serve as well-rounded, unbiased resources. Ultimately, you want to compile as many resources as possible to form a competitive AND equitable dollar amount. 
• Don’t be Afraid to Ask for What you Want: I mentioned this earlier, however, it is worth reiterating, especially to my female readers: don’t be afraid to ask for what you want. Hiring is an extensive and many times a costly process. If your ask is an equitable one, an employer is not just going to walk away from you after hours of coordination, courting, and screening because you had the confidence to counter their offer. Most employers expect a counteroffer and have an extra budget built-in. 
• Ask for a Review 2-3 Months Prior: If you are thinking about asking for a pay raise in the near future, reach out to your supervisor to schedule a performance review now. At the performance review, your supervisor will likely do two things: First, they will discuss reasons why you are valuable to the organization. Based on this information, you can cite responsibilities and assets that your supervisor confirmed were valuable when asking for higher compensation. Second, they will also likely give you a couple of areas of improvement. Use this to your advantage, bring measurable proof of the steps that you have taken to improve in these areas since your last review.   
• Have Measurable Evidence of the Value You Bring: In your preparation, focus on what is in it for them, not for you. Everyone has bills to pay and mouths to feed; rather than focusing on your expenses, focus on your value add. Properly articulating the value you bring to the organization, especially when the value goes beyond the job description, is the key to leveraging your skill sets to increase your earnings. Knowing what skill sets are in demand in your industry and organization, speaking to the quantifiable value you bring, and bringing evidence of accomplishments with you will strengthen your case. Rather than saying “I contributed to business development,” be specific and say, “I brought in XYZ client which led us to win XYZ dollar amount in projects.” The more specific you are, the clearer your impact is on the organization. 
• Be Cognizant of the Anchoring Bias: If a potential employer asks you for your earnings before they make an offer, you are well within your right to politely decline. Over half of the states in the US and the District of Columbia have some level of legal protection blocking employers from inquiring about an employee’s salary history. By disclosing your earnings first, the negotiation may turn from a two-way collaboration to a haggling session due to what is known as the anchoring bias. The anchoring bias is a cognitive bias that causes us to rely too heavily on the first bit of information we receive. Unfortunately, even if you don’t show your hand first, this bias can still be utilized against you. For example, suppose you are in a negotiation for a career opportunity and are hoping to ask for $75,000 based on the research you conducted prior and the employer starts by saying that the role is budgeted for $50,000. In that case, your instinct is likely to cling on to that first number and respond by asking for $60,000 instead of your original target. 
• Make it Clear You’re Obtainable: This tip is specific to those negotiating outside of their organization: no one will extend offers or jump through hoops for someone that they know is going to walk away at the end of the day. Make it clear throughout the process that you are very serious about joining the organization by sharing your excitement.
• Know What You’re Willing to Accept: Before any negotiation, whether it be one with an employer or one with a car dealership, it is essential to go in knowing two things: what you are going to ask for and what you are willing to accept. In any negotiation, you want to build flexibility to keep your options open and chances of success high. If they are not willing to budge on pay, perhaps they’ll offer additional PTO or another attractive benefit. These items need to be clearly and concisely defined before you even enter the room. 
• Keep your Cool & Find Common Ground: Do not underestimate the impact of likability. Ultimatums, charged language, angry discourse; these tactics will not get you anywhere. People want to help out people they like, and people tend to like people who are similar to them. This phenomenon, one which we cover in our Diversity and Inclusion workshops, is called affinity bias. When we feel a connection to others and find common ground, we tend to want to help them and extend them favors; this bias is why it is important to build a connection with the person you are negotiating with, whether they be your current boss or a prospective employer. 
• Consider the Whole Package: All offers aren’t the same. Healthcare coverage, dental insurance, FSA accounts, gym and wellness coverage, PTO, retirement contributions, commute reimbursements, bonuses, commission; compensation isn’t just your base salary. It is important to consider the whole package when evaluating an offer. If your health care expenses are super high, getting an offer for $5,000 less than expected but with 100 % coverage may leave you with more money in the bank. I recommend looking up the industry average for each of these items and determining in advance to the negotiation exactly which items you are looking for. If the employer says no to additional base salary, try negotiating more PTO or a higher wellness reimbursement. 
• Keep Equity in Mind: If the average entry-level project engineer at your consultancy makes $65,000 and you successfully negotiate an offer for $77,000, don’t celebrate just yet. Yes, I know what you are likely thinking; how could more money be a bad thing? Well, suppose you negotiate yourself to a place where you are making significantly more than your peers. In that case, your employer is going to expect you to earn every last dollar of that difference through additional time, billable hours, effort, and results. When you negotiate pay that is competitive in the market but not equitable within the organization, work-life balance can and will likely suffer. 
• Invest in yourself: Think about the career timeline, if you are going to gain valuable skill sets and experiences that you don’t currently have, you might benefit from taking a stepping stone offer knowing you’ll position yourself for better compensation in a longer timeline than one year. There is something to be said about self-investment through accepting an offer that may not be the highest, but the one that provides you with the highest level of professional development opportunities. 

I can’t guarantee that your hands won’t get sweaty or your face won’t turn vermillion before a negotiation, but with these tips in mind and a few trial runs with your friendly Career Consultant, you can turn what is typically a dreaded activity to a productive one for both you and your current or prospective employer. If you identify as an AEC industry professional and would like additional tips on navigating the ever awkward practice of asking for more money or just general career advice, please email me at gc@designforce.me for a complimentary (and unbiased) career coaching consultation!