Most people take the first offer an employer makes, but many people could get more if they attempted to negotiate or knew how to do so effectively. The three most important factors in negotiating salary are knowledge, confidence and patience.

Knowledge

A person must have knowledge about what a job usually pays in order to be a confident negotiator. Statistics about salary ranges can be found at many online sites such as the United States Bureau of Labor Statistics, the Securities and Exchange Commission, Jobstar, the American Almanac of Jobs and Salaries, along with trade magazines, journals and newspaper listings. Research should be done to find out what the salary range is for a specific geographic area and all benefits should be taken into account as factors that improve the overall value of a compensation package. Research should be done to find out the actual employer’s salary. This information is valuable because most bosses are unwilling to pay their subordinates more than they themselves are making. Next, the actual living expenses that an individual incurs should be calculated in order to provide a rough idea of how much compensation is required to live a certain lifestyle. This information should allow an individual to formulate a salary that does not threaten the employer, meets all living expenses and falls in line with market norms.

Negotiating

Always try to have several job opportunities from which to choose. This strategy offers leverage as well as provides the opportunity for a comparison of the different compensation packages offered. Do not be afraid to let a prospective employer know that several job opportunities are available. Always allow the prospective employer to make the first move when divulging salary expectations. It is never a good idea to expose salary expectations too soon because the employer could outright offer a salary that is far larger than the salary expected. An individual should never make a snap decision on an offer, either. Job seekers should take a day or two to think over a proposal because the employer may get nervous and increase the offer. Also, taking time to consider an offer allows time to adequately review the details and finer points of the compensation package. Lastly, get the compensation agreement in writing.

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