Know Your Worth Prior to Accepting an Offer

Salary negotiations usually happen during the last phase of a job search as part of an overall compensation package. Before accepting an offer, it's good to know your worth ahead of the negotiations. That way, you can make a strong case for earning more money. Here's how to avoiding being low-balled by an HR department that may not realize the value of your talents.

Compare Salary to Title

Some hiring managers may start you in one position with the aim of training and promoting you after several months. Get any salary expectations in writing before accepting an offer. If you get a new title in six months, you should get some kind of raise. If not, make sure you are comfortable with the same salary for several years before your employer renegotiates your contract.

Know How Raises Work

Raises work as a percentage of your original salary, which is why getting the highest possible compensation to start is crucial when accepting an offer at the beginning of your employment. Assume a company gives you a raise of 5 percent per year. If your starting salary is $50,000, your second year you make $52,500, and your third year you make $55,125.

Bump up your starting salary to $55,000 to see what happens under the same 5 percent scenario. Your second year is $57,750 and the third year makes you $60,637. By the third year at $50,000, you catch up to what was an initial salary at $55,000. A little extra effort during salary negotiations saves you two years of busting your chops to prove you deserve extra money.

Accepting the higher offer is more than just getting $5,000 extra in the first year; by the third year, you make $5,500 more. Every little bit helps, especially in the long run. If the company goes through lean times and has to cut bonuses, the extra salary also comes in handy.

Research Other Salaries

Before accepting an offer at the end of negotiations, know your worth by researching other positions in your industry. Job review websites and numbers from the Bureau of Labor Statistics give you a good starting reference point. Find out the employer's salary scale, and notice how it varies with experience. If you can prove your experience deserves a bump in salary, use that as your base and work upward from there.

Negotiate When Unemployed

One reason you may get a low salary offer is if you're unemployed. At this point, the company recognizes you need a job and it needs someone to fill the position. Accepting an offer higher than what's presented may be more challenging, but that's where your diligent research comes into play. Unemployment does lead to a weaker position. However, it doesn't mean you have to grovel to earn a decent salary. Make sure what the company gives you is truly commensurate with your experience regardless of your unemployment.

Accepting an offer does not have to happen right away. Ask your potential employer if you can sleep on it, and then come back with another offer in the morning. You've already got the job, so holding out a little longer may not be a bad idea.

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