Secure a Higher Pay: How to Negotiate Your Job Offer
Vaclav Koranda, SHRM-SCP
CHRO of the Year | Influential HR Leader | Adjunct Professor | Professional Speaker | Coach | Trainer | Book Author
Salary negotiation is a sore point for many candidates. In fact, some are so desperate that they would prefer all jobs to have a fixed salary stated in job advertisements, with no option for negotiation. Recently, this issue has even caught the attention of politicians, resulting in the implementation of so-called 'pay transparency laws' in certain countries and states. If you are among those who favor this approach, I have some bad news for you:
In a study by Marks and Harold (2009)*, it was found that candidates who chose to negotiate their salary, rather than accepting the initial offer, increased their starting pay by an average of $5,000 per year. It's no surprise that data shows pay transparency, however fair and praiseworthy the intent, actually works against employees because it hinders negotiation and reduces competitiveness in the job market.
If you firmly believe in pay transparency and hate negotiation, you can stop reading here. However, if you think that negotiating your offer might be worth trying, here is my advice.
Why Do Recruiters Want to Screw You?
Contrary to popular belief, often perpetuated by some “recruitment gurus,” recruiters usually don’t want to screw you. On the contrary, it is in their best interest to make you the best offer according to your background and the company’s budget.
Recruitment agencies are typically compensated with a percentage of the candidate’s yearly salary. The better offer you get, the higher fee they can charge. Therefore, it is in their best interest to help you secure the maximum offer you can reasonably get, which means good revenue for them too.
In-house recruiters' salaries are not dependent on your package, but their motivation is similar. They want to close the vacancy as soon as possible because their bonuses usually depend on it. If they see a suitable candidate, they want to ensure they can make an offer that will be happily accepted so they can quickly close the vacancy and move on.
Should You Disclose Your Current Salary?
Quite often, recruiters will ask about your current salary. How should you answer such a question? Many “gurus” will tell you to dodge it, for example, by saying that you signed a clause with your current employer not to disclose your salary to third parties, or by stating that such information is private. This approach may work well, but if the recruiter insists, it may become hard to avoid answering. Dodging the question could also make you appear suspicious, as if there is something wrong with your current salary or they might start questioning your integrity as such.
My advice: You can try to dodge the question initially, but be prepared to answer if necessary. If your current salary is significantly higher or lower than the range for the job you're applying for, or if it doesn't align with what you want to ask for, be ready to explain why. For example, you might mention taking a pay cut, working in a different place with a higher cost of living, etc.
How to Give the Right Salary Expectations
Many candidates are horrified when they get this question from a recruiter. They don't want to provide a number and prefer the recruiter to give a range first, believing that the one who states the first number will be at a disadvantage in negotiations. Well, it may shock you, but the opposite is true. Even recruiters may not realize that by letting you state your expectations first, they are actually giving you an advantage. This is due to a psychological effect called “anchoring,” which I explain in detail in my book, ‘Get Your Dream Job’ .
So, how do you figure out the correct number? First, look at the range of what similar jobs pay in your area. You can find this information through salary surveys, websites like Indeed or Glassdoor, or by asking your recruitment agency, which may also have insights into the company’s budget. Based on this, consider how you would like to position yourself within that range—given your skills and experience, whether you should be at the bottom, middle, or top.
Once you determine your desired amount, add something on top—I recommend about 20%. This will give you a nice buffer for future negotiations. Should you need to concede, you can do so yet still get the amount you deserve.
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How to Prepare for Successful Negotiation
The first exchange of information related to remuneration happens relatively early in the recruitment process. Recruiters need to know before investing a lot of time in you whether they can make you an acceptable offer if you make it to the end. Therefore, they sometimes ask about salary expectations as early as the pre-screening call. You should be ready for this question as soon as you submit your application. Once a number is in the air, that’s the actual start of the offer negotiation.
Here are the basic rules:
Conclusion
Negotiation is a skill useful in many areas of life, especially when it comes to money. Learn winning strategies, gain an advantage over recruiters, and secure the higher pay you deserve.
Good luck!
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*Marks, M., Harold, C. (2009). Who asks and who receives in salary negotiation. Published online on 20th November 2009 in Wiley Online Library (wileyonlinelibrary.com ).
P.S.: There are three ways how I can help you further: