14 Common Salary Negotiation Mistakes and How to Avoid Them 🤦‍♀️

Have you been trying to figure out why an employer rejected your counter offer during salary negotiations? If so, you’ve come to the right place. You won’t find a more comprehensive guide to negotiating your salary than mine.

Why?

I did a deep dive into the art of salary negotiations to find the biggest mistakes you can make when negotiating with a new employer. As I lay out each blunder, I also touch on the best way to avoid making those mistakes in the first place.

Want to learn how to negotiate a higher salary after a job offer? Keep reading to learn what not to do.

14 Common Salary Negotiation Mistakes at a Glance

Here are some of the most common salary negotiation mistakes, along with the best way to negotiate a salary reflective of your skillset and worth.

• Skipping negotiations entirely
• Not factoring in benefits and bonuses
• Neglecting to conduct proper research
• Revealing what you’re willing to accept
• Undervaluing yourself 
• Using an offer to shop around
• Worrying you’ll offend someone
• Accepting or declining an offer too quickly
• Discussing salary too soon
• Placing need over qualifications
• Forgetting to leave yourself wiggle room
• Asking for too much in your counteroffer
• Letting silence make you anxious
• Not asking for a salary offer in writing

Kara Goldin, CEO of Hint Inc., states that “Confidence is your best-negotiating tool… I believe in people that believe in themselves.” Are you ready to take the plunge and increase your confidence in the interviewing room? Read on for more on how to fix the most common negotiation issues, including how to respond to a rejected salary negotiation.

Salary Negotiation Mistakes and How To Avoid Them

Are you saying to yourself, “I asked for too little salary”? I understand that for many job seekers, salary negotiations are terrifying to think about even when they are disappointed with a salary offer. However, a salary negotiation could be one of the most important conversations with your employer.

But if you’re new to a profession, how do you know where to start? How do you value yourself? How do you know if you’re getting a fair offer? You need an entry-level salary negotiation example.

Unfortunately, when you have no experience, you’ll have to take steps to learn how to negotiate correctly. From my experience, there are certain things you absolutely shouldn’t do when it comes to working out your salary with a new employer.

Here, I’ll explain in detail fourteen of the most common salary negotiation mistakes job hunters make when entering the hiring process.

1. Skipping Negotiations Entirely

When the job market is rough, you might find it easier to take the first offer and be thankful, not even considering a negotiation or walking away from a low salary offer.

You may even be wondering, “Can you lose a job offer by negotiating the salary?” Most employers fully expect new hires to negotiate, but only about 20% of new hires do. What’s worse, only 40% of female hires try to arrange a higher salary.

But why is that? I believe there are several reasons.

Perhaps you feel you’re coming on too strong or asking too much. Or maybe you think asking for more money makes you seem ungrateful. Yet another common fear is that a counteroffer will send employers running to the next applicant.

In reality, every applicant should be prepared to negotiate. Plenty of resources can help you learn the best ways to settle on a salary that reflects your worth and suits your industry. Once you submit it, the employer will respond with or without another offer. Then, you’ll decide where to go from there.

Negotiating also shows the employer another side to you. Your confidence in your interview is what landed you the job. However, your negotiating skills will show your employer you know how to value yourself and others.

Also, if you skip negotiations entirely, you could be setting yourself up to be underpaid in the future. When you apply for your next job, the employer might ask for your current salary. While you’re not obligated to give it, you may decide to be transparent.

Keep in mind that if you choose to reveal your current salary, you’re locking yourself into that baseline when you start negotiations.

2. Not Factoring Benefits and Bonuses

Did you know that the average employer pays an additional 30 percent on top of salaries for benefits and bonuses? Unfortunately, many job seekers do not, meaning they leave out a critical financial aspect when they start negotiations and accept being disappointed with a salary offer. But the fact is, you cannot afford to ignore the value of your benefits package because it makes up a hefty chunk of your income.

Many job seekers aim their sights on jobs with excellent benefits. Health coverage, paid time off, family leave, and retirement or investment options are all major draws for jobs in every industry. But one thing many workers forget to consider during salary negotiations is the value of their benefits.

