How (And When) To Negotiate For A Raise

“If you think that successful negotiations are successful because of logic or arguments or reason or compromise, you’re losing money. You’re losing millions of dollars on the table”, 

— Chris Voss, the renowned former FBI hostage negotiator and author of the instant classic, Never Split the Difference: Negotiating As If Your Life Depended On It.

How and when to negotiate for a raise is a critical skill but it’s one that you can develop.

While it can be a nerve-wracking experience, you can influence your employer and advocate for higher salaries by combining emotional intelligence with compelling evidence of why you deserve a raise.

In this article, we’ll guide you through proven strategies to set you on a stronger career path, backed by data, tips for clearly communicating at the negotiation table, and real-world examples.

Research Methodology

This article draws insights from thorough research on leading sources on career development, including, but not limited to:

• The Program on Negotiation at Harvard Law School

• CIO Executive Council

• Harvard Division of Continuing Education

We’ve also included real-life success stories from people who have successfully negotiated their salaries, providing practical insights into how to approach these conversations effectively.

1. Understanding the Right Time to Negotiate

The timing of your negotiation can impact your leverage. 

When You Receive a Job Offer

The best time to negotiate your salary is at the point of hire, not only because most employers start with an offer below their maximum budget, but also because they expect you to ask for more.

According to Emily Epstein, an instructor of Negotiation Skills: Strategies for Increased Effectiveness at Harvard Division of Continuing Education, future raises and promotions often take your salary into account.

This means that raises compound upon raises. When you leave money on the table now, you affect your long-term earning potential.

After a Performance Review

Starting a new job is not the only perfect time to talk about a salary increase. What if you want to negotiate your salary in your current role?

Performance reviews are a natural time to discuss your salary. They provide an opportunity to highlight your achievements over the past period and align your compensation with your contributions.

According to Mercer, US employers are raising their compensation budgets by 3.5% for merit increases. And depending on your case, you can advocate for an even higher increase.

This was the case for Mitch, a product team member at a fast-paced startup, who realized he had undervalued himself during the initial salary negotiations. After a year of hard work, he decided to ask for a raise that reflected his contributions. Armed with data and a list of accomplishments, Mitch successfully negotiated a 12% increase in his base salary.

After a Significant Achievement or Project Completion

If you've recently completed a major project or made a significant contribution to your company, it's an excellent time to negotiate your salary. Companies are more inclined to reward employees when the value they bring is fresh and apparent.

When Taking on New Responsibilities

A recent study by Robert Half found that 79% of employers have increased employee workloads to maintain business operations.

Only 34% of these companies offered financial incentives, and 45% did not.

Taking on additional responsibilities without a corresponding salary increase is common, but it’s also an opportunity. If your role has expanded or you've taken on managerial duties, your compensation should reflect these changes.

2. Preparing for the Negotiation

Do Your Research

Before you enter any negotiation, you need to know what you're worth. Executive coach Arron Thweatt describes this preparation process as understanding your market value. He says, “Pay transparency is very helpful…so looking at similar job descriptions and postings that have salary ranges is one of the best ways to get that data.”

Use tools like Glassdoor, PayScale, and industry reports to research the average salary for your role in your location. 

Assess Your Value and Contributions

Where possible, you should quantify your achievements with numbers, whether it’s sales figures, cost savings, or efficiency improvements.

After two years as an event coordinator at a high-end restaurant earning $16 an hour, Jessica D., realized that she was taking on responsibilities far beyond her pay grade. She compiled a year’s worth of data, detailing her contributions to the company’s revenue and her key responsibilities.

With a 12-page packet of evidence, she presented their case to senior management. As a result, the company more than doubled her salary and created a new position for her to promote her as an Assistant Director.

Making a list of your key contributions and how they have impacted the company will form the backbone of your negotiation.

Practice Your Pitch

“Before speaking with your potential employer, enlist a trusted friend or colleague to listen to your pitch and present counterarguments”, writes Matt Gavin of Harvard Business School Online. “This role-playing will allow you to practice quick thinking and prepare for different scenarios.”

This is how Suzanne O. nearly doubled her six-digit salary, by hiring a negotiation coach to increase her confidence.

Rehearsing your pitch with a trusted friend or mentor will help you refine your approach, anticipate questions, and strengthen your confidence during the actual negotiation.

Anticipating Counterarguments

Think about potential objections your employer might have and prepare responses. You should also be prepared for tough questions during the actual negotiation.

For example, your recruiter may ask for more justification for increasing their offers, or if you have any other offers from a different company.

Preparing your answers in advance can help you maintain your confidence.

Have a Counteroffer or BATNA Ready

Before entering a negotiation, it’s crucial to prepare a counteroffer or Best Alternative to a Negotiated Agreement (BATNA).

