The salary you negotiate for yourself deeply impacts your attitude about any new position you accept. While the discussion is key to securing fit in a new role, you may not feel like you’re the one driving the conversation. But you should, and you can be.
Your talent is precious, and turnover is costly. Research compiled by the Center for American Progress indicates that re-staffing a position costs employers nearly 20% of the role’s annual salary. Employers want to hire capable staff who will remain happy, engaged, and productive. Candidates share this goal — so it’s in both parties’ best interest to iron out a truly suitable offer.
Not sure where to start? Let us walk you through salary negotiations step-by-step at each stage of the application process.
In the Research Phase
Use Glassdoor’s rich salary data to learn about compensation at the companies you’re interested in. If you find limited data for the specific position you’re after, take an average of what local companies pay professionals with that title — you want a verified salary range, which may not be shared in the job post. While researching this information, keep in mind that the base pay you accept impacts future raises you may garner. According to Stephen Miller from the Society of Human Resources Management, employees’ raises averaged about 3 percent of their base pay in 2016; the same is projected for 2017. Do the math. Consider what this growth rate may mean for your bottom line in the long-term depending on the base pay you accept.
Some companies offer bonuses or merit increases that can be higher than 3 percent, however. Beyond straight cash, some companies have rich benefits that may include telecommuting, summer hours or similar flexibility. Chisel out a hierarchy of what matters to you the most.
Before you can start truly assessing whether or not a salary is a good fit, though, it’s important to know what your skills are worth. Glassdoor’s free Know Your Worth™ personalized salary estimator functions “to calculate the estimated market value, or earning potential, of an individual based on characteristics of his or her current job, relevant work experience and the local job market in real time.”
While you may have been incrementally garnering annual pay raises, you’ve also been accruing years of experience, gaining certifications and learning new skills, all of which add to your market value. Glassdoor’s tool calculates a refreshed market value, factoring in these areas of professional growth. Having a clear sense of your professional worth and knowing the salary range for the job you’re after are going to be key.
In the Application Phase
Dread filling out that little field that asks you to enter your salary expectation in a job application? You’re not alone. But the good news is, in some locales including New York City and the state of Massachusetts, it will soon be illegal for employers to request salary history, as it can perpetuate gender pay discrepancies. Nearly 20 states may soon follow suit.
Increasingly, salary history is regarded as an outdated basis for future compensation. So how do you navigate this when you want the job and you have to populate this field on an application? Lavie Margolin, Career Coach and author of Mastering the Job Interview explains: “the later that any aspect of salary is brought up, the better position the candidate is in.”
Margolin also recognizes the importance of getting your materials noticed. To that end, he explains: “The easiest path to the next steps is a smooth one so unless there are concerns with [sharing salary history], one should consider doing it.”
Your other option is to leave that field blank or populate it with zeros. This strategy can work, leaving you in a better position to negotiate, or your materials could get passed over as incomplete. It’s a gamble — so make sure to weigh both strategies and decide which one is best for you.
In an Early-Stage Interview
At some point, employers will likely want to confirm that your ranges are compatible, which may happen during the phone screening. That’s probably before many candidates want to tip their hands.
Margolin proposes: “One can request to defer to a later time and gauge the response. . . If done tactfully, it would not be unfavorable. If the recruiter becomes insistent, the candidate would have to decide if he or she wants to disclose at that point.”
If you share information, aim to keep it high level.
- If a range is provided in the post: “I’m comfortable with the range indicated, and I’ll be ready to discuss further as I learn more about the company, its benefits and the position.”
- If no range is indicated: “I am hoping to learn the salary range for this position.” If it fits with your research, use the response above.
If you’re asked for your salary history, aim to defer. You don’t want to volunteer this as a compensation starting point. Learning what you earned in a previous job is not relevant to the current conversation.
Margolin recommends this language: “Given that I am transitioning from an industry with a vastly different pay structure (or perhaps geographic location or have been with one company for many years and have not tested the market), I do not think my salary history is very relevant and I would like to focus on fit for the role at this point.”