According to the U.S. Bureau of Labor Statistics, employee benefits account for 31.2% of employer costs in the public sector and 29.6% in the private sector. So, regardless of your industry, your employer pays roughly $30,000 on top of your base salary (on a $100,000 annual income). Also, remember that’s income you will not get taxed on, and you’ll get to write off your out-of-pocket healthcare costs come tax time.

When you sit down to draft your counteroffer, consider that your employer will be paying an additional 30% on top of what drops into your bank account. If the salary is fair, shift your negotiations away from your pay and focus on negotiating your signing bonus or other benefits, such as vacation time or a company car.

In my experience, benefits and insurance are a significant part of your salary. Always factor them into your salary negotiations, especially if you don’t think you can get a higher salary.

3. Neglecting Your Research

Speaking of research, in my experience, the salary negotiation process is a critical step. You need to show the employer that you know what their organization is about, your prospective job duties, and why you think you make a worthy candidate.

Not only that, but you need to show the employer that you fit perfectly within the industry and their business. But researching the company isn’t the only area where you need to be on your toes.

You need to research the position you’re applying for, your industry, and the going rate for individuals with career experience like yours, so that you don’t get a job offer lower than your current salary. With the plethora of resources available for job seekers, there’s no excuse for not knowing where you stand in your industry and how you’d fit in at a new company.

Before you submit your resume to any organization, there are three crucial things I highly recommend you do: 

1. Find out everything there is to know about your position. 
2. Research what competitors pay their employees with your job title.
3. Discover the skill sets and qualifications of your counterparts at other firms.

Knowing your counterpart’s annual salaries will give you fuel when it’s time to sit at the negotiating table. In truth, your employer knows what the going rate for your position is. Many employers work on the assumption that new hires don’t share that same knowledge. So, the onus is on you to prove them wrong.

4. Revealing What You’re Willing To Accept

One of the biggest salary negotiation mistakes an applicant can make is showing all their cards. In your case, that would mean telling your prospective employer the lowest and highest salaries you’re willing to accept.

I find that many people already have a hard limit when you negotiate your salary. However, just because you’ve set your limit doesn’t mean you need to reveal it. Your employer probably won’t tell you the maximum they’re willing to pay, so you shouldn’t tell them the minimum you’re ready to accept. I have always found that negotiating for better pay will not likely get you rejected because of your salary expectations.

Keeping your salary requirements concealed can be tricky. Some jobs require you to list a salary requirement when you apply, but other employers might want to know your salary history. The key is learning where the salary sweet spot is.

If you don’t have a hard limit, you need to take the time to determine yours. However, once you know, keep it to yourself. You should be able to come up with a fair number based on the market and company research you did when you applied for the job.

Now, you might wonder why you shouldn’t reveal your upper limit. The fact is, you can always negotiate to make more than what you intended. If an employer offers a number close to your limit, keep it to yourself and provide a counteroffer.

5. Undervaluing Yourself

A critical aspect of making a salary offer is knowing your worth. Knowing your worth is the foundation for salary negotiations. It’s part of the reason I advised you to take time to research your industry, your position, and the company you’re applying to. However, a common mistake is knowing your worth but choosing to undervalue yourself. If you want to know how to negotiate a higher salary after a job offer, start by pricing your skill set where it should be.

Undervaluing yourself means you’re willing to accept an offer that’s less than what you’re worth, or even taking a job offer lower than your current salary. When the job market’s down, or you’ve been job hunting for months, it can be hard to stand firm with your salary requirements. Staying the course is important to ensure you get proper compensation.

According to a study at Bentley University, Millennial and Gen Z women are the most likely applicants to undervalue themselves. In some industries, women are negotiating more than they have historically. But unfortunately, in many cases, they’re often accepting less than their male counterparts.

There are many reasons job applicants undervalue their worth. In most cases, applicants fear employers will rescind a job offer if they try to negotiate for a higher salary. Others might be so happy they received an offer they don’t want to jeopardize it by asking for more. In some cases, they might feel as though they should show humility and be grateful that they weren’t rejected because of their salary expectations.

