Securing the bag: salary negotiation keys to success
Highlight reel
Always negotiate even if it’s your first job out of uni and even if the economy is struggling
Never make the first offer, be grateful and maintain a positive tone, display social proof so they know you’re in demand, outline your ask, reiterate interest and close strong
55% of men would negotiate their salary vs just 42% of women (CV-Library survey), further perpetuating the gender pay gap - we can wait for employers to even this out for us or we can push for what we deserve now and reduce the gap
Step 1
The first and most important lesson in salary negotiation is that we should always negotiate the first offer we’re given. Preparing ourselves mentally for this going in helps make the process much easier. The negotiation should take place once you have been given a formal offer, at the end of the application process (which you’ve smashed) when your stock is at its highest. At this point, they’ve invested significant resources recruiting you and won’t want to lose you.
Step 2
Never give the first offer. The recruiting professional may ask your salary expectations, politely decline: “I'm comparing this job to a number of other opportunities I'm looking at and the base salary is only one factor”. If we’re the first to provide a figure, this could be lower than the range which the recruiter is able to offer us, leaving money on the table.
Step 3
You’re likely to receive the formal offer with salary and start date etc. via email. They may say the offer is at the top of their range or that this is what everyone else is earning but this is very often not the case. Reply with your own variation of:
I really appreciate the offer, I truly enjoyed our conversation and feel great about the team and company and I’m looking forward to getting started. I need to evaluate this based on other opportunities I’m considering and will get back to you shortly. In the meantime, it would be great if you could let me know if there is any flexibility in the salary and the bonus as well as how often these will be reviewed?
What we have done here is show our appreciation while also displaying social proof that we’re high in demand (see Influence by Robert Cialdini). From here, they can either say no, they can say yes or some variation of we think this is fair but what are your expectations? Also, don’t forget factors outside of salary, bonuses are important as well and you can negotiate for a half year pay review rather than an annual one.
Step 4
Typically counter 15-20% higher than their offer unless there is another figure you believe is more appropriate. This should put you right at the top of the available salary range. Remember the hiring manager wants you at this point and it’s down to the recruiter not to mess it up. Reply with some variation of:
Thanks for letting me know. I know I can make a significant impact on the company, based on the other opportunities I’m looking at I feel £X is a fair number for what I can bring to this role. If you’re able to match that I would be happy to sign immediately and will hand my notice in tomorrow.
We’re now helping them to visualise the win. Naturally, people want negotiations to be over quickly so by saying we’ll sign immediately they know you’re serious and want to sign. You’ve reacted positively to the offer but the market is telling you that you should be earning more and you just want what is fair. Never negotiate against yourself, state your desired agreement and don’t give caveats that could give the other side an easy out.
Step 5
If you asked for an extra £10k for example, they’re very likely to come back with £5k or less. You now have the opportunity to counter once more, any more than that and you start to damage the relationship. Provide a response lower than your initial ask which you would still be happy with. From here, they can either accept your offer, provide an alternative option that is acceptable or provide an unacceptable option in which case you should walk away.
Apply for multiple roles even if you’ve found a particular role you like. This will help you further understand what you can earn in the job market and improve your willingness to walk away from bad offers. Generally, if the recruiter pushes back on the basis of the economy or tight budgets, counter by reiterating that they are investing in a candidate who is going to be adding value in particular areas over a long period of time.
