9.1 Why you should always consider negotiating your salary
Many candidates assume that when they apply for a job, any stated salary is final, or that they should accept a salary at the lower end of the proposed salary bracket. Whilst it is true that some companies are not willing to increase the stated salary, it is acceptable to negotiate the conditions of a job offer. In this module, you will learn why it is a good idea to negotiate (even if you do not get the outcome you want), how to negotiate the various kinds of benefits your prospective employer can offer and why pursuing several jobs at once will put you in a strong position.
A failure to negotiate could make you appear naı̈ve and it suggests that you are willing to take an employer's first offer, even if it does not reflect your true worth. Remember that your lifestyle is not your employer's primary concern - their aim is to employ a competent person for the lowest possible price. Do not assume that an employer will automatically look to others working in similar positions to determine what they will pay you - your new colleagues may be better negotiators and enjoy better compensation as a result.
Ultimately, the process of making and accepting a job offer is a business deal. Negotiations are a standard part of the selection process and if an organisation is going so far as to negotiate your salary, you can be confident that they think you can add value to their company. It is unlikely that they will withdraw an offer on the basis that you have tried to negotiate. Knowing or suspecting that you are being paid less than you deserve leaves you vulnerable to low job satisfaction and resentment. If you discover that your colleagues are receiving higher salaries than you, this will lower your morale and lead you to resent your employer. Once you are established in a new role, it will become harder to ask for a raise as time goes on.
Your starting salary also has a significant impact on the salary a future employer will pay you. When you consider the effect that these negotiations have over the long run, you will appreciate the value of holding out for suitable remuneration. Knowing your own worth and insisting on adequate compensation is one of your most important skills as a professional.
Activity 1: Finding Your Market Value
Estimated time: 10+ minutes
Using a recruitment website, such as Monster (monster.co.uk) or Reed (reed.co.uk), search for a specific type of vacancy in your chosen field - either the same role you currently occupy or one you would like to find in the future.
Compare the salaries listed on three to five of the advertisements generated by your search. If there is significant variation, why do you think this is?
Looking at the advertisements and the stated salaries, what kind of salary do you think you could command?
Take into account your experience, qualifications and any extra training you have undertaken in your field.
9.2 Why you should pursue several jobs at the same time
Assuming you have not already adopted this strategy, consider making it a personal policy to pursue at least two jobs at any given moment in time. This will leave you in a stronger position with regards to negotiating a better compensation package and ultimately, increases your chance of securing a higher salary and more comprehensive benefits.
Here is why this approach works in your favour:
It boosts your confidence. Assuming that you are applying for jobs within your sphere of competence, making several simultaneous applications increases the odds that you will receive more offers and second interviews within a shorter space of time. This will act as confirmation
of your worth in the job market, raising your confidence with regards to your capabilities. It gives you a realistic view of your field and allows you to learn what others are typically offering those in your desired position. Reading job advertisements is a good starting point, but obtaining live offers from several organisations will show you how well your research translates into the real world.
Dealing with multiple companies allows you to hone your negotiation skills. You will learn how to “read” a situation and the conventions in your field as regards pay, conditions and negotiations. You will learn that employers anticipate a degree of negotiation when taking on a new employee and that most people will not think you unreasonable for requesting a salary
that reflects your market worth.
If two companies make you offers at the same time, you can use each as leverage against the other. Although it requires diplomacy and skill, it is theoretically possible to use a competing offer as a means of convincing an employer that you are worth more than their proposed salary.
Fact
As of 2016, nearly half (48.9%) of British employees had accepted more than one job offer at the same time and then attempted to negotiate with employers.
Source: telegraph.co.uk
9.3 When to negotiate your salary
To some extent, the timing will be dictated by the interviewer. If they ask during the interview, this signals the start of the negotiation process. How you respond should depend on whether the role was advertised with a stated salary. If the advertisement indicated a salary bracket that is in line with market rates - in other words, that appears reasonable - it is up to you to convince the interviewer that you should be earning a salary in the upper half of the bracket (if it reβlects your experience and skills). Should your research suggest that their proposed range is lower than the standard market rate, ask why this is.
