The Salary Games
Now that the final interview has been concluded, it's time to negotiate your salary/package!
The good news is that you are about to receive an offer (WOOP WOOP!), the bad news is that this is where a lot of people make mistakes.....
It is worth mentioning here that this advice is designed for those exploring roles externally and NOT for individuals discussing internal salary increases (this will be covered in a separate post as those types of conversations require a different/nuanced approach...).
So, without further ado, here are the 3 most important things to remember when negotiating salary with a new employer:
1) Set Expectations EARLY
You need to be very clear about your salary expectations BEFORE you start conducting your job search and going to interviews.
Firstly, make sure you have an accurate view of your current earnings including salary, on-target earnings (if you are in a role which pays commission), bonuses, pension contributions, stock options, holiday entitlement etc.
You can then go and procure information from your peers, colleagues, former colleagues, recruiters and Glassdoor to ensure you have an understanding of your market value, and what a 'typical' remuneration package might be for someone of your skills and experience.
Once you have a benchmark, you may then also need to consider other factors which impact your remuneration decisions such as location, working conditions (e.g. flexible, remote, office-based) and your own priorities (e.g. is having a high base salary more important than overall remuneration? Is growing your pension more important than unlimited holiday? etc.).
Make a list and get a view of what is most important TO YOU.
This will be different for everyone based on their job, location, stage of life etc. but it is important to think about this in advance so that you can communicate clearly throughout the hiring process and be ready to negotiate when the time comes.
The biggest mistake most people make is a lack of communication (or shyness) around their salary expectations.
It is crucially important that you communicate what you want EARLY in EVERY recruitment process.
For example, if you are a salesperson on a ￡50k base salary and ￡50k bonus (￡100k on target earnings or OTE) and you job hunting, make it clear whenever you speak to a recruiter (internal or external) or HR that your minimum expectation is ￡55k base and ￡55k bonus (or whatever it is that you're looking for).
Another good option is to provide a salary bracket pf the roles you're currently considering e.g. between ￡55k and ￡65k base salary with double OTE.
This is the BENCHMARK for all future conversations that you can refer to later in the process when the conversation turns to ￡￡￡.
A few years ago I was approached by a small software company to join their sales team, but on my first call with the talent acquisition specialist we realised that I was outside of their ideal budget for the role.
This was clearly a stumbling block, so we agreed that before progressing further that the TA specialist would double check with the VP of Sales to see if they still wanted to interview me.
We got the thumbs up from the VP of Sales and I had a successful first interview (where I raised the issue of salary again and was assured this wouldn't be an issue) and was invited to a second interview.
Bewilderingly, I was contacted the night before my interview (presentation locked and loaded...) to inform me that the company actually had no flexibility on the package, but would I still please come in as they would love to see me.
What a monumental cock-up/waste of time!!!!
I use this example only to emphasise that even with crystal clear communication, it can still go totally wrong.
Be sure to check and double-check salary requirements throughout the interview process to ensure expectations are met from both sides!
2) Question
Let's assume you are successful in the interview process but you are then made an offer BELOW your current or expected remuneration package.
You are now in a position to respond with one of my all-time favourite questions, which is:
'Why would I change roles for the same/less money? Would you?'
The answer, of course, is always 'HELL NO'.
When you place the emphasis back on the hiring manager and they imagine themselves reacting to a low-ball offer, it's amazing how quickly they realise/acknowledge the mistake and look to rectify the issue.
Another option might be responding with something such as:
'This is disappointing as it is below the level we have discussed throughout the process e.g. a base salary of ￡55k. Can you explain this decision to me? Are you able to increase your offer to this level?'
This is a slightly more forgiving approach that gives the business/individual an opportunity to explain their decision making process and provide the context behind the lower than expected offer.
Dependent upon the response you can then make a decision - reject the offer or seek to find a compromise.
3) Competition
When top-quality candidates start exploring the market and interviewing at prospective companies, there usually receive A LOT of interest.
Companies EXPECT competition for great people.
Do great candidates typically get 1 offer? 2 offers? 5 offers?
The answer is, it depends.
However, it is important to acknowledge that if you are exploring new opportunities, companies expect you to be in several other concurrent interview processes.
As mentioned earlier, what would be the most likely approach if a hiring manager were looking for a job?
Get as many offers on the table as possible, and then take the best one!
This information is important, because it allows you to negotiate from a position of strength.
Let's assume you have 3 final interviews in the same week with Company A (the market leader and your preferred option), Company B (great product) and Company C (pays really well).
You attend the first interview on Monday with Company A (your preferred option) and they make you a solid offer.
As this is your preferred option, you probably want to accept on the spot. However, you might be leaving money on the table....
In this position it would be VERY WORTHWHILE to negotiate. You might send them an email along these lines:
Hi HR Manager,
Thank you for the offer - I'm thrilled that you want to move forward!
As mentioned in the interview, I do have two more final interviews this week, one of which is for a role with a base salary ￡15k higher than the offer made.
That being said, as you are my preferred option I would be delighted to accept the position and withdraw from the other interview processes if you're able to meet me in the middle and increase the base salary in the offer by ￡7.5k.
Can you check if that's possible and come back to me please? My next interview is on Wednesday so if I'm going to withdraw from the process I want to be respectful and do it with at least 24 hours notice.
Thanks,
Paul
I have used variations of this myself, and with many clients, and have yet to see it fail!
Why is this so successful?
A few reasons.
1) It demonstrates that you are IN DEMAND and that they risk losing you if they don't get their act together
2) You are COMPROMISING - there is a role out there with a higher salary but you would accept a lower one to work FOR THEM. This says a lot about your character (not all about the ￡￡￡)
3) You are COMMITTED - you have clearly demonstrated that if they improve their offer, you will withdraw from the other processes and sign with them. Simple. You do X, I will do Y. This is a GUARANTEE that they will get their preferred candidate if they increase their offer slightly
I personally think that number 3 is the most potent of the above - hiring can be difficult and managers are delighted once it's over and they can get back to doing what they do best (software development, sales, product management etc.)
One other thing to mention - ALWAYS negotiate on salary.
Regardless of your situation, how awkward it feels, whether it is your dream job - NEGOTIATE.
There is nothing worse than starting a new job and finding out your peers (or a fellow newbie) are being paid more than you just because they asked for it.
Summary
Be clear about your salary expectations from the get go - understand what is important to you, what your expectations are, and communicate them clearly through every stage of the interview process. Question any offer that is below what you have communicated or are currently earning - what would THEY do in your position? Lastly, companies expect competition! Use this to your advantage and NEGOTIATE.
Next Time
This is the final blog in this series but I'll be publishing some more CV & Interview advice soon! If you have questions or would like to discuss anything further my email is [email protected].
Cheers!
Paul
Founder, SaaSCV - more info available at https://www.saascv.com/
