One of the key ways that many people measure this success is by the amount of money our employer deposits into our account every two weeks.
Of course, there are other factors than money that determine career success, such as liking your job, doing meaningful work, and feeling a sense of accomplishment at the end of the day, just to name a few. But right now, we are talking about the bottom line, how to negotiate a starting salary. How do you ask for – and get – the salary you think you deserve.
Most of the time, the first step is to change jobs.
While it is possible to negotiate a pay raise from your current employer, we cover how to do that in a separate article. Usually, employers are more generous with the salaries they offer to new employees they are trying to recruit than they are with their own loyal staff. This may not be sound business policy since recruitment is a risky and expensive proposition, and it becomes less necessary if you can retain your current staff. Still, the fact remains that it is usually necessary to change jobs in order to achieve a significant boost in pay.
How do you negotiate your starting salary with a new employer?
If the job you have applied for lists a salary amount or a pay range in the job description itself, then this gives you a good idea from the outset of how much you can earn from the position. However, in many cases, even these pre-stated salary levels can be negotiable, depending on how much the organization wants to hire you.
But in some cases, you won't see the compensation mentioned in the job posting. This means you will have to do your homework so that you can enter into the negotiations prepared with information such as:
- How well the company tends to pay compared with similar organizations.
- The market rate for positions such as yours.
- The unique benefits that you bring to the table, making you a high-value candidate for such a role.
- Other perks and benefits the company offers that can sweeten the deal.
Don't be the first to mention money
Naturally, the more a company wants to hire you, the greater the compensation package they will offer. An essential part of being such a prized candidate is conveying the message that you are passionate about the role and the work itself and excited about joining the team. Of course, you want to be paid, but if you are the one to bring up money early in the recruitment process, it can subtly give the impression that you are only in it for the paycheque.
Employers tend to favour those candidates who are motivated by more than just money, especially those who want to work for them specifically. Flattery does work.
So, use the job interview and initial conversations to win over the employer with your professionalism, knowledge of the industry, and enthusiasm for the role. That way, when the discussion of salary does come up, it will be at a time when the company is convinced that they want to hire you.
Waiting for the employer to mention compensation first also leaves open the possibility that they will give you a ballpark number as their budget for the position. This puts you in a stronger negotiating position.
Try not to mention a figure first
When an employer tells you a range they are willing to pay, you have some idea of how much you can ask for – or at least start out with as a talking point. Once you tell them what you are willing to work for, you can't reasonably turn down an offer of that amount. So, there is much power to gain in a negotiation by not being the first person to talk numbers.
However, you don't always have the option not to. Quite often, an employer will ask you straight out what your salary expectations are. They have a budget to work within, and they want to make sure they can afford you. Cost can also become a factor in choosing who to hire amongst similarly qualified candidates.
State a pay range
Naming your salary expectations when negotiating a contract can present a dilemma. You don't want to sell yourself short and end up earning less than you deserve, but you also want to avoid pricing yourself out of the market.
This is why doing your homework is so important. When you tell an employer what your desired salary would be, you should have some idea of the company's pay structure and what the general market pays for roles such as yours. See the latest salary data from Talent.com.
Then, to avoid stating a number that is too high or too low for the job, tell the employer a salary range that could live with. Bear in mind that the lowest number in your range has to be something you would accept, and the highest has to be reasonable. Anything else will come across as amateurish and unprofessional.
Here's an example:
"Sales leaders at this level generally earn between $75,000 and $90,000 as a base salary, depending on the commission structure and bonus options as well as the size of the team they lead. Given my track record of growing market share for major brands, I come in towards the higher end of that range. But, of course, the amount depends on the details of the role itself and the overall compensation package. What can you tell me about those?"
And now you are negotiating. The employer knows roughly how much you want to earn and that they can nudge that number up or down depending on what else they offer you.
Remember that money isn’t all that matters when you are negotiating the details of a contract with a new employer. The health and dental coverage package can be incredibly valuable. Fitness incentives and gym memberships are offered more and more frequently. Remote work and flexible scheduling are hot topics right now, and they can have a more significant impact on your quality of life than a few more dollars every couple of weeks. Vacation time, personal days, learning opportunities, working conditions can all be on the table when you are working through the fine points of a job offer.
Be reasonable. This is the start of your working relationship with a new employer, so if you come across as pushy or demanding, you can sour that relationship right from the outset. You don’t want to put yourself in a situation where you end up losing the opportunity because you were so grasping and inflexible when negotiating your contract.
Have in mind what your ideal salary and benefits would be and what you at least need to earn in order to feel good about taking the position and being fairly compensated. Then shoot for the former and come away with at least the latter.
