Table of Contents
Negotiating Salary: An Overview
A job offer is in line for you but the salary range isn’t meeting your expectations. How do you convey this to the recruiter? You know your qualifications and skills but how do you translate the value you’ll be adding to the company and convince them to understand it?
This is where the tactics, skills, tips, and strategies on how to negotiate salary help you.
You have to be smart enough in how you communicate your expectations or accept other compensation forms like equity, stock options, or additional perks. If this task intimidates you, iBovi Staffing brings this detailed guide with practical salary negotiation tips. You can check these out and craft a strategy that works well for you when you are offered a salary that doesn’t seem fair.
Why Negotiating Salary is Important?
When we discuss the importance of negotiating salary, many important points come up. Here are a few of those that highlight why you need to know how to negotiate salary:
Earnings over a Long Time
Many job-seekers accept the first salary offer they receive, fearing that negotiation might jeopardize the opportunity. However, failing to negotiate can result in lower earnings over the long term.
Studies show that employees who negotiate their salaries tend to earn significantly more over their careers compared to those who accept initial offers without question. So, if you don't negotiate your salary now, you might miss out on thousands of dollars over the course of your career.
Showcase your Confidence
Negotiating your salary also shows your potential employer that you are confident and value your skills and experience. Moreover, it can also demonstrate that you are a proactive professional who is willing to take initiative and speak up for what you want. This can be beneficial for your career in the long run.
Ambition & Drive towards your Career
Asking for more money can also showcase your ambition and drive, which employers usually look for in potential candidates. For job seekers, negotiation is not just about money. It also involves benefits such as bonuses, stock options, vacation time, remote work flexibility, and professional development opportunities.
Understanding that employers expect negotiations will give you confidence in advocating for your worth.
Hitting your Financial Goals
Negotiating can help you get a better salary package, which can be beneficial for your financial goals.
How to Go about Negotiating your Salary- Steps
When you think of what to say when negotiating salary, here are the steps you can take to kickstart the process:
Step 1: Preparing for Salary Negotiation
Before negotiating your salary, research the company and industry to determine the salary range for the position.
This will give you a clear idea of what to expect and what you can ask for. Also, prepare a list of your skills, experience, and accomplishments to showcase your value to the employer.
Make sure to practice answering common interview questions beforehand. Finally, research the company thoroughly, so that you can ask informed questions and demonstrate your knowledge of the organization.
Step 2: Making the Initial Request
When making your initial request, be confident and specific about what you want. Ask for a salary that is within the industry standard for the position and take into consideration your qualifications and experience.
Be prepared to back up your request with concrete examples of your accomplishments and how they can contribute to the company.
Be sure to do your research on the company and the position before you make the request. Show that you understand what the company needs and how your skills can help meet those needs. Lastly, be willing to negotiate if necessary.
Read More: Questions To Ask When Starting A New Job
Step 3: Responding to the Employer's Offer
Once you receive an offer, take the time to evaluate it. If the offer is lower than your expectations, it's okay to negotiate.
Politely express your gratitude for the offer and ask if there is any room for negotiation. Also, ask for other benefits such as healthcare, retirement benefits, or vacation time if you feel like the salary offer is too low.
Step 4: Counter-Offer and Final Negotiation
If the employer offers a lower salary than you expected, counteroffer with a higher number that still falls within the industry standard.
Be prepared to negotiate other aspects of the job such as work hours, vacation time, or remote work if the employer cannot match your salary request. Remember to keep the tone of negotiation respectful and professional.
Tips, Strategies, and Tactics for Salary Negotiation
Now, let’s take a look at the tactics that answer how to negotiate salary in an interview or when given a range:
Making Sure you’re Likable
While basic, it is crucial that you strive for the hiring board to like you so they can compete for you. This portion especially comes to the fore when discussing salary expectations and negotiations. If you do something to reduce your likability, you’ll find it difficult to raise your salary.
It’s not about being polite during negotiation. You have to be skilled in managing the inevitable tensions that are sure to arise during this process. If you’re asking for more, it has to be without seeming greedy and by pointing out deficiencies in their offer.
There shouldn’t be any pettiness or persistence that seems like a nuisance. You can avoid these pitfalls by practicing your negotiation skills and understanding how others perceive your approach.
Incorporate Anchors that Leave a Powerful Impact
When negotiating, you need to build a case for yourself with a salary that is at the high end of the range. Your responses to the tough HR questions should seem like a “non-offer offer.” This means it should be powerful enough to steer the discussion in your favor without appearing extreme.
As an example, suppose the average salary range for your position in the market falls between $70,000- $80,000. You shouldn’t settle for $80,000, saying you deserve it. If you feel more than $80,000 salary is within your reach, you can phrase your sentence like, “Apologies for any inaccuracies, but I’ve heard people at my level earn $80,000- $90,000.”
Now, this powerful statement will steer the conversation in your favor without seeming like a demand. These types of conversational skills and smartness are quite important in learning how to negotiate salary.
Have the Convincing Power about Why you Deserve More
You’ll have to express why you’re worth the value you’re requesting the company to pay you. For that, let the proposal speak for itself and add a story that explains it fully. Expressing your desire for 15% more salary or one day work from home isn’t enough– justify it with appropriate reasons that officers can accept.
