There are two strategies for negotiating salary, depending on who mentions the first figure. Each strategy has a different objective, approach, and risk associated with it. Select the strategy consistent with your personal objective or the strategy with which you feel more comfortable.
The first strategy is to let the employer mention the first figure. The objective of this strategy is to obtain the highest salary possible in the given circumstances. This strategy is the most appropriate when changing career fields or in other situations when you are not aware of your worth. This approach is based on the principle that it is easier to negotiate salary after the employer has decided that you are the best candidate and has offered you the job. Psycho logically, financially, and in the interests of saving time, it is now easier for the company to come to terms with you, the number one candidate and ''almost employee," than to settle for number two or to start all over again.
If the first offer is not to your liking, counteroffer with a salary figure equidistant on the other side of your target salary figure. For example, if your target figure is $25,000 and the first offer is $23,000, counter with $27,000. "Mr. Employer, I am very flattered by your offer and very interested in working for you, but I am a little disappointed in the salary. I would be inclined to take the position at $27,000. To what figure can you increase the offer?" Obviously your objective is to get at least your target figure, and you hope to keep trading offers and counteroffers until you both compromise on that figure or more. Counter offering at a figure higher than you want, increases the probability that you will achieve a favorable compromise. Be certain to always counteroffer with enthusiasm while never actually declining the offer. If the offerer declines to negotiate further, you want to at least keep the last offer available for further consideration. However, always attempt to negotiate if the first offer is less than your target figure.
This strategy presents you with less certainty regarding the salary to be offered. It could be either higher or lower than you originally wanted. However, you have a higher probability of getting a job offer in the first place and lower risk of losing the offer during the subsequent negotiations than with the second negotiating strategy.
The second negotiating strategy is to not negotiate. You inform the employer, just prior to the extension of the offer, of your specific target salary and then subsequently decline any lesser offer.
This strategy is easier than the first strategy in the sense that you simply mention the first figure, an attractive but reasonable target figure, and stick to it. The art of bargaining is not required, simply firm confidence in your self-worth. This confidence is the key to success with this strategy, for you must appear to be prepared to walk away from the offer if it does not meet your asking price. This strategy entails a higher risk of losing the offer than does the first strategy and a lower probability of getting an offer in the first place. You do have a higher probability of getting your target salary, but certainly no more than that. Finally, as a practical matter, be prepared to compromise slightly, in order to let the company save face, by accepting $500 less than your target salary, but no more.
After you have selected your strategy, stay with it. Either strategy can be extremely effective by itself but would be weakened severely by mixing it with the other. For example, never say, "I am looking for $30,000, but I’ll consider any offer." By making such a statement, you have virtually guaranteed yourself that the offer made to you will be less than $30,000, assuming that the lack of solid self-confidence you have displayed has not already negated your chances entirely. Equally self-destructive would be a mixture of strategies in the reverse order: "Make me an offer based on what you think I'm worth, although I need at least $2,000 per month or so." You will get an offer of $2,000 per month and no more, if you get an offer at all. Occasionally, companies have some flexibility in such things as eligibility for a company car, amount of vacation time, and minimum employment period until one is eligible for vacations or salary reviews, Sometimes a company can guarantee a certain annual raise or bonus for the first year to offset your disappointment in a lower-than-desired salary.