If you feel like you need to answer with a concrete number, Margolin suggests providing “the history but contextualize it as to why it is not applicable to current negotiations.” He recommends a statement such as: “Although in my last salary I grew from 40k to 70k over 12 years, the 70k was under market value. It was a great place to grow, but I am now ready to test the market.” It’s also a great opportunity to ask you questions about benefits, raises, bonuses and perks.
Once you learn that you’re through to the next round, you can employ a more granular strategy.
In a Late-Stage or Final Interview
You’re ready! You know what you want. You understand what this employer has to offer. Because you have a range in mind, think through what you think might be offered and how you would counter various proposals.
Margolin scripts several ways this can play out:
Interviewer: “We would like to make you an offer of $46k per year.”
Interviewee: Thank you for the offer…Would it be possible to negotiate on salary? I’m very interested in the position, but seeking $48-53k per year.”
At this point, the interviewer can answer in one of several different ways. If your interviewer says “We can offer you $52k,” for example, try countering with “Thank you. I’d like to talk it over with my family and confirm the details. I am really excited about the potential of working together.”
If the interviewer says, “I will have to speak with management about the possibility of a higher offer,” make sure to ask “When should I follow up with you?” so they know you mean business.
If they say, “We cannot give a higher salary,” try responding with: “OK. Is there flexibility on some of the benefits? Can my salary be re-evaluated at six months once I have proven myself? If I have, at what rate can I expect my salary to increase?”
You and your soon-to-be employers share the goal of arriving at a compensation package that will keep you happy in your new position. So welcome your next salary negotiation — it sets the bar for fit in your new role.
Interested in refinancing student loans?Here are the top 9 lenders of 2021!
|Lender||Variable APR||Eligible Degrees|
|1.88% – 6.15%1||Undergrad & Graduate|
|1.88% – 5.64%2||Undergrad & Graduate|
|2.50% – 6.85%3||Undergrad & Graduate|
|1.89% – 5.90%4||Undergrad & Graduate|
|1.99% – 6.59%5||Undergrad & Graduate|
|1.88% – 5.64%6||Undergrad & Graduate|
|1.90% – 5.25%7||Undergrad & Graduate|
|2.39% – 6.01%||Undergrad |
|2.13% – 5.25%8||Undergrad & Graduate|
|Check out the testimonials and our in-depth reviews!
1 Important Disclosures for Splash Financial.
Splash Financial Disclosures
Terms and Conditions apply. Splash reserves the right to modify or discontinue products and benefits at any time without notice. Rates and terms are also subject to change at any time without notice. Offers are subject to credit approval. To qualify, a borrower must be a U.S. citizen or permanent resident in an eligible state and meet applicable underwriting requirements. Not all borrowers receive the lowest rate. Lowest rates are reserved for the highest qualified borrowers. If approved, your actual rate will be within a range of rates and will depend on a variety of factors, including term of loan, a responsible financial history, income and other factors. Refinancing or consolidating private and federal student loans may not be the right decision for everyone. Federal loans carry special benefits not available for loans made through Splash Financial, for example, public service loan forgiveness and economic hardship programs, fee waivers and rebates on the principal, which may not be accessible to you after you refinance. The rates displayed may include a 0.25% autopay discount
The information you provide to us is an inquiry to determine whether we or our lenders can make a loan offer that meets your needs. If we or any of our lending partners has an available loan offer for you, you will be invited to submit a loan application to the lender for its review. We do not guarantee that you will receive any loan offers or that your loan application will be approved. Offers are subject to credit approval and are available only to U.S. citizens or permanent residents who meet applicable underwriting requirements. Not all borrowers will receive the lowest rates, which are available to the most qualified borrowers. Participating lenders, rates and terms are subject to change at any time without notice.
To check the rates and terms you qualify for, Splash Financial conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, the lender will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
Splash Financial and our lending partners reserve the right to modify or discontinue products and benefits at any time without notice. To qualify, a borrower must be a U.S. citizen and meet our lending partner’s underwriting requirements. Lowest rates are reserved for the highest qualified borrowers. This information is current as of June 1, 2021.
