Why More Workers Should Negotiate Their Salary

Summary

WSJ Your Money Briefing

Episode: Why More Workers Should Negotiate Their Salary
Date: February 19, 2018
Host: J.R. Whalen, The Wall Street Journal
Guest: Rich Deosing, Senior Regional Manager, Robert Half

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Overview

This episode explores the importance of salary negotiation for job seekers, emphasizing why more workers—particularly younger employees and women—should advocate for better compensation. Host J.R. Whalen and guest Rich Deosing discuss current trends, the factors influencing negotiation, employer perspectives, and actionable strategies to approach salary discussions effectively.

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Key Discussion Points & Insights

1. Understanding Salary Negotiation (00:40 – 01:32)

• Negotiating a starting salary is described as a "delicate dance" requiring knowledge of market rates, company finances, and reasonable requests beyond prior pay.

• Rich Deosing emphasizes the need for both candidates and employers to research market conditions thoroughly before engaging in salary negotiations.

  “Starting salaries should be a factor of the job skills required and current market demand for those skills.”
  — Rich Deosing [01:14]

2. Survey Findings and Gender Differential (01:32 – 01:53)

• Only 39% of surveyed respondents had negotiated their last job offer.

• Men were more likely than women to negotiate (about half of men vs. 34% of women).

• The expectation is that gender pay campaigns will help close this gap, but being prepared is key for everyone.

  “Asking or negotiating around dollars… is a sensitive issue because you’re asking for money… regardless of your gender, simply be prepared, know what your skills are worth.”
  — Rich Deosing [01:53]

3. Employer Perspective on Negotiations (02:17 – 02:41)

• Employers open to negotiations can attract and retain the best talent.

• Early salary conversations in the interview process can signal genuine interest in a candidate and help avoid wasted time.

  “Being open to have those salary conversations during the interview shows that you’re interested in this person and you don’t want time to be wasting.”
  — Rich Deosing [02:21]

4. Age and Negotiation Trends (02:41 – 03:12)

• Workers aged 18–34 are the most likely to negotiate, a surprising but positive trend indicating increased awareness and opportunity for younger professionals.

  “That age group… led the charge in doing the salary negotiation just tells me… individuals need to do their homework and choose the best fit for them.”
  — Rich Deosing [02:49]

5. When and How to Negotiate (03:12 – 04:44)

• Wait until a formal job offer is made before negotiating.

• Preparation is vital: candidates should rehearse negotiations with someone they trust.

• The goal is to demonstrate interest in both compensation and the organization itself.

  “Avoid negotiating any part of the compensation package until you’ve received a formal offer… Practice negotiating with an individual that you trust.”
  — Rich Deosing [03:37]

  “You have to give that impression to the employer that you’re not only interested in the dollars, you’re interested in the organization as well.”
  — Rich Deosing [04:23]

6. Broader Importance of Negotiation Skills (04:44 – 05:06)

• Negotiation is essential across all professional environments, even as technology streamlines processes.

  “Individuals need to know how to communicate… They need to know what value they bring and how to express that. So negotiation is a key component in every professional environment in today’s marketplace.”
  — Rich Deosing [04:46]

7. Researching Your Worth (05:06 – 05:53)

• Many states have disallowed employers from asking about salary history, making market research critical.

• Both employers and employees should use tools like the Robert Half Salary Guide for accurate prevailing wage information.

  “Both parties need to do their homework… what the competitive salaries are in their marketplaces.”
  — Rich Deosing [05:25]

8. Industries & Roles with High Negotiation (05:53 – 06:24)

• Salary negotiation is prevalent across industries, especially in accounting, finance, technology, and advertising.

  “We are continuing to see accounting and finance lead the way… But we’re also seeing it in technology, we’re seeing it in advertising. It’s really across the board.”
  — Rich Deosing [06:05]

9. Negotiation Beyond Salary: The Total Package (06:24 – 07:13)

• Flexible negotiation includes benefits such as vacation days, tuition reimbursement, licenses, and remote work options.