It’s a concept developed by Roger Fisher and William Ury in their 1981 classic, Getting to Yes: Negotiating Agreement Without Giving In.

Your BATNA is your backup plan if the negotiation doesn’t go as hoped. This could be another job offer, a side project, or any other viable alternative that gives you leverage.

Knowing your BATNA will empower you to negotiate from a position of strength and make it easier to walk away if the offer doesn’t meet your expectations.

3. Approaching the Salary Discussion

In a widely cited negotiation research study, Michelle Marks of George Mason University and Crystal Harold of Temple University identified the winning salary negotiation strategies: collaborating, where both parties engage in problem-solving to reach the best possible outcome for both sides, and competing, or trying to maximize one’s outcomes with little concern for others.

Those who behaved competitively at the negotiation table did better than those who focused on collaboration, even though collaborators were more satisfied than competitive bargainers with the negotiation process.

The actual negotiation can feel daunting, but choosing a winning strategy can help you close a great deal. But whatever you do, don’t shy away from the negotiation table.

Naming a Baseline

When asked to name your desired salary, it’s important to approach the conversation strategically.

Instead of giving a fixed number, consider framing your response in a way that opens up the dialogue while anchoring the discussion in your favor.

Lax and Sebenius call this a “non-offer offer”.

Give a Higher Limit Than What You’re Initially Aiming For

When you do name a number, consider giving a range that includes a higher limit than your initial target.

For instance, if your research indicates that you should be in the $80,000 to $90,000 range but think you could aim higher, you might say, "Correct me if I'm wrong, but I've heard that professionals in my role typically earn between $100,000 to $110,000."

This approach isn't a direct demand, but it sets a higher anchor point that can influence the employer’s offer toward your upper goal.

This not only sets expectations higher but also leaves room for flexibility in the negotiation.

Be Clear and Specific About Your Ask

Or you can simply name your price.

That's how Anna Clifton successfully negotiated for $15,000 more than her starting salary offer when she was offered the role of Senior Product Manager at Yammer. She writes, “Again, I’m really excited about the team, and parts A, B, and C seem on par with what I’d look for here, but, I was looking for $15,000 more in base.”

Ask: What’s Your Budget?

Another effective tactic is to “be the second speaker.”

“What’s your expected salary for this role?” is a question that catches a lot of people off-guard. Thweatt suggests turning the question back to the employer and asking them what their compensation philosophy is behind the role. 

If asked for your salary expectations, you might respond with, "I’m flexible and open to negotiation, but could you share the budget range you have in mind for this role?"

This may start a back-and-forth conversation with your employer, but the goal is to gain insight into the employer's budget and priorities so you have valuable information to anchor on before you reveal your expectations.

Use Data to Support Your Request

Data-backed arguments are more compelling and harder to refute, especially if you have a strong track record of your contributions to the company and your past achievements.

Framing the Conversation Positively

“Don’t focus on your own personal needs when you are seeking a raise”, writes award-winning journalist Melissa Russell. 

Start the conversation by expressing your appreciation for your role and the company. Then, transition into your request by explaining how you’ve contributed and why you believe a salary adjustment is justified.

An example phrase you could use is, “I really enjoy working here and appreciate the opportunities I’ve had to grow. Over the past year, I’ve taken on additional responsibilities and delivered strong results, which is why I’d like to discuss adjusting my salary to better reflect my contributions.”

“Don’t threaten to quit if you don’t get what you want.”, says Russell.

Listening and Responding Effectively

A period of silence can pay off, and Anna Clifton’s story proves this. Prior to asking $15,000 more than the original offer, she recounts the moment that her recruiter finally gave her a figure, “Many thoughts were thrashing in my head, but I let the silence hang as long as I could and then gently voiced a noncommittal “hm.” He moved on to other factors and I kept quiet till the end.”

Consider the example of former professional hockey player Derek Sanderson, as highlighted in a free online lesson by Negotiation Mastery Professor Michael Wheeler.

During a contract negotiation in the early 1970s, Sanderson's decision to remain silent at the bargaining table allowed him to secure a deal far better than he anticipated, ultimately making him the highest-paid athlete of his time.

4. Mistakes to Avoid

Being Unprepared or Emotional

Going into a negotiation unprepared or letting emotions take over can undermine your position. Stay calm, collected, and focused on the facts.

Undervaluing Your Worth

Trust the research and evidence you've gathered. Many employees fear asking for too much, but undervaluing yourself can leave money on the table.

Not Being Flexible or Willing to Negotiate

While you should have a clear target, it’s important to be flexible. Consider other forms of compensation, such as bonuses, stock options, or additional vacation time, if the salary figure isn't negotiable.

