In our comprehensive guide to salary negotiation, we’ll teach you what a market salary is, how to research a market value salary and, ultimately, how to negotiate your salary according to market value.
Salary negotiation is one of the most important conversations you’ll have when starting a new job. You can get market value compensation that meets your demands and expectations if you negotiate it correctly. In this comprehensive guide, we cover tips for researching the market value of your position, ways to present your case and techniques to use throughout the negotiation process.
What Is a Market Value Salary?
A market value salary is the amount of money an employee should be paid for their position, based on current market conditions. This number is usually determined by looking at similar jobs within the same industry and geographical location. While negotiating your salary, you’ll want to make sure that you’re being paid at or above the market value for your position.
There are a few different ways to research market value. You can start by looking at salary data for your career. The best way to do this is to find data from a source relevant to your career path.
For those in the life sciences industry, the BioSpace 2024 U.S. Life Sciences Salary Report is a great place to start. There, you’ll find the average salary for many positions in the pharma and biotech industries, based on the responses of professionals working in the field.
Once you have a good understanding of the market value salary for your position, it’s time to start preparing for your negotiation.
Use Market Value as a Starting Point
When negotiating your salary, you can use a few different strategies to get the best pay, whether you’re in an employer’s market or a candidate’s market. The most important thing to remember is that the market value of your position is simply a starting point for the negotiation, and you should always aim to get paid more than that value. In this article, we’ll go over a few different ways to adjust your value as an employee so you can get the best possible salary.
Before we get into the tips, though, let’s go through what to consider while determining your leverage in the salary negotiation process.
Understand Your Employer’s Limits
The first thing you need to consider is the size of the company and its flexibility when it comes to salaries. If you’re negotiating with a large business, the hiring manager may have set salary ranges for specific positions. In this case, it’s important to understand what the range is so you can negotiate within it.
On the other hand, smaller companies may not have set salary ranges. This gives you more room to negotiate, but it’s important to keep in mind that these businesses often have less money to work with.
The second thing you need to look at is the company’s financial health. If the business is doing well, it may be more willing to negotiate on salary. However, if the company is struggling financially, negotiations may be less likely.
The third thing you need to consider is the cost of living in the area. If it’s high, you may want to negotiate for a higher salary. You can use the cost-of-living argument to “correct inflation,” so to speak.
Now that you’ve factored in the company’s size and flexibility, its financial health and cost of living, it’s time to look at some salary negotiation tactics you can use to adjust your value as an employee.
Start at the Top
The first negotiation tactic is to start at the highest possible number based on your expected salary range. By starting high, you leave yourself room to negotiate down to your target salary. Experienced negotiators often use this technique, as it can be difficult to come back from a low opening offer.
The most important thing to remember when using this tactic is to be realistic. If you start too high, you risk being taken out of the running for the job. Keep in mind your position’s market value, as well as the skills you bring to the table.
Sell Yourself
The second salary negotiation tactic is to sell yourself. This means you should highlight all of the experience, accomplishments and skills that make you the best candidate for the position. By doing this, you can demonstrate your value to the employer and negotiate a higher salary.
If you’re not satisfied with the market value of your expertise, demonstrate an understanding of the company’s needs and how your skills can help it reach its goals. For example, you might say something like, “Based on my research, the market value salary for this position is $X. However, I believe I’m worth more than that because of my skills and experience. I’m confident that I can bring value to the company and help you reach your goals.”
When selling yourself, remember to be confident. Walk into the negotiation with a clear understanding of your worth and what you’re willing to accept. When you do that, you’re more likely to get the salary you deserve.
Come Prepared
During a salary negotiation, the employer may ask you tough questions. They might try to lowball you by asking for your current salary, or they might try to get more information about your expectations. It’s important to be prepared for these questions and have a response ready.
For example, if an employer asks for your current salary, you can say something like, “I’m not comfortable sharing that information. However, I am happy to share my expectations for this position.” Be firm but polite, and remember that you’re under no obligation to share information that you’re not comfortable disclosing.
The worst possible scenario is that you’re not hired, allowing you to move on to a different company. This also allows you to explore additional possibilities for higher compensation.
If an employer asks about your experience or qualifications, be ready to provide specific examples of your skills and accomplishments. By being prepared for these questions, you’re more likely to get the salary you deserve.
Be Ready to Walk Away
If you’re not happy with the salary offer you receive, don’t be afraid to walk away from the negotiation. Sometimes, the best way to get what you want is to show that you’re willing to leave the offer on the table. For example, you might say something like, “I’m sorry, but I’m not willing to accept anything less than $X. If you can’t meet my salary requirements, then I’ll have to look elsewhere for employment.”
Keep in mind, however, that walking away from a negotiation should be a last resort. If you do decide to walk away, have a backup plan in place.
Be Prepared, Confident and Willing to Walk Away
By using these salary negotiation tactics, you’ll be more likely to get the salary you deserve, whatever the status of the job market. Stand your ground and negotiate your value as an employee. Just remember to be prepared, confident and willing to walk away from the offer if necessary.
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