It's February, and that means it's time to discuss SALARY NEGOTIATION. We're giving you our top 28 tips - one tip per day - on how to strategically navigate a salary negotiation process. Follow along all month long!
Calculate your ideal salary.
Tip #1 is a crucial foundational step in getting you on the right path to earning the salary you deserve. Before you even begin looking for a particular position, you need to have an understanding of your baseline and ideal financial needs. Understanding this number will help you to determine the type of position you should be looking for, the sector you may want to work in (e.g., you may want to do mission-based work for a non-profit but can’t reconcile the salary with your needs), and which companies in any sector tend to lead the market in terms of salary.
Consider the following factors in how much your ideal salary should be:
Local cost of living expenses, including average rent or mortgage, utilities, car insurance, etc.
The monthly cost of your outstanding debt, including student loans, car loans, credit card debt, etc.
The amount of money YOU PERSONALLY (not your employer) would like to make to your 401k or other retirement account.
The amount of money you would like to put into savings every month.
How much expendable income you would like to have on a monthly basis.
Transportation costs, particularly as it relates to your time (e.g., how much more money would you need to make if your commute were 1 hour each way, versus somewhere you could arrive within 15 minutes).
The potential value of work flexibility (e.g., ability to work from home 2 days per week is worth $5k per year to me).
Other regular, ongoing expenses such as health insurance premiums, medical expenses, childcare expenses, etc.
Salary negotiation doesn't have to be complicated. It's time to be strategic and navigate this process #likeaboss!
Up next: How Much Should I Get Paid?