Get the Pay You Deserve: Golden Rules For Salary Negotiation
Your job search is over and you finally have a job offer right in front of you.
Hurray! That’s a big win.
However, there’s a little problem. The company pay isn’t your desired salary range.
Should you settle or should you ask for more?
Typically, employers present you with a proposed salary and a compensation package (verbally or in writing) when extending a job offer. If the proposed salary does not align with your qualifications, you may negotiate for more money.
However, most people fail to negotiate a higher salary after receiving a job offer because they aren’t comfortable with salary negotiations. After a nerve-wracking and tedious job search, the mere prospect of salary negotiation with a potential employer is gut-wrenching.
It’s common for candidates to forfeit salary negotiations once they have a job offer in front of them. If the salary range is reasonable, negotiating it may seem like a risk not worth taking after coming this far. Most candidates cannot imagine jeopardizing a job opportunity because of negotiation.
Why is this so?
Inherently, people hate conflict and arguments, and when it’s about a job salary negotiation, introducing conflict is just not worth it.
However, many candidates hesitate to negotiate salary because they believe they have no bargaining power. As a fresh graduate you may think that because it’s your first job and you have no experience, you have no bargaining power. Even as an experienced professional, you may think that since you have no other job offers you have no leverage.
That’s not entirely true.
The hiring process is stressful and expensive for both sides and by this point, the prospective employer is invested in you as a candidate. Ergo, even fresh graduates have leverage.
Most employers don’t expect candidates to reply immediately after a salary offer and give them time to think about the salary amount. If you don’t negotiate a salary offer, you could be leaving money on the table.
This article provides you with salary negotiation tips when advocating for a higher salary. You’ve come a long way and with the help of this article, negotiating needn’t be such a daunting task.
Let’s get started!
How to Negotiate Your Salary Offer
Before you negotiate salary, there are certain tips you must arm yourself with. In this section, we’ll walk you through key negotiating strategies to negotiate a higher salary after receiving a job offer.
Research
For a more successful negotiation, you must do your due diligence. Before delving into the salary conversation, you must research the salary range for your line of work. A salary range is (a reflection) of your market value and knowing your market value will give you good grounds for your salary requirements.
According to research done by Columbia Business School, your employer will likely assume you’ve done significant research into your market value.
You could be asked to speak about salary at any point in the hiring process, sometimes (but hardly) during your first interview. Therefore, You can respond more confidently when you have done your research and have a current and realistic knowledge of the salary ranges in your field.
Factors like market demand, experience, skill, and geographic location can affect salary. However, knowing your market value compared to others (in the same field) will build your case. Conduct a market research on;
- The highest salary for work, the market average salary, and the lower salary for someone working in the position advertised.
- The average salaries in your geographic area and nearby cities
- How similar companies pay employees in the same or similar positions.
- The company’s competitors and their salary range.
Three common ways to research your salary range include;
- Researching salaries on online salary guides (e.g. Glassdoor) to get familiar with salary trends.
- Consulting a coworker or a friend with similar background and experience level.
- Having an information interview with a random person or mentor in the same position. If they tell you exactly what they make, you can be fairly confident about the number
Knowing these details will help you prepare your argument and justify the salary you’re negotiating for.
Evaluate Your Value To The Hiring Manager
Evaluating the value you offer the employer as a potential employee is important before you negotiate salary. When evaluating your value to the hiring manager, come to the table with facts, not feelings. Point out precisely what makes you valuable. These include;
- Certifications and Licenses: If you already have the required qualifications, you are in a better position to request higher pay.
- Career level: Your career growth and accomplishments are also a good baseline to negotiate.
- Education Level: Relevant educational qualifications like bachelor’s, master’s, or PhD degree.
- Skills: High-demand skills (like technical skills, e.g. digital marketing) are attractive and warrant a higher salary range.
- Level and Years of Experience: If your number of years in the field is higher than the one listed in the job description, pitching for a higher salary is justified. Also, if you have experience in a particular role (like leadership or management experience), it adds to your value (as an employee) and shows the hiring manager why you deserve the requested salary.