2 Rate range above includes optional 0.25% Auto Pay discount. Important Disclosures for Earnest.
Interest Rate Disclosure
Actual rate and available repayment terms will vary based on your income. Fixed rates range from 2.48% APR to 5.79% APR (excludes 0.25% Auto Pay discount). Variable rates range from 1.88% APR to 5.64% APR (excludes 0.25% Auto Pay discount). For variable rate loans, although the interest rate will vary after you are approved, the interest rate will never exceed 36% (the maximum allowable for these loans). Earnest variable interest rate student loan refinance loans are based on a publicly available index, the one month London Interbank Offered Rate (LIBOR). Your rate will be calculated each month by adding a margin between 2.04% and 5.8% to the one month LIBOR. Earnest rate ranges are current as of 6/8/2021, and are subject to change based on market conditions.
Auto Pay Discount Disclosure
You can take advantage of the Auto Pay interest rate reduction by setting up and maintaining active and automatic ACH withdrawal of your loan payment. The interest rate reduction for Auto Pay will be available only while your loan is enrolled in Auto Pay. Interest rate incentives for utilizing Auto Pay may not be combined with certain private student loan repayment programs that also offer an interest rate reduction. For multi-party loans, only one party may enroll in Auto Pay.
Student Loan Refinancing Loan Cost Examples
These examples provide estimates based on payments beginning immediately upon loan disbursement. Variable APR: A $10,000 loan with a 20-year term (240 monthly payments of $72) and a 5.89% APR would result in a total estimated payment amount of $17,042.39. For a variable loan, after your starting rate is set, your rate will then vary with the market. Fixed APR: A $10,000 loan with a 20-year term (240 monthly payments of $72) and a 6.04% APR would result in a total estimated payment amount of $17,249.77. Your actual repayment terms may vary.Terms and Conditions apply. Visit https://www.earnest. com/terms-of-service, e-mail us at [email protected], or call 888-601-2801 for more information on our student loan refinance product.
Earnest Loans are made by Earnest Operations LLC or One American Bank, Member FDIC. Earnest Operations LLC, NMLS #1204917. 535 Mission St., Suite 1663, San Francisco, CA 94105. California Financing Law License 6054788. Visit earnest.com/licenses for a full list of licensed states. For California residents (Student Loan Refinance Only): Loans will be arranged or made pursuant to a California Financing Law License.
One American Bank, 515 S. Minnesota Ave, Sioux Falls, SD 57104. Earnest loans are serviced by Earnest Operations LLC with support from Navient Solutions LLC (NMLS #212430). One American Bank and Earnest LLC and its subsidiaries are not sponsored by or agencies of the United States of America.
© 2021 Earnest LLC. All rights reserved.
3 Important Disclosures for CommonBond.
Offered terms are subject to change and state law restriction. Loans are offered by CommonBond Lending, LLC (NMLS # 1175900), NMLS Consumer Access. If you are approved for a loan, the interest rate offered will depend on your credit profile, your application, the loan term selected and will be within the ranges of rates shown. All Annual Percentage Rates (APRs) displayed assume borrowers enroll in auto pay and account for the 0.25% reduction in interest rate. All variable rates are based on a 1-month LIBOR assumption of 0.15% effective Jan 1, 2021 and may increase after consummation.
4 Important Disclosures for Laurel Road.
Laurel Road Disclosures
All credit products are subject to credit approval.
Laurel Road began originating student loans in 2013 and has since helped thousands of professionals with undergraduate and postgraduate degrees consolidate and refinance more than $4 billion in federal and private school loans. Laurel Road also offers a suite of online graduate school loan products and personal loans that help simplify lending through customized technology and personalized service. In April 2019, Laurel Road was acquired by KeyBank, one of the nation’s largest bank-based financial services companies. Laurel Road is a brand of KeyBank National Association offering online lending products in all 50 U.S. states, Washington, D.C., and Puerto Rico. All loans are provided by KeyBank National Association, a nationally chartered bank. Member FDIC. For more information, visit www.laurelroad.com.
As used throughout these Terms & Conditions, the term “Lender” refers to KeyBank National Association and its affiliates, agents, guaranty insurers, investors, assigns, and successors in interest.
