For many people, the thought of having to negotiate salary after receiving a job offer can be intimidating.
The idea of coming across as greedy has kept many job seekers from trying to negotiate their desired salary. But you’d be surprised how often negotiation is successful; in fact, the majority of employers expect their job candidates to bargain for a better deal!
In today's competitive job market, it is essential for candidates to master the art of negotiation in order to get paid what they’re worth. Negotiating salary not only gives you leverage with your employer but also makes you stand out from other applicants who accepted their initial offers without further deliberation.
Learning to properly negotiate salary and other benefits after being offered a position can significantly increase your compensation package and help ensure fair treatment by your future employer. So if you recently received a job offer and plan on negotiating the terms and conditions, here are some tips you need to know before entering discussions.
1. When Does A Salary Negotiation Happen?
You should typically only negotiate salary after an agreement in principle from the hiring manager has been reached.
Your potential employer has invested a lot of time and money into the negotiation process, so they are likely to want to reach an agreement. Remember - negotiating never makes worthwhile offers worse.
2. Become familiar with industry salary trends
Consult the Talent Locker Salary guides or further market research to get an accurate view of what a realistic salary or rate looks like in your sector. You can access our guides below:
MS Dynamics Contractor Rate Guidance
Pay special attention to the most popular job titles and most in-demand skills that were included in your job description. If you have experience in a desired skillset, you may be able to negotiate higher pay.
3. Build your case and know your worth
Firstly, highlight your strengths and explain why you deserve more than the initial salary offer.
Look at your skill set, previous experiences, and successes in relation to the offered role. Make sure to also mention any certifications or specialized technical skills you have that will benefit the company.
Have a think about the salary range you are negotiation. Consider the minimum starting salary you would accept as well as your ideal base salary. If you are pitching for a number that is much higher than your current salary, make sure you have the evidence to back it up.
It's important to know your own worth and the unique experience and knowledge you bring to a role, especially when returning to work after a career break. According to a study by PWC, three out of five women returning to the workforce will move to a lower skill role, reducing their earnings by a third.
Don't be afraid to ask for what you want - you won't get it if you don't ask!
And do not compromise excessively to get an employer to hire you. An ideal situation results in both parties being optimistic about their future together.
4. Tell the truth
Honesty is essential when negotiating salary.
Do not invent a competing job offer or inflate past salaries as you could land yourself in a sticky situation. Dishonesty could even lead to an offer being withdrawn if you're caught out.
5. Factor in perks and benefits
Salary negotiations should also include a discussion of employee perks and benefits.
Consider what is valuable to you when negotiating an offer. Look at what benefits you were offered in previous roles, or what would add real value or savings to your lifestyle.
Compare health insurance coverage, retirement savings plans, company cars, and other benefits when considering multiple offers, and also factor in professional development opportunities.
You could even negotiate with employers for additional benefits if they are not willing to negotiate on the pay range.
6. Practice your delivery
Practicing your conversation before meeting with a hiring manager can help you project confidence and answer unexpected questions. To make it more realistic, ask a friend or mentor from the corporate world to help you practice.
Basically, practise makes perfect and you want the actual negotiation to be as convincing as possible.
7. Know when to wrap it up
Negotiating salary should be done respectfully and in a timely manner.
If the company cannot meet your requirements after a few discussions, it is probably best to withdraw from negotiations.
Instead, suggest a three or six-month salary review if the employer is unable to meet your expectations.
Or, focus on opportunities that better match your compensation expectations.
Conclusion:
Negotiating salary after getting a job offer is an important step in the hiring process. It is important to do research on the market rate for your sector, build a case for why you deserve more than the initial offer, and practice your delivery before entering into negotiations.
Additionally, it is important to factor in perks and benefits when negotiating salary, as well as know when to wrap up negotiations if the employer is unable to meet your expectations.
And finally, if you do not feel satisfied with the outcome of the negotiation, schedule in a salary review or look for another opportunity which you feel better matches your expectations.
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