If a job advertisement made no mention of a specific figure, the negotiation process will be more complex and your research will be particularly important in securing you a fair deal. As a general rule, it is a good idea to let an employer make the first offer. If they ask you to tell them what you believe the role to be worth, return the question and ask whether they have already discussed a possible salary bracket. Just because they elected not to give a figure on the job advertisement does not mean that they will not have discussed the matter! You should already have established a suitable range that you would be willing to accept, before attending the interview.
If the interviewer makes an offer that is in line with your expectations and you have no reason to think that your skills and experience warrant a higher salary, there is nothing wrong with accepting it during the interview. However, if an offer is lower than you would expect, you should be prepared to aim for a higher sum. Begin by thanking the interviewer for making you the offer, even if it is significantly less than you anticipated; then ask whether you can discuss the figure further. When the interviewer asks for your thoughts, calmly explain that you have researched the average salary range for similar jobs in the field and you would have anticipated a higher starting salary.
Demonstrating an ability to negotiate may actually enhance your appeal, particularly if you are entering an industry that values this skill.
Negotiating salary after an interview
Some employers will not discuss salary until the interview is complete and an offer has been made. This works to your advantage, because it gives you extra time in which to research comparable roles in your field. Although you should have gone to the interview with a salary range in mind, you might have discovered during the interview that the role was not quite as described.
For example
If you found out during the interview that the job actually comes with more responsibilities than those outlined in the advertisement, you may carry out further research and come to the conclusion that the job is worth more than you thought. If your interviewer was particularly helpful, they may make a point of telling you what the company needs most. Should you happen to possess the skills that could solve their problem or help them expand, you have grounds to increase your salary expectations. Never try to appeal to an employer's emotions or sympathy when asking for a higher salary. They will be looking to make a decision that benefits the business - it does not matter whether their proposed figure supports your lifestyle.
Consider how long the position has been open
If you are looking for a job via a recruitment website, you will be able to see how long the website has hosted a particular job advertisement. If the advertisement has been published for more than a month, this implies that the organisation is having trouble finding a suitable candidate to fill the position. This may mean that they will be more flexible in a bid to find a good candidate for the job.
Always have a valid justification ready when asking for a higher salary
An employer will want to know why you are seeking a particular salary, so be ready to support your request with a convincing case. Ideally, you should also take the opportunity to demonstrate that you understand the company's needs and that you have the skills that can make a difference to their productivity and profits.
When citing average salary brackets for others in your industry, name your sources. Credible sources include the results of surveys published in trade magazines and βigures on leading career websites, such as Glassdoor. You could also cite salaries paid to others working in similar roles and even go so far as to mention figures named in advertisements for vacancies offered by their competitors. If you have recently been offered a higher salary by another company, then say so - but then tell them that, if they could match the offer, you would prefer to work for them instead. However, you should never fabricate stories of companies and job offers that do not exist. An interviewer may see through this strategy and it can backβire if they decide to withdraw the job offer.
If you did not make a comparable salary in your previous job, have an explanation to hand
If you are trying to negotiate a salary that is signiβicantly higher than the amount you received in your previous job, you need to bring the focus back to the present. Tell your prospective employer that the two positions are not comparable and be ready to explain why. You could perhaps emphasise that your day to day duties were different, or that your previous organisation took a different approach in putting together their pay scales.
Should these strategies fail, you can choose not to answer, but be sure to word your response in such a way that the onus to behave in a reasonable manner is placed back on the other person.
For instance
You could say “I don't think that my previous salary is relevant. I'd like to keep this negotiation focused on the present. May I ask why you need to know in this context?”
Always maintain a high level of enthusiasm
Although employers expect to negotiate with a successful candidate, they will not want to dedicate many hours to the process. However, they will be more accommodating if you remind them how keen you are to start working for the organisation and how happy you are to have received an offer in the first place.
9.4 Negotiations go beyond salary
Salary is perhaps the most obvious benefit of working for a company, but it is far from the only form of compensation! Bear in mind that a young company may not have the budget to provide you with your ideal salary, but they might be able to supply other benefits. If you have conducted background research on the firm, you should know their financial position and, therefore, what constitutes a reasonable request as far as salary is concerned. Along with your knowledge of what constitutes an average salary in your βield, you will be in a good position to make a fair petition.
