It really is not a very difficult thing to master the art of salary negotiations. I spoke about some of the myths of software development salaries that were told to me when I applied for positions. Now, I will take a look at negotiating your salary during the employment process. The biggest mistake any applicant makes is filling in the area labeled “expected salary.” This is a question with no good answer, so it is best just to avoid answering. If you ask for too little the company will pay you that salary, but if you ask for too much they may pass over your resume all together.

That means the next time you fill out any application, either leave it blank or write down ‘competitive’. Writing, ‘competitive’ tells the employer that you’re aware of the industry and you want something on par with standard pay for the position. I personally prefer to leave it blank. One way companies get around these dodging questions is to ask you during an interview about expected salary. This might catch you off guard, but it is a shockingly common question. I have heard different approaches to this, but I prefer responding with “It is more important to me to enjoy the work that I do, but I am sure we can come to an agreement when the time comes.” Usually this will get you out of the question in a positive light and show you are more interested in the position than your salary, which you should be.

“We would like to offer you…”

First off a congratulations is in order; you’re more qualified than the other candidates that interviewed for the position. This is a euphoric moment for you and gives a great sense of achievement. Do not let that cloud your judgement. The biggest mistakes in salary negotiations happens the moment an offer is first presented. Companies are hoping that you are excited enough to bite right away at the offer and accept, but if you do you’re missing a great opportunity. When an offer is presented, either on the phone or via email, wait at least 24 hours before responding. This is not meant to make them sweat, but to make sure your judgement is completely clear before making any decisions.

Take this time to research the average salary for the position inside the company (if possible), in the area, and your qualifications for that position. Taking all three of these elements into account will give you a pretty good judgement on what is an acceptable salary. If your offer is at the low end for the company and/or area, that means you should counter-offer for more. Factoring how much more depends on your qualifications. Since you’re a new graduate (in this case), this is where it gets tricky. The habit is to say you are very qualified since you did Java in your courses. That matters, but not nearly as much as you think. Companies are not going to pay you on potential. They are paying you for what you know now. Unless you can pick it up in a weekend and somehow demonstrate that knowledge to your employer, you’re out of luck. My advice for any graduate with an offer on the table is to always counter-offer even for an acceptable salary. The reasoning is that it exposes you to the experience which helps later in your career and asking them to add a signing bonus is never a bad thing.

“Thanks for the offer, but…”

Now its time to deliver a counter-offer. Coming up with a number is hard when talking in general about this process. I would say that going $10,000 over their initial offer is a bad idea, but it all depends how badly you want the position. If I felt that my initial offer low, I would always counter-offer with something higher than I expect to get. Sometimes you’re pleasantly surprised and they immediately accept the counter-offer, but not likely. This begins the negotiations process. Nearly every offer you receive is negotiable in one way or another. It feels like you are playing with fire and just waiting to be burned, however it is far from it. As I spoke about earlier, you beat out other candidates for this position which means this company wants what you have to offer and they expect you to come at a price.

The counter-offer should have some reasoning behind it. Common reasons are things like relocation costs, cost of living, and other offers you’re considering. The latter should be taken lightly. Companies are not going to go into a bidding war to ‘win you’ like you’re some sort of prize cattle, they want someone who wants to work there so don’t blow it by sounding greedy. However, if your offer is lower than another, simply tell them that you were offered more money (explicitly stating the amount) and that you expected something closer to that figure. Stating that you want something near that figure is the best way that you can word it. No employer is going to come back with a lower number than that and expect you to take it. They may walk away and say we cannot offer you that much and that is just the nature of the negotiation, but take your other offer unless there is a compelling reason not to.

Conclusion

Do not be scared if there are multiple counter-offers going back and forth. This is part of negotiation and the more of it that takes place is a sign that the company really wants you there. The small amount of work that negotiation takes is well worth the end result. You will be happier in the position and know that you’re getting paid the maximum salary for your current qualifications. Lastly, if negotiations do not work out or a company does not offer the reasonable amount you were looking for, do not be afraid to walk away. If you’re a talented developer, there will be job offers lined up out the door waiting for you. Take the best job for you, which means taking the job that gives you the biggest challenge, best work environment to be productive, good benefits and salary. Taking all these into account, you will not make a wrong choice, just don’t be blinded by the numbers and dollar signs.