Salary Negotiation Mistakes to Avoid – CBsalary.com

Kate Lorenz, CareerBuilder.com Editor

Many people think that once they have landed and aced an interview, all of their work is done. Sometimes deciding whether or not to accept a job offer can be just as stressful and time-consuming as getting to that point in the first place. One point of contention is salary negotiation. The process of negotiating salary can be overwhelming, particularly for job seekers without a great deal of experience. Negotiating a fair and practical salary is a critical step in the job selection process and can be navigated smoothly if you know what to and what not to do. 

When negotiating salary beware of the following common mistakes.  

Neglecting to do your salary homework.  

Forgetting to do your homework leaves you unprepared for the complex test of negotiating salary and ultimately your value to the company. Before you go to an interview, determine your desired salary range. It is impossible to do so if you do not know your industry. Research the typical salary range for someone with similar experience in your industry.  To find out the median salaries and salary ranges in your area for a particular job, utilize an online salary calculator.  Failure to do your homework before negotiating your salary will cause you to be virtually unarmed to present a case for the salary range you request.  

Forgetting to think carefully about your monetary needs.  

Just as researching your industry is important when determining a potential salary range, it's also vital that you do a bit of self reflection. If you never stop to think about what income you need, you may end up taking an offer that leaves you pinching pennies. Before interviewing and attempting a salary negotiation, ask yourself some important questions. How much money do I need to pay my basic expenses, such as rent or mortgage, groceries, utilities, and car payment? What is the lowest salary I will consider? How much income do I need to be able to save for the future?  Which salary range will support my current lifestyle? 

Laying all of your cards on the table.  

Giving up too much information too early may limit the salary the company decides to offer you.  Attempting salary negotiation is like playing a card game. You need to gauge the other person's intentions without giving away all of your secrets. Although you may be asked to name a suggested salary, always avoid providing a number. Many prospective employees feel pressured into providing a number and end up undercutting their potential salary. That's why you need to be prepared to answer the question: "What kind of salary are you looking for?" When answering questions pertaining to salary, try to use answers such as "I'm sure that if I do receive an offer, it will be fair and reasonable," or "I will consider any reasonable offer." If pressed for a number, give an approximate salary range rather than a specific amount. The bottom of your salary range should be the minimum you must make, with the top being a bit higher than your ideal salary. 

Forgetting to consider other benefits. 

Remember that there are benefits added to the offer that compliment your salary.  When you receive a job offer, it is important to consider the compensation package in its entirety. This means paying attention not only to the salary offered but also to the company's medical and dental plan, vacation package, retirement benefits, and other perks. If the company cannot meet your desired salary range, it may be able to make it up to you in other ways, such as stock options or additional vacation time. 

Believing that you don't have the right to ask for a higher salary.

A company is not going to offer you the highest salary they'd be willing to pay right off the bat, and most companies expect candidates to come back with a counter offer. If you have done your research and have supporting information to back up your salary wishes, don't be afraid to let the company know that you would like to negotiate for a higher salary. However, don't make the mistake of playing hardball, thinking you are irreplaceable, or being unwilling to compromise. If you receive a low offer, thank the company for the offer, let them know that you are excited about the position, and politely and respectfully request a higher salary. The worst the company can say is no, and you never know what will happen until you ask. 

The bottom line is that salary negotiation, like anything else, needs to be done respectfully and in perspective. But if you do your research, set your desired salary range, and always know how to handle tough salary related questions, chances are you will end up with an offer that works for you and the company.