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NEGOTIATING A COMPENSATION PACKAGE:
It’s More Than Just the Salary
Table of Contents
INTRODUCTION TO COMPENSATION NEGOTIATION .................................................................................. 2
COMPENSATION NEGOTIATING PRINCIPLES ................................................................................................. 3
SALARY HISTORY & REQUIREMENTS ................................................................................................................. 3
Sample Salary History Layouts ............................................................................................................................... 4
Salary Requirements in a Cover Letter ................................................................................................................ 5
Salary Discussion During the Interview Process ............................................................................................. 5
Sample Salary History Interview Conversations ............................................................................................. 6
THE WHOLE COMPENSATION PACKAGE .......................................................................................................... 7
RESEARCHING YOUR MARKET VALUE ............................................................................................................... 7
THE INITIAL OFFER .................................................................................................................................................... 8
NEGOTIATING THE OFFER ...................................................................................................................................... 8
Sample Conversation 1 – Employer provides a counter offer .................................................................... 8
Sample Conversation 2 – Employer is open to discussing other types of compensation ................ 9
Sample Conversation 3 – Employer does not accept offer........................................................................... 9
CONCLUDING NEGOTIATIONS ............................................................................................................................ 10
ONLINE SALARY RESOURCES .............................................................................................................................. 10
INTRODUCTION TO COMPENSATION NEGOTIATION
Compensation discussions can cause apprehension but they can also be a very constructive experience
that helps you recognize your assets and worth. These conversations may come up in different phases of
the process:
Salary history/requirements may be required with your application materials.
Question of salary requirements may come up during one of the rounds in the interview process.
Compensation negotiation discussions after the initial position offer.
While it can be challenging, compensation negotiation can create a more positive and fulfilling
professional relationship between you and your future employer when handled appropriately.
This document will provide an overview of the salary negotiation process, with guidelines on every step
of the process from application, to the interview, to negotiations once an offer has been received. It will
help you acquire the necessary skills to feel confident and successfully manage the compensation
negotiation process!
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COMPENSATION NEGOTIATING PRINCIPLES
As you begin the negotiation process, keep these principles in mind:
1. Compensation is best discussed when the employer has made you an offer
This is the best time to negotiate since the employer already knows you are the best person for the
job and is more likely to be flexible on issues of compensation.
2. Salary is just one piece of a compensation package
Total compensation includes more than just salary – it also consists of health insurance, time off,
flexible hours, loan forgiveness, bonuses, advancement, and opportunities for professional
development. Make sure to consider all of these factors before beginning a salary negotiation and
understand what is most important to you.
3. Most offers are negotiable
Many employers will initially propose a salary figure that is at the lower end of the position’s
allocated pay scale in order to allow room for the candidate to negotiate. Therefore, do not assume
that an employer’s first offer is the best offer.
4. Understand your market worth
Before beginning a salary negotiation, research what someone of your education, skills, level of
experience and other qualifications receives in your industry or target organizations. This
information should be acquired from several sources such as other professionals in your field and
salary ranges for similar positions/ organizations. Also know the organization’s size and budget and
visit different salary websites to confirm your information is accurate (see Appendix for online salary
resources).
5. Ask for what you want
It is reasonable to expect that an organization make a substantial investment in you when you
accept a position. It is unlikely that an employer who has an interest in you will withdraw an offer
because you tried to negotiate a better compensation package as long as you are realistic and
tactful.
SALARY HISTORY & REQUIREMENTS
Salary Requirements During the Application Process: Some organizations will ask for your salary
history along with your resume and cover letter. Do you HAVE to provide salary history?
o ONLY if a job opening states: “only submissions providing salary history will be considered,” or similar
wording.
o NEVER disclose this information openly without it first being requested.