The main thing you must remember when choosing your worth is that the worst the employer can say is “no.” By the time salary negotiations start, the employer has decided you’re the right person for the job. Therefore, the most likely response to your request will be a counteroffer, not a refusal to negotiate.

6. Using an Offer To Shop Around

Have you noticed that even competitors talk in any industry you dip into? They know who works for who and what they do. So, it should be no surprise that using a salary offer from one company to negotiate with another will blow up in your face.

When an employer takes time to go back and forth during negotiations to secure employment, you should always make and accept offers in good faith. Rather than changing salary expectations after an interview, meet the interviewer head-on. Do this with industry standard knowledge, not a direct comparison to another company.

At first glance, using an offer to shop around might seem like a good strategy. There’s a bit of logic to demonstrating how worthwhile you’d be to another company. However, there are several reasons why pitting two offers against each other can be risky:

• It can make you appear disloyal.
• It can cause both employers to drop your offer due to the time you’re wasting.
• You risk sowing ill will with both firms. 
• It might make you less prepared to consider walking away from a low salary offer if your prospective employer says no.

That said if you’re a current employee seeking a raise, finding another offer might be the way to get it. If you’re a valued staff member and know you’re being undervalued, showing your worth on paper might be the way to get your raise. Still, you should be prepared to submit your resignation if your current employer refuses.

7. Worrying You’ll Offend Someone

In some instances, job seekers will avoid negotiating a higher salary because they’re afraid they’ll offend their employer or they don’t know how to renegotiate a salary offer after the employer has already stated a number. It’s understandable, especially if the position you’re applying for is coveted or competitive. You also don’t want to imply you feel a company is low-balling you or taking you for a fool.

Yet, before getting lost in trying to decide how to respond to a rejected salary negotiation email, just think that it’s doubtful you’ll offend your employer by asking for your true worth. Approximately 70% of hiring managers will expect a prospective employee to make a counteroffer. If you do your research and can demonstrate what you feel you’re owed on paper, the employer will have nothing to be offended over.

Negotiating your salary is the time to put your best foot forward. Although loyalty to your company or a desire for the job might make you question whether you should negotiate, try to ignore those thoughts. Your employer or prospective employer should see how valuable you are. The only way to ensure they do is if you show them – it’s unlikely you’ll be rejected because of salary expectations.

So, take time to find your value and work up the strength to ask for your worth. Your employer will value your honesty and respect your initiative if your salary offer is fair. Setting aside any fear you have is an excellent way to hone the negotiating skills you’ll need throughout your career.

8. Accepting or Declining an Offer Too Quickly

Another common salary negotiation mistake job seekers make is accepting or declining a salary offer too quickly. If the employer offers you your goal amount before negotiations start, it can be tempting to accept on the spot. Likewise, you might reflexively decline if their offer falls below your hard limit.

The key to negotiations is the perfect mix of knowledge and patience. Knowing what you want and what you’re worth is crucial. However, if you don’t have the patience to sit through salary negotiations, you’ll never get a salary that reflects your value.

Salary negotiations are a game of stimulus and response. Only you can control what you do with the time between their offer and your answer. You don’t need to respond instantly when an offer comes in. Instead, you should take time to look it over. Then, compare it to industry examples in your area and see how it measures against similar positions at other firms.

Does it seem like you’re over or undervaluing yourself based on your counterparts’ experiences? If so, does the offer seem fair based on your industry experience? Once you can answer those questions, you’ll be able to decide whether to accept or reject a salary offer.

Occasionally, an employer will offer you everything you want and more. When that happens, you’ll need to choose whether you wish to ask for more. In most cases, you should be prepared with a counteroffer, even if getting it doesn’t seem probable.

Again, can you lose a job offer by negotiating salary? It’s highly unlikely!

9. Discussing Salary Too Soon

Many employers today ask for salary requirements when you apply for a position. I know that it might seem like they’re opening the door to discuss salary immediately, but be careful – that’s not always the case. It’s a well-known faux pas to discuss salary with a prospective employer before they’ve offered you the job.