• Consider the entire compensation package when negotiating.

  “Understand that you can negotiate around multiple aspects of the compensation package… vacation days… tuition reimbursement… potentially working from home.”
  — Rich Deosing [06:43]

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Memorable Quotes

• On Preparation:

  “You can’t rehearse too many times because you have to be able to not only articulate your skill set… but really you have to give that impression… you’re not only interested in the dollars, you’re interested in the organization as well.”
  – Rich Deosing [04:23]

• On the Importance of Research:

  “If you do your research and… ultimately that’s a company you want to work for… then look at other aspects outside of just the dollars.”
  – Rich Deosing [06:43]

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Notable Timestamps

• Importance of Research: [01:14], [05:25]
• Gender gap in negotiation: [01:32]
• Negotiation tactics: [03:37]
• Broader negotiation skills: [04:46]
• Compensation beyond salary: [06:43]

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Tone and Language

The episode maintains an encouraging and pragmatic tone, blending actionable guidance with market-driven data. J.R. Whalen’s questions are concise and direct, while Rich Deosing’s responses are practical and supportive, aiming to empower listeners regardless of their job-seeking experience.

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Summary Takeaway

Salary negotiation is critical but underutilized. Preparation, research, and flexibility are essential for candidates aiming to maximize their starting offer and total compensation. Trends indicate younger workers are increasingly negotiating, and everyone should be ready to discuss value beyond just salary. As companies adjust their processes and laws change regarding pay history, knowing your market worth and practicing negotiation can pay real dividends in your career.

Transcript

[A]

Still running global payroll like a relay race Deal replaces fragmented payroll vendors with one global system. No third parties hire, manage and pay teams in 150 plus countries with in house local experts and white glove delivery and deal plugs into what you already use. Workday SAP Netsuite operate like a local everywhere. Visit d e l.com WSJ that's d e e l.com WSJ.

[B]

This is yous Money Matters from the Wall Street Journal

[C]

welcome to youo Money Matters. I'm JR Whalen in New York. Negotiating a starting salary is like a delicate dance. It requires knowing the market rate in your field and position, the finances of the company doing the paying, and what a realistic step up would be from your previous pay package. Most of that information is easily available, but why don't more people make an effort to negotiate? Rich Deosing is Senior Regional Manager of Robert Half in New York and he is here to discuss so Rich, not all starting salaries are negotiable, but it's important for a candidate to be sure to thoroughly read a job listing.

[B]

Absolutely, J.R. you know starting salaries should be a factor of the job skills required and current market demand for those skills. That's why it's important than ever before for both parties to research market conditions thoroughly to pave the way for realistic, productive discussion.

[C]

And a survey by Robert Half showed that just 39% of people tried to negotiate pay with their last job offer. And of that group, about half of men negotiated salary compared with just 34% of women. Do you think that that differential is likely to shrink on the heels of a of gender pay campaigns that have reemerged in the last year?

[B]

It should theoretically, at the end of the day, asking or negotiating around dollars, JR is a sensitive issue because you're asking for money. I think a key component, regardless of your gender, is to simply be prepared, know what your skills are worth in the marketplace and know what positions are paying with similar experiences. Know that, so pretty much do your homework.

[C]

So what's in it for an employer to open up starting salary to negotiation?

[B]

It allows the employer to attract, secure and retain the best talent in the marketplace. I think you know, being able and being open to have those salary conversations during the interview allows you or shows that hey, you know what, you're interested in this person and you don't want time to be wasting.

[C]

In the survey, workers age 18 to 34 are most likely to negotiate salary than any other age group. Did that jump out at you as a surprise?

[B]

Jarrah it certainly jumped out at Me, I think knowing that that salary negotiation is a sensitive topic and knowing that that age group actually led the charge in doing the salary negotiation just tells me that or shows us that there are a lot of opportunities in the marketplace where individuals need to do their homework and choose the best fit for them.

