How Do You Negotiate Salary?

Joshua wants to know how to negotiate salary. He's moving from an hourly wage to salary. Dave says you negotiate it based on your worth to the company.

QUESTION: Joshua on Twitter wants to know how to negotiate salary. He’s moving from an hourly wage to salary. Dave says you negotiate it based on your worth to the company.

ANSWER: I think you negotiate it based on what you are worth to the company. There are a couple of measures of that. One is associated with the revenue that you bring in—that’s a nice thing to bring up. Another thing you can do is go to some of the career websites and do a compensation study on your type of position in your area. If you are a valuable team member of mine moving from hourly to salary, it wouldn’t be a negotiation. It would be a discussion. Honestly, the way most positions are priced initially when you start out in a new position is what you can be replaced for, meaning what the going rate of one of those people is.

I would lay down two or three of those compensation studies. Pull that stuff off and then just lay it there with your boss. Talk that through with them. They may not have done that much work figuring it out themselves. It’s kind of like what do you sell a car for? You try to appraise it for what it’s worth in the marketplace to other people. That’s the way you have a discussion. It’s not that you’re telling them what to do. You’re just asking questions and presenting information. If someone did that with the right spirit in my office, that would go a long way. Why are you worth more, other than your sheer effort?