So, why do employers ask for your salary requirements? Put simply, it’s to decide whether or not you’re worth interviewing. Employers need to know if your expectations align with what they’re prepared to give. They’re unlikely to call if your requests are far outside their budget. But, on the other hand, they might give you a second look if you’re within or under their budget.

However, if you go into your first interview wanting to discuss your salary, you could paint yourself in a poor light. In many cases, the employer might think you don’t care about the job and are only in it for the money.

There are several schools of thought on when salary discussions should take place. More and more people are beginning to think salary expectations should be laid out upfront. Having all the information will prevent candidates and employers from wasting their time during interviews or getting a job offer lower than your current salary.

Unless your prospective employer brings up salary in the first interview, you should wait until the second interview to discuss compensation. At that point, the company has likely decided to offer you the job and will expect to lay the groundwork for negotiations. However, even if they’ve decided to offer you the position, let them introduce salary negotiations before bringing them up on your own.

10. Placing Need Over Qualifications

As you’ve noticed, many salary negotiation mistakes here share a common thread: logic. When approaching negotiations, you must have a clear and logical number to present to your employer. That number should be based on your experience, your education, and the value you bring to the table. Otherwise, you might seem to have an overinflated view of yourself.

But I know everyone has bills to pay. Sticking to a logical number based on research can be difficult when you have a strict budget for living expenses. For example, if living costs total more than $5,000 per month, you’ll need your salary to be that much and then some.

In a perfect world, an employer would factor in a prospective employee’s financial needs when choosing a salary. And in some cases, they’ll do so by offering relocation packages or something similar. Employers look at their budget, the position, and what you’re worth on paper. Then, they decide based on those things.

The best way to avoid placing need over logic is by only applying for jobs that suit your financial situation. This way, you’ll have more wiggle room during negotiations, and you’re less likely to end up living paycheck to paycheck. This is true whether you’re discussing matters in person, negotiating a salary offer over email, or writing a salary offer negotiation letter. When the only jobs available are less than what you need, you might have to consider a career change or secondary income. Ride shares, delivery services, and freelance work are all excellent ways to supplement your income.

Important

The job market is still enduring the Great Resignation. Companies are more willing than ever to pay employees more due to staff shortages. Check out the graph below for recent stats on voluntary quits and companies that need positions filled.

11. Forgetting To Leave Yourself Wiggle Room

Wiggle room is a buffer that allows you to work toward your desired number. However, I find that a common salary negotiation mistake is forgetting to leave that buffer.

When you leave wiggle room in your opening offer, you’ll have a better chance of achieving your desired salary. This cushion lets you ask for more than what you want to ensure you get what you need. It gives you room to move toward your upper limit before cutting into your range.

For example, if you refuse to accept less than $100,000 annually, you’d counteroffer a slightly higher number. The goal is to work toward your desired number. You’ll have lost any leverage if you state it plainly at the start of negotiations.

Wiggle room is especially important if your employer offers a low number, leaving you disappointed with the salary offer. If their salary offer is below your minimum, you should still leave a buffer in your counteroffer to avoid falling below your goal. Then, when your employer responds, you can amend your offer.

Of course, all of this is dependent upon a fair salary offer. If your research shows that your salary range doesn’t reflect you or your position, adjust it accordingly. Similarly, if you think the employer’s offer severely undervalues you, don’t hesitate to return with a number you’re comfortable with that won’t bring you below your lower limit. Remember, you need to be prepared to walk away from a low salary offer.

12. Asking for Too Much in Your Counteroffer

So, how much do you request? Figuring this out is a common struggle when trying to determine how to negotiate a higher salary after a job offer. In many cases, you might think it’s best to ask for the maximum and work down. But think twice before taking that approach!

Unfortunately, as with overvaluing yourself, asking for too much in your counteroffer can be off-putting to an employer. A too-high counteroffer could make your potential employer rethink whether you’re a good fit for their company. Or, the employer might think your viewpoints on what you’re worth are too far apart.

