How to Negotiate Your Salary (Even in These Challenging Times)
So, you’ve navigated the interview process and just been offered your dream job.
Now the hard work begins – it’s time for the dreaded conversation. It’s time to negotiate your salary and benefits. And we’re in the middle of a pandemic.
Here are some tips to get you prepared:
Understand the Perspective of Your Future Boss / Company
You have value. That’s why you’ve been offered the role. But however much the company says they like you, they still have one thing to think about: Can they afford you?
Times have certainly changed. Your champagne tastes might simply be too much for their beer money.
So, think what figure really works for you. At least, works for you for now. But make sure you continue to invest in yourself to justify a better salary for the next salary negotiation.
But remember, this is a negotiation. There’s no reason to think that they’ll pay any more than they get away with. They do have budgets to balance, after all.
Be Prepared
Don’t go into the discussions by picking a number out of thin air. I’ve done it and ended up getting seriously underpaid.
It’s fundamental that you know what the market is offering. Look on job boards such as Monster and Indeed for comparable roles in your industry. See what you can find on LinkedIn.
This should at least give you a ballpark to work with.
Yes, the job market has changed. The world’s changed. But try not to sell yourself short. Write down a list of why you are worth the figure you quote.
This could reflect your years of experience, how much you are currently earning (be truthful!), the qualifications you’ve earned, how much money you have generated for your current employer, the client relationships you can bring with you, and so on.
Fair enough, you might love the job so much that you’ll be happy to accept a below-market remuneration. But keep in mind that what you earn in that job becomes the reference point and negotiation starting point for your next role. And that will have a bearing on the role after that…
The employer may well throw in a question during the interview process (“What kind of salary are you looking for?”). If they do, try to deflect it. If you can’t, at best give them a salary range and make sure it’s a range you can justify.
Ultimately, this is meant to be a conversation for when it’s clear they want you and you want them.
Bid First or Bid Second?
Conventional wisdom tells us that you shouldn’t make the first offer in a negotiation. The idea is that you can be more strategic if you let the other person go first.
Sadly, it doesn’t always play out that way.
There’s also a ton of research that suggests that making the first offer actually gives you the upper hand by helping you to anchor the negotiations with a figure.
Whichever approach you do choose, the important point is to go into the negotiation with as much information and confidence as possible. If you know market pay dynamics and have the poise to sell what you know, you’ll be in a good position.
Negotiate Your Salary (but Also Your Benefits)
Don’t just focus on your salary. You could be leaving money on the table
Many see benefits as a side issue, when actually they should be treated with the utmost respect. The value they can add to your overall package can be considerable, particularly healthcare. I’ve known many bankers who would suggest that their pay was quite modest, only to paint a very different picture by providing information on school fee subsidies, cheap mortgages and housing allowances.
And if you were entitled to membership of a private club, think about the residual, non-monetary benefits that might offer. For example, access to a professional network could offer many future opportunities.
Before you start negotiations, know what benefits are particularly important to you. Find out what benefits are offered and negotiate if necessary for those that matter. We may be in a crisis right now, but that shouldn’t stop you from negotiating potential benefits.
Get It All in Writing
In a previous life, when I started a new role internally I was promised a bump up in my bonus if I would forgo some of my housing allowance (that I was perfectly entitled to). I was new to the team (and country) and being the team player I agreed. Well, it’s safe to say that at the end of the year I didn’t see a like-for-like match…
“Gentlemen agreements” and handshakes are all well and good, but they tend not to be legally binding. So as soon as possible, make sure that everything agreed upon is written into your contract.
You wouldn’t be the first candidate to have been promised something in the interview process that doesn’t materialize when you’re actually on the job. So negotiate your salary in the correct manner.
