GUIDE TO SUCCESSFULLY NEGOTIATING SALARY PACKAGES
It’s inevitable.
At some point along the road to securing that new job, you’re going to be asked about salary expectations. It could be during your first call with a recruiter, or it may not be until the last interview - either way, it’s going to come up.
The question is, if put on the spot right now and asked to value your own worth / your skills / your experience - could you? No? Then read on.
Employers and candidates share a common goal when it comes to compensation. Both parties want to fairly and accurately pay, and be paid, for appropriate skills and experiences. For the hiring company it’s about providing a suitable benefits package, which is both appealing to candidates and fitting to the current market; whereas you the applicant will want to achieve a competitive offer, matching your skill set and exciting you to perform your best day in, day out.
To achieve a best-case-scenario result you need to conduct thorough, detailed research into the industry this new job sits in, and be fully prepared to make your case; based on real facts and knowledge. You can gather this information by:-
Looking at other similar job ads
A quick method to gauge salary ranges is to review the packages being advertised for similar jobs that ask for the same skills and experience. Whilst this is far from an exact science, looking at job boards and similar resources will give a rough guide to start from.
Also, consider other benefits beyond just pay such as the bonus structures, stock options, employee benefits, vacation times, remote or office work environment etc. In some cases, you may find a dip in core salary is more than outweighed by the additional perks included.
Speaking with industry experts and contacts
People currently working in your new jobs industry, or with a similar work experience, will have a unique insight into what you could and should be earning. Generally, it’s best to avoid asking exactly how much another person is taking home, but most will be able to define ranges for your consideration.
Using online resources - for example:
Glassdoor.com’s ‘Know your worth’ salary calculator [1]
PayScale.com’s salary surveys [2]
LinkedIn.com’s salary search tool [3]
Salary.com’s comparison search [4]
Totaljobs.com’s salary checker [5]
Asking your recruiter
For example, let’s say you’re applying for a quantitative analyst role at a London investment bank. Which resource is likely to have the clearest insight on financial returns you could expect? How about the recruitment consultant you’re working with, that’s spent the last 2/5/10+ years sourcing and placing analysts like you, into London-based banks.
In the majority of cases, recruiters charge hiring companies a fee based on a percentage of the salary you agree too; often also receiving a personal commission or bonus in addition. Therefore these individuals benefit when you take the job and obtain the highest possible salary, so want to see you succeed.
However be aware that a recruiter's job is to find the best person to fit their clients hiring needs, so will only be looking to recommend candidates they consider fit for purpose.
Or of course, there’s some good’ole Google searching on subjects like average salaries, benefit packages, career progression goals and common perks - which will help to build a fact-based picture for the value of your abilities.
Understanding your personal circumstances
How much do you actually need to bring home each month? If you’re relocating, what impact will that have on your income requirements? Will this new job demand more travelling, thus an increase in petrol and parking costs? What about childcare changes if you’re working different hours?
It’s best not to bring up personal circumstances during a salary negotiation, but it is vital you know exactly what you require to at least, set a minimum baseline to work from. To help with this try using tools like the Nationwide’s budget calculator [6].
Being location savvy
Apart from travel costs you also want to research the differences between average salaries for the same job in different locations. Clearly, a position in Toronto is likely to pay more than the same role elsewhere in Canada, but that will also be impacted on by additional location-based costs which you need to take into account.
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Next, negotiating.
If you’ve conducted your research correctly, at this point you should have a very clear understanding of how much you need to earn - alongside an expectation of the salary ranges you fit within and possible benefit packages to discuss.
Being prepared like this ensures you enter the negotiation arena ready to accurately argue your case, without being greedy or pricing yourself out of the market. E.g. if this is your dream job then you may choose to be more competitive in your salary request, whereas if the job requires niche in-demand skills you and only a few others have, you could choose to push for more compensation.
Remember you are likely not the only applicant for this job, so need to balance the value of your skills versus your competitive ‘want’ for the job. Also, keep-in-mind the new business; they want to pay fairly for the best person so a low request could be a put-off, implying a lack of self-confidence or experience. Alternatively, going in too high could oversell your abilities and set expectations you can’t match.
Now, onto the meeting.
Don’t rush in. Where possible avoid being the person to bring up the subject of compensation, it will be discussed, just be patient. Waiting for the appropriate time will prevent you from appearing money-focused, and allow the hiring manager to judge your actual interest in the job itself.
Resist being the first to present figures. Let the interviewer do the hard work and offer to you first, as they will already have a budget in mind to work against. If you are asked to give a figure utilise the research you’ve gathered in advance.
Present a reasonable salary suggestion, justified by realistic market research, factual evidence and the challenges this role presents. Letting the conversation focus on job responsibilities rather than your personal costs will only strengthen your position and the value of your experiences.
Don’t accept immediately. Take your time to consider and review the full compensation package before signing the contract. In some cases, a silent period in communication can drive urgency from the hiring manager and lead to an increased offer to guarantee you’re hired. Just be careful not to wait too long else they may go with another candidate!
Talk about the full package. You may find that although the basic net pay is below your requirements, realistic bonuses, travel expenses and the option to work remotely negate the reduction.
Include a pay review. Not being offered enough money but really want the job? Try negotiating an early pay review based on a structured target process, that is a win/win for both you and the company. Meet targets and the company succeeds and you get a pay increase, perfect.
Conclusion
The secret to successful salary negotiations is knowing what success for you actually looks like. Be prepared, know the market, understand your needs, be realistic and consider more than just the monetary benefits. Don’t become purely focused on the money, justify your costs, be competitive but don’t lose sight of your personal value; especially if your skills are in high demand.
If you work in technology and want to discuss your earning potential then get in touch with us at Caspian One. Each of our recruiters works within a unique niche of the market and has valuable insights on what others are earning and the potentials for career progression.
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