In addition to asking for too much money, you could also rub the employer the wrong way if you ask for too many amendments. For example, you shouldn’t make an offer, then add more requests once the employer accepts. Whether it’s too much money or too much back and forth, the employer could walk away if you make negotiations more of a hassle than necessary.

If you’re not sure how to make a reasonable salary request or minimize the number of offers you make, take some time to research various tactics on how to negotiate salary over the phone, or how to respond to a low salary offer over email. Some change depending on your industry, but as long as you know what to ask for and how to ask for it, you shouldn’t have any problem reaching a fair agreement.

13. Letting Silence Make You Anxious

Have you ever heard the term “uncomfortable silence”? Unfortunately, that nerve-wracking silence is quite common in salary negotiations. Sometimes, it can take days or even weeks for a prospective employer to get back to you after you make a salary offer. As those days slowly tick past, you might start to feel anxious or uncomfortable, and you may think you’ve been rejected because of your salary expectations.

Don’t let silence or lack of instant response make you jump the gun on amending your offer. Often, the employer’s silence is part of their negotiating tactics. Most employers know potential employees will become anxious if they don’t hear a response right away. Too often, this causes the job seeker to submit a new offer asking for less.

If you find yourself in a position where you want to send a follow-up salary negotiation email within a day or two, take a moment to pause. Then, return to your original offer and look it over. If you did your research and submitted a well-thought-out request, there’s nothing to worry about.

In some cases, no response is a response. This might happen if your offer was too high or the employer revisited their needs. It’s also possible your counter offer got lost in an email abyss. So, give the organization a week before following up to ensure the employer received your offer. This shows your willingness to be patient and a strong desire for the position.

14. Not Asking for Their Offer in Writing

I’ve found paper trails (even if they’re just emails) are essential, and one of the most valuable assets during the interviewing process. Whether you’re working on salary negotiations, navigating disciplinary action, or simply working on a project, you want a paper trail to refer back to during and after negotiations. This is especially true if you’re applying for a contract position.

If your potential employer gives you a salary offer over the phone or in person, hold off on accepting immediately, even if you have prepared. Instead, thank them for their offer and ask them to send you all of the details in writing via email, which gives you time to prepare how to respond to a low salary offer over email.

Alternatively, you can send a follow-up email after a verbal conversation. There are a few reasons why asking for a salary offer in writing is necessary, in my opinion.

First, the employer’s response will give you a hint about their character. If an employer doesn’t want to put an offer in writing, you should consider it a major red flag.

When someone is legitimate in their intentions, putting an offer in an email won’t be a problem. However, if they want plausible deniability later, they might want to avoid putting anything in writing, which means they may plan on changing salary expectations after the interview. This is another red flag to me.

Second, you’ll want the written offer for your records. When you have your copy to refer back to, you’ll be able to ensure you’re getting proper compensation. Although it’s unlikely you’ll have an issue with compensation, it can’t hurt to have the offer on record.

Finally, a written offer will make salary negotiations easier when you change jobs. When you move from one company to another, you’ll need to start the negotiation process all over again. A written offer from your current employer will make it easier to amend that when you move to a new employer or ask for a raise at your existing workplace.

Final Thoughts

I know that salary negotiations can be nerve-wracking and downright exhausting. When you’ve been working on getting a raise or landing a job for a while, you might want to just throw in the towel and take what your employer is offering. Don’t do it.

85% of American workers who negotiated their salary were successful to some extent. Those workers demonstrated their worth by negotiating their pay and setting aside any concerns they might offend their employer. So if you want to know how to negotiate a higher salary after a job offer, you need to be prepared by knowing what not to do.

Although it might be daunting to work up the nerve to make a counteroffer, I know that it will be worth it. Just remember to avoid each of the salary negotiating mistakes I’ve listed here. By following my tips, you’re sure to come out of negotiations successful.

So, have you made any of the salary negotiation mistakes listed in this article? I’d love to hear about your experience. Feel free to get in touch and send this article to a friend. 

Need more advice on interviewing, like that dreaded “Tell Me About Yourself” question? Check out this video for tips on acing your interview!

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