How to negotiate your salary. Career Crossroads challenge #4
The 12 step art to a successful salary negotiation during and after the interview process to land the best deal you can.
everyone,
Still, in Cyprus with another 10 days to go, it's definitely a life I could get used to. Remote working at its finest!
Its the end of September now — we've done it! The final week of the 4-week Career Crossroads challenge has arrived. Over 30 of you decided to take part, so if you're still with us, congrats on the effort to complete the challenges as there's been a lot to take in. I can't wait to explore the outcomes with you in our coaching session.
So as we round things off we are looking at the art of negotiation during that all-important stage of job hunting. A topic I am passionate about as a recruiter and career coach.
This is the post you need if you've got an offer on the table or hope to soon. Read on for the steps you need to take to land the best deal you can.
Know someone interviewing for jobs who could use these negotiation tactics? Share this post with them now.
i) Why negotiate at all?
Often, to make sure they get the job, people will undersell themselves in a bid to just secure the deal. Especially if it’s a job they really want, they may be so be relieved to be the chosen candidate they don't dare rock the boat by requesting a higher wage.
A Glassdoor study found American men to be three times more likely to land a higher salary than women. On top of this, millennials are less likely to negotiate salary than other generations. This could be because they've grown up during the recession— up to 60 percent of millennials don’t when receiving their first job offers.
However, not negotiating sets you up for a loss not just now but later down the line. Your salary is a lot like investing: where you start impacts your total return. So every time you negotiate a better offer you are creating a better starting point for every future offer you receive too, as salaries tend to only go up (when staying within similar roles and industries).
Another reason for the aversion when it comes to negotiation is the awkwardness that comes with talking about money in our society in general.
It's vital we get over these fears and stand for our worth.
In a study by Payscale only 43% of people had negotiated their salary but of those who did 75% of them received an increase — so it’s always worth it to ask.
I write this post as a recruiter who has hired hundreds of people over the years as well as having navigated my own pay-rises over the years. I more than doubled my salary in four years despite taking a pay cut in this time between changing careers. This was because at every opportunity I negotiated.
ii) The rules of successful salary negotiation: The Interview Stage
Know your worth
The starting point for any successful negotiation is knowing what you bring to the table. Understand what your skills are worth for your level and location. These are the three key components that determine a salary, as well as the organisation itself (ie banks pay more than charities).
So figure out what the market pays for someone with your experience using tools like Glassdoor, Payscale or Adzuna. The context is important too —if you're making a big switch in terms of role or industry you may have to adjust expectations for your new chosen field depending on how transferrable your skills are. Read my post if you need help communicating your skills.
Also consider how what you bring to the table is unique. Perhaps the business lacks someone in the team with your experiences, culture, or from your demographic? Diversity is central to business performance so consider if this gives you any leverage.
Be Transparent
You will be asked how much you earn or are looking for. Everyone hates the question but there is no escaping it. So know your numbers (what you're on and what you want next).
Include your whole salary e.g. any holiday, bonuses, mobile phone, gym, healthcare, startup equity/stocks. These things add up significantly to the employer so should never be discounted.
I've known people to lie about their current earnings or try to hide them. Its a risky move to lie (your p45 will show the real figures) and refusing to disclose your salary can create an uncomfortable dynamic and seem shady. Women who don't share their salary have been shown to get offered 1.8% less than those who do. Transparency is preferable.
Most of the time when people refuse to share their salary its because they feel they are underpaid. If this is you and you feel there's a large gulf between where you are and where you want to be, use data to help you out. Come armed with industry benchmarks for what you do. Explain your reasons you feel you're underpaid (did you work in a non-profit? did you take a career break? have you been loyal to one company where pay rises are infrequent? have you upskilled significantly?).
If you're in a role right now and want to move for more money, a good card to play is to say "There is inherent uncertainty in moving roles as I have a good reputation where I am, so I won't be moving for anything less than [insert figure]". It's then down to them to shut down the conversation if they are unwilling to meet this figure, or for you to decide what your bottom line truly is.
Whatever your starting point, be open about what you want, and if it helps you can give a range 'I'm looking for something between X and X' and you can get a gauge from there about how feasible this is.
