How to negotiate salary successfully while securing the job

When we think about a 'salary discussion', we often imagine something hush-hush, or uncomfortable. We've all been there. You find your dream job online, apply for the position, and manage to weave through countless interviews and screening questions until finally hearing the good news — you've got the job. However, that excitement is dashed when you read the offer in its entirety, and find out that the salary isn't what you were expecting

Now you have three options. You either accept the offer, decline it, or try to navigate the conversation of negotiating salary. While the latter may seem daunting, it doesn't have to be.

In fact, having open dialogue about your salary requirements is an important part of the job searching journey. In this blog, we will outline what you need to consider before tackling the conversation, and what tricks you should incorporate into your negotiation to land your dream role.

Market research, and understanding your value

When it comes to salary negotiation, research is your best friend. You're going to want to have a clear understanding of what is typical for your role, which will be impacted by your job title, responsibilities, industry, and the location you're working in. Salary benchmarking tools are great aids to help you understand what you should be earning in your current position, and they reveal the salary averages in your industry to ensure you’re getting the market rate for your role.

Remember to read the job description in its entirety. Businesses don't always reveal what the expected salary is for each role, but many do. If the salary on offer is well below your expected range, it may not be the right fit for you.

There might be wriggle room for increases even when the job has an explicit pay range, but you will have to aim for a similar figure. That's to say, if the offer is $80,000 per annum, it may be possible to push for $85,000 - $90,000. However, pushing for $95,000+ is overambitious, and would not align with what the business is looking for within its budget.

How do I know what my salary range is?

Your market research should give you a clear idea on your salary range. Make sure you are basing your desired salary on what you have researched through salary benchmarking and pay insights. While you can use your current job and current salary as a ballpark, your industry will be adapting to market changes continuously, so accessing real time salary data can ensure you know your true market worth at any given time.

Once you have an understanding of your pay range based on job position, industry and location, you can start factoring in other things. This may be how many years of experience you have, what seniority level you have, additional skills or education.

When is it the right time during the job process for salary negotiation?

At the end of the day, the hiring process is facilitating a business transaction. You may hear "this job is about more than the money", but realistically, every employer knows that we have to balance a love for the job with realistic earning power. While you want to be tactful with when you bring up the salary negotiation, you also don't have to be hesitant about it.

Naturally, it shouldn't be the very first thing you seem interested in. An employer might be unsure about a candidate who dismisses information about the role and responsibilities, to instead focus on the money. They will want a candidate who has an interest in the company's values, the work itself, and the goals they are trying to achieve. You're going to want the hiring team to be interested and invested in your application before you tackle any negotiation, as this gives you more bargaining power when the process starts.

While every interview and business may be different, it is typically best to negotiate salary when you receive a job offer. This does not mean this is the very first time salary is mentioned, but rather, when you can start discussing your desired salary more seriously.

Recruiters or hiring managers typically ask your desired pay range in the application process, and during phone screenings. Make sure that if they do, you have already stated your desired pay and have that number clear in your head. Once you have wowed their team, and they make their offer, you can begin the conversation.

Does negotiating salary cause the hiring manager to look at other job candidates?

People are often hesitant to negotiate their salary because of the fear of losing out on the opportunity. You might be worried that the business decides to go for another candidate who has already accepted the offer put forward. This scenario is unlikely to occur if you have taken the right steps. If you're making your negotiation after they have made a job offer, you already have the greenlight that the business wants you in their team. If you remain professional and open-minded, there shouldn't be any concerns on the business's end to try and find a suitable offer that works for both parties.

Tricks to improve salary negotiation

1. Don’t underestimate the importance of likability

• Why it matters: People are more likely to agree with someone they like. During negotiations, your demeanour can play a significant role in the outcome. Approaching the conversation with a positive, friendly attitude helps establish rapport and makes the other party more inclined to meet your requests.
• How to apply it: Be polite and show appreciation for the offer. Use phrases like, “I’m really excited about this opportunity,” to express your enthusiasm while gently steering the conversation toward your requests.

2. Help them understand why you deserve what you’re requesting

• Why it matters: Employers need to justify increased compensation, so providing clear, quantifiable reasons for your request is essential. When you back up your salary expectations with evidence, it’s easier for them to see the value you bring to the table.
• How to apply it: Highlight your relevant skills, experience, and achievements that directly contribute to the company’s goals. Use specific examples, such as past successes or unique qualifications, to make a compelling case to justify your requested salary.

3. Understand their constraints

• Why it matters: Employers often have budgetary limits or salary ranges they must adhere to. Understanding these constraints can help you navigate the negotiation more effectively and avoid asking for something that’s simply not feasible.
• How to apply it: Ask open-ended questions like, “Can you help me understand the salary structure here?” or “What are the budgetary limits for this role?” Showing that you’re aware of their limitations and willing to be flexible can make negotiations more collaborative.

4. Be prepared for tough questions

• Why it matters: Salary negotiations can involve difficult questions, such as why you’re asking for a specific amount or how you’d react if the company couldn’t meet your request. Being prepared to answer these confidently can prevent the negotiation from stalling.
• How to apply it: Anticipate potential questions and practise your responses. For example, if asked why you’re asking for a higher salary, you might say, “Based on the market rate for this role and my experience, I believe this salary is fair.” Being ready with clear, reasoned answers shows that you’ve done your homework.

5. Consider the whole deal

• Why it matters: Compensation is about more than just salary. Other benefits, like health insurance, retirement plans, bonuses, and professional development opportunities, can significantly impact your overall package.
• How to apply it: When negotiating, consider the entire offer and be open to compromise. If salary flexibility is limited, you might negotiate for additional vacation days, a signing bonus, or professional development opportunities. Showing that you value the whole package can make you appear reasonable.

6. Avoid, ignore, or downplay ultimatums of any kind

• Why it matters: Ultimatums can create tension and make negotiations adversarial. They can also backfire, leading to the employer withdrawing the offer altogether. Keeping the conversation positive and collaborative is crucial.
• How to apply it: Instead of issuing ultimatums, frame your requests as preferences or desires. For example, rather than saying, “I need this salary, or I’ll have to walk away,” try, “I’d be more comfortable accepting this offer if we could discuss a higher salary.” This approach keeps the dialogue open and constructive.

What other benefits should candidates look for in a compensation package?

Remember, money isn't everything. If you're looking for a job that caters to your lifestyle, there are many other factors that you should consider to ensure you're happy in your role long term. Here are some key benefits to look for:

• Health insurance: Comprehensive health, dental, and vision coverage, including family plans.
• Bonuses and incentives: Performance-based bonuses, profit-sharing, or stock options that can increase earnings.
• Paid Time Off (PTO): vacation days, holidays, sick leave, and personal days.
• Work-life balance: Flexible working hours, remote work options.
• Professional development: Opportunities for training, certifications, and continued education that can enhance career growth.
• Wellness programs: Access to mental health resources, gym memberships, and wellness incentives.
• Employee perks: Discounts on services, commuter benefits, and access to company resources, such as wellness programs or child care assistance.
• Job security: Stability in the role, a clear path for advancement, and a supportive company culture.
• Financial assistance: Tuition reimbursement, student loan repayment programs, or assistance with relocation expenses.

Want to start earning more money?

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