3 Points to Consider: What to do with a Lower-than-Target Salary Conversation

If you are in the midst of a job search and you’ve made it to the stage of having a conversation about salary, what do you do if the number mentioned is lower than your expectation?

This is a tough question, but there are a few things to consider. Knowing this, you will be prepared, not caught off guard, and will avoid saying something or committing to something that you later regret.

1. It depends when the lower than expected salary is mentioned: If it is at the beginning of the process, either by a recruiter, the firm’s HR or one of the early interviewers, then my advice is to keep going and keep the conversation developing. On the one hand, the hiring firm wants to spend time with candidates that it can afford for the role in mind and that is fair. On the other hand, I have often seen the role that was initially being hired for change and morph as the recruiting process progressed. As more candidates are seen, the possibilities of what the role could be - beyond what was first conceived - becomes more apparent. This is “job specification drift”. So, you do not want to shut yourself out of what is a dynamic process where you may be the right candidate and the salary shifts too. You will not, in my view, be wasting anyone’s time. In fact, you will be helping the hiring team understand the state of the market for talent and the possibilities for their business.

If the salary discussion is part an offer, however, then this is where you need to be able to negotiate for a number which is commensurate with the value you can add to the business and in line with what your ‘market’ value is.

2. It depends on your circumstances. Clearly, it will be easier for you to consider tolerating a number below your expectations if you have been looking for a job for some time. Not only that, but also your target number may have been unrealistic in the first place. Alternatively, if you are happily employed and reasonably well paid, then there is no reason to take a job for less than you feel is the right level.

Consider also that if you are making a career change, then salary expectations may be affected in three ways:

1. The area you are going into may just not pay as well.
2. The new employer may be less inclined to take a risk on someone who has desirable skills but is new to the industry, and so may seek to mitigate that risk by paying less.
3. The industry that you are about to join may structure remuneration in a very different way. Whilst they want to accommodate you, you will have to help them get to a satisfactory total compensation number in a reasonable time frame but just differently.

3. It depends on their situation. Supply and demand exert their power. If the hiring firm believes that there is a plentiful supply of people with the necessary skills and attributes for the role, then they will not be inclined to pay up. This is why it is so important to establish in the minds of those that interview you, that you have unique and well differentiated ways of adding very high levels of value to their business. Often money becomes available for exceptional talent.

If there is a lack of talent in the market, then it may well be that having initially thought you too expensive, they do in fact circle back having seen all the available candidates, to have a conversation about numbers at your target level. In one example I can think of, a multinational corporate had been looking for a senior corporate lawyer with specific experience. The search firm had identified all of the viable candidates, but no one was quite right, except for one who was deemed too expensive. The management team was under pressure to complete their annual objectives, which included making this hire. The process had dragged on for eight months and was closed within a few weeks because they had strong reasons to find the budget. An additional factor to consider is the state of the market for the business seeking to hire. If they are doing well, they will be more open to being flexible. If, however, they are in the downswing of a cycle, or worse, there is systemic decline, then the opposite is true. In both cases, think carefully and ask yourself if you are even in the right business / industry.

Helping our clients with negotiating their job offer and remuneration is an integral part of our 1st 90 Day coaching programme. If you would like to learn more about this consider, booking a call or getting in touch via LinkedIn.

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