How to successfully navigate your salary negotiation
Yahoo Finance's Sibile Marcellus joins Kristin Myers to break down the best way to navigate your salary negotiation.
Video transcript
SIBILE MARCELLUS: So we're launching this new Career Control Series to help you, our viewers, get more career control. And what we're talking about today is salary negotiation. You actually have more leverage than you think.
Yes, the unemployment rate is high. It's at 6%. There are millions of people out there looking for work just like you. Not to say also people who already have a job, but want a better opportunity. That said, it's all about how you show up. If you think, oh, I have no control, too much competition, too many people out there looking for work, that may be reflected in the job interview process and the all important salary negotiation.
So as Taylor Swift says in that song, "shake it off" to have a successful salary negotiation.
KRISTIN MYERS: All right Sibile, so what's the first rule of thumb then when it comes to that salary negotiation?
SIBILE MARCELLUS: The rule of thumb is the first person to throw out a number loses. You want to remember that. So what happens is usually when you're going through the interview process, the hiring manager or the recruiter will say something to the effect of, what is your salary requirements? That is a trap question.
It's loaded. And the way you answer it is high risk for you. I spoke to insiders. This is the way you approach that kind of a question. You ask for the salary range for the job position you're seeking. Usually that works. The hiring manager or recruiter will tell you the low point and the high point.
Also ask for the midpoint. Then you can get back at them and say the salary requirement for me is from that midpoint to the high point of that salary range. Once they hear that, it's like you're pre-qualified to continue with the job interview process.
KRISTIN MYERS: All right, so Sibile let's say you've gotten to the stage where they like you. They decide to make an offer, which of course, everyone wants to be in that position. How do you handle that then?
SIBILE MARCELLUS: So this is where it gets really exciting, right? The official job offer is coming. So what you want to first do is take a deep breath. And the way this usually happens is the recruiter hiring manager will come back at you and say, you know what, we're excited about bringing you on board. We're considering putting a package together for you. Is, for example, $200,000 something you might consider accepting?
Say this for a job position at a large company. Take a beat. Maybe you wanted $10,000 more. Stay professional. Stay cool.
The way to approach it is to say if you were to make me an offer of $210,000, then I could start in two to three weeks. That way you let the hiring manager or the recruiter know that if they go through the process of trying to get approvals and trying to get you a higher salary, you will actually start the job within two weeks.
Once you say that, leave it there. They will come back to you and they will either say you know what, $200,000, that's as much as we can do. That is the offer. You take it or leave it. Or they may come back to you and say you know what, we're offering you $210,000, but you start in two weeks.
And at that point you can have a big smile, a great day because you successfully negotiated your salary. So that's pretty much how insiders I've spoken to suggest that you approach this highly emotional process of a salary negotiation. And one thing to remember is that because of the pandemic, we're in a different job market. But it's not just different for you. It's also different for many employers.
KRISTIN MYERS: All right, thanks so much Sibile Marcellus for bringing us all of those tips in this installment of Career Control.