Know your audience (and your timing)
During the interview process do not bring up salary too early, or to the wrong person. A good rule of thumb is only asking the recruiter or Head of Talent or waiting until you're asked. The worst person you can bring it up with is the functional hiring manager who is interviewing you for your skillset and the value you can add to the company. Bring it up to them and risk seeming mercenary or making things awkward.
Ask the right questions
There are questions you can ask about the offer before it happens, if the context feels appropriate. For example
How much are you willing to pay the best candidate?
What is your budget for this role?
How is salary determined at this company?
These are information-gathering questions where you can playback the answers later on to ensure you are being paid fairly and use as leverage for negotiation.
You also want to understand the opportunities for future pay and progression. If your starting salary is not that high but the company offers pay reviews every six months or regular promotions you may see it climb quickly. Through an understanding of how compensation works and how your career will progress, you’ll have a more holistic evaluation of the opportunity.
iii) The rules of successful salary negotiation: The offer stage
So you've been offered the role - congrats! Here's how you can successfully land the best possible salary for yourself.
Know what you want
This may seem obvious but it's key that you actually want this job. If you really want it and it provides you with a chance to do something that other opportunities wouldn't, then figure out what salary makes this move worth it. Have a range of figures in mind that you want: a stretch figure (the higher end), on target earning (mid-range), and your minimum (figure you won't move below). Knowing your motivations and drivers will enable you to make a choice that feels authentic and provides you with a sense of control in a discussion that often feels one-sided.
Understand the total offer
Many people consider their salary purely in terms of the base salary but the total comp is the figure you need to look at carefully. Bonuses, allowances, stock, pension etc are all key. Don't forget to calculate what you will earn after-tax, and any deductions like student loan or pension that get automatically taken off. This salary calculator has been very close to accurate in my own experiences for UK salaries.
Do negotiate (once)
When you receive your offer you should be prepared to ask them if there is room for an uplift. This process of counter-offering is standard and many employers expect employees to do it. But the caveat is to only do it once. Ask properly, go in for the number you want (or let them suggest it) and then leave it there. Too much back and forth risks upsetting the relationships you've worked so hard to build.
Pre-frame the discussion
Allow them to know the negotiation is a conversation you want to have ahead of time e.g. 'It would be great to discuss the financials in more detail and what flexibility there may be' or 'I'd like to discuss this offer with you in more detail before I can accept' will give them the heads up and make the allowances or mental adjustments that might be needed in order to grant more money.
Have a plan
When going into these conversations it helps have your key points outlined ahead of time. Write them down, rehearse them, role play with a friend. Be sure to include any potential counter-rebuffs they may bring up and what you'd say to these.
Ask like a pro
During this discussion ask open-ended questions, e.g how did you arrive at this figure? Demonstrate authority by re-stating the facts and the expectations you have stated throughout the process. But do not forget the other person during the negotiation: their needs and interests. Ask diagnostic questions to discover their business goals and priorities too, so you can then frame your unique value in line with their goals. Use words like 'we' to show you're on the same team. And continue to speak in terms that relate to your professional (not personal) life. Your personal outgoings are not their business. Same for emotions — try and keep them out of it. Remember its rarely ever personal and do not link this discussion to your sense of self-worth or value as a person.
Remain positive
The candidates whose negotiations go most successfully all do something right during the process: they remain super positive about the opportunity, the team, and the process. They do not bring negative energy into this discussion but keep it firmly centered in the positives about their excitement and the value they can bring. Ensure you don't leave anyone second-guessing about your interest or intentions here. Here's a list of things you should never say during the negotiation phase that turn it into a negative space.
Protect the relationship
At the end of the day, whatever tactic or conversation that ensues as a result of your negotiation, keep it front of mind that these are your new employers and people you will be working with. Protect this relationship and demonstrate loyalty and commitment to them throughout what you are communicating.
Images credit: ODE TO PROCRASTINATION / INTERVIEW; Aleksandra Kingo
iv) Extra Reading
Enjoy the topic of negotiation and ready to learn more? Here are some great resources that could be helpful for you:
Thanks for reading, and a big welcome if this is your first time here!
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Until next time
Your Coach,
Ellen