In this chapter, you will learn how to bridge the gap between what a company offers and what you are actually worth. Negotiating your compensation is the payoff of the STRIDE approach. It is where all of your work in the Define stage, Plan stage, and Stand Out stage pays off.

Many job seekers avoid negotiating a salary because they fear losing the offer. However, over 80 percent of employers expect to negotiate. Often, an initial offer is intentionally lower to 'create room to talk’. By not negotiating, you may be leaving money and benefits on the table.

Studies show that women negotiate salary less frequently than men. Research from LinkedIn and Glassdoor indicates that around 34% of women negotiate their salary, compared to 46% of men. In addition, women tend to ask for lower salary increases than men. Women can overcome their hesitancy to negotiate salary, and increase confidence, by gathering compensation information and practicing negotiation strategies to highlight the value they bring.

As you read this chapter, think about: What is the most valuable piece of information you will use from this chapter to build your confidence in negotiating your next salary? 

Your power to negotiate is often related to the current job market. In a candidate-driven market (where there are more jobs than qualified candidates), you can often ask for higher pay or more flexible benefits because employers are competing for strong talent. In an employer-driven market, employers are more able to set the terms. In both cases, do your research and know what’s reasonable for your industry, role, and location so you don’t price yourself out. 

Note: When an employer makes an offer, they aren't just giving you a salary. They are offering a total compensation package. This is the combined value of your salary/paycheck (dollars) and your benefits (health care coverage and perks).

Salary

Preparation is key to guiding your salary negotiation. First and foremost, it is essential to evaluate your personal financial needs to determine the amount you require to maintain your standard of living. Consider setting three salary benchmarks:

• Dream Salary: An ambitious figure that exceeds expectations.

• Target Salary: Your ideal 'happy number', typically 10% or more above your previous earnings if you are remaining in the same industry.

• Minimum Acceptable Salary: The lowest salary you can realistically accept to cover your basic needs, plus a 10% buffer.

Next, even before applying for a role, take the time to research salary ranges based on industry, location, and experience level. Because salary data can vary, check several sources like: 

• Indeed.com

• LinkedIn.com

• Salary.com

• Payscale.com

• Glassdoor.com

• BuiltinAustin.com

• Onetonline.org

• Lmci.state.tx.us (Texas wages only)

• Living wage calculator

• Paycheck City

• Generative AI (e.g., Gemini or Claude)

In addition to checking out a few of the sites above, look at other job postings that include salary information to learn more about related salaries in your area. Additionally, speak with professionals in similar roles to gain knowledge of real-world salary insights. 

Benefits

Your pay is more than the number on your paycheck. Salary is only part of the story. As stated earlier, when evaluating an offer, look at your total compensation (salary + benefits). 

There are two kinds of benefits: fixed and negotiable.  

Fixed benefits. Most companies provide health and dental insurance. If a company pays for your insurance, even partially, you save thousands of dollars each year in monthly expenses. Many companies also match retirement contributions (401k/403b). For every dollar you contribute, they add another dollar (up to a certain limit) to your retirement account.

Negotiable benefits. If an employer says they cannot go higher on the salary, you can often turn the conversation to benefits. These are easier for a manager to say "Yes" to: 

• Paid Time Off (PTO): This includes vacation, sick days, and holidays. You can ask for an extra week of vacation if the salary is lower than you wanted.

• Flexibility: Ask for ‘hybrid’ work (working from home some days). This saves you money on gas, bus fare, and childcare.

• Professional Development: Ask for the company to pay for a certification or class. This makes you more valuable for your existing and next job. 

Hidden benefits. There are 'extras' that candidates often don’t check for, but can bring a company’s offer into a candidate’s target range. These can include:

• Tuition Reimbursement. Will they pay for your Bachelor’s or Master’s degree later?

• HSA/FSA. Does the company put money into a Health Savings Account for you?

• Wellness Stipend. Do they pay for a gym membership or child care?

• Commuter Benefits. Do they offer pre-tax transit passes or free parking?

Understanding the full range of negotiable benefits can help you walk away with a compensation package that aligns with your needs and priorities. If you are well-prepared to negotiate salary and benefits, not only will you have a greater chance of increasing your earnings, but you will also set the stage for a positive and mutually beneficial working relationship with your new employer.

Addressing questions about a desired salary on a job application. When asked about your desired salary on a job application, most employers require a number. The ATS filter will likely remove your application from consideration if you respond with no number, NA, or zero. If possible, write “Negotiable” to give yourself an opportunity to discuss compensation later in the hiring process. If a numerical response is required, a good approach is to list a salary range rather than a single number, ensuring the lower end is a little more than your minimum acceptable pay while the higher end reflects your dream salary. 

