For many, the thought of asking an employer to increase their current salary (or negotiate a starting salary) makes the stomach turn. This is due to many factors, not least the fact that if you are reading this in 2021 you’ve seen first hand the effects of COVID-19 on the job market. Additionally, many studies have shown that women are less likely to negotiate their salaries due to fear of being perceived negatively.
How then, does one go about successfully negotiating a salary? The secret lies in three things: timing, tone and composure.
Timing
The best time to negotiate a salary is before you accept a position. If you have been made an offer of employment - congratulations, you are the employer’s preferred candidate. Keep this in mind.
Before you accept their offer, look into similar positions advertised on job boards. These will give you an indication of the average pay you can expect for the position you’re applying for. Something to keep in mind is that recruiters or hiring managers are often not surprised by a request for a salary negotiation - it’s par for the course. You might be more uncomfortable with the concept than they are, so use the time before you accept the offer wisely.
If you are already in a position and would like to discuss a pay increase, timing should also factor into your decision. A good time would be after a successful completion of a project you have led or been an integral part of. Another might be when the company as a whole has scored a win, or your direct manager has.
Many people think that these kinds of discussions should be left for the performance review, but in fact the salary budget may have already been decided by then. Consider having the discussion 3-4 months in advance of the performance review to avoid making your manager feel that they have to upset the apple cart in other departments to rush through a pay rise. If you have access to a shared calendar, look for times to set up an appointment when they are not too busy, and avoid having your meeting in their lunch break.
Once an offer has been made, consider also the time of your reply. 48 business hours at most - don’t leave them guessing.
Tone
There are a few dos and don’ts when it comes to the tone of your request for a salary negotiation or pay rise to keep in mind:
DO:
Show your continued enthusiasm and commitment to the role. If you have been offered a role, convey that you are genuinely excited to be given the opportunity - they won’t fight to hire or keep you if you seem surly or reluctant. If you are negotiating a pay rise, convey your gratitude for your current opportunity and what you have been able to glean from it.
Keep the tone collaborative. Remember that you are negotiating a salary increase - there will be give and take. Highlight how a pay increase will not only line your pocket, but facilitate / compensate for added responsibilities that benefit the company.
For a new position, this would be the time to highlight any achievements in a previous position that would justify the increase in pay. Something like, “I would love the chance to deliver the same results such as A, B and C I was able to create at Company X here at Company Y. Are we able to negotiate the salary? I would like to discuss a figure around the $X mark.”
If they are unwilling to compromise on the salary, consider asking for increased annual leave, more flexible working conditions, increased superannuation contributions or other elements that would facilitate you working for them.
DON’T
Don’t give them an ultimatum. A pushy negotiation on your side will not do you any favours. They like you so far, or they wouldn’t have offered - but that goodwill will likely run out if they feel like you are trying to force their hand. Saying ‘pay me X or I’ll walk’ will get you shown to the door.
Don’t talk about your personal expenses, i.e. why you need this money. Mentioning that your rent or commute is expensive, that you have mouths to feed or debts to cover is not their concern. They are trying to hire an asset, not a drain, and confronting them with your personal needs in order to guilt them into paying you more is highly unprofessional. It is your job to convince them that the investment in you is worth the cost to the business and that the value you bring to the table outshines other candidates that might accept a lower offer.
Don’t promise to be “the best” or “hardest worker”. Empty words like these mean nothing - facts and figures are much more convincing. Besides, they may have heard that from other candidates already - how are you different from them?
Composure
If you are uncomfortable with confrontation, you may feel the pressure to cave and give in to an offer below what you feel is justified. It can be very easy (especially in this market) to hear the old adage of “not looking a gift horse in the mouth”.
However, once you have built up the courage to calmly and collaboratively discuss a reasonable offer based on your skills and experience, leave the ball in their court. This can be even harder if you are negotiating this face to face at a table full of people, but bide your time and grit your teeth through what may feel like an awkward silence.
They’ll either have a counteroffer (very likely) or at least be willing to discuss other means of compensation. If they aren’t, you are also entitled to ask them for leave to discuss the offer with a spouse/partner/family member and get back to them soon. Don’t jump the gun and accept a low ball offer out of fear.
If you leave the negotiation table without a job offer, do not despair. If you were one company’s preferred candidate you will likely be another’s. Chalk it up to experience, and know that the first time you do it will probably be the most intimidating.