Negotiating salary and benefits is not the same thing as “haggling,” said Mahesh Subramony, assistant professor of management. Especially in a very competitive job market, salary negotiations require a professional approach. If potential employees do research, are polite and demonstrate confidence, they are more likely to walk away with a fair compensation package, Subramony said.

When to Negotiate

After an applicant has finished the interviewing process and has received a job offer, the employer will present a salary figure, said Terry Bishop, assoicate professor of management.

Once an applicant is offered a job and a salary figure, the applicant should thank the employer for the job and then politely tell the employer they will think about it and get back to them, Subramony said.

“It’s important to know that most job offers do not need to be accepted when they are given,” said Brian Pillsbury, assistant director for team supervision for Career Services. “Candidates want to show enthusiasm for the position, thank the employer for the offer, and then ask how soon the company needs a response. Then, candidates can ask if there is room to negotiate. Most employers will be honest as to whether or not a given salary is negotiable.”

Most organizations expect some negotiating when hiring a new employee, said Donald Kluemper, assistant professor of management.

“It’s not going to surprise a hiring manager or an HR manager that someone is going to negotiate a higher offer,” Kluemper said.

Research

Applicants should do their “homework” by finding out what the pay expectations are for the particular industry and have “realistic” expectations, Kluemper said.

Some ways of finding out this information is to network with other employees or to look up websites that provide industry pay information, Bishop said. The more experience and specialization required for a job, the more room for negotiation.

“Entry-level jobs often don’t have a lot of room for negotiation,” Bishop said. “It’s pretty risky.”

However, if an offer seems low, the applicant should show the employer what they were expecting based on the research they’ve done, the qualifications they have and the skills they possess, Subramony said.

“If you don’t ask, you won’t get,” Subramony said.

Define unique characteristics

Applicants who have unique skills or expertise can highlight these strengths to an employer during the negotiation process, Kluemper said.

“Try and justify why you’re worth what you’re asking for,” Kluemper said.

Understanding compensation

If an organization can’t offer a higher salary, applicants can negotiate for other forms of compensation.

“There’s more than just money that might appeal to people,” Bishop said.

There are three forms of compensation when a person is hired for a full-time position, Bishop said. The first is “base pay” which is the salary or hourly rate a person makes. The second is “pay for performance” which includes bonuses and commission. The final form of compensation is benefits which include health insurance and retirement programs.

“Once you get away from base pay, some companies have a little more room to negotiate,” Bishop said.

Some things employees can negotiate for are more paid vacation days, having a more flexible work schedule by telecommuting once a week or receiving tuition reimbursement for pursuing another degree. If a person is moving to a different region for a job, some organizations might offer “relocation assistance,” Bishop said. Some organizations may even have budgets associated with professional development and can cover the costs for sending employees to educational conferences, Bishop said.

“A low salary might actually be worth a lot more than it appears on the surface,” Pillsbury said. “People also need to consider just what they need to make when they are starting out after college. If they share an apartment with roommates and live frugally, a job with a low starting salary can actually be a good opportunity to start building a promising career.”

There is really no harm in having realistic expectations and making reasonable requests, Kluemper said.