Don’t negotiate until you have a job offer
A Salary discussion should only commence after a job offer has been made. Negotiating salary during the job interview process (before receiving an offer) can negatively impact the opportunity. If you start talking about salary prematurely, you may come off as greedy (even if you’re not) and give the wrong impression.
When a company extends a job offer, it means that the company is committed to hiring you. They’ve chosen you over the scores of other applicants, so you must have something of value that they want. Wait until you have this confirmation before you start negotiating.
Additionally, clarify that you are genuinely grateful to receive the offer and eager to start before you negotiate. Here’s a practical example of negotiating salary email:
Thank you for your offer. I am very excited to work for XXX and I know that I would be a valuable addition to the team. This is certainly the position I had hoped for and I’m sure that my skills in XXX will be an advantage to the company.
I would just like to clarify some details before we finalize the employment contract.
Having considered your offer and researched equivalent roles with similar companies, I notice that the salary offered, although respectable, is lower than I had hoped. I wonder if we could bring the starting salary closer to £___’
Would you be prepared to discuss this further?
Prepare for Tough Questions About Salary
Hiring managers and recruiters have a habit of asking tough and (sometimes) intimidating salary questions to get a scope for you. Such questions commonly crop up during interviews whether the employer is serious about hiring you or not.
If the employer is yet to offer you the job, you don’t need to give a figure unless specifically asked for one. So, you don’t want to put the employer off with a high salary request. Do you? Instead, what you want to do is avoid a direct answer by saying that you are ‘open to negotiation’.
Here’s a stellar example:
‘My primary concern is how to find a job that meets my career aspirations and suits my skills.
Therefore, I am willing to negotiate the base salary depending on your company’s budget.’
A statement like this clarifies that you are willing to be flexible but still expect the maximum salary within budget.
Some tough questions to expect include:
- What are your salary expectations?
- Are we your top choice or do have any other offers?
- Are you drawn to the job because of its salary or because you want the job?
- Will you accept the position immediately if we increase the salary?
The hiring manager isn’t out to get you, so remain calm and collected.
Rehearse
Salary negotiations can sometimes feel uncomfortable but with a lot of practice, you can gain more confidence to state your demands. The talking points you prepared may sound cool in your head but rehearsing them may change (or modify) that idea.
This may sound cliché, but rehearsing the conversation you’re likely to have with the hiring manager will make you more confident in your delivery and can save you from costly mistakes. The more you practice, the more you feel in control and comfortable to negotiate.
The ideal way to rehearse is to:
- Practice with a trusted friend or mentor in the corporate world who can provide helpful feedback.
- Record your lines on a camera or recorder and listen to it later from a fresh angle.
- Rehearse in front of a mirror.
- Run through your lines severally to build your confidence before negotiation.
Schedule a Time and Date
Now you’ve laid everything out. You know what to say, how to say it, and when to say it. The next line of action is to reach out to the hiring manager or recruiter and schedule a time for a salary discussion.
Negotiating via email is very acceptable. However, speaking over the phone, in person, or on a video call allows for a more engaging conversation and clear communication.
Be willing to Consider and Accept Other Benefits/Perks
It may be that the company is running on a limited budget and can’t offer you a higher salary. Depending on the company size, it may be less costly for the company to offer other benefits instead of more money.
Salary negotiation is a give-and-take situation, and in many cases, salary isn’t necessarily the end of your negotiation. There may be something the company can provide in place of a higher range.
Most companies are more willing to provide flexible hours, work-from-home schedules, or extra vacation time as alternatives to a higher range. So when negotiating salary, negotiate benefits as well as the compensation package. Requests for these kinds of perks are often easier for employers to accept.
Target the benefits that are most valuable and attractive to you based on your life circumstances. If you are a parent, you might ask for a work-from-home schedule. If the job requires you to commute to London from Monday to Friday, perhaps your new employer can subsidize your train fare. They may allow you to work from home twice a week or start/finish work early to avoid rush hour traffic.
Here’s another negotiating salary email example:
‘Thank you for your offer; I am eager to begin working with you as soon as possible.
I have a quick question about the terms of the offer.
I wonder if you would be open to discussing flexible office hours or hybrid working?’
