Negotiating a job offer is rarely simple. If you do not negotiate the job offer, you will be at a loss for the remainder of your term in a new firm. There is a virtuous circle since what you accept affects your subsequent raises and compensation. It also has an impact on the upcoming job offers you receive when you change firms. If gaining the desired job is at the top of any job seeker’s agenda, receiving the ideal package is just behind it.
Learning how to negotiate is essential, as you can see in this article here, which talks specifically about 10 reasons why negotiation skills are important. Even more so, it is critical to know how to effectively negotiate a higher salary.
Important Tips to Note Before You Negotiate a Higher Salary
Identify the Salary Trends for Your Profession
Claiming that your job offer is lesser than the industry average without checking it first would never work. You should go into a salary discussion as well-informed as possible. Your assertations need to be backed up by data.
Consult salary guides like Robert Half or calculators like Glassdoor to gain a current, realistic picture of the compensation market in your area. Consult with your mentors, instructors, past coworkers, friends, and family to get their opinions on the employment offer you received. On the basis of what they get, ask them if it’s fair. You’ll learn the standard price for your profession and experience level, as well as how much you should be asking for.
Understand What You Bring to the Table
You should thoroughly assess your worth as an employee before you negotiate a higher salary with the company. Your professional value will be determined by a number of variables. Your expertise, training, talents, qualifications, and accomplishments are some of these criteria. Write down specific instances of how your experience and skills will help your organisation before you negotiate your higher salary.
Don’t forget to highlight any qualifications you may have, including certificates or particular technical abilities, that may improve your capacity to perform the job. Making a strong argument for why you deserve to be paid higher than the original offer will be easier if you relate your talents to the role you’ll be taking on. Each parameter has a value that is significant during salary negotiations.
Understand the Company’s Constraints
Companies may have restrictions, like salary limitations, that cannot be changed through negotiation. Finding out where they are open and where they are not is your job. A major company that is employing several people at once, for instance, is probably unable to offer you a better salary. But there might be some wiggle room for start dates, vacation days, etc.
On the other hand, if you’re dealing with a smaller firm which has never hired somebody in your position, there might not be much room to change things other than the first pay offer or job title. The more thoroughly you comprehend the limitations, the more feasible it is that you can provide solutions that address the issues on both sides.
Prepare for Questions
You should be ready for questions and concerns that could catch you off guard, cause you to feel uneasy, or highlight your shortcomings. Your objective is to respond honestly without coming out as an undesirable prospect or losing too much leverage in negotiations.
These inquiries may be straightforward, such as Why should we pay you this much? Why do you think your current salary package will increase by such a large amount? or even something blunt like: Did you have other offers? Will you accept our offer if we present it to you tomorrow? Are you putting us first? You won’t lose out if you have already considered how to respond to challenging queries.
Think About the Bigger Picture
The terms “negotiate a job offer” and “negotiate a higher salary” are frequently used interchangeably. However, other aspects of the job that you could negotiate, possibly even more so than income, will contribute significantly to your job happiness.
Instead of just the money, consider the worth of the full package, including the duties, environment, travel, chances for advancement, benefits, etc. Consider not only how, but also when, you’re willing to be rewarded. You might choose to take a path that pays less richly now but will position you better in the future.
How to Negotiate a Higher Salary
Help Them Understand “Why”
Every employer is aware that you’ll desire a higher salary, but you must also demonstrate a sincere interest in the position and the needs of the business. The company must believe you deserve the deal you seek.
When you ask for a higher salary, never let your offer stand on its own; always share the background information. Don’t just say you want something, for example, a 20% raise in pay, without any reasoning. Explain why it’s warranted and why you should get it over other candidates they may have recruited.
Additionally, a significant part of the negotiation process is your experience. You will undoubtedly make less money than someone who has been performing the job for a long time if you are a newcomer to the workplace or the job itself. It might not be a good idea to make a demand if you have next to no rationale for it.
Remember that stating why you deserve higher could come out as arrogant if you haven’t considered the ideal way to convey the idea. Therefore, practise your delivery.
Understand Why a Question is Asked
If someone approaches you from an unexpected angle, remember that it isn’t the question that is important but the employer’s intent. Often the inquiry is hard yet the questioner’s purpose is harmless. Rarely will an employer try to force your back into a wall. Don’t assume the worst if you don’t like the question.
Instead, respond in a way that matches what you believe the interviewer’s aim is, or enquire about the issue they are attempting to solve. Both of you could benefit if you have an honest discussion about what he wants and demonstrate a willingness to assist him in finding a solution to his problem.
Practice Your Delivery Before You Negotiate a Higher Salary
People will only listen to you if they think you are likeable. Without good delivery, you risk sounding arrogant. Everything you do in a discussion that makes you unlikable decreases the likelihood that the company will try to obtain you a better deal. This is about more than just being nice. It’s about dealing with some conflicts in negotiations, such as asking for what you deserve without being greedy or pointing out flaws in the offer without appearing selfish.
