Your Roadmap to Salary Negotiation Success

Negotiating salary with a potential employer is always a stressful moment. There are countless recommendations on how to approach it, and sometimes these pieces of advice even contradict each other.

I want to share examples from my experience to illustrate possible strategies and recommend those that I believe are the most successful and effective.

When and With Whom Should You Discuss Salary Expectations?

Discussions about a candidate's salary expectations can occur at the following three stages:

1. The first interview with the recruiter, known as the pre-screen.
2. The final interview, which could be with the hiring manager, department head, a C-level executive, or even the founder.
3. After receiving an offer, either verbally or in writing.

It's important to understand the company's goals at each of these stages to develop your own strategy for the discussion.

Understanding the Company's Goals at Each Stage

At the pre-screen stage, the goal is to determine if your expectations fit within the company's budget range. Here, the company decides whether to proceed with you in the hiring process. If you state expectations that are too high, the recruiter might not move you forward. Sometimes they might tell you directly that the company can't meet your financial expectations; other times, they might decline for other reasons to mask this fact.

In some cases, the recruiter might try to negotiate with you during the first meeting and ask under what conditions you'd be willing to accept a lower salary.

To be prepared for such negotiations, I recommend you determine your minimum acceptable salary in advance.

Knowing Your Minimum Acceptable Salary Is Crucial

• If the company meets your minimum salary, you can start working, knowing you're paid adequately.
• If it doesn't reach that level, you can walk away, knowing you did the right thing by refusing an unacceptable offer.

You might think, "But can't I ask the recruiter for the salary range to see if it interests me?" Yes, you can, but recruiters often avoid naming the figure first, or they might not know the exact range themselves. The decision to proceed might be made by the manager to whom the recruiter presents your application, including your expectations.

If you don't state your desired amount or range at the first meeting, you might not get invited to subsequent interviews. But if your figure is too high, they might immediately reject you.

Should You Name Your Salary Expectations First?

Many career specialists agree that whoever names a number first is at a disadvantage. It's generally not beneficial to state your expectations first, as you might set them lower than what the company is willing to offer.

However, some specialists recommend asking the recruiter to name the range first. This tactic can work, but only if you are a highly sought-after and experienced candidate. Only those who are confident in their competitiveness in the market can afford such a strategy.

How to Know If You're a Sought-After Specialist in 2024

• If you receive several offers from recruiters on LinkedIn or via email each month, congratulations—you are a sought-after specialist!
• If the last time recruiters reached out to you was over six months ago, the market has changed, and you need to make efforts to "sell" yourself in interviews and be prepared to negotiate salary.

In other cases, the recruiter might ask follow-up questions to prompt you to reveal your current salary or the minimum offer you'd accept. They might ask how you formulate your salary expectations and what they consist of.

How to Formulate Your Salary Expectations

You can base your salary expectations on several factors.

1. Your current salary.

Everyone understands that a candidate usually wants to increase their salary when switching jobs, unless there's something dramatic happening at their current company. However, remember that you are not obligated—and in some cases (like under an NDA), you are prohibited—from disclosing your current salary.

Also, market realities might mean that your current salary is higher than what you can expect today when switching jobs. We'll consider this case separately in our next articles.

2. Your total compensation package.

Besides your salary, you likely have bonuses, commissions, or stock options. Their value should be considered as part of your total compensation.

3. Your benefits.

Analyze the benefits you currently receive and how often you use them. Determine whether the new company offers the same. If not, you might want to factor these into your salary expectations to ensure your standard of living doesn't decrease.

4. Market rates for your role and level.

Research what compensation companies are offering specialists at your level. This is easier now, especially in Europe and the U.S., where companies are required to publish salary ranges. You can check resources like Glassdoor or job postings that include salary information.

I recommend focusing on current job postings that specify salaries for roles similar to yours.

If you want to go further, you can even apply to these vacancies to test your market value. If the company doesn't invite you to an interview, perhaps the figures they listed are still too high for you—but that doesn't mean you shouldn't try. What doesn't work with one company might result in an offer from another.

Determine Your Minimum Acceptable Salary

Before discussing salary with a recruiter, it's essential to analyze your expectations and define your minimum acceptable salary. This will simplify your subsequent choices.

Also, I recommend thinking about criteria that are important to you besides compensation. What aspects of work bring you closer to your life goals or give you more energy and enjoyment?

