The ability to successfully negotiate salary is based on extensive market research and self-assessment. Researching what your experience, education/training, and personal strengths are worth in the marketplace should start at the beginning of your job search. As you are taking assessments, creating your resume, cover letter, and LinkedIn profile, you should also be researching current compensation rates. You should be able to answer two questions: what kind of work are you looking for, and what kind of salary are you hoping to get?

There are many sites that will provide you with current compensation information. It’s wise to check them all and create a spreadsheet of the data. Salary figures can vary widely. They are usually presented as a range with an average or median figure. By analyzing several sites, you should come up with a reasonably accurate range and a defensible idea of where your qualifications place you within that range. Here are sites that provide salary information:

• Salary.com

• Payscale.com

• Glassdoor.com

• BuiltinAustin.com

• Onetonline.org

• Indeed.com

• LinkedIn.com

• Lmci.state.tx.us (Texas wages only)

Although there are exceptions, in general, public sector employers (government) and nonprofit organizations pay ~75% of what the private sector companies pay for equivalent positions. Jobseekers are often willing to accept the lower salary for the stability of the position (especially in the public sector), the benefits, and the work-life balance. 

A consultant or an independent contractor (paid by 1099 rather than W-2) should add ~35% to the wages paid to a company employee since the contractor will have to pay their own Social Security, taxes, and insurance. After researching and  analyzing compensation data, the jobseeker should come up with three target salary amounts: 

• The sweet spot (the desired salary, often 10%+ than previous job)

• The dream salary (beyond all expectations) 

• Lowest possible salary (your actual lowest possible salary + 10%)

So, you’ve been offered a job as an Independent Contractor, a 1099. What does that mean?

It can be a little confusing, so let’s break it down:

Years ago, it was understood that no one was to discuss salary until an offer was made. In fact, “he who mentions salary first loses” was a maxim that was understood by employers and jobseekers alike. Once the offer was made, and the salary was written on a piece of paper that was slid across the desk to the jobseeker, the negotiation process began. 

That was then. Today, many job postings come with the instruction to “send resume with salary requirement,” before the jobseeker has a clear idea of the scope of the responsibilities or the complexities of the workplace.  Coming in too high at this very early stage can stop the process in its tracks despite the fact that to hire this exceptionally talented candidate, the company may have been willing to meet their stated salary. 

Other times, the initial salary discussion comes during the screening interview when the company representative confirms that the candidate meets the minimum qualifications, then says, “Before we move you forward to a face-to-face interview with the management team, what is your salary expectation for this position?” 

It’s understandable that an HR screener would not want to waste the time of a management interview team if a candidate’s salary requirement is beyond the range that a company is willing to pay. If the candidate is highly qualified, the screener might ask if there could be some flexibility in the salary requirement in return for a stellar benefit package or additional perks.

What this means is that the job seeker must be prepared to discuss salary no matter when the subject comes up in the application or interview process.

If the offer is reasonable, is within your desired range, and has a good compensation package:

• Thank the employer for the offer and ask for some time to consider it.

• Once home, work the numbers, talk to your family, make sure you understand the package clearly, make your decision.

If the offer seems low:

• Detail why you feel you merit a higher salary (experience, education, proven success, contacts, unique characteristics you bring to the position, etc.).

• DO NOT negotiate salary based on income needs.

• Pull out your research (salary.com so you can make a good case for additional compensation).

If no additional compensation is offered:

Ask if there are additional perks that would compensate for the reduced salary, such as:

• Sign-on bonus or performances bonuses

• Flex-time; telecommuting

• Rapid evaluation for promotion

• School and/or training assistance

• Professional memberships

• Extra vacation time or sabbatical

• Day care on premises

Try to avoid giving a specific figure. Whenever discussing salary, make sure you maintain solid eye contact with the interviewer. Looking away shows a lack of confidence. 

During a performance review, when you’re hoping to negotiate a raise, come prepared with data showing the problems you’ve solved, the savings you’ve achieved, the revenue you’ve generated since your last review.  Then say, Based on those figures I feel I qualify for a bonus or a raise in the amount of $XXX. Can you make that happen?

In any kind of salary negotiation, never get emotional and never base your salary request on need, only on the value you bring to the job. You have two kids in college? Your spouse was laid off, and yours is the only income? You’re about to lose your home? Those are dire situations, but they are not the employer’s problems and bringing up personal problems will hurt your interview and derail your salary negotiation. Talk only about the value you bring to the company and support that statement with data if possible. 

Big Interview is a great resource for salary negotiation tips, as are the trainers. If you need help practicing your salary negotiation, pair up with a trainer or a trusted friend. Saying the words can go a long way in helping you feel comfortable talking about money and can build your confidence before the day of the discussion.

When HR asks, “How much money are you hoping to be paid in this job?” you have a range of possible answers you can use. Here are a few examples:

In this chapter, we have discussed the importance of understanding your worth, conducting research, and preparing for negotiations. We have also emphasized the value of utilizing STAR stories to support your claims and strengthen your case during salary discussions.

As you embark on your job search journey, remember that salary negotiation is a critical aspect of securing a fair and competitive compensation package that reflects your skills, experiences, and potential. Being well-prepared, confident, and equipped with compelling STAR stories, you can effectively communicate your value to potential employers and negotiate a salary that aligns with your worth.

Keep in mind that salary negotiation is not a one-time event, but rather an ongoing process throughout your career. As your skills, experiences, and achievements grow, it is crucial to reevaluate your worth and be prepared to advocate for yourself during performance reviews, promotions, or job transitions.

In conclusion, the ability to negotiate your salary effectively is an essential skill that can significantly impact your financial and professional success. By applying the strategies and techniques shared in this chapter, you can approach salary negotiations with confidence and secure the compensation you deserve. We wish you the best of luck in your job search and future salary negotiations.