You're in an interview and are caught off guard by the salary question. Even though you had a decent concept of what you wanted to ask for, you feel apprehensive because you're afraid the hiring manager would think you're asking for too much. So you play lowball, spitting out a number at the low end of your range. You're afterward disappointed with yourself since you know you didn't demand what you're worth.
The question now is, "What now?"
Ideally, you won't have to reply to your own salary lowballing since you'll have prevented it in the first place. However, if you've already gone past that and have lowballed yourself, there's still a chance you may continue bargaining and come closer to the remuneration you truly deserve.
We'll talk about:
- How to Negotiate Compensation Effectively
- What to do if you have lowballed your salary
- Aside from salary, what else could be negotiated?
NEGOTIATION STRATEGIES (AND AVOID LOWBALLING YOUR SALARY)
A pay talk can occur at any stage in the recruiting process, depending on the employer/recruiter: as early as the pre-screen call or after the final discussion. So, always be prepared for this talk to occur at any time.
Here are four salary negotiating strategies to help you receive the salary you deserve:
1. PERFORM YOUR RESEARCH
Conduct preliminary research to learn about the average salary ranges for employees in your field doing this job. This varies according to the geographical area, industry, organization size, years of experience, and other aspects, so be precise when gathering information. You can utilize tools like Indeed, Glassdoor, or Google, and if you're working with a recruiter, they may be a great source of up-to-date salary range information if they're actively recruiting in your area and region.
2. BE AWARE OF YOUR BOTTOM-LINE NUMBER
Create a compensation range for yourself once you've determined the average salary for the position. Consider the maximum amount you'd ideally want to earn (within reason for the position and your experience) and the minimum or "walk-away" number you'd be ready to accept. Also, start thinking about what factors are crucial to you aside from salary—we'll go into this more later.
3. NEGOTIATE DURING OR BEFORE THE OFFER STAGE
It's never a good idea to try to negotiate after you've already lowballed yourself. If you need to negotiate, do so before (or during) the offer step. Come in with confidence and your salary range in hand. After hearing the offer, make a counteroffer if required and wait to see how the recruiting manager replies.
Since you have already decided on your bottom line, you should be prepared to walk away at this stage if they are unable to meet it. Inform the company that you are unwilling to take a salary below that amount.
If you're dealing with a recruiter, they'll go through their role in the negotiating process with you. In certain circumstances, the recruiter will operate as a mediator between you and the company, while in others, they will serve as more of an advisor and you will negotiate directly with the business. Make sure you understand these expectations and, if necessary, seek clarification. It is critical to respect the relationship your recruiter has with you and with the employer (their client).
4. DO NOT MAKE A VERBAL COMMITMENT UNTIL THE OFFER IS RIGHT
Avoid verbally committing to a salary that you are not able to accept. Verbal offer acceptance is a common step before creating the formal offer letter, so if you agree to anything orally, be sure it's the salary you're willing to commit to on paper as well.
WHAT SHOULD YOU DO IF YOU HAVE LOWBALLED YOUR SALARY?
We've learned how to prepare for salary negotiations and how to prevent lowball salary proposals in the first place. But what if you've already done it, or if you get caught up in the negotiating process and end up lowballing yourself despite your best efforts?
Don't panic – it's still possible to save yourself and secure a salary that's closer to what you're looking for.
1. IMMEDIATELY ADDRESS THE SITUATION
Don't wait till your next planned interview or interaction with the recruiting manager. As soon as you discover you've lowballed yourself, send an email or phone back. They're probably taking the salary you agreed to in exchange for budget approval, so the sooner you communicate, the better.
2. BE OPEN AND ACCOUNTABLE FOR WHAT HAPPENED.
Clear communication is valued. Inform the employer that you may have talked hurriedly about your salary expectations due to your excitement about the opportunity.
3. EXPLAIN YOUR EXACT SALARY EXPECTATIONS.
Inform the recruiting manager about the salary range you are searching for.
If you're having this conversation in person or over the phone, stop talking now and allow them an opportunity to answer, rather than trying to fill the quiet with panicked backtracking or explanations.
Essentially, three outcomes are possible: 1) they'll agree to your number; 2) they'll say they'll see what they're able to do, talk to their team, and may come back with a salary that's at least in the ballpark of what you're looking for; or 3) they'll tell you that they can't meet the salary you're asking for, at which point you can accept or decline the offer.
If you are dealing with a recruiting agency, include the recruiter in this conversation.
APART FROM THE SALARY, WHAT ELSE SHOULD BE NEGOTIATED?
Negotiating a job offer is an economic decision. The company is prepared to pay a specific amount for your services, and you are willing to accept a specific amount in exchange for your efforts. However, there are additional factors to consider during a job offer discussion other than money:
1. TIME OFF
Work-life balance is essential. Having vacation time allows one to rest and refresh. If the salary provided is significantly less than your ideal, see if you can negotiate extra vacation time, personal/flex days, or sick days.
2. ADVANCEMENT OF CAREER
If you can't get the salary you want right away, you could at least negotiate with the company to finalize a future growth plan. Inquire about the company's training or the possibility of a future performance-based promotion. It's an excellent way to learn and advance in your job while also ensuring you'll get paid more in the future, even if you don't get the income you desire right away.
3. FLEXIBLE WORK ARRANGEMENTS
As always flexible work is most popular. Inquire with the hiring manager about feasible options ranging from hybrid work schedules to entirely remote work and flexible start and end dates. For some candidates, flexibility is just as crucial as pay, therefore you may opt to take a little lower income for a career with greater freedom.
4. BENEFITS AND PERKS
Benefits and perks may play a significant role in your job offer package, so be sure you understand what they include. Most group benefits packages cannot be negotiated at the individual level; however, you may be able to negotiate the timing of your benefits (i.e. waive the waiting period if there is one). If other benefits are included in the package, such as wellness allowances, gym memberships, transportation reimbursement, or a company-provided mobile phone, there may be some area for negotiation.
5. SALARY REVIEW
Many organizations will be willing to do a compensation review in the future. You and your manager can then sit together and re-evaluate your remuneration. Requesting that the salary review date be included in the job offer might help to formalize this strategy and provide you peace of mind.
6. BONUS FOR SIGNING
Some organizations are ready to pay a signing bonus, which might help you negotiate a better deal. Remember that a signing bonus is only paid once, so it will not be included in your salary in later years.
Overall, think of salary discussions as a team effort. Instead of focusing on what you can "get" from this company, have an open dialogue and consider achieving a win-win situation.