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Negotiating your first salary can make a big difference over the course of your career. While it may feel intimidating to ask for more money when you're just beginning, here's how to negotiate effectively despite limited work experience.
Salary negotiation is crucial. Starting with a low salary can limit your potential for future growth. Although you can eventually earn more, your raises will be based on that initial figure. Asking for a higher salary is not just about immediate benefits—it’s an investment for the future, as every future negotiation will be influenced by that higher base.
Adopt the Employer's Perspective
Thomas Frank, founder of College Info Geek, emphasizes that understanding the other party's perspective is key to successful negotiations.
It's easy to focus on the salary increase
you
want, but when it comes to actual negotiation, that becomes secondary. What truly matters is whether or not your boss is willing to exchange what you desire for something they need.
It’s essential to consider the negotiation from the employer’s viewpoint. Frank points out that this is especially important when you lack experience. Without a proven history of performance, you will need to demonstrate to the potential employer that you can offer substantial value.
What Does an Employer Seek?
Having hired for his own business, Frank shares some of the key questions an employer asks themselves when considering a candidate:
Does this person possess the necessary skills and experience to do the job? If not, can they learn quickly?
Can their work match or exceed the quality I could deliver, or that someone else with the same salary would provide? Can they even outperform that?
Are they genuinely invested in my company or product, or are they only in it for the paycheck?
Will they frequently ask questions, or can they find solutions independently?
How long will this person stay? Am I wasting money training them just for them to leave soon?
Will I be satisfied with this person on my team? Will I be excited to work with them every day? How will my customers and other employees perceive this individual? Will they fit into the company culture?
He breaks these questions down into eight key factors:
Skills
Experience
Learning capacity/adaptability
Work quality
Passion/Interest
Independence
Loyalty
Interpersonal skills and compatibility
From this information, Frank emphasizes that technical skills and previous experience are just two of the primary attributes an employer seeks. To make up for any experience gaps, focus on enhancing your abilities in these other areas.
Do Your Homework
Research is crucial when negotiating salary, especially if you lack experience. To succeed in your negotiations, it's vital to be well-informed. Here’s what you need to know to prepare effectively.
Salary range: Naturally, you should have a clear idea of the salary you're aiming for in your prospective job market. Websites like Glassdoor or Salary.com can offer helpful insights. The National Association of Colleges and Employers provides a free salary calculator to establish a benchmark. Clarke University suggests that employers can often budget 15-20 percent more than their initial offer. While this is a broad guideline and varies by company, knowing this can help you settle on a comfortable figure, with research being key.
Company background: Texas A&M's career services recommends doing your homework about the company. "Understand the company’s operations, its financial health, its standing in the industry, and any recent news about its successes or challenges."
The employer: Frank advises that it’s also crucial to learn about the employer during your research.
I highlighted Social Skills and Cultural Fit as two key factors. To make a great impression in these areas, maybe you could check out my tweets or ask my peers about my interests. Reading
How to Win Friends and Influence People
ahead of time wouldn't hurt—this book reinforces the idea that I’ll be more inclined to like you if you show an interest in me and the things I’m passionate about.
Ultimately, the more information you gather, the more leverage you can bring to the table. Knowing a company's previous failures, for example, can help you figure out where to highlight your value to them.
Emphasize Your Skills
iGrad.com highlights that, in the end, your skillset should outweigh experience. Employers are more interested in knowing whether you possess the necessary skills for the role rather than the list of places you've worked. Keep the focus of the conversation on these skills:
...make a strong case for why your skills justify the salary you're requesting, says Caroline Ceniza-Levine, career expert, writer, speaker, and co-founder of
SixFigureStart
. "Present market data that shows how much individuals with these skills are earning. Demonstrate how these skills will contribute to the company’s profitability. Keep the conversation focused on your potential contributions rather than years of experience. To maximize your negotiation, center the discussion on your abilities instead of your experience."
You may have developed these skills through internships, participation in college organizations, or part-time jobs. Regardless, aim to keep the focus on your skills and how you’ve refined them.
Present a Plan of Action
To truly stand out, consider bringing a game plan to your negotiation. Frank recommends:
Perhaps you could invite someone from your target department for coffee before the interview; ask them about their daily tasks and what areas in the department they believe could be improved. Research some potential improvements to suggest—this demonstrates that you care about the company enough to invest time and effort before even being hired.
It’s a challenge, which is why most people won’t do it. That creates more opportunities for you.
At AfterCollege, career coach Teresa Torres suggests a similar approach:
Pretend you already have the job. What would you do in your first month? Not sure? Reach out to people in similar roles. Do some research. Then, come to the interview with a plan for what you would do during the first few weeks. Present it as one possible approach, and of course, ask the hiring manager for their input on what should be prioritized.
Your goal is to show that you understand the role’s responsibilities. You’re familiar with the daily tasks, the long-term objectives, and are prepared to handle it all.
Master Some Negotiation Strategies
Not everyone agrees on the most effective negotiation strategies. For certain techniques, you’ll need to weigh their advantages and disadvantages and determine which ones work best for you.
For instance, in his article on this subject, finance expert J.D. Roth recommends waiting for the employer to introduce the topic of compensation. He advises against bringing up your salary expectations until they present an actual figure. "If you do, you set the anchor for the negotiation, and that can only hurt you," he explains.
However, this strategy may not be effective for everyone. Our own Alan Henry writes:
The tactic of salary standoff doesn’t suit everyone, and more employers are aware that candidates want to know how much they’re willing to pay before revealing their current salary. Many employers will insist on knowing how much you earn now, and some may even contact your current or former employer to verify your salary claims.
We’ve also recommended the Briefcase Technique. In a weekly video Q&A, author Ramit Sethi shared how this method works:
The client might say, 'I'm curious, what’s your price for this?' And at that point, you respond with, 'Actually, before we discuss that, let me show you something I’ve prepared.' Then, you literally pull out a 1-, 2-, 3-, or even 5-page proposal document from your briefcase. This proposal... actually details areas within their business that you could improve, along with a step-by-step plan for how you would tackle these issues.
This approach is similar to presenting a game plan. But by introducing it at the start of the money conversation, you can steer the discussion and impress them with your research and vision.
Look Beyond the Salary
If you don’t land the salary you want—or even if you do—there are several other important factors to take into account in your job offer.
iGrad writes:
Llames further recommends that job candidates consider negotiating for other perks, such as a more prestigious job title, a flexible schedule, the option to work from home, extra vacation days, a sooner performance review date, performance-based bonuses, lower benefit co-pays, or enhanced 401(k) contributions.
You can also leverage these factors to fine-tune your negotiations. For instance, you might propose a higher starting salary in exchange for sacrificing benefits for the first six months, as suggested by iGrad. This approach makes sense, as the benefits will likely remain the same after six months, but a higher salary will significantly impact your long-term earnings.
Many recent graduates feel fortunate just to secure a job and don’t negotiate their pay. However, you can be both grateful for the job and ensure that your salary reflects your value to the company. In fact, negotiating is essential, as it sets the stage for future raises and provides a valuable introduction to workplace dynamics.