[C]

We're speaking with Robert Haft's Rich Deosing, and you're listening to youo Money Matters from the Wall Street Journal. Welcome back, everybody. So, Rich, Robert Half has made an effort to alert job candidates that potential employers are broaching the subject of salary expectations much earlier in the interview process to streamline the hiring process, essentially. And so candidates need to be ready to discuss that, but not until a formal offer has been made.

[B]

Absolutely. J.R. i think first and foremost avoid negotiating any part of the compensation package until you've received a form formal offer. I know it's easier said than done, but just be mindful that you don't want to get counted out of the game too soon and just go with the flow. Secondly, I think in an effort to prepare an individual for when that offer comes is to practice, practice negotiating with an individual that you trust and actually doing some role plays around the negotiating conversation.

[C]

And so a lot of advice here, as if salary negotiation were really a delicate dance. The advice is to rehearse, rehearse, rehearse. Actually find somebody who you trust and even somebody who's been through this process before.

[B]

Absolutely. You can't rehearse too many times because you have to be able to not only articulate your skill set, why is it beneficial for that organization to hire you, but really you have to give that impression to the employer that you're not only interested in the dollars, you're interested in the organization as well. So it's a delicate dance, as you said.

[C]

Why is negotiation so important today?

[B]

JR in today's marketplace, you have to deal with people in every aspect. Even though we say technology is streamlining and taking over. Individuals need to know how to communicate. They need to know how to get their point across. They need to know what value they bring and how to express that. So negotiation is a key component in every professional environment in today's marketplace.

[C]

And we've talked about how important it is for candidates to do their home, really to understand market conditions. And because in many states, employers cannot ask about a candidate's salary history. And so if you're going to come to a dollar figure, you can't base it on what a person made at a previous job. You really have to base it on what's being paid out in the marketplace?

[B]

JER Absolutely. I think research is a key component to this. Both parties need to do their homework in terms of what skill sets are being paid, what skill sets are in demand, what the competitive salaries are in their marketplaces. A great tool for that is our Robert Half Salary Guide that shows employees and employers what their worth is and what the average salaries are for the positions that they're looking to fill. That's an important component.

[C]

We mentioned earlier that workers ages 18 to 34 are most likely to negotiate salary than any other age group. But are there particular positions or roles where you're seeing more negotiation activity?

[B]

Well, I mean, with unemployment being what it is and practically every industry that's hiring, we are continuing to see accounting and finance lead the way, whether it's that, you know, your senior accountant with, you know, five, seven plus years experience to audit tax. But we're also seeing it in technology, we're seeing it in advertising. It's really across the board.

[C]

And finally, Rich, any tricks of the trade you can give to job candidates who are in an interview and negotiating for salary?

[B]

Look, I think an important piece is be flexible. Understand that you can negotiate around multiple aspects of the compensation package or the total package. I should say.

[C]

So. It could be not just money.

[B]

It could very well be, you know, vacation days or extra vacation days. JR it could be tuition reimbursement, professional license reimbursement. It can be potentially working from home on occasion. So essentially be flexible. Understand that it's the entire package. If you do your research and you identify that ultimately that's a company you want to work for, that's really where you want to be over your professional career. Then look at other aspects outside of just the dollars.

[C]

All right, that's Rich Deo Sing. He's senior regional manager of Robert Half, joining us here in our studio. Rich, thanks for being with us.

[B]

You're welcome, Jarrah. Thanks for having me.

[C]

And thank you for listening to youo Money Matters. Do you like this podcast? Then rate and review us on Apple Podcasts. I'm J.R. whalen in New York for the Wall Street Journal.

[A]

The Future of Everything podcast from the Wall Street Journal. Another new episode is coming soon. Deal replaces fragmented Payroll vendors with one global system. No third parties. Hire, manage and pay teams in 150 plus countries. Operate like a local everywhere. Visit de l. Com WSJ.