How Much to Ask When You Negotiate a Salary
It is not easy to negotiate a salary. And one of the biggest hurdles is knowing how much to ask for. Typically, your number should be 10-20 percent higher than what you are currently earning.
Perhaps a potential employer asks you for a wage range and you don’t know what to tell him. Or maybe they throw in a number and it seems low, but you don’t know how much more to discuss. In any case, according to experts, it is generally appropriate to ask for 10-20 percent more than your current salary. Business Insider explains:
This means that if you are now making $ 50,000 a year, you can easily ask for $ 55,000 to $ 60,000 without looking greedy or being laughed at. “If the original proposal is on the lower end of the scale, you have more leverage,” Taylor explains. “If you get an offer of 20% on top of your current salary, you can still negotiate more – ask for an additional 5% – but know that you are already in good shape.”
Keep in mind this is a general rule of thumb. And rules of thumb can vary greatly. Maybe the company you are interviewing for has a significantly smaller budget than your current employer, or it may be much larger. Maybe there is no room for negotiations at all. Definitely the best method is to study the company and the average pay for your skills and experience. But even average income can be an unreliable metric. Sometimes factors that go beyond skills and experience will influence your earning more.
But if you’re completely unsure of how much to ask for, this rule of thumb is a good start. If your employer is ditching the first number, here’s another rule of thumb: Clark University states that most companies can budget 15 to 20 percent more than they initially offer you. Again, this is a generalization, but useful if you are looking for a rough estimate. For more tips, see the Business Insider article at the link below.
How Much Money to Ask in Salary Negotiations | Business Insider