Asking a colleague or supervisor to practice with you the conversation is how negotiators avoid these hazards. An industry expert who can train you on presenting confidence and responding to unexpected queries is the ideal companion, ideally from the corporate sector. It can help to practise your delivery numerous times before the salary talk so that you feel more confident.
Put more emphasis on “We” than “You”
A negotiation is not a conflict. You need to be aware of how you come across to the hiring manager or recruiter. When discussing the benefits you can bring to the table, using pronouns like “we” gives the impression that you are closely connected to the business. But when talking about specific concerns, say things like “I understand” or “I get where you’re coming from.” Your speech should demonstrate that you understand the employer’s perspective and any reservations they may have about paying you more.
Avoid Any type of Ultimatum
Almost everyone dislikes ultimatums. Occasionally, when we’re trying to be strong or because we’re frustrated, we unintentionally give ultimatums, and it comes across poorly. Your employer might do so as well.
Simply disregard an ultimatum if you receive one since the person who issued it might later decide they made a mistake and want to retract their statement. If it’s never brought up, they can accomplish that lot more quickly and without looking bad. To prevent the employer from becoming emotionally attached to the ultimatum, pretend it never existed. Over time, they’ll reveal if it’s true or not.
Know When to Negotiate a Higher Salary
When you negotiate a higher salary, timing is crucial. Early negotiation gives the appearance that you are snobbish and self-centred. When the employer has selected just one candidate from their pool of candidates, you are in a stronger position. Although there is a second option available to employers, you are preferred over it. You can use leverage like that.
On the other hand, it may already be too late to ask for a raise, such as after you’ve accepted a job offer. The employer will assume that you are not committed to the position. It’s crucial to request a day or so to think over the employment offer because of this. Even if the company claims they need someone to start immediately, give yourself some time to consider.
Recognize when to stop
Employers anticipate counter offers, but no one likes a haggler who could haggle over every penny. Don’t go back and ask for a bit extra if the employer has made a final offer following a lengthy negotiation. They would have given it to you already if they could give it to you.
What you can do right now is negotiate for other benefits to make up for the shortfall, such as additional vacation time or days where you can work from home. The trick is striking a balance between your priorities and those of your employer. Stay focused on the job and not the negotiation.
After several negotiations, if the organisation is still unable to satisfy your needs, politely resign and concentrate on alternatives that more closely match your desired level of income.
How to Negotiate a Higher Salary after Another Higher Job Offer
You can also negotiate your starting wage with an employer by revealing details about other job offers that provide a greater starting salary.
Advantages
You get more details because of the second offer. People frequently do not realize what the current standard is or if they are being undervalued, so having that information is really important.
Another significant advantage of receiving a second offer is that it provides justification for making the raise request. One of the difficulties in negotiations or jobs have been that opportunities for a wage increase do not arise on a regular basis. The power to say, “I have another offer,” establishes an event that is important enough for the organisation to seriously consider a raise.
How to Negotiate
Start a discussion with the hiring manager or recruiter rather than demanding it. Be careful not to spark a bargaining conflict among your potential employers. Even if they refuse to negotiate, you won’t know till you ask.
If you are using the other offer to negotiate the salary at the job you already work at, instead of threatening to leave, emphasise how much you enjoy your position and the organisation. If you have an offer, you can say that you interviewed to see what else was on the market but that you truly don’t want to take it. This will demonstrate to your manager that you have options without appearing disloyal.
Don’t get too caught up in the compensation figure. You must ensure that you are comparing the entire bundle. You’ll have a far stronger argument if you don’t focus on money figures and instead consider the big picture. They might not always be capable of matching the money, but they may frequently provide you with superior perks, training experiences, or different work arrangements.
If your job offer changes, make sure to obtain another written offer.
Example:
“Thank you very much for your kind offer. I’m thrilled about this opportunity, especially the ability to collaborate with the team. I was curious if the pay package was flexible in any way. Another job offer that included a $70,000 salary, medical coverage, and the possibility of a retirement savings plan was made to me. I’m eager to work for your organisation and am confident that we can make a wonderful team. I’m hoping we could find a solution to bridge this gap.”
Disadvantages
However, there are some drawbacks. The most obvious issue is that your present employer will wish you well after learning you have another offer elsewhere. So, make this request only if you are prepared to accept the other offer. You must believe that you are appreciated in your present position – appreciated enough that they will not allow you to leave without a competing offer.
Furthermore, the alternative offer must be compelling, both in terms of the organization and the nature of the position. If not, the current organisation would not consider it as a real threat to their offer.