Several benefits to consider include:
- Health insurance
- Insurance benefits
- Parental leave
- Extra vacation days
- Retirement savings plans
- More paid time off (PTO)
- Equity or Stock options
- Working remotely
- Travel allowances
- Signing bonus
- Office space or position
Additional perks like professional development opportunities within the company or education reimbursement can benefit your work life.
Knowing the benefits that matter to you and your goals will help you negotiate a salary and compensation/benefits package that suits your needs.
Compromise When Necessary
Sometimes there may be no wiggle room for all your requirements during a salary negotiation. At this point, you may have to comprise. While it is important to be firm in your resolve (to show how serious you are), it is equally important to be flexible as well. The point is to come to a mutual ground and not to stir up conflict.
If the company’s range cannot be increased, they may offer other forms of compensation like more stock options, a signing bonus, remote work, extra vacation days, moving expenses, or more paid time off.
Choose other alternatives and benefits in exchange for others that may be of more value than a paycheck. Your ability to compromise will get you the package that works for you and the company.
Bid High salary Range
As a rule of thumb, give the employer an amount that is higher than what you want. Suggesting a specific number first will allow you to dictate the narrative of the negotiation. We call this the “anchoring effect,” in psychology. A term used to describe the cognitive bias of the mind to hold importance and rely on the first piece of information about a situation or thing.
The employer or recruiter may likely negotiate your desired salary range to a lower end and so, opening the negotiation with a higher range is smart. Using this strategy will enable you to anchor the negotiation around your salary range.
Be Confident
During a salary negotiation, you must exude an air of confidence. In a negotiation process, discussing your terms confidently gives weight to your words. It makes the employer or recruiter more confident in your abilities and thus, consider your offer.
Confidence is not to be mistaken for arrogance or an exaggerated sense of self-importance. Likewise, humility should not be substituted with a lack of confidence. Neither arrogance nor lack of confidence are helpful in a negotiation.
Be Kind and Courteous: Show Gratitude
Both you and the recruiter have invested time (and expenses) in the job search and interview process. At this point, it is important to be kind and lead with gratitude despite your differences. Thank the recruiter for considering your application and mention why you are excited about the new role. However, do so in a professional manner.
Most hiring managers dislike negotiations just as much as you do. Stay positive, smile when appropriate, and keep your cool when a counter offer or disagreement arises. Negotiating salary and perks doesn’t
Understand Constraints and Non-negotiables
Sometimes, a company may deny your request because they may have certain ironclad constraints and other non-negotiable factors. In this case, their initial offer is the best range they have. Therefore, recognize the offers that cannot be compromised and focus on other negotiables.
For example, if the company cannot increase the money, they may be willing to give you a work-from-home schedule to spare you the commute or moving expenses. When you acknowledge and accept what is negotiable and what is not, you’ll suggest better options without putting anyone in a difficult position.
Put Everything Down In Writing
To avoid future misunderstandings and ambiguity, put your offer in writing the minute you and the employer decide on the salary and compensation package. This written documentation should contain every negotiated detail such as the salary amount, job title, compensation, benefits, special arrangements (like signing bonus), and the job description and responsibilities.
This offer letter or contract must be carefully reviewed to the last letter and signed by both parties. Some companies provide this as part of the interview process, but if you don’t receive one, then request it.
How to Begin Pay Rise Negotiation [Salary Negotiation Basics]
Asking for a pay raise you deserve is a really difficult thing to do. You might be nervous, you might fear the rejection or you may simply be lost for words. However, it’s still possible to enter a pay rise negotiation with your current employer.
It’s best to negotiate a higher starting salary before accepting a job offer. You shouldn’t ask for a pay rise in the first months after starting the job unless your responsibilities significantly increase.
After all, you accepted the job offer at your current rate. Asking for a pay rise too soon will reflect poorly on you. Also, if your current salary is well below average, getting a significant raise will be tough. You might need to consider looking for a new job instead.
However, you’re in a stronger position to negotiate when you’re already earning the average for someone in your current job role.
Let’s jump straight into how to negotiate your salary offer with your current employer.
Know what you have to offer
Prepare a list of your skill set, current position, unique skills (e.g. technical skills), achievements, certifications, and new responsibilities that showcase the value you bring to the company. This is your vantage position and a strong point with which to negotiate a higher range.
