Great news, you have been offered the job you fought so hard to get, and with that comes what is often the most critical element that is looked at first by most people, the salary offer! The Salary being offered may be great, so-so, or just plain insulting! In any of these circumstances you should be prepared to negotiate a little or a lot, as almost certainly there will be HR pressure in the background which may low-ball what you are actually worth and they will, in many circumstances, be expecting a bit of negotiation so will have left some upward room for you to do so. If your new line manager really wants you, they will push back the HR to get you closer to something that makes a move worthwhile.
Going in for a salary negotiation can be a little intimidating. You may not always like doing it, but it can actually be a freeing event and the outcome may surprise you. Getting more money is always a good thing, but you want to feel good about doing it and you dont want to risk letting that great offer being pulled away from you, on this point - if an offer is too readily pulled from you or they demand a quick decision (within 24 hours), then this can only be a bad sign for the way you may be treated as an employee working for such an organisation, so have no fear for asking for what you want and an appropriate amount of time to consider. When you successfully negotiate a new salary, everyone wins in the end. So, if you are thinking about doing it, here are ten rules to consider.
Don’t negotiate before they offer you a job. You do not want to mention money until after they have offered you a position. This is because if you want too much, they may decide to pass over you for someone else.
Let them go first. Let the employer make the first offer. This will give you the chance to see what it is they are willing to offer you. Don’t reveal how much you have gotten paid before, unless specifically requested during the interview process, or this could hurt you.
Don’t agree too soon. When they do offer you a salary, do not just say yes. Think about (prior to the negotiation) what else you would like (benefits, leave etc), and then start negotiations. Accepting too soon shows that you are too willing to work there for a lower salary than you may be worth.
Don’t feel bad when you tell them what you were paid or what you want to be paid. It should only be fair that they know how much you would like if they are offering you a job.
Stand up for how much you are worth. Do your research (extremely important), find out what are the payscale ranges for the job you are applying for, check with friendly Recruiters, or ask some friendly HR people in a similar industry, or people in other similar companies what they are being paid for the same job, not everyone may want to offer the info, so just say you are doing some market research and some may actually give you the info you are after. Check that men and women are paid equally and fairly with your new employer if thats a concern for you. When you know just what you’re worth before you enter the discussion, you can have a more effective negotiation with your new employer.
Don’t be afraid to negotiate benefits as well. This is just as important as your salary. It may not always be possible to alter these but is a worthy subject to bring up as it shows your willingness for give and take beyond pure numbers.
Don’t play it cool. Just because you want to make sure you get the job, don’t act like you will just take anything. Fight for what it is that you want.
Don’t worry about the company. If the economy is in a recession or you think the company cannot afford what you want, do not worry about it. You are worth what you are asking for, if this company is struggling to pay you now, it may be red flag for the future.
Go high at first. Come out of the gate swinging. Even if you are a little embarrassed at how much you are asking for, do it. You can negotiate down later. If you are working through a recruiter, ask their advice or let them handle the negotiation.
Find a common ground and keep the chat open and friendly without leaving doubt that you are serious. When negotiating, it is important to find the common ground between both parties and be firm, but also reasonable and fair, dont forget the chances are there are good 2nd options for many vacancies, they chose you as the number 1, so dont blow it with inappropriate and inflated demands.
In the current employment climate it is very normal for a new employer to offer between 10-15% salary above your current, this of course varies between industry sectors, company size - SME vs Multi Nationals, the balance between Base Salary and commissions/ bonuses for overall compensation, and geographical locations (living costs and tax variations). If your offer is 20% or more then you are onto an exceptionally good thing. The exception to this is often with sales or performance related jobs where commissions and bonuses form part of the overall compensation, where your new employer may try a low-balling song and dance about "How can they be sure you will do well?" to introduce doubt and try to keep the base salary offer low - you can show and remind them of your track record of success, its not that they have doubts, its just they are testing your negotiation skills!
If you are being offered the same or less salary than your current employment, prepare to negotiate and take into account any other benefits there may be for you in terms of career advancements, career path change or other benefits such as healthcare etc. As a general rule if the salary offered is less than your current, in the same industry, for the same work, and in the same country, then there really must be some positive and exceptional life changing reason why you should accept this unless; a/ you are currently not working or, b/the job being offered is for a non-profit organisation. Don't be afraid to walk away if you are offered a salary thats not acceptable to you, chances are there are better opportunities out there.
Following these 10 rules will help you think about how to negotiate your salary offer when you need to. It is not something to fear, but something to build you up and be the best and happiest employee you can be, and earning the appropriate salary is part of that.
Good luck!
Perry Barrow is the Founder & Managing Director of First Global Direct Executive Recruitment, for the Banking, Private Banking, Sales, HR and Fintech industries https://www.linkedin.com/in/perrybarrow/