Negotiate a Higher Salary Offer via Email
A salary negotiations email is one you write to an employer to start discussions about the position’s starting pay. You should be capable of negotiating your salary via email if you got the offer letter via email. Knowing what to add in a negotiation mail will help you get paid according to your qualifications and experience.
How to write a salary email:
- Stay Professional: Include the recipient’s complete name, usually the recruiting manager or interviewer.
- Subject Line: Include a clear subject line which effectively specifies the purpose of the email, without mentioning the salary.
- Select a Greeting: A suitable salutation, such as Greetings, Mr./Mrs./Ms. Name works well. Your relationship with your current manager also determines what salutation you use.
- Introduction: Write an introductory paragraph that expresses gratitude for the job offer as well as the hiring manager’s time throughout the hiring process. If you got a verbal offer, this is an ideal place to clarify the details.
- Body: Write a second paragraph that includes the revised wage proposal as well as your reasoning for believing the new income figure is suitable, a restatement of your qualifications and experience, and whether you’re willing to take other kinds of perks. Make your request as specific as possible so that both parties know if development is possible. If you prefer not to be precise, explain unequivocally that the wage falls short of your expectations.
- Conclusion: A final paragraph expressing your enthusiasm for the post. Thank them for the offer once more, and clarify the next steps. For example, “I hope to hear from you via email or phone to discuss this further.”
- Sign Off: Include a signature with your full first and last name.
Tips to Negotiate a Higher Salary via email
All the tips that help you to negotiate a higher salary also apply to emails. Alongside them, here are a few more tips to help you write the best email you can.
Consider tone
Consider the tone of your mail before sending it. If something is ambiguous or appears to be confusing, clarify the wording. It’s vital to remain polite and passionate while conveying your excitement about the offer.
Keep it brief
While it is crucial to highlight your talents and knowledge, keep the email to no more than 3 or 4 paragraphs. The email should include the previously mentioned introduction, body, and conclusion.
Propose a higher wage than you need.
A solid general guideline is to give the employer a greater compensation figure than your actual aim. For instance, if you want to earn $80,000 per year, request $85,000. If the company negotiates down, you will still receive the pay offer you believe you need and merit.
Sample E-Mail
Subject: Response to your initial offer (Data Analyst)
Dear Mr ABC,
Thank you once more for your offer of a Data Analyst position with LMPQ Company. I’m very enthusiastic about the chance, and I’m convinced that I’ll be able to deliver excellent outcomes for the organisation. My track record of giving successful ad performance insights, as well as my experience with Google Analytics, demonstrate my potential to succeed. But first, before I accept the offer, I’d like to talk about the salary.
After conducting some research, I discovered that the average wage for comparable occupations with my expertise is around $90,000. As a result, I would like to propose raising the offered compensation to around $90,000 to reflect my talents and expertise, as well as the role’s requirements.
Thank you once more for your offer. I hope to hear from you shortly.
Regards,
XYZ
How Much Higher Can You Negotiate Your Salary?
Before you get into negotiations, it is important to understand what your minimum acceptable salary is. After that is done, you should wait for the company to make an offer. By waiting till they make the first offer, you learn more about the salary range they’re prepared to pay and provide yourself with the opportunity to develop a counter-offer depending on their offer in order to reach as close to the utmost they’re willing to pay as possible.
So, how do you calculate your counter? There are two possible eventualities.
When they Offer You Your Minimum Acceptable Salary
After they offer you your minimum, you can now concentrate on increasing your compensation before your employment at the organisation begins. To maximise your compensation, you need to devise a counter that drives the corporation higher into the salary range they are willing to offer you while not pushing too much. An excellent range for a reply is 10% to 20% higher than the opening offer.
When They Offer You Below Your Minimum Acceptable Salary
If the employers offer a wage below your minimum accepted wage, your emphasis turns from obtaining better pay to obtaining your minimum salary. The most obvious choice now is to notify the recruiters or hiring manager that you will not accept anything less than your minimally acceptable wage and see if they will agree to that salary.
If they satisfy your minimum, you’ll be hired at that wage. If they can’t meet your minimum, you won’t be able to reach an agreement and should definitely walk away. This can be a difficult decision, but this case shows why it was critical to establish your minimum acceptable pay before beginning negotiations.
Takeaway
You must request a higher salary if you want to receive one. Too frequently, job seekers take the first offer that is made to them. What people fail to realise is that employers are keen to add team members with the particular abilities and knowledge that can benefit them best.
Your level of happiness ultimately depends less on how well the negotiation goes and more on how good the job is. Experience and research show that your career path, the sector and position you choose to work in, and the daily effects on you, such as your superiors and coworkers, can all be significantly more essential to your satisfaction than the specifics of an offer. These tips should assist you in negotiating successfully and obtaining the offer you merit, but your success in a salary negotiation depends on your preparation, skill, and confidence.