Salary History Challenges
o Currency Conversion: Write your salary in the same country’s currency for which you are
applying (or both with conversions).
o Stipend: Indicate that it was a stipend and if other living expenses were covered. Examples:
$11,000 (Stipend), subsidized room and board
$15,000 stipend plus $500 monthly housing allowance
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Sample Salary History Layouts
(Submit as a separate page from cover letter and resume)
SAMPLE 1
Your Name
Street ♦ City ♦ State ♦ ZIP code
Phone Number ♦ Email
Salary History
One Company
123 Main St.
Washington, DC 20001
Phone: (202) 555-1234
Title: Sr. Program Analyst
Starting: $47,000
Current: $51,500
Plus: Benefits and Stock Options
Two Company
456 Main St.
Washington, DC 20001
Phone: (202) 555-5678
Title: Program Analyst
Starting: $42,000
Ending: $45,500
Plus: Benefits and semi-annual bonuses
SAMPLE 2
Your Name
Street ♦ City ♦ State ♦ ZIP code
Phone Number ♦ Email
Salary History
Research Associate (2012-Present)
One Company
123 Main St.
Washington, DC 20001
Salary Range: $37,000-$40,000
Research Assistant (2010-2012)
Two Company
456 Main St.
Washington, DC 20001
Salary Range: $30,000-$35,000
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Salary Requirements in a Cover Letter
Some employers may ask for your salary requirements in a cover letter. If they don’t ask for an amount,
address the request generally (Scenario 1). If they require you to name an amount, provide your
requirement in a range rather than a single figure if possible (Scenario 2). This range generally should be
around $10,000. T
his increases the chances that your expectations and the employer’s budget will
overlap and gives you some room to negotiate later in the process.
Scenario 1 – If the employer does not require you to name a specific figure:
“Per your request, my salary requirements are negotiable and I look forward to discussing this
further.”
Scenario 2 – If the employer requires you to list a salary amount:
“My salary requirements are in the $30,000 to $40,000 range, depending on the scope of
responsibilities for the position.”
or:
“I’m looking for a salary in the mid to upper $50’s but look forward to learning more about the
entire compensation package. “
If the employer asks for a specific salary figure, you can note that you are willing to negotiate.
Salary Discussion During the Interview Process
Some employers may ask you for your salary history and/or requirements during the interview. If
possible, avoid this discussion until an offer has been made, but come prepared to respond if necessary.
See following examples for how to handle the conversation.
This is not the time for negotiation!
Negotiation will begin only after you’ve been offered the position.
How to Answer the Question
1. First explain you are open to negotiation based on the position and overall compensation
package.
2. Tell the employer you look forward to learning more about the responsibilities and
challenges of the job as the interview process progresses.
3. If pressed to offer an amount, offer a wide salary range based on your research.
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Sample Salary History Interview Conversations
Always make sure that the tone and messaging of your conversation is open and accommodating!
There is also the potential to revisit salary negotiations after you demonstrate your value to the
company. Consider asking for a 6 month review to re-examine a potentially higher salary.
EXAMPLE 1
Employer: What are your salary requirements in order to accept this position?
You: This sounds like a fantastic opportunity and I am excited about this position and would like to learn
more about the compensation package. What is the average salary range already budgeted for this
position?
Employer: The details are still being constructed with senior management but I’d like to hear what you
think you should get paid in this position.
You: While salary is important, I am more interested in the right opportunity and organization. I am sure
your organization will offer something fair according to my education and experience.
Employer: We make every effort to be fair. But I was hoping you could give me a specific dollar amount.
You: Although my salary requirements are flexible, they range in the mid-to-high fifties.
EXAMPLE 2
Employer: What is/was your salary at your current/previous job?
You: I am paid fairly for my current responsibilities and according to my educational and professional
background.
Employer: What do you think would be a reasonable salary for this position?
You: I have an idea of the general market rate for this position but I would first like to start with your
range for this position.
Employer: We don’t have a specific range – our range is unique with each candidate. What would your ideal
salary offer be for this position?
You: I am excited to be considered for this position and am confident I can make a strong contribution to
the organization based on my skills and experiences. I am sure we can come to an ideal salary agreement
when the time comes.
