Negotiating your salary after being offered a job can be tricky. On the one hand, you may feel hesitant to raise an issue with your prospective employer in case it affects your chances of landing the job. On the other hand, your salary expectations may not match the remuneration package you are being offered.
So, how can you successfully negotiate your starting salary? When is the best time to do so? How do you make your case?
If your mind is being flooded with these questions, don’t worry. We’re here to equip you with the necessary information and knowledge that will allow you to negotiate your income respectfully and effectively.
Why you should negotiate your starting salary
When a company makes a remuneration offer, jobseekers tend to avoid contesting the proposition with a counter salary amount. You might be eager to get the job, but knowing your worth as a professional and acknowledging a suboptimal pay from the start is essential.
Another important reason to negotiate your starting salary is that companies often expect their applicants to do so. You shouldn’t be afraid to ask for a salary that aligns with your average market value.
Moreover, it’s important that you feel catered to and comfortable in your new position. That can’t happen if you don’t feel like you’re being paid what you’re worth.
Remember: job offers are rarely withdrawn because a person tried to negotiate a higher salary. As long as the company is open to negotiation, you have got nothing to lose.
When to negotiate your starting salary
Some jobseekers make the mistake of starting the salary negotiation during their interview and come off as impatient and hasty.
Rushing into negotiations can leave a bad first impression on the hiring managers. It could also indicate that you care more about the monetary compensation you’ll be receiving rather than working for the company and helping it reach its goals (even if money is more important to you over anything else, you don’t want hiring managers to know this).
Timing is everything and knowing when to initiate this discussion is crucial. The best time to do this is after you’ve been chosen for the job and the employer has presented you with an offer. Before that time, all you can do is research the company and familiarize yourself with the average pay rate for your role and level of expertise.
How to negotiate your starting salary
The following are tips you should employ when negotiating your salary prospects.
1. Do your research
To start your negotiation on firm ground, it will be in your best interest to find out the average salary range for workers in your desired occupation and environment. You can begin your search by visiting sites such as Glassdoor to research the typical salary range for your field.
You may also want to have an informed insight into the company’s salary structure by connecting with current staff and having brief discussions with them. That way, you have real-life data to work with when planning your negotiation.
2. Evaluate the offer
Before accepting a job offer, you must understand what the job entails and how it relates to your career goals.
A decent job offer should include a fair salary, good employee perks, and a guarantee for professional growth opportunities.
A few other factors include:
- Where you’ll be working at
- Having the option for remote working
- Being entitled to a good company pension scheme
- Being granted relocation assistance
- Opportunities for professional development and training
The above considerations will help you evaluate the job offer and decide if it’s a good fit.
Remember: a high salary isn’t everything — there are also other important aspects you should look for when evaluating a new job opportunity.
3. Evaluate what you have to offer
Evaluating what you bring to the table is just as important as evaluating what the job entails in relation to the offer you have received.
When negotiating your starting salary, you’ll want to emphasize all the things that would make you an asset to your prospective employer, including your:
- Education level
- Years of industry experience
- Skill set
- Licenses and certifications
- Career achievements
The more equipped you are for the role, and the higher your level of expertise, the likelier you’ll successfully convince your potential employer to raise the proposed salary.
4. Tell the truth
Although it can get a little uncomfortable, it’s important that you communicate that you’re not completely satisfied with the starting salary you were offered. It will do more harm than good to keep it to yourself and accept an initial offer you’re unhappy with!
Research has shown that, when receiving a job offer, candidates who fail to negotiate their starting salary can end up losing hundreds of thousands of dollars over the course of their careers.
Plus, in the majority of cases, companies expect you to negotiate, so don’t worry about discussing your desired salary early on.
5. Show your worth
When negotiating a higher salary, you don’t want to come across as entitled. You have to prove your worth by stating your achievements in your past undertakings and what you can bring to this role. (This is why it’s vital to reflect on what you bring to the table prior to initiating the negotiation process!)
You must clearly and concisely highlight how you can be an asset to the company if you join their team.
6. Ask questions
During the negotiation process (and during your interview), it’s important to ask a few questions to help you support your case.
For example, enquire about the company’s priorities, and ask about the major challenges they’re trying to find a solution to. Moreover, you may also want to ask what the company’s budget for your position is.
The answers to these questions will allow you to show your worth when negotiating and align yourself with the company’s goals.
7. Acknowledge the positives
When negotiating your salary after a job offer, it’s important to also acknowledge the positives of what you’re being offered, such as a great benefits package. If you’re given unlimited vacation days, for example, express your gratitude for this before moving on to raise the point of your proposed starting salary.
Doing so will show your prospective employer that you’re able (and willing) to put things into perspective, and take into account the other party’s position and effort.
8. Ask for the top of your range
When you counter a salary offer, you should raise the bar a bit higher than your salary goal.
Just make sure to be realistic with the salary amount you ask for — even if you plan on bringing it down afterwards. For example, if you’re offered a $3,000 per month job and you’re aiming for $3,900, ask for $4,500. This will give you some wiggle room to negotiate the amount down to what you desire.
