Identifying your Market Value and Confidently Navigating the Negotiation Process
Insights from Evolve Career
Know Your Market Value
​
Knowing your market value positions you powerfully in negotiating a competitive compensation package. We recommend doing this research while going through the application or interview process to be ready for any salary-related questions that may come up in initial conversations, well before you are given an offer. Not doing your research ahead of time and truly understanding your market value can lead to asking for too little or demanding too much—both of which can hurt you in the negotiation process.
​
To find your average market worth, consult online tools using the following three points: industry, job title, and location.
​
​
Recommended Resources to Research Compensation
​
The following resources may help you determine the average market worth for your industry:
​
Talk to your colleagues who work in HR; they may have information about competitive compensation ranges for different roles
Review SEC files to see publically reported salaries for C-Suite jobs.
Consider the salary information in job postings, but the range listed is usually wide
​
Network with other professionals that work in your industry in a similar role. You could ask, “this is my first CFO job …what would you recommend?” You could also ask questions about the research you have collected. For example, you may ask: “In my research, I have found that the salary range for employees with X-plus years of experience is $XXX,000 to $XXX,000—does this sound right to you?”
Sites like glass-door, pay-scale, and salary.com generally don’t have salaries for executive-level positions and under-report bonuses and other areas of compensation. In addition, The information is crowd sourced by people who work for the company and are generally filled out by under paid people. That being said, there is a lot of information about salaries for a lot of different roles.
Glassdoor.com. Glassdoor has two key features that can help you find your worth. First, Glassdoor’s Know Your Worth tool provides a personalized calculator based on your location, title, and years of experience. Additionally, you may be able to access company-specific data by using Glassdoor’s search tool to find salary information. Glassdoor data is populated by current and former employees, so it is a source of organization-specific information.
Payscale.com. Payscale’s Salary Calculator tool similarly aggregates data from users to provide you with a personalized estimate of your market value based on location, years of experience, title, etc.
​
Also, we don’t recommend getting information from headhunters. First of all, they are not generally experts in compensation unless they fill a lot of people for specific roles in a specific industry. In addition, they are paid to represent their client and compensated as a percentage of base salary, so they would likely not provide you an objective perspective on compensation and may index more towards you negotiating salary versus other compensation items that are important to you.
​
Another resource is the Bureau of Labor Statistics (BLS). The US Bureau of Labor Statistics can share the annual mean wage for over 800 occupations. While this is aggregated across the United States and may not be tailored to your location, this can serve as one key data point.
​
Your online research matched with conversations with current professionals in the role will help you develop a likely salary range for the position at hand. Once you’ve done your research, complete the activity below:
When approaching your negotiation, you want to prepare the following numbers, and your salary research will help you identify many of the following:
​
1. Salary range—what is the general salary range for this position in your area?
2. Target salary—using the salary range, identify your target salary based on your skill set, years of experience, and location.
3. Negotiation range—determine your negotiation range, placing your target salary at the bottom. This way, no matter what is discussed, your target salary will be the least you negotiate for. Add 10–15% to your target salary to determine your range.
4. Monthly budget—what are you spending per month on housing, food, bills, etc.?
5. Walk-away number—what is the absolute minimum salary you need to cover your monthly expenses?
"What is Your Expected Salary?" and Other Screening Questions
In an ideal world, salary would not be discussed until the company has said they want to hire you, when your negotiation power is highest. However, this isn’t always possible, as recruiters and hiring managers are increasingly asking after salary expectations in a screening interview, as well as in the application itself.
Note: Employers typically ask because they want to know if they can afford you. Providing a number that is too low may hurt you down the line in the negotiation process. Meanwhile, offering a number that is too high may price you out of the competition.
​
​​
“What are your salary requirements?”
Until you know the details of the full compensation package (benefits, etc.) don’t throw out a number. Instead, consider sharing where you are in your career and your research.
​
Sample answers include:
​
“I really like what I’ve heard so far and am certainly interested in potentially becoming a member of your team. I would be excited to bring my skills in XYZ. May I ask what range you have in mind?”
​
“I’m excited about the position and look forward to this being a big step forward in my career. I would love to learn more about the specifics of the role before I feel comfortable sharing a number.”
​
If you find yourself in this position, consider the following sample language to guide you through the interaction.