You have room for negotiating your salary even if you are required to write a single number (as opposed to a range) on the job application. It is not unusual for a job candidate to revisit this number after receiving greater clarification of the role and responsibilities during the interview process. Be sure, however, to write down a number toward the top of your range based on your well-researched salary. 

Responding to the salary question during an initial screening interview. In the screening interview, if you are asked about your salary expectations, try to delay citing a specific number. For example:

"I’m most interested in finding the right fit and learning more about how I can contribute to the team (or company). I’d be happy to discuss salary expectations later in the process once we’ve had a chance to dive deeper into the role and responsibilities."

Stating your value (target salary) in the full job interview. It’s important to balance confidence with flexibility when the employer asks you about your salary expectations. Here are a few ways to respond:

• Deflect to learn more. This approach helps you gather more details about the role before committing to a number.

"I’m very excited about this opportunity and want to ensure that the role is the right fit for both of us. I’d like to learn more about the responsibilities and expectations before discussing salary. That said, I’m confident we can find a compensation package that reflects my skills and experience."

• Deliver your range confidently. Your response shows you have done your research while leaving room for negotiation.

"Based on my research and industry standards, I anticipate a salary in the range of $XX,XXX–$XX,XXX, depending on the full compensation package and growth opportunities. I am open to discussing details that will help us find a number that is good for both of us."

• Acknowledge public sector payscales. This response works well for public sector positions that have a pre-determined pay structure:

"I understand that this position falls within a set salary range, and I am comfortable working within this range. I would love to discuss how my experience aligns with the role and how I can contribute to the team."

Responding to an offer that is lower than expected. If the employer cannot increase the salary (which often happens in the public sector), it is time to talk about total compensation. Here is a response: 

"I really appreciate the offer and am excited about the role. I understand the salary budget is firm at $XX,XXX. Since that is the case, I would like to discuss other parts of the compensation package."

If the salary is firm, move on to talking about the negotiable and hidden benefits discussed earlier in this chapter. It is important to note that benefits will decrease your monthly expenses and salary needs. 

Asking for time to review the offer. Once you receive an offer (even if the salary meets or exceeds your expectations), we recommend giving yourself time to review the full package, including salary, benefits, and perks. Ask the hiring manager if you can get back to them in a couple of days. During this time, think about the many factors that will influence your decision to negotiate, such as current job market trends and if you are in a low-demand or high-demand occupation, along with your career priorities and North Star.

Revealing your salary expectations too early. If you disclose your salary expectations before the employer makes an offer, you might limit your negotiating power. Let the employer make the first move so you have a better starting point for negotiations. That said, sometimes you don’t have control over whether or not you can delay your expectations. If not, try to cite a range not a specific figure.

Accepting the first offer too quickly. Many employers expect to negotiate and leave room for discussion.

Using a weak or unclear justification. Simply stating that you want more money isn’t enough. You need to justify your request by highlighting relevant skills, experience, accomplishments, and market salary data.

Focusing only on salary. Consider benefits like bonuses, vacation time, remote work flexibility, professional development, and retirement contributions.

Failing to get the final offer in writing. It is essential that a compensation agreement (including, for example, a promise to review salary in 6 months) is documented in writing before accepting the job. This helps avoid misunderstandings later.

Note: Students often wonder if it is possible for an employer to withdraw a job offer if they negotiate salary. Anything is possible. However, studies suggest less than 10 percent will do that. Most employers expect some level of negotiation, especially for professional or skilled positions. Keep in mind, though, that some employers have  budget constraints and may not be able to meet your salary request. Problems mostly occur when a candidate makes excessive demands and refuses to compromise. You do your research so your 'ask' is reasonable.

Use your career priorities and North Star (your job guides) from the Define stage to decide what matters most to you. For example, does this role meet your work-life balance and company culture priorities? And does it move you toward your North Star? Having job guides helps you stay focused during the conversation so you can walk away with an offer that supports your existing lifestyle and long-term goals.

Connect your assessment results (i.e., your strengths) to the employer’s bottom line. When justifying a higher ‘ask’, don't just list your duties. Lean into your ‘proud moments’ from the Define and Stand Out stages, where you reflected on your strengths assessment, created impact statements, and wrote START stories. Instead of saying "I have five years of experience." say "Based on my track record of (your proud moment) which resulted in (result), I’m confident I can do the same for you, which is why I’m looking for a salary of $XX."

To negotiate with confidence, it is important to connect what you do to what the employer needs. This means knowing the company and knowing the market by researching salary trends and a company’s priorities, and listening closely as the employer shares more details about their challenges during the interview process. You aren't just asking for more money because you ‘want’ it. You are validating your value by showing exactly how your past accomplishments will solve the employer's specific problems.