Conversely, consider what makes you more effective and what you can bring to the employer. All this will help you in salary negotiations if they occur.

Clarify When and With Whom to Discuss Compensation

During your first meeting with the recruiter, I also recommend asking when and with whom you should discuss compensation. If the recruiter says that the conversation with them is the only opportunity to state your expectations, that's a signal to think carefully about the figure or range you provide, as the next opportunity might only come after an offer is made.

Understand the Norms of the Market You're Entering

For those relocating from Eastern Europe, it's important to note that in Western Europe and the U.S., it's customary to discuss annual gross salary, and sometimes total compensation, including bonuses and stock options—not monthly net salary after taxes. You should be aware of your tax options independently, as many individual factors affect deductions when filing annual tax returns.

Preparing for the Final Interview

Suppose you've gone through all the interview stages, learned all the aspects important to you, and determined whether you want to work at this company and for what compensation. You're about to face the final stage.

Salary expectations are not always discussed at this point, but I recommend being prepared for such a discussion.

By now, you should have a list of pros and cons of working at this company and a list of what you can offer them.

This preparation will help you in negotiations. With your list of pros and cons, you'll understand how interested you are in working for this company. You'll also identify areas where you lack information, so prepare questions about all the criteria that matter to you when choosing a job. After the final meeting, you should understand how well the employer meets your expectations.

Your list of what you can offer the company will be useful as arguments if you discuss increasing the compensation.

Avoid Common Mistakes When Discussing Salary

A common mistake candidates make is significantly increasing the amount compared to what was initially indicated, without proper justification. Proper justification for increasing your salary expectations includes:

1. The job you learned about during the interview is different from what was described in the vacancy for which you initially stated your expectations.
2. The scale of tasks, workload, team size, number of stakeholders, or volume of communication is much higher than you expected.
3. The job itself is more complex and will require more energy, preparation, and time.
4. There are conditions that increase the cost of the work performed and which you did not know at the beginning—for example, working in a highly competitive market, tight deadlines, or high KPIs.
5. There are working conditions that will require additional expenses from you, such as commuting to an office located far away or frequent business trips.

Please do not use your personal difficulties or needs as arguments for increasing salary expectations.

These might explain high expectations mentioned during the pre-screen if the recruiter asks how you formulate your expectations, but the company is primarily interested in whether your expectations are in line with the market and what extra value you can bring.

Negotiating After Receiving a Job Offer

If your expectations were not discussed during the final meeting, your last chance to discuss them is after receiving the job offer. The best tactic after receiving an offer is to ask for time to consider it. This gives you time to develop a negotiation strategy and prepare.

When offered a job—whether by phone or in writing—it's better to thank them for the offer, ask for some time to think it over, and request a brief summary of the numbers to ensure you understood everything correctly.

Here's a template for such an email:

Subject: Offer Follow-Up

Hi Jordan,

Thank you very much for the offer—I really appreciate it! If possible, I'd like to take a few days to review it before giving my response. Could you also send over a quick summary of the numbers we discussed? Bullet points would be perfect; no need for anything formal.

Thanks again for your time!

Best,

Taylor Morgan

How to Know If It's Worth Negotiating and Whether the Company Might Reject You

You can proceed with negotiations if you see that the company is trying to "hold on" to you and maintain contact:

• You received the offer immediately during the meeting or within a day.
• The process was quick; meetings were not postponed.
• They always checked if the timing was convenient for you.
• You received very positive feedback after each stage.
• After the offer, the recruiter asks how much time you need to think, what influences your decision, and whether you can respond sooner.
• They remind you about the offer and ask if you've made a decision.
• They offer a sign-on bonus if you start working by a certain date.

These are all indicators that you can enter into salary negotiations. If none of this happens, the chances of successfully negotiating a higher offer are slim.

How Much Can You Increase the Salary After an Offer Is Made?

Depending on the process described above, you can negotiate for 10% or even 20% more.

You might be tempted to propose a range instead of a specific number, but this can work against you, as the company is likely to choose the lower end. It's better to state the higher number outright.

Also, it's better to stick to round numbers—for example, $141,000 instead of $141,755.

In 2024, the situation in the high-tech market is such that even getting such a raise is difficult. Sometimes candidates receive offers lower than what they had at their previous job, due to ongoing layoffs, labor optimization, and economic downturns. But this doesn't apply to all specialties.

