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One of the most delicate moments when discussing a job offer is salary. If you are a job candidate, you might be worried that asking for more money may cost you the opportunity.
You can lose a job offer by negotiating salary if you make unreasonable demands. Remember, companies may be making multiple offers to equally qualified candidates, so how you navigate this moment can be a make-or-break encounter. Here are our best tips on navigating your salary negotiates fairly and effectively.
Is It Okay to Negotiate Salary Before Accepting a Job?
The ideal time to negotiate your salary is before accepting a job. However, it would be best to thoroughly research average pay figures for similar positions and candidates of your caliber. Otherwise, you risk appearing greedy and selfish.
Do companies expect you to negotiate salary?
Companies work hard to offer competitive compensation packages, but they understand that negotiation is often part of hiring the ideal candidate. Your professional background and unique skills give you leverage to negotiate your pay. Thus, hiring managers and employers know salary negotiations are likely to occur.
When should you negotiate salary in an interview?
It would be best to negotiate your salary during an interview after you receive a job offer with a proposed salary. This way, you can consider their offer and counter if you are unhappy with the proposed salary.
Remember that before an offer comes, a hiring manager might ask how much you expect to earn from the position you have applied to. So, it is wise to research the current industry standard for similar salaried positions carefully and have an ideal salary in mind before heading into your interview.
Can a company rescind an offer if you negotiate?
A company can rescind a job offer at any time. If you negotiate and demand a salary they cannot meet, they will likely offer another candidate the position. A company is not obliged to hire you even if they have given you a job offer. That is why it is crucial to approach salary negotiations with careful consideration.
How to Negotiate Salary Without Losing the Job Offer
The key to negotiating salary without losing a job offer is to show your potential future employer that you can bring extra value to them. As a professional, you should focus on how you can benefit them and their business. Finally, you need to demonstrate that you’ve done your research and that what you’re asking for is supported by my industry standards for someone with your qualifications.
Here are the steps that you can take to ensure you will be seen in the best possible light as you negotiate your salary.
1. Show them that you care about the company
Your salary negotiation should be about the company, not about you. You must show your hiring manager you care about the company’s future. You are just asking to be paid a bit more because you know how beneficial it would be for the company to have you as an employee.
2. Ask the right questions to show that you are engaged
Ask about the goals and targets set for the rest of the year or the following year. Ask how you can become a driving force behind the strategic projects that will ensure the growth and success of the company. These questions will show the hiring manager that you are serious about the job and thinking long-term.
3. Express your desire to contribute with more
Ask what you can do as a professional to ensure the company’s success. Ask how you can go the extra mile to bring even more value as part of the team. This way, you will show your employer that you understand that a higher salary is achieved through hard work and dedication.
4. Present a clear path to success
Suppose you have industry knowledge and significant professional experience. In that case, you might be able to present your future employer with a precise plan or a project outline to show them a clear path toward the benefits you can bring to the company. Remember that having significant professional experience is also an excellent argument for getting a higher salary.
5. Ask for your fair share
Suppose there is a way for you to indeed bring extra value to the company through the execution of critical projects or by meeting and exceeding targets. In that case, it’s only natural that you should be paid a bit more than the original offer. Asking for clarification on how they reached that salary figure will help you craft the best counter based on what you bring.
Now that you have shown that there’s more to you and that you can potentially benefit the company beyond what was initially expected, it would be much more reasonable to discuss your earnings. This puts you in a much more favorable position to negotiate without losing the job offer, and it gives you the right kind of leverage to get an increase.
6. Be prepared for a refusal
Even if you handle your negotiation correctly, your request for a higher salary can be denied. This can be for all sorts of reasons. After all, you probably don’t know the employer’s ability to pay you or the company’s internal struggles.
Do your best to gauge the situation. If the hiring manager is resistant, consider whether you feel this company is the right fit in the long term or if you should continue your job search.
Perhaps you can negotiate a salary increase after 3 to 6 months when you have solid work behind you and have proven yourself as somebody who can bring good results.
Salary Negotiating Mistakes That Might Cost You Your Job Offer
Certain actions and behaviors are red flags for interviewers when hiring. Here are some common mistakes to avoid when navigating your job search.
1. Assumptions about the success of the company
Don’t make any assumptions about the company’s earnings. Don’t say things like, “It seems your company has been doing pretty well recently. You should be able to pay more than this.” Such statements make your recruiter think you are self-centered and opportunistic, hurting your chances of getting hired. It’s also just plain unprofessional.
2. Unreasonably high salary expectations that do not match industry standards
Don’t ask for a higher salary without having anything to back up your demands. This is the fastest way to lose a job offer and destroy your chances of getting hired by the same company.
3. Salary demands based on your personal needs and financial situation
Don’t go into details about your current financial situation. It’s fine to say that the proposed salary you have been given does not match your financial needs only when you reject a job offer. Personal expenditures are relative and of no concern to the company, so it is best to leave that line of reasoning out of the conversation.
4. Becoming defensive when you meet resistance
If you become defensive when you meet some resistance while negotiating your salary, then you risk alienating the hiring managers for good. Nobody likes to work with someone who loses their cool like this in a professional setting.
5. Use inside information about the company
If you have some kind of inside information about the company (from a friend who works there, for example), using it during salary negotiation can be a double-edged sword. You risk being seen as dishonest and selfish, hurting your chances of getting hired. It could also raise suspicions of trustworthiness and ethical behaviors. Both of these are things reputable companies take very seriously.
How Much Higher Should You Negotiate Salary?
A reasonable counteroffer to a salary proposal is anywhere between 10% and 20%. However, depending on your confidence level and professional competence, you can push the counteroffer further. It all comes down to your capability to benefit the company and the business.
Here are a few different situations that may apply to you and how much more money you can demand in each one through salary negotiation. Keep in mind that these are just simple examples, and the numbers may vary significantly depending on industry job standards.
0% for an entry-level job with no previous experience
If you have no previous professional experience, there isn’t much that you can leverage to get more money out of a position. It would probably be better to take the job if the offer matches the industry standard and ask for an increase after 3 to 6 months when you have proven your ability and better understand the industry.
10% if you have some previous experience on the job
If you have some experience on the job, you can ask for a little more money. About 10% would be reasonable if you’re offered a job at the low end of the industry standard. You can leverage the fact that you can become effective very quickly since you will require minimum training or none at all to start doing your job.
20% if you are a seasoned professional with a remarkable set of skills
Suppose you have notable professional experience and you come ready with all the necessary skills and knowledge to be an effective employee from week 1. In that case, you can ask for a significant increase, such as 20%.
30% if you can bring some extra value to the company
Suppose you are an experienced professional with notable previous achievements, such as record sales or creating highly successful projects. In that case, you are bringing a lot more to the table than expected. This should give you enough leverage for a 30% salary increase.
40% if you can bring enormous potential to the company
If you are confident that you can scale the business, marginally contribute to its growth, or facilitate some significant transition in process or technological systems, then you can ask for a substantial salary increase of 40%.
Can You Negotiate Your Salary After Accepting a Job Offer?
You can negotiate your salary after accepting a job offer. Until you sign your employment contract, every aspect of your job, including compensation and benefits, can be further negotiated.
If you are worried that this will be seen negatively, you can ask the hiring manager if it is okay to negotiate the salary. Let them permit you to raise the question. Remember to follow the advice and negotiation tactics outlined in the previous section. If not, start planning for your performance reviews and position yourself for a raise when you’ve successfully demonstrated some of your skills.
