July 1, 2024
By Cheryl Wagemann
Interview with Julie Jansen excerpted from Exploring Careers on MoneyGeek.com
Cheryl: Is there a right and a wrong way to negotiate your salary when starting a new role?
Julie: Perhaps not “right or wrong,” but there are the most effective and least effective ways to negotiate your salary. It is ideal to wait until you have an offer before negotiating your salary, as this gives you much more leverage. The company wants you, and they don’t want to start the interviewing process again. This doesn’t mean you can’t ask about the salary range during the interview. There is so much more to compensation than just a base salary, which means there are many other things to negotiate, such as PTO, bonuses, benefits, professional development, etc., and it’s easier to just do this when you have an offer.
Cheryl: What if your current employer makes a counteroffer to keep you?
Julie: Accepting a counteroffer if you started interviewing elsewhere isn't advisable because you feel undervalued or underpaid. This is because your current employer is reacting to your decision to leave the company, not necessarily because they appreciate your true worth. The assumption in this situation is that you have spoken to your current employer about wanting a salary increase, and they have said no. Accepting a counteroffer could also negatively impact your future opportunities for an increase or promotion at the company.
“...Be prepared to speak clearly about your achievements and how you made a difference, and do salary and compensation research.”
— Julie Jansen, executive career coach, workplace expert and author
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Cheryl Wagemann is a contributing writer at MoneyGeek, with over seven years of experience in digital and print media. She has covered topics on economics and banking for The Balance and was the shopping editor at Finder. Wagemann earned her bachelor's degree in English from Montclair State University