Here also, you have to understand the thin line between demanding and becoming likable. Express your worth without sounding arrogant through proper communication.
Take any Expenses you’ll have to Incur in Account
If by accepting the job, you’ll be incurring significant expenses, you must add those to your salary negotiation. This can involve relocating to another region or spending extra on commuting to the office from home.
There may be moving costs– selling, buying, or leasing expenses. Train fare, fuel, and wear and tear of the vehicle are other expenses that might be associated to your job. It’s not unusual for you to request more money to accommodate these costs.
Don’t Accept the Offer Immediately, Take Time to Think
When you get the job offer, you should request time from the manager to consider it. If you accept it immediately, you may lose sight of some things, like any expenses for the job. You must politely ask to get some time and ask for a deadline by which you can respond.
Real-Life Example of Salary Negotiation
As a real-life salary negotiation example, an employee was laid off of work where he was earning $110K + 8% bonus, which would come to $117K. He applied at two places- one where the offer was $160K and the other he had quoted $130K-140K. The market average was $110K- $120K at the time.
While the former company didn’t give him any offer despite landing in the final round, the latter one did. They were negotiating at $130K but he upped the ante and requested $140K.
While he spent the jittering night hours waiting for their response and questioning his boldness, he was pleased to receive the final offer of $140K from them and accepted it immediately. This shows the benefits of when you know how to negotiate salary properly.
Don’t Let your Deficiencies Get in your Way
Sometimes, in salary negotiations, our mind gets in our way. You might fail to identify opportunities to negotiate and fixate on weaknesses. As a result, you might create concessions in your mind before the negotiation even starts. The internal dialogues we have with ourselves are the first things we need to conquer and make positive.
You should start by asking for an amount that you can defend and explain your value to the organization. Make sure you mold the communication in a way where flexibility has an adequate chance. It’s because the other party may offer a less attractive alternative.
Additionally, if you’re worried about your vulnerabilities, you can plan to compensate for them. For instance, if you’re worried about explaining any gaps in work history, you can think of what you’ve done during that time and share it with enthusiasm.
Try to Understand the Person Across the Table
People in the companies negotiate, not the companies themselves. So, before you try to influence the other person, understand them. For instance, negotiating with a potential manager differs from negotiating with an HR representative. While you might feel comfortable asking the HR representative detailed questions about the offer, you’d want to avoid irritating a future manager with minor requests.
On the other hand, HR might be hesitant to make exceptions if they’re handling multiple hires. Whereas a manager who stands to gain directly from your joining the team may be more willing to advocate for you to secure special terms.
Check the Full Package they’re Offering
When weighing a job offer, money is not the only thing that you will consider. You may also get incentives and other forms of compensation other than cash. If you’re not getting any wiggle pay with cash, try to negotiate with other options. This includes a more flexible schedule, a signing bonus, increased stock options, and professional development opportunities.
Check Out: Interviewing Tips and Techniques
Be Understanding of their Constraints
They might like you and believe you deserve everything you're asking for, but that doesn't mean they'll give it to you. Why? Because there may be firm limitations, like salary caps, that no amount of negotiation can change. Your task is to identify where there’s room for flexibility and where there isn’t.
For example, if you’re negotiating with a large company hiring 20 similar candidates, they likely can’t offer you a higher salary than the others. However, they may be open to adjusting your start date, vacation time, or signing bonus.
Conversely, a smaller company hiring for a new role might be able to adjust the salary or job title but have less flexibility in other areas. Understanding these limitations increases your chances of proposing solutions that work for both sides.
Walk Away with Gratitude if not Satisfied
Finally, if an employer isn’t ready to meet your salary standards for whatever season, you can express gratitude for the offer and politely decline. It’s essential that you choose a job that is worth your time, effort, and a lesser amount if you accept it.
Sometimes, a lower salary can come with perks like a flexible work schedule, proximity to your location, or a less stressful position. In that case, it will depend on what is worth more to you.
Negotiate Well for Higher Earnings
Negotiating salary can be an intimidating process, but it’s a critical step in ensuring that you are fairly compensated for your skills and experience.
By doing your research, preparing a list of accomplishments, and confidently knowing how to negotiate salary, you can successfully accomplish this task and start your new job with confidence.
Knowing your worth and having the courage to ask for it can be a difficult process. However, having the confidence to negotiate can help you to get the salary you deserve. Always remember to stay professional and remain focused on the outcome you want.
If you are looking for more recruitment industry-related insights, tips, and guidance, check out iBovi Staffing blogs.
FAQs
Is it appropriate to negotiate salary for an entry-level position?
Yes, it is appropriate to negotiate salary for an entry-level position. However, be mindful of the company's budget and the industry standard for the position.
How do I negotiate my salary if I don't have any experience?
If you don't have any experience, focus on your skills and education. Research the industry and the position to determine the salary range for the job.
Can I negotiate a salary after accepting a job offer?
It is possible to negotiate salary after accepting a job offer, but it can be more challenging. Approach the negotiation with a respectful and professional tone and be prepared to back up your request with concrete examples of your value to the company.
Comments