5. What to Do If Your Request is Denied

Exploring Alternative Compensation

While it’s a critical part of job satisfaction, being fulfilled at your job also takes in a lot of other factors beyond the salary figure, such as commute distance, paid time off, and flexibility. 

Professor Don A. Moore of the University of California at Berkeley recommends creating a scoring system to get a better sense of what you truly value. It allows you to list different issues and how much you value each so you can compare them accurately.

If flexibility is of utmost importance to you, for example, you may be able to accept a lower salary in exchange for a remote work setup.

Setting a Timeline for Future Discussions

If a raise isn't possible now, ask to revisit the conversation in a few months. 

After being turned down for a raise, Greg, a graphic designer for a growing startup, negotiated a deal where his salary would be reviewed in six months, provided he met specific targets. He met those targets and secured the raise later.

Considering Other Opportunities

If your request is consistently denied and you feel undervalued, it might be time to explore other job opportunities where your skills and contributions will be better recognized.

6. Final Tips for Successful Negotiation

Stay Professional Throughout

Maintain a professional demeanor, regardless of the outcome. This will help you preserve a positive relationship with your employer.

Know When to Walk Away

If negotiations stall or the offer is far below your expectations, it might be time to consider whether the job is the right fit for you.

Follow Up in Writing

After the negotiation, send a follow-up email summarizing the discussion and any agreed-upon terms. This ensures clarity and can serve as a reference point for future discussions.

Conclusion

If you’re still intimidated by the idea of negotiating a starting salary, know that the majority of people who negotiate receive a higher starting offer. 66% to be exact, according to the Pew Research Center. 28% get exactly what they asked for and 38% receive a salary increase, though less than their target.

Don’t leave money on the table due to fear or assumptions. 

“Negotiation should be the best paid hour of your life,” says Ben Cook, who lectures at Harvard Business School on negotiation strategy. “It sounds unpleasant. But even a single hour spent at that bargaining table can put $25,000 in your pocket.”

The long-term benefits of a well-executed negotiation are worth the effort. So take the first step, and advocate for your worth.

References:

Marks, M., & Harold, C. (2011). Who asks and who receives in salary negotiation. Journal of Organizational Behavior, 32(3), 371-394.

Wesner, B. S., & Smith, A. B. (2019). Salary negotiation: A role-play exercise to prepare for salary negotiation. Management Teaching Review, 4(1), 14-26.

CIO. (2022). The do’s and don’ts of negotiating a raise | CIO. https://www.cio.com/article/274922/careers-staffing-10-mistakes-to-avoid-when-negotiating-a-raise.html 

Clifton, A. (2020). How I Negotiated for $15,000 More Than What the Company Offered. The Muse.  https://www.themuse.com/advice/how-i-negotiated-for-15000-more-than-what-the-company-offered 

Harvard Business School. (2023, June 13). 7 Tips for Your Next Salary Negotiation. https://online.hbs.edu/blog/post/salary-negotiation-tips 

Harvard Business Review. (2021). Don't Ask for a Raise — Negotiate It. https://hbr.org/2021/12/dont-ask-for-a-raise-negotiate-it 

Harvard Business Review. (2022, July 18). How to Negotiate Your Starting Salary. https://hbr.org/2022/07/how-to-negotiate-your-starting-salary 

Harvard Division of Continuing Education. (2024).How to Successfully Negotiate a Salary Increase - Professional & Executive Development | Harvard DCE. https://professional.dce.harvard.edu/blog/how-to-successfully-negotiate-a-salary-increase/ 

15 Rules for Negotiating a Job Offer. https://hbr.org/2014/04/15-rules-for-negotiating-a-job-offer 

Lastoe, C. (2020). 8 Real People Share Their Successful Negotiation Stories. The Muse. https://www.themuse.com/advice/8-real-people-share-their-successful-negotiation-stories 

NerdWallet. (2023). How to Ask for a Raise in an Uncertain Economy - NerdWallet. https://www.nerdwallet.com/article/finance/smart-ways-to-negotiate-your-salary-in-an-uncertain-economy 

Ritvier University. How to Negotiate a Raise - Rivier Academics. https://www.rivier.edu/academics/blog-posts/how-to-negotiate-a-raise/ 

Pew Research Center. (2023). When negotiating starting salaries, most U.S. women, men don’t ask for higher pay | Pew Research Center. https://www.pewresearch.org/short-reads/2023/04/05/when-negotiating-starting-salaries-most-us-women-and-men-dont-ask-for-higher-pay/ 

Program on Negotiation at Harvard Law School. (2024). How to Ask for a Salary Increase - PON - Program on Negotiation at Harvard Law School. https://www.pon.harvard.edu/daily/salary-negotiations/how-to-ask-for-a-salary-increase/