This 1 Salary Mistake Can Cost You Thousands Over Your Career — And You’ve Probably Made It
Written by
Martin Dasko
Edited by
Amber Barkley
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According to the 2025 Salary Negotiation and Expectations Survey released by Resume Genius, 55% of employees didn’t negotiate their salary when starting a new job.
This is the biggest salary mistake that you can make, because you’re leaving thousands of dollars on the table, especially considering that 78% of new hires received a better offer when they negotiated their starting salary. The report also noted that 51% of men negotiated their salary and only 39% of women did, with women being 31% less likely to ask for a higher pay rate.
Here’s a look at how much this top salary mistake can cost you over your career, so you can avoid being part of the 57% of employees who admitted to regretting how they handled their negotiation when starting their jobs.
The Financial Consequences of Not Negotiating Your Salary
Eva Chan, a career expert from Resume Genius, noted that not negotiating your salary can have a profound and lasting impact on your lifetime earnings. She said a single negotiation at the outset of a career can yield an additional $605,000 in total earnings.
Here’s the specific scenario that Chan used as an example:
“Suppose someone begins their career at age 22 with a starting salary of $50,000. Assuming they receive annual raises of 4% and work until the traditional retirement age of 67, their lifetime earnings would total approximately $6.05 million.
“Now consider what happens if that same individual negotiates just a 10% increase to their starting salary — raising it from $50,000 to $55,000. That seemingly modest bump doesn’t just increase their first year’s pay. Because future raises are typically calculated as a percentage of current salary, a higher base compounds over time.”
The conclusion is that across the same 45-year career, this person who negotiated would earn roughly $6.66 million, an extra $605,000.
Million Dollar Consequences
“Not negotiating your salary can cost you over $1 million in lifetime earnings,” said Patrice Williams-Lindo, a career strategist and CEO of Career Nomad. “Raises, bonuses, severance — everything is tied to that first number. When you don’t speak up, you’re not just leaving money on the table — you’re locking yourself out of wealth you’ve already earned.”
The amount you lose out on will depend on the industry you work in and the starting salary you could’ve negotiated, which can be challenging to determine. However, research from Business Insider in 2017 pointed out that you could lose out on up to a million dollars throughout your career by not negotiating your starting salary and subsequent pay raises.
“Many companies base future raises, bonuses and promotions on your starting salary,” said Alari Aho, HR and talent acquisition expert and CEO of Toggl Hire. “If you accept a lower number, that becomes your baseline, and each percentage increase moving forward is based on that lower starting point.”
Even a $5,000 gap at the start of your career can become a significant loss when you consider that it will be compounded over decades of raises and promotions.
The Truth About Negotiating Your Salary
If you’re concerned about negotiating your salary, the experts have shared a few additional insights so that you can feel more confident in your job hunt. Here’s the truth about asking for a higher salary.
Employers Expect Negotiations
“Employers often expect candidates to negotiate and leave room in their offers to accommodate that,” said Chan. “Declining to do so typically means accepting less than what might have been possible, and that decision has consequences that extend far beyond year one.”
While it may feel intimidating to ask for more money when you’re desperately trying to find a job, you have to remember that employers expect this and that you’re not doing anything wrong. The worst case scenario may be that your request is declined, but it’s always worth at least asking what you’re worth based on industry standards.
Your Starting Salary Can Determine Your Career Trajectory
Aho stressed that not negotiating can also impact how you’re perceived professionally.
He said, “Hiring managers expect candidates to negotiate. When done respectfully, it shows confidence, self-awareness and an understanding of your value — all traits employers respect.”
Negotiating your starting salary can also determine your career trajectory, as you’re showing that you understand your value.
Aho stressed that it’s always worth asking for a higher salary, even if you just do so to confirm that the offer is the best that they can offer you at this time. Even small wins, like flexible work hours and a signing bonus, can make a big difference over time.
Negotiating Your Starting Salary Can Be More Valuable Than Your Workplace Results
“Being excellent at your job doesn’t protect you from being underpaid,” said Williams-Lindo. “I work with high-achievers who’ve led million-dollar projects and still accepted lowball offers because they thought the work would speak for itself.”
If you don’t negotiate your salary at the beginning, it can be more challenging to do so in the future. While you may rely on the quality of your work, you have to remember that you can become undervalued by not negotiating from the beginning.
Chan concluded, “You’re not being aggressive or difficult, but you should see negotiating as understanding your value and ensuring that your compensation reflects it — not just today, but over the course of your entire professional life.”
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