9. Show willingness to compromise
Not all jobs have probation periods, but if your contract mentions one, you can use it to your advantage.
Let’s say that the first three months of employment are to be considered a probation period. You could bring up the topic of your proposed salary, asking for the amount you would ideally want, while communicating a willingness to have this change come into effect once your probation period is over.
By that time, you’ll have shown your employer just what you’re worth, and in the meantime, you’ll be demonstrating patience and an ability to compromise.
If you go down this route, just be sure that your agreement is incorporated into your contract!
10. Be professional
The last thing you want to do is make a bad impression on your prospective employer. Even if the hiring manager is not ready to succumb and agree to your salary requirements, you must remain calm and professional throughout the conversation.
Reason with them in a polite manner, and avoid making any negative or rude remarks. Even if you can’t reach an agreement and you ultimately decide that you won’t accept the offer, you should still maintain a professional front and thank them for the opportunity when turning them down.
11. Consider other options
Even if you’re unable to negotiate a higher remuneration package, you should consider other valuable benefits that may be on offer with that company. While the salary may not be as high, the company perks and the career growth opportunities could offset the former.
You could also negotiate other aspects of the job, like the number of workdays, flexible work hours, overtime payments, remote work options, and so on. As already mentioned, your salary isn’t the only thing that a company has to offer — so, try to be flexible, and consider these other aspects before turning the job down.
12. Rehearse
Prepare a start-to-finish plan on how you will approach this discussion. Having a few key points that you want to make and practicing how to present them to the employer will help you have a more constructive conversation.
If you’re nervous, you can get a friend to help you rehearse. They’ll offer you the salary and practice countering the offer. By doing this, you’ll know which parts need to be revised and improved.
13. Get it in writing
After the negotiations, be sure to get confirmation of the agreed-upon salary and any other additional benefits in writing. Don’t consider verbal confirmation as binding for the company.
So, to avoid any misunderstanding, request a newly written job offer that includes all your agreed terms with the employer. This way, you’ll ensure that all your rights and privileges are guaranteed.
14. Know when to walk away
If you’ve tried to reach a compromise with the hiring manager, but they’re still not yielding, it may be time to back out.
While you should have realistic salary expectations, you must also recognize when a company is not valuing your skills and expertise.
If the company is unwilling to find a middle ground with you, either through a higher salary or other benefits, then this could indicate that the company isn’t a match to your career aims and professional goals.
15. Develop your negotiation skills
Negotiation skills are essential in advancing your career and ensuring that you’re not just scraping by but actually enjoying what you do. Indeed, it’s not an ability that’s just handy to have when discussing your compensation package with a potential employer.
Throughout your career (and even outside the office), make it your priority to develop your negotiation skills. You can do this by focusing on the following:
- Getting into the habit of listening actively to others, understanding their point of view
- Developing your emotional intelligence, including your empathy and emotional regulation skills
- Build your own confidence, so that you’re as objective as possible in assessing your own worth
Salary negotiation examples
When drafting your salary negotiation, it’s always good to follow a template — whether it’s for an email, a phone call or a face-to-face conversation.
Here's an email template for your inspiration:
Hi John,
Thank you for offering me the Sales Representative position. I would like to reiterate how excited I am for the opportunity to work for ABC Inc.
Before accepting the offer, however, I would like to discuss the remuneration package for this role. As we discussed in the interviews, my years of experience and formal training surpass the requirements in the job description. I also demonstrated my capabilities in my previous position by increasing sales in my division by 25% and personally landing several multimillion-dollar sales.
According to my research, the base salary should fall between $50,000–$60,000, based on the average annual salary range for this position. This is negotiable, as I would like to find an amicable solution for both of us.
Thank you again for your offer. I look forward to hearing back from you.
Regards,
Eliza Day
Phone/face-to-face conversation
Even though it might be intimidating and uncomfortable to negotiate over the phone, many hiring managers still call jobseekers to make a job offer.
If this happens to you, you could follow this conversation structure:
Hiring manager: Hello, is this Jay? We’re thrilled to offer you this position at our company. Our team is excited about the possibility of working with you as well. Regarding your salary, your position is budgeted at $49,000.
You: Thank you for this opportunity to work for ABC Inc! However, before I can accept the offer, I would appreciate it if we could discuss my salary. Based on my research, the average salary for this role is $60,000. While you’re making a respectable offer, I would like to propose moving the salary closer to $57,000. I believe this amount better reflects my skills, training and experience within this field and the duties of this role. I would appreciate it if we could discuss this further so we can settle on an agreeable solution.
Final thoughts
Even if it seems daunting, negotiating a job offer is often expected by employers. If you don’t, you could be missing out on a much higher remuneration deal as well as other great benefits.
But before you can start your negotiations, don’t forget to research, strategize, and prepare your key arguments.
Have you got any other tips you’d like to share with us? Let us know in the comments section below!
This article is a partial update of an earlier version originally published on September 25, 2017, and contains contributions by Electra Michaelidou.
