Think back to the last time you had to negotiate for something. Was it a positive experience? Negotiation is no doubt something you’ll face multiple times in your life, and it is an essential process that involves discussions to reach an agreement that is acceptable for both sides. Salary negotiation, while not easy, doesn’t have to be intimidating, but the misconception that it involves confrontation often leads to many feeling this way.

Knowing how to negotiate your salary is tremendously valuable when you’re on a job hunt. It can also be useful at other stages of your career, for example, if you’re looking to get a raise at your current company. ESCP Senior Manager of Career Development Annemarie Loeters shares some key insights to think about to enter a negotiation with confidence.

Know yourself and what you need

Start with yourself and reflect on your needs and desires at this point in your life and in your career. Things to consider include whether the position makes sense for you, whether it fits your career goals and if it serves a purpose in the arc of your career trajectory. First, is this a job offer that makes sense for you? Does it fit your career goals? Does it serve a purpose in the longer arc of your career trajectory?

“How much do you want the job? Is it good for getting a foot in the door of a company or industry? Does it help in building your network? Does it give you credibility or put you in a stronger position later in your career? Any of these could be valid reasons for accepting a job offer,” shares Annemarie.

You also need to decide your minimum acceptable salary and if other benefits are important to you.

Consider if this salary can fund your lifestyle, especially in a new country. Understand what taxes and social contributions will be taken out of your paycheck and calculate the “take home pay”. Is that an acceptable amount for you? 

Apart from monetary compensation, are there any other job aspects that are critical to your satisfaction? Knowing what those are can help you negotiate a package that aligns with both your personal and professional needs.

What can be negotiated?

Within the topic of monetary compensation, in addition to your base salary, you can negotiate things like bonuses or stock options. While these may be your primary forms of compensation, they are  not all that a job offer entails. There are other aspects of a job that contributes to your work satisfaction.

“Don’t focus just on salary when you’re negotiating a job offer,” is Annemarie´s advice. “There are quite a few other benefits that can potentially be discussed, and very often, these non-salary benefits cost the company less.”

Benefits to negotiate can include:

  • Job title
  • Contract start, and end if applicable
  • Vacation days
  • Home office equipment setup
  • Transportation
  • Relocation stipend
  • Professional development opportunities
  • Phone/internet/co-working space reimbursement
  • Flexibility in working hours

Get the timing right

Being patient is key in salary negotiation. These discussions typically happen in the later stages of an interview process. “Try not to raise the topic of compensation until the company makes you an offer,” shares Annemarie. “You have the greatest leverage once you’ve demonstrated that you’re the top candidate for the position.”

Research, research, research

Understanding the market value for your position will allow you to better assess a job offer. As there are various factors that will influence your salary range, it’s important to look into what you can expect in a certain industry, location, and position.

“Websites like Glassdoor are useful to find salary information,” says Annemarie. “A good alternative could be networking and asking people you know who are employed at the same company or industry.”

Be prepared to build your case

As you head into a salary negotiation, you’ll want to answer the question of why you feel you deserve a higher salary than is being offered. Focus on your value to the employer instead of making demands based on your worth.

Be specific and concrete with the reasons an employer should invest in you. “It helps to really know the company and the job, and why you are the best fit for it,” says Annemarie. “What value would you help create? How would you help solve their problems? Which add-ons do you bring?”

Other talking points you can prepare could be your past work experience, results and goals you’ve achieved, or key skills and certifications you’ve acquired.

Finally, practice having these discussions. It can be uncomfortable to talk about money, but the more you practice, the more confident you’ll be when the conversation arises.

Negotiating a salary and job offer can boost your career trajectory and job satisfaction. By understanding what can be negotiated, knowing your value-add, conducting thorough research, and building a compelling case, you can approach these conversations with confidence and clarity. 

Remember, negotiation is not just about securing the highest possible salary, but about creating a total compensation package that meets your personal and professional needs. These insights can help both you and your new employer find a mutually beneficial agreement and have a good start to the next step of your career.