Her Campus Logo Her Campus Logo
placeholder article
placeholder article

Negotiating Your Paycheck

I’m about to negotiate a paycheck with my boss…what kind of things should I take into consideration when coming up with a number in my head? So far I’ve come up with rent, utilities, food, and extras. 

You have a pretty good list started. It is important that your salary cover all of your costs. Therefore, you should also add phone, internet, cable and travel. Are you going to have to commute? Pay for gas? Take a subway? How much will that cost you? If you have a car, don’t forget to include car insurance and maintenance costs. 

Will you be getting benefits such as health insurance or a retirement plan with company match? These are worth money. In fact, depending on your benefits package it could be worth up to 50 percent of your salary (so if you were making $50,000 with benefits you would really be making $75,000). 

It’s also important that you find out what the job is worth, in other words, what other people are getting paid for doing your same job, once you know this you can ask for a salary that is reasonable. You also must factor in your experience and education level. If you are just starting your career you may get paid less than someone else who has been doing the same job for years. Not only should you research salaries for your position but also for where you live. A job in New York, New York should pay more than a job in Wilmington, South Carolina, simply because the cost of living is so much higher. Luckily, there are many free calculators for both salary and cost of living.  
 


It’s always a good idea to let any employer, prospective or otherwise, know that you are open to negotiate. Another option is to give a range. If they make you an offer lower than your range, or on the low end, you can say that you need to think it over. However, while we are still in a period of high unemployment, really think about this before you do it. It’s better to have a job that pays a bit lower than you’d like than no job at all. After all, it is usually easier to find a job once you have one.  

If you are renegotiating your paycheck, or asking for a raise, you must plan ahead. First, write down everything for which you are responsible and everything extra that you do. If you want more money, you are going to have to prove it. Many people have found themselves covering the work of people who were laid off; if you are one of these people, make sure your boss recognizes it. Write down the ways you make the company money and any management duties you fulfill. Again, find out how your salary compares to what others are making. If you don’t yet receive benefits you may want to ask for your raise in terms of these, after all, they may be worth more than a small raise and your boss may be more likely to give them to you. Finally, make sure this is the right time for your request. If your company is not doing well, you may want to put it off. Otherwise, performance reviews are good times to ask, or right after you have completed something important or taken on an extra task.  

Don’t compare yourself to your co-workers and don’t be unreasonable. And, this is most important, don’t threaten to quit unless you really mean it. If your boss says “no” then instead of earning more money you may be out of a job. So how should you handle it if your boss turns you down? Ask for a change in your position and if you can discuss a raise again in a few months. Ask what you have to do to earn a raise, and then do it. If your boss indicates that he or she is not interested in giving you a raise then simply say that you understand and leave. Most experts recommend you take an ambiguous approach rather than an angry or aggressive one. Then you may want to being searching for a new job. 

Remember, it’s important that you get paid what you’re worth but it is also important to be happy. I’ve taken jobs that have paid less than others because they let me wear what I want, say what I want, and work the hours I want, and, most importantly, because I liked the people. Many of us have to work forty hours a week, so most of our waking hours are spent at work. I prefer freedom to a higher salary; you must decide what ultimately will make you happy.

Cara Newman is the former Editor of Young Money magazine, YoungMoney.com, YoungMoneyTalks.com, and FindaCollegeScholarship.com. She has published six books and dozens of articles. Her writing has been featured in The San Francisco Bay Guardian, Salon.com, the McClathy-Tribune, and more. Cara's background in journalism lets her easily communicate with any age group; she is a trusted source of information when it comes to financial matters concerning teenagers and young adults. In 1995, she graduated from Syracuse University with a B.S. in Mass Communications. Since 2000, she has worked as an editor and a writer, publishing dozens of stories and articles, as well as six other books. Her writing has been featured in The San Francisco Bay Guardian, Salon.com, the McClathy-Tribune, and more. Cara has been featured on over two dozen radio programs, "Good Morning Atlanta" and San Francisco's KGO 6 o'clock news. As the Editor of Young Money, Cara often speaks at financial empowerment conferences for young adults. Cara worked hand-in-hand with PBS on their program, "Your Life, Your Money," creating content to accompany their program. YOUNG MONEY® was launched in 1999 to change the way young adults earn, manage, invest and spend money. As a leading national money, business and lifestyle magazine written primarily by student journalists, YOUNG MONEY specifically focuses on personal finance, money management, entrepreneurship, careers, and investing. YoungMoney.com is the leading young adult personal finance website and an original member of JumpStart Coalition for Personal Financial Literacy.