If the recruiter or hiring manager is persistent in getting a number, consider the following language:
“Considering the requirements on the job description and my personal research, I have found acceptable salaries for this role to be between $XXX,000 and $XXX,000. I am flexible and willing to negotiate within this range, depending on the overall
compensation, benefits and advancement opportunities. Does this align with your expectations?”
​
“What is your current salary?”
​
At times, you may encounter a hiring manager asking after your current salary. This is typically asked to help recruiters pose follow-up questions to see if they can afford you. If possible, defer the question with a salary range and offer your willingness to negotiate.
​
“I don’t feel comfortable sharing that information at this time. I prefer to focus on the position at hand and the skill sets I can offer your organization.”
If you are pressed for a number, be sure to clarify on the full picture of your benefits and salary compensation:
“Currently, I’m making a base salary $XXX,XXX. My research has shown that a competitive salary for this role would be $XXX,XXX-$XXX,XXX. I hope you agree that the contributions I will make, based on my track record and knowledge of the industry, will justify this salary.”
If you practice how you’ll respond and do your research, you’ll feel more confident and help the recruiter advocate for you by being clear and up front.
What to Do When You Receive an Offer
​
Review this carefully! Once you accept a job, most of the terms will not change, and it will likely be a year until you are able to get an increase in your base salary. Even if you are sure you will accept this job, resist the temptation to accept the offer on the spot. You’ll thank yourself later for taking some time to read over the official written offer and benefits. That way, you can identify points that you want to clarify or negotiate. When you accept an offer, you can do so confidently and in an informed way.
When you receive an offer:
​
Step 1: Express gratitude—“Thank you! I am thrilled to hear this and look forward to reviewing the offer.”
Step 2: Ask for the offer in writing—“Would it be possible to get this in writing to review it in more detail?”
Step 3: Establish how long you have to review the offer and/or provide a date by which you will respond.
​
Note: Most recruiters are comfortable with providing 48 hours for a response. If you have multiple offers and need additional time, it’s best to be transparent and tactful with your response; however, the hiring manager may grant you up to one week.
​
​
Sample Offer Letter Email Response
​
A sample response to an offer might look like this:
​
"Dear Mark,
​
Thank you for the offer, which I was delighted to receive. I remain extremely interested in the position and the company, and I look forward to reviewing the offer letter and details contained within. I’d like to take 48 hours to carefully consider the offer and any additional questions that may arise. Please let me know if this time frame works from your point of view. Thank you again, and I look forward to speaking with you on or by Tuesday, August 13.”
​
Note: Pay attention to the offer letter itself. A “good” offer letter will list important details like the start date for the position as well as the time in which the employer expects a response to the offer. You may see something like: “This offer is valid through the end of the day on Thursday, August 15.”
​
​
Evaluating the Offer
​
What's in an Offer Letter?
​
Keep the full compensation package in mind when evaluating your offer. Companies/organizations will typically offer you some combination of the benefits seen in the list below. Keep these in mind when developing your negotiation strategy, as there are many ways to negotiate beyond base salary.
​
Base pay—total salary and when you will receive paychecks.
Bonus pay—guaranteed amount with a specific timeline or a discretionary bonus based on team or company performance.
​
Paid time off (PTO)—amount of time off you can take fully paid. Understand whether this needs to be earned over time or is available immediately upon being hired. Many companies are offering unlimited paid time off including sick leave. If so, understand the terms of that program.
Sick days (sometimes combined with vacation as paid time off)
Health insurance, retirement savings, life insurance. Most letters will not include this because it is not specific to the individual; ask the employer for additional information
Stock and equity—stock option. What is the vesting schedule? How long do you need to be an employee to be fully vested?
What happens if you leave before the stock is fully vested? If the company is not publicly traded, it may be difficult to quantify the value of the equity.
Tuition reimbursement or Professional development/certifications
Extended maternity or paternity leave
Flexible working hours
The ability to work from home part-time or full-time.
Parking
Start date
​
Evaluating Your Offer
​
Once you have a strong grasp of what is included in your offer letter (and what is not!), it’s time to ask yourself, “Is this job the right fit for me?” Does it align with your non-negotiables? What are the trade-offs? Use the following questions to do a gut check about what is most important to you:
​
Am I being offered fair market value in base pay?
​
Is the compensation package sufficient for my lifestyle?
​
Do the benefits (health, dental, retirement, etc.) meet my needs?
​
Can I comfortably complete the travel/commute required of me?
​
Will this role help me advance in my career path?
​
Do I like the company/organization culture?
​
Does this role and/or organization align with my career values?