Employer: Thank you and I look forward to continuing this conversation.
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THE WHOLE COMPENSATION PACKAGE
Benefits add thousands of dollars to the compensation package beyond salary and can also have an
impact in your long term career development. Not every job will provide these forms of
compensation, but be knowledgeable about your options!
Additional compensation options:
o Health and dental benefits
o Retirement Packages
o Stock options and investment opportunities
o Vacation, personal, and sick leave
o Schedule flexibility and start date
o Maternity and paternity leave
o Free mobile phone service or laptop
o Air travel (flight upgrades, frequent flier miles)
o Professional development/ management training
o Health club membership
o Relocation assistance
o Educational assistance
o Job Title (at hiring or after trial/first review)
o Promotion after trial period or first review
o Waiver of trial period
o Signing bonus/arrival fee
o Public transportation benefits
o Office (home office, size/location)
o School loan reimbursement
o Time off for charity/community work
RESEARCHING YOUR MARKET VALUE
Before you begin salary negotiations make sure you are prepared – do research on what you are worth in
this position based on:
Education
Experience
Type of position
Organization budget
Geography
Additional factors
Have a clear understanding of the following:
Your minimum salary requirement: Make sure to determine what you will need to cover your living
costs for your monthly expenses.
Your estimated market value: Use resources to research the average salary value that can be
expected based on your education, experience, geography and type of work.
o Research within your network to get typical salary examples in your field through your
contacts from school, work, or internship experiences.
o Conduct informational interviews or speak with career services staff or faculty members.
o Use available online resources to calculate average salaries based on your factors.
Some organizations do not allow the opportunity to negotiate salary. There is always risk involved in
salary discussions so do your homework about the organization before beginning negotiations!
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THE INITIAL OFFER
The opportunity to discuss the terms of employment is available once you have been offered the job.
After the initial offer:
Express your excitement about the position.
Convey your interest in the position and request for a specified time to make a decision on the
offer - be clear about when they can expect to hear from you.
Ask to discuss the compensation package.
Continue to sell your skills even after the job offer is made!
You should only negotiate an offer if you are seriously considering taking the job!
NEGOTIATING THE OFFER
Once you decide to negotiate the offer, be clear about the aspects that you would like to address.
Remember to consider every aspect of the job, not just the salary.
Remember the following tips:
Know exactly what you want, not approximately. You may not get exactly what you want, but
knowing what you want specifically will help you decide what you are willing to concede.
Always begin with expressing genuine interest in the position and organization. Always remain
grateful and polite during the negotiation process.
Be prepared to support your proposal with meaningful work-related skills and positive benefits
to the employer. This should be very specific valued added experience.
Begin with a figure 5-10% above their offer. If negotiating other aspects of compensation, make
sure to have a prioritized list of the most important items.
Take thorough notes while negotiating.
Be flexible to their communication style and perspective.
Use common sense and think in terms of “Win-Win” for both you and the organization.
It is possible an employer will not consider any of your requests. If you have kept a positive,
productive and friendly atmosphere during your exchanges, you still have the option to accept the
original offer.
Sample Conversation 1 – Employer provides a counter offer
Employer: Thank you for your efforts through this recruiting process. We have decided to offer you the
position! We are willing to offer you $48,000 plus benefits.
You: Thank you for the offer! I am very excited about this position. $48,000 sounds like a good starting
point. When can I get back to you?
Employer: If you can get back to us later in the next week, we would greatly appreciate it.
[2 days later]
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You: I’m very interested in the position and am confident that I can bring value to the organization.
However, the salary is a bit lower than what I had in mind considering the job responsibilities. Does your
budget allow a salary that is closer to the low $50’s rather than the high $40’s?
Employer: I’ll have to check on that internally. Can I get back to you later?
You: Sure, I appreciate your willingness to look into it.
[at a later time]
Employer: We’ve had a chance to discuss internally and look at our budget. The highest we can offer you is
$50,000.
