Negotiating Your Starting Salary

I read an interesting article this morning entitled “A Millennial’s Guide to Negotiating a Better Salary” https://bit.ly/2lkt3iY

It was a good read — although not as relevant for North America (it was written for the job market in India) . For instance, it highlighted that you should expect a 15-35% average increase over your last salary. From my experience here in Canada and the US, the increase would not be as high for most roles and this does not take into account the reason many people move jobs these days– for more and varied experience, for better working conditions, for a more collegial team, to get away from a poor manager, for better benefits, etc. — and not always so much about base salary. Of course, Millennials are often accused of moving too quickly — for instance, when not promoted after 3 months of employment (I jest).

As someone who has been hiring people for many years and who has had to negotiate with potential new hires more times than I care to admit (and who has negotiated her own salary when in a corporate role), here’s a ‘word to the wise’ to the candidate who is looking to ‘sweeten the offer’ so to speak.

1. Do your due diligence. Conduct your research. Always know before you go into the interview or into a negotiation (and better to do this before the very first interview) what you feel you are worth and what the market tells you this role is worth. Do your homework. There is a wealth of information on salaries on line (Glassdoor, Payscale, Monster, etc.) While it might not always be accurate, it is still a good starting point. If you know people in similar roles in that company or a competitor, try to get a handle on their salary as well.
2. Think about (and list!) what else is important to you. Think about benefits, bonuses, working hours, holidays, commute, working environment, culture, people and other perks. These are all important. Remember, in most situations, people do not leave an employer for money but rather for a myriad of other reasons. Know what is most important to you and what you are willing to give up. Sometimes an extra week or two of holidays is more important than more money. Perhaps working from home one or two days a week is more important to you than more money. Maybe flex time is more important to you.
3. Have a list in front of you of the responsibilities of the role and how/where you’ve handled those responsibilities before. Have a list of the qualifications/competencies of the role and how your qualifications match those of the role. Chart it out in a table if that is easier to follow. Having this handy and knowing it will help you in your negotiations. Knowing why you are the best candidate and advocating for yourself is important.
4. Many recruiters like to ask up front what you are currently earning and what you are looking to earn. As a recruiter, I do this only when the role is one in which people might be earning a lot more elsewhere. I want to ensure the people with whom I’m speaking fit into the range and set realistic expectations at the outset. For instance, if they are earning significantly more than my client can pay for this role, it’s better to know this up front so as to waste their time or mine. There are then no surprises further along in the process. Of course, as a candidate you can turn this question around and ask about the range. And you should! There are many unscrupulous employers who will pay you less than the range simply because you are earning far less than you’re worth. If you know you are underpaid in your current role, skirt the question of your current salary and indicate what you are looking to earn in your next role. You might say “I took my current role for the experience I would gain, etc., etc. and, now that I have this very relevant experience, I am looking to earn $XX”. Sometimes moving from one industry to another pays very differently as well (non-profits are well known for not paying as well as other industries for instance).
5. Have a coach or sounding board to help you through the negotiations. Having someone on the outside looking in and looking objectively both at the offer and your experience might be just what you need to give you the confidence to negotiate the right package for yourself. And remember, sometimes it is just better to walk away.

I recently coached a young woman who had been offered a great opportunity. The problem was she had heard the range through someone else and the offer was at the very low end of that range. She felt she had enough experience to warrant a higher starting base salary. She also wanted a delayed start date to compete a project she was working on. We talked through the offer and how best she could negotiate that offer. I wasn’t very optimistic she would get the delayed start date. We scripted what she would say and she felt more confident about her abilities and more confident negotiating that offer. Well, she called me back the next day and not only got the salary she wanted but the delayed start date as well. Then she wished she had asked for more! Don’t ask and you certainly don’t get.

Another young man was presented an offer that provided him one less week vacation than he was currently enjoying. The company didn’t want to budge on that since he would then be the only employee getting four weeks’ holiday. We discussed alternatives. The compromise? They added the equivalent of one week’s salary to his base pay and allowed him to ‘buy’ an extra week of holiday. It was a win-win. On a side note, the company soon changed their vacation policy when they realized their policy was antiquated and everyone enjoyed an extra week of holiday. So, in the end, he ultimately got another week of holiday and the extra week on his base pay.

If you remember nothing else, remember this — just about anything is negotiable. Trust me, most companies will never rescind an offer simply because you want to negotiate it. Just know what is most important to you and what you are willing to give up. Would you ever think of going into a car dealership and paying the sticker price? Let’s hope not.

Think of creative ways to get more money if that is your goal. Perhaps you can be given a ‘signing bonus’ to make up for a lower starting salary or to make up for a bonus you are leaving behind at your current employer. Perhaps you can negotiate a bonus that pays out partially on signing and the remainder after three months of successful employment. Perhaps you can negotiate an increase after your first three months. But be careful here and be sure to get the terms in writing in the revised offer letter. All too often promises are not kept by unscrupulous employers. If they are not willing to provide their promises in writing, walk away.

Remember what the Great One — Wayne Gretzky said: “You miss 100% of the shots you don’t take.”