​
Do I like the people I will be working with? Coworkers? Supervisor?
​
Do I feel excited and/or ready to take on the responsibilities of this role day to day?
​
Note: Still can’t decide? Make a pros and cons list. Your perception of the job offer will differ based on career values, priorities, stage of life, etc. Consider developing a pros and cons list as you think about what is most important to you in the next three years.
​
Preparing for the Negotiation
​
Develop your Strategy
​
When addressing your compensation and benefits with the company, you’ll want to have a firm grasp of the following to assist you in the negotiation process:
​
Prepare a list of clarifying questions
​
Identify the top elements you seek to negotiate, based on your career values
​
Know the valued skills and expertise you bring to the role
​
Identify your walk-away number(s) as well as tradeoffs between elements of the compensation
Practice counter-negotiation
​
Note: Always go into a negotiation conversation knowing your “walk-away” number. No matter how anxious or excited you are about taking this job, you need to be sure this role offers a fair market compensation. . Identify your walk-away number and any other benefits that you want before the conversation so you can be firm if they can’t meet your minimum compensation.
​
​
What is Negotiable?
​
There are other items that are negotiable beyond base salary. While you certainly want to negotiate for a competitive salary, be prepared for the possibility that the company cannot meet your salary. Established companies have salary bands for different levels in the company and they try to bring people in below midpoint to enable people to increase their compensation in the coming years. Also, there may be other people in similar roles at the same level with more years of experience with the company, and the HR leaders will need to make sure there is pay equity. In addition, the salary offered may be limited by the budget that has been allocated to that role.
​
With that in mind, be open to other negotiations, like those listed below. In addition to or in lieu of pay negotiations, certain aspects of the compensation package are typically more flexible than others. To you, they may be even more valuable than base pay. Keep these in mind as you identify your strategy in negotiation.Flexible work arrangements (flexible hours or ability to work from home)
​
Additional vacation time or flexibility for preplanned vacations
​
Tuition reimbursement or professional development
​
Professional dues or memberships
​
Conference attendance
​
A one-time sign-on bonus (which generally obligates you to work for the company for a year or repay your pay)
Relocation assistance (either a fixed amount or coverage for all your expenses) Ability to work from your current area and not be required to move, with the ability to travel to the city where the job is, when needed.
Severance package (negotiated as part of your offer)
​
Note: Knowing what parts of the offer are more negotiable than others is important. Read the following section to develop a strong business case for negotiating.
​
​
Do's and Don'ts of Salary Negotiation
​
In negotiating, always start high, anticipating having to come down. If you start too low, it will be difficult to negotiate higher.
​
DON'T
​
Be unprepared. This can leave you selling yourself short or accepting a compensation package you are unhappy with in the long term.
​
Focus only on salary. Remember to look at the full compensation package.
​
Make it personal. Keep in mind that this is a business conversation. While this is very personal to you, never make it about your personal situation. The employer doesn’t need to know about your financial commitments.
Come across as entitled or inflexible. When an employer makes you an offer, always start by showing gratitude, and stay open and flexible to the conversation.
​
DO
​
Negotiate. The biggest mistake you can make is to not negotiate at all.
Make a business case. Be able to clearly articulate your case based on researching market rates for your role and location.
Know the lowest salary you would accept and don’t accept anything lower than that.
Be flexible. Negotiate other parts of the compensation package if the company cannot meet your salary target.
Take the full package into account. Pay attention to health benefits, a sign-on bonus, paid vacation time, and alternative work arrangements or schedules. An employer may be open to offering additional perks if they can’t provide you a higher salary.
​
Get the final offer in writing, including all the additional items you were able to negotiate.
​
Practice!
​
Practice makes perfect. If you find yourself nervous to negotiate or aren’t sure how to articulate your ask, use the script provided in the example section to find language that feels authentic to you. Then, practice—the more you say it, the more natural it will feel!
​
Consider:
​
Asking a friend, colleague, or one of our Executive Career Strategist to role-play a salary conversation with you.
Recording yourself making your ask, and evaluating the outcome. Do you come across as confident? Timid? Identify areas for improvement, and continue to practice.
​
Note: Research from Columbia Business School shows that people (especially women) tend to negotiate more confidently when negotiating on behalf of someone else. If you are feeling anxious to negotiate for yourself, try thinking of someone else. In fact, you’re not only negotiating for yourself but for your family and your future plans.
​
​
​
​