You: Thank you very much. I’d be happy to consider that offer. Can you please send this updated offer in
writing?
Sample Conversation 2 – Employer is open to discussing other
types of compensation
Employer: Thank you for your efforts through this recruiting process. We have decided to offer you the
position! We are willing to offer you $48,000 plus benefits.
You: Thank you for the offer! I am very excited about this position. $48,000 sounds like a good starting
point. When can I get back to you?
Employer: If you can get back to us in the next week, we would greatly appreciate it.
[2 days later]
You: I’m very interested in the position and am confident that I can bring value to the organization.
However, the salary is a bit lower than what I had in mind, considering the job responsibilities. Does your
budget allow a salary that is closer to the low $50’s rather than the high $40’s?
Employer: Unfortunately the amount offered is all that we have budgeted for this particular position.
You: I am really looking forward to being part of your organization. I’d like to come to an agreement that
works for both of us. Can we review the entire compensation package to see if it is possible to enhance
the offer in terms of [vacation, benefits, opportunities for review, professional development etc.]?
Employer: Sure. I think we may have more room for flexibility in that capacity.
You: Thank you for considering additional compensation items! Professional development opportunities
as well as additional vacation time are the items that are most important to me. Is it possible to look at
adding some funding to support professional development trainings that would enhance my work and
increase my value to the organization?
Employer: We should be able to provide in the range of $300-500 for professional development. Let me look
into this and get back to you.
You: That would be terrific. Thank you! In the area of vacation time, I know that after a year, the
vacation time increases to 15 days a year from 10 days that employees get when they start. Would it be
possible to start at 13 days of annual vacation time instead of 10 days?
Employer: I’m pretty sure that is a possibility. I will confirm this and get back to you by tomorrow morning.
Sample Conversation 3 – Employer does not accept offer
Employer: Thank you for your efforts through this recruiting process. We have decided to offer you the
position! We are willing to offer you $48,000 plus benefits.
You: Thank you for the offer! I am very excited about this position. $48,000 sounds like a good starting
point. When can I get back to you?
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Employer: If you can get back to us in the next week, we would greatly appreciate it.
[2 days later]
You: I’m very interested in the position and am confident that I can bring value to the organization.
However, the salary is a bit lower than what I had in mind, considering the job responsibilities. Does your
budget allow a salary that is closer to the low $50’s rather than the high $40’s?
Employer: Unfortunately the amount offered is all that we have budgeted for this particular position.
You: I am really looking forward to being part of your organization. I’d like to come to an agreement that
works for both of us. Can we review the entire compensation package to see if it is possible to enhance
the offer in terms of [vacation, benefits, opportunities for review, etc.]?
Employer: Unfortunately we do not have the flexibility to adjust any of the other compensation items.
You: I understand. Thank you for your consideration. In that case, can I have a little more time to think it
over?
CONCLUDING NEGOTIATIONS
Once you are completely satisfied with the compensation package offer provided by the employer, make
sure to get the offer in writing. When you have the offer in writing, you can either accept the position
immediately or let the employer know that you will get back to them with a final decision on or before
your original deadline.
Before giving notice to your current job, get the offer in writing!
If you decide to turn down the offer, contact the employer via phone and inform them that you have
decided not to accept the position. Be sure to thank the employer once again for the offer. Send a
formal declination email to follow-up your conversation that includes:
Your appreciation for the offer
A respectful decline of the offer
A statement that leaves the door open for future contact
Leave the employer with a good impression of you in case your paths cross again.
ONLINE SALARY RESOURCES
Guidestar.org
salary.com/category/salary
Devex.com
Payscale.com
Careerjournal.com/salaryhiring
Salary.monster.com
Abbott-langer.com
Indeed.com/salary
Simplyhired.com
Jobstar.org/tools/salary
Glassdoor.com
legistorm.com/salaries.html
Opm.gov/oca/payrates
hrcom.salary.com/SalaryWizard/LayoutScripts/Swzl_NewSearch.aspx