Assumptions: Repayment examples above assume a loan amount of $10,000 with repayment beginning immediately following disbursement. Repayment examples do not include the 0.25% AutoPay Discount.
Annual Percentage Rate (“APR”): This term represents the actual cost of financing to the borrower over the life of the loan expressed as a yearly rate.
Interest Rate: A simple annual rate that is applied to an unpaid balance.
Variable Rates: The current index for variable rate loans is derived from the one-month London Interbank Offered Rate (“LIBOR”) and changes in the LIBOR index may cause your monthly payment to increase. Borrowers who take out a term of 5, 7, or 10 years will have a maximum interest rate of 9%, those who take out a 15 or 20-year variable loan will have a maximum interest rate of 10%.
KEYBANK NATIONAL ASSOCIATION RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE.
This information is current as of April 29, 2021. Information and rates are subject to change without notice.
5 Important Disclosures for SoFi.
Fixed rates from 2.49% APR to 6.94% APR (with autopay). Variable rates from 1.99% APR to 6.59% APR (with autopay). All variable rates are based on the 1-month LIBOR and may increase after consummation if LIBOR increases; see more at SoFi.com/legal/#1. If approved for a loan your rate will depend on a variety of factors such as your credit profile, your application and your selected loan terms. Your rate will be within the ranges of rates listed above. Lowest rates reserved for the most creditworthy borrowers. SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers, or may become available, such as Income Based Repayment or Income Contingent Repayment or PAYE. SoFi loans are originated by SoFi Lending Corp. or an affiliate (dba SoFi), a lender licensed by the Department of Financial Protection and Innovation under the California Financing Law, license #6054612; NMLS #1121636 (www.nmlsconsumeraccess.org). Additional terms and conditions apply; see SoFi.com/eligibility for details. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE.
6 Important Disclosures for Navient.
7 Important Disclosures for LendKey.
Refinancing via LendKey.com is only available for applicants with qualified private education loans from an eligible institution. Loans that were used for exam preparation classes, including, but not limited to, loans for LSAT, MCAT, GMAT, and GRE preparation, are not eligible for refinancing with a lender via LendKey.com. If you currently have any of these exam preparation loans, you should not include them in an application to refinance your student loans on this website. Applicants must be either U.S. citizens or Permanent Residents in an eligible state to qualify for a loan. Certain membership requirements (including the opening of a share account and any applicable association fees in connection with membership) may apply in the event that an applicant wishes to accept a loan offer from a credit union lender. Lenders participating on LendKey.com reserve the right to modify or discontinue the products, terms, and benefits offered on this website at any time without notice. LendKey Technologies, Inc. is not affiliated with, nor does it endorse, any educational institution.
Subject to floor rate and may require the automatic payments be made from a checking or savings account with the lender. The rate reduction will be removed and the rate will be increased by 0.25% upon any cancellation or failed collection attempt of the automatic payment and will be suspended during any period of deferment or forbearance. As a result, during the forbearance or suspension period, and/or if the automatic payment is canceled, any increase will take the form of higher payments. The lowest advertised variable APR is only available for loan terms of 5 years and is reserved for applicants with FICO scores of at least 810.
As of 04/07/2021 student loan refinancing rates range from 1.90% APR – 5.25% Variable APR with AutoPay and 2.49% APR – 7.75% Fixed APR with AutoPay.
8 Important Disclosures for PenFed.
Annual Percentage Rate (APR) is the cost of credit calculating the interest rate, loan amount, repayment term and the timing of payments. Fixed Rates range from 2.89%-4.78% APR and Variable Rates range from 2.13%-5.25% APR. Both Fixed and Variable Rates will vary based on application terms, level of degree and presence of a co-signer. These rates are subject to additional terms and conditions and rates are subject to change at any time without notice. For Variable Rate student loans, the rate will never exceed 9.00% for 5 year and 8 year loans and 10.00% for 12 and 15 years loans (the maximum allowable for this loan). Minimum variable rate will be 2.00%. These rates are subject to additional terms and conditions, and rates are subject to change at any time without notice. Such changes will only apply to applications taken after the effective date of change.