Consider if your daily responsibilities warrant more compensation than you currently receive. For example, let’s say you’re employed as a back-end developer, but you also take care of front-end development and web design.
By recognizing and assessing your worth you can negotiate from a position of strength.
Prepare a timeline
Salary negotiation is a process and results don’t appear overnight. Start by booking a meeting with your boss and inform them that the purpose of the meeting is to discuss a pay rise. This way, your boss has enough time to prepare for the meeting.
They may need to review your contract, evaluate your contribution, and contact head office if they need more information.
Schedule a meeting before Salaries are decided for the year
Timing is crucial in negotiation. If you want to negotiate a pay rise with your current employer, schedule a perfect time when you are more likely to get what you want. If you’ve been exceptional or gotten better at your work, achieved certain company goals, or have new responsibilities, then you can (confidently) make a case.
However, if the company isn’t doing so well financially and is laying off employees, then wait for things to settle.
Additionally, schedule the negotiation before the salaries for the year are decided and set. That is, (at least) three to four months before performance reviews. Employers are more likely to consider pay increases during that time.
Make your long-term plans clear
When negotiating a salary increase, explain why you deserve a pay rise. State your salary expectations and demonstrate that you’re willing to begin the process. It also helps to make your long-term goals clear and attached to your monetary aspirations.
That includes your goals within the company and outside of work. Your boss will appreciate that you’re dedicated to the company, so providing a pay rise is a worthwhile investment.
Likewise, explaining your personal goals can help get your boss on your side. If they understand why you want a pay rise, they may be more inclined to approve one.
Give a Specific Amount: Make Up your Mind
Figure out what you are going to be comfortable with moving forward. Remember you can’t keep going back time and time again asking for pay raises, so make sure you know the exact figure you want.
CareerVidz outlines various helpful strategies and sample scripts on how to ask for a raise in 12 minutes
How To Negotiate Salary Offer Example
If you are negotiating face-to-face or via phone or video call, use this approach:
“Thank you for sending over the offer for the X position. I am very grateful that you considered my application and I am excited about this opportunity. However, I would like to address the proposed salary before I accept the offer.
Just as my CV states, I have eight years of experience in this position and three more years of management and leadership experience than stated in the job requirements. Given my qualifications, I am requesting a salary range of £X which is higher than your first offer. I am open to negotiating salary and compensation as well.
I look forward to hearing your suggestions.”
How To Negotiate Salary Offer Via Email
Dear X,
Thank you for considering my application and extending a job offer. I am very grateful to be considered for the X position. However, I want to address the suggested salary and compensation package.
As I shared in the initial interview, I have X years of experience in X and have held leadership roles for the past X years. Given my experience level and expertise, I am requesting a salary of £X slightly higher than the one you proposed.
I am open to negotiations so please let me know when we can have a conversation about this. I look forward to hearing from you soon!
Yours faithfully,
X [your name].
Top Tip
Try to frame the conversation like this; you are keen to begin contributing to the team and pleased to have been considered. But you’d like to finalize a few details before signing the contract.
Know your Worth and Seal the Deal
Salary negotiations are sometimes successful and unsuccessful. Still, there’s no reason that you shouldn’t ask for a higher starting salary. If you don’t ask for more, you won’t get more.
Assuming that the salary negotiation process is bound to be unsuccessful and choosing not to negotiate may be the comfortable choice in the short term. However, in the long term, settling for less will have serious consequences for your future career trajectory and millions in foregone wages.
Successful negotiations can get you even higher earnings than you had anticipated. The key is to follow the strategies outlined in this article. With this article, you will be able to make a mind shift and take the plunge into negotiating your financial future.
Now take the reins and exercise your negotiating muscle. Know your worth, know what you deserve. and stop leaving money on the table!
Cheers!
What do you think?
Do you know exactly how to negotiate your salary offer?
How was your experience? Let us know in the comments.
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Keep Reading: How to Negotiate Salary Offer
- Negotiate a higher starting salary
- Asking for a pay rise
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- Putting the work experience section in the CV rightly
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