You may be able to negotiate the following:
1.Your pension scheme
2.Private health insurance
3.Further education and training
4.A company vehicle
5.A bonus scheme
6.The chance to take cash in lieu of a benefit
7.Annual leave
8.Flexible working hours
9.The chance to work from home
Not all of these benefits cost an employer money, but you should still do the research necessary to ascertain whether your requests are reasonable. The company's ethos and culture will typically determine whether they are willing to offer flexitime (a system whereby an employee agrees to work a certain number of hours per week, but has some freedom regarding when these hours are worked) or home working, for example.
Always get a document listing all of the terms and conditions of your contract in writing, before accepting an offer of employment. A reasonable employer will understand why you would want to double-check that the role is exactly as advertised and that all parties are willing to agree on the details discussed during or following the interview stage.
Be a simultaneous negotiator
Do not drag out negotiations by attempting to negotiate one part of your compensation package, then returning the following day or week with a new request. It is better to draw up a list of everything you wish to negotiate and work through them in one conversation. You may feel self- conscious about bringing out a small list of requests, but your prospective employer would much rather you take this approach and resolve all the issues at once.
Do not make ultimatums
Laying down an ultimatum will make you appear petulant and unprofessional. Negotiating a salary takes diplomacy and demanding that an organisation meet your demands is an inappropriate, aggressive course of action that will make the company rethink their decision to hire you. You should also remember that virtually no-one is irreplaceable. If you behave in an unreasonable fashion, a company can and will withdraw an offer.
Give yourself a couple of days to think about an offer
It is considered perfectly reasonable to take some time to think through your options. Most employers will be happy to give you a day or so in which to consider whether you want to accept an offer. There is a risk that they will rescind the offer in the interim, but it would be unreasonable of them to do so and you probably would not want to work for such a company anyway. On the other hand, remember that you probably appreciate a prompt decision - so do not keep them waiting too long.
Fact
Almost half (43%) of workers believe that a company should make recruitment or salary-related decisions within two days.
Source: telegraph.co.uk
Ask about future raises
If you would like a higher salary, but your prospective employer is adamant that it is not possible, you should ask for more information about the organisation's policy on performance reviews, raises and bonuses. You should also request information about the company's management structure and their policy regarding in-house promotions.
If they do not have a clear policy in place with regards to reviews, make a speciβic request that you be given an agreed-upon length of time in which to prove your worth to the company (e.g. three months) and then be given a pay review. Be sure to get their response in writing, otherwise there is a chance that they will βind some reason to delay reviewing your salary at a later date.
If you cannot accept the offer, remain professional
You may think that the organisation is not in a position to offer you a reasonable compensation package. In this case, you may make the choice to move on and look for another job. Always thank the employer for their time and do not speak badly of them to other people in your social or professional networks. You may unwittingly offend someone who happens to be a friend or colleague of the individuals concerned. Furthermore, the organisation may not have withheld a higher salary for the sake of exploiting you - the firm may be in financial trouble, or other circumstances may have conspired against you. In short, try not to take it personally. If someone asks you why you did not accept the job, say that although you admire the company, you could not agree on a benefits package that suited all parties.
Activity 2: Negotiating Other Benefits
Estimated time: 5+ minutes
Although salary is a key concern for most people, you should consider negotiating other elements of your compensation package.
What other forms of compensation might you be able to negotiate in a job interview or in follow-up discussions?
Do you think that some organisations might be more or less willing than others to compromise in certain areas? Why?
Module Summary
Your negotiation skills can make a substantial difference to the salary you receive from your employer. Although most people assume that negotiation tends to focus on salary, a range of benefits can be discussed, such as annual leave and the opportunity to work from home.Before negotiating salary, carry out comprehensive background research that will provide you with insight into what others working in similar fields are earning. An employer will always think of their bottom line first and will not leap to make you a high offer unless they are in desperate need of your services and you are the only person capable of performing the role.
Bear in mind that an employer will often look back over your work history and ask what you were earning in your previous position, so be prepared to justify a request for any increase in salary - or at least to deβlect the question. To boost your conβidence and gain valuable insight into your market value, aim to pursue at least two jobs at once. If you are a skilled negotiator, you may be able to play two employers off against one another to secure a higher salary. However, you should never fabricate job offers during the bargaining process - this is a high-risk strategy that can readily backβire.
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