To check if you're among the sought-after specialists, you can look at the number of job offers you've received in the past six months and the number of vacancies in your specialization on popular job boards.

If you're not receiving offers and there are few vacancies in your field, I don't recommend negotiating.

Other Negotiable Factors Besides Salary

There are many elements that contribute to an attractive compensation package beyond just the salary.

If you can't reach a salary you're comfortable with, consider negotiating for additional perks that are important to you. These can serve as valuable bargaining tools.

1. Flexible Work Hours

Perhaps you have commitments that require a more adaptable schedule, such as childcare responsibilities. Discussing the possibility of flexible working hours—like starting earlier and leaving earlier—can make up for a less competitive salary offer.

Since the COVID-19 pandemic, many employers have become more open to flexible work arrangements. Negotiating for flexible hours or the ability to adjust your schedule can enhance your work-life balance and compensate for a lower salary.

2. Remote or Hybrid Work Options

The shift toward remote work has opened new possibilities. Negotiating for work-from-home days or an entirely remote schedule could be a win-win for both you and your employer. This flexibility might make the overall compensation package more appealing.

3. Relocation Assistance

If you're considering a job that requires moving to a new location, ask if the company provides relocation assistance. Coverage for moving expenses can significantly reduce the financial strain of relocating and make the offer more attractive.

4. Additional Paid Time Off

Work-life balance is crucial for many professionals. Negotiating for extra paid time off—such as an additional week of vacation—can be the deciding factor if salary negotiations reach an impasse. More personal time can greatly enhance your overall job satisfaction.

5. Commuter Benefits

Transportation costs can add up over time. Inquire whether the company offers reimbursement for public transit fares or mileage expenses. These commuter benefits can offset your daily expenses and contribute to your net compensation.

6. Professional Development Opportunities

Investing in your growth benefits both you and your employer. Consider negotiating for support in professional development, such as funding for courses, certifications, or attending industry conferences. This not only advances your career but also adds value to the company.

By broadening the scope of negotiation beyond salary, you open up possibilities to create a compensation package that better suits your needs. Employers often have more flexibility in offering these additional benefits, which can enhance your overall satisfaction with the job.

Preparing to Negotiate

If you decide to discuss salary or other compensation elements, the next choice is whether to do it orally or in writing.

Different specialists recommend different strategies, and companies may have different processes for this. In any case, I recommend preparing a letter in which you respond to the job offer and propose reconsidering its terms. Here's a template for such a letter:

Hi Samantha,

I hope you had a fantastic weekend!

I've had some time to think about James's offer, and I'm thrilled about the opportunity to contribute to Innovate Solutions and James's team. I'm confident that my skills and experience align very well with the role, though I would like to revisit the base salary component.

With a solid technical foundation and proven leadership experience, I've successfully managed and guided technical teams. I'm adept in client relations, having even led workshops on building rapport and client management. Along with my MBA, I have a strong record of managing various business portfolios in the Widget Making industry for the past seven years. My current work with [Partner Organization] has equipped me with direct experience working alongside their partnership managers and leadership, and I have a strong background in technical writing, enabling me to efficiently produce and delegate high-quality content creation.

These qualities are closely aligned with the core needs of this role, and I'm genuinely excited about the chance to work with James's team at Innovate Solutions. James proposed a salary of $50,000, and I would be more comfortable at $56,000. I feel this adjustment would better reflect the position's responsibilities at Innovate Solutions and my specific qualifications for it.

Thank you for your time, and I look forward to speaking on Monday at 10:30 AM ET!

Warm regards,

Alex Turner

You can use this template to respond to the offer or as a basis if you want to think over your decision and buy some time.

You have the option not to respond immediately but to weigh all the criteria and take time to consider. Keep in mind that this time allows not only you but also the company to reflect further.

Oral vs. Written Negotiations

The advantage of discussing in person is that you can see the other person's face, their reactions, and understand how your words are being perceived. The disadvantage is that the side with more confidence or that feels in a stronger position has a better chance of asserting their point of view.

This is where a pre-written letter can be helpful, serving as a script for your oral discussion and helping you avoid confusion during negotiations.

Remember, negotiating your salary and compensation package is a normal part of the hiring process. By preparing thoroughly and understanding both your needs and the company's perspective, you can navigate these conversations confidently and find a mutually beneficial agreement.