Nail your salary negotiation

Key guidance to get ready for negotiating your future compensation.

Includes key reflections, and pro tips for each of the stages.

More than money

For those who want to increase their income quickly, changing jobs and companies is often a good option. However, this is an important decision, and it isn´t all about money.

Key things to keep in mind:

• Job positions usually have salary bands (ranges) associated. Ensure the position and seniority level you are considering is the right fit for you. To ensure you are accepting a seniority level in line with your experience, you can:

  • On LinkedIn, review the experience of those in the same position you are applying to

  • Inquire HR about the internal leveling system used by the company and what each level means

Some people find the economic offer good and accept it, only to later realize that they were hired for a more junior position than they expected. Money isn´t always a clear indication that a position is as senior as you think.

• You can negotiate like a pro and still lose out if the negotiation you’re in is the wrong one. Ultimately, your satisfaction depends less on getting the negotiation right and more on getting the job right

  
  

• Avoid changing jobs just for the money. Money matters, but so do other things. After a few paychecks, the money is taken for granted, and you must deal every day with the company culture, job responsibilities, and relationships with colleagues.

Getting your numbers

Do not define your target salary by just adding a % to your current salary. Take the time to research thoroughly even before the initial screening call

• Research online salaries for similar positions in that industry/ company for reference. Websites like Glassdoor, Pave or salary.com can help you know your numbers, so you don´t end up accepting an offer that doesn't make sense to you

• Think about the compensation as a whole. You may accept a lower increase if you get something else you want (e.g. holiday days). Remember that "salary" isn´t all.

• Consider benefits (e.g. health insurance, dental, vision), bonuses, retirement plans, PTO, and other perks (e.g., professional development budget, gym membership, relocation assistance).

• Also investigate if it´s common to get a signing bonus, stock options/RSUs, or other specific incentives

Answering the initial question

Most likely, you will be asked about your salary expectations at same point during the recruitment process. When the time comes, here are some alternative strategies:

• Reverse the question (To avoid giving a number that falls outside their band)

  
  

  Right now, I am more interested in understanding the role and if we are a good match for each other. That said, it would be useful if you could tell me what a typical compensation for this position in this company is"

  
  

• Postpone the question (To gain more time or leverage) 

  
  

  Keep in mind that the further in the process you are, the more likely it is that they decide to be generous or accept your offer.

  
  

  "Right now, I am more interested in understanding the role and determining if we are a good match for each other, so I haven´t been focused on the compensation details yet. I would have to do some research before giving an answer"

• Provide a well-researched answer (If you're pressed or know your value)

  
  

  It is a straightforward way of testing if they are willing to pay what you need. It´s better to give a range than a fixed number. If you really want the job, consider adding a comment such as "I am very excited about this role, so I am open to discuss this number if needed"

  
  

  "I would expect something along the lines of X-Y/ year (gross / net) plus benefits"

• Tell them your current salary (If your current pay is high)

  
  

  This number will be used as an anchor, so if you are underpaid today, you may want to give a range that is above it.  You can also justify a higher figure by detailing the new scope

  
  

   "My current salary is X-Y/ year (gross / net) plus benefits. Given the increased scope, I would expect X-Y% more"

Negotiating

Be strategic

• If possible, discuss salary at the end of the recruitment process (you will have more leverage)

• Don´t stick to one number from the beginning. You can leave room for later negotiation by clarifying that the salary range may be OK, but the benefits are important to you and can be discussed after receiving an offer

• Avoid confirming the offer on the spot. Ask for some time to review it and do so thoroughly. Once you say "yes", you cannot go back.

• Don´t negotiate one item at a time; it can make the process unnecessarily long and annoying for the recruiter, who might assume that you only wanted to discuss one thing

• If you have more than one request, don’t simply mention them all; also signal the relative importance of each to you. Otherwise, they may pick the two things you value least because they’re easy concessions.

• If you want to consider multiple jobs, it’s useful to have all your offers arrive close together. Don’t be afraid to slow down the process with one potential employer ("Can I take a few days to review it?"), or speed it up with another ("I am in the final rounds with another potential employer, so I was wondering if it is possible to speed up the process") to have all your options laid out at once. But be careful, since pushing back/ push too much can put the offer at risk

• Negotiation is an art, and you need to be strategic. Salary discussions can be a deal breaker, so risk more when you are in a stronger position (e.g. employed in a good job) or you are not so passionate about the job. If you are unemployed or in a similar situation, your leverage will be lower. Be aware when having these conversations

Be nice

• Don´t make the recruiter your enemy. Avoid giving ultimatums of any kind. They will be more likely to fight for you or help you if they like you. Always be polite and friendly

• Make it clear you are excited about the job, and that you intend to accept the offer. Recruiters won´t want to invest time or expose themselves if they believe you may not accept the offer

• Try to always be honest, even if asked hard questions. If they ask whether you have more offers, you may be tempted to say yes thinking that it gives you more negotiation power. Try to avoid being dishonest. An honest answer can take you far.

• Justify your ask when negotiating, so you help them understand "why" - e.g. higher salaries for more responsibilities, more work-from-home days to balance the schedule of your children, etc.

• Do not negotiate for the sake of doing it or just to prove you can do it. Consider if the offer is actually good for you or not.

A note on communication style

While this video gives good food for thought, keep in mind that it is not a good example of how to handle a nice interaction. For example, the answer to the first question (what is your current salary) could be handled better by saying: "Since this job has other responsibilities and scope, perhaps the current salary is not so relevant. But I would love to hear more about your compensation guidelines for this role."

Some materials:

Complete Guide to Negotiating Your Tech Salary and Compensation - Exp

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