Getting What (You Think) You're Worth

What a relief! The grueling task of finding a job is over. You received an offer, and the company presented you with your starting salary and benefits package.

But wait. Before you hastily agree to the terms and sign on the dotted line, do some homework to find out if you're being offered a competitive salary. If not--or even if you need a few thousand dollars more to cover the rent--negotiate. It's something recent grads are reluctant to do since they're often grateful just to be hired. After all, it's not as if they have a wealth of on the job experience. It's great to be appreciative and enthusiastic, but don't forget: not only can you negotiate the salary of your first job, you should.

Here's one reason why: "It's no different than how we play poker," says Michael Ball, founder of Career Freshman, a California-based company that teaches employers how to manage recent graduates. "Employers are not coming in with their full hand. They're always coming in a few thousand below what they have to cap out at. There's always more wiggle room."

In Pictures: Negotiating Your First Salary

Chris Fusco, vice president of compensation at Salary.com, says negotiating often results in "about 10% improvement on the initial offer." He recommends saying something like "Based on my understanding of the job, the company's needs, and the skills and experience I bring, I feel I'm worth $5,000 more than what you're offering me ."

Fusco advises students to make employers aware of the work and internship experience they've had in the past, recommendations from professors and former employers, and details of extracurricular activities, to show the strong potential they have for success at the company.

If the thought of negotiating for a few thousand dollars more makes you queasy, consider this: Annual raises are usually a percentage of your salary. "That incremental negotiation you do at the front end continues to pay you back when it's time for a percentage raise," says Ball. It goes on from there, especially if you're at the company for several years.

That's particularly true for women. Among employees who work full time and are one year out of college, females are making only 80% of what their male counterparts earn, according to a new study by the American Association of