How to Negotiate a Better Salary Offer

Career Development

22 May

Updated July 30, 2021

How you can negotiate a better salary offer

You’ve breezed through your interview, taken each curveball question in your stride. Then you’re asked, “What are your salary expectations?” And you freeze up, stumbling through your answer.

How you answer this fundamental interview question can determine whether or not you’re offered the job. Yet, many people forget to prepare for salary negotiations during the interview process adequately. Flubbing your answer to this crucial question can leave you looking unprofessional, undermining everything that you have done up to that dreaded question. And, even if you are offered the job, you may end up with a lower salary than you expected.

If this sounds familiar, don’t beat yourself up. Instead, make sure that you’re better prepared at your next job interview, so you look professional and are in control of the salary negotiations.

How to prepare for & negotiate your salary

1. Check your budget

Changing jobs is an excellent time to look at your finances. How else will you know how much you need to earn if you don’t know your expenses? Of course, doing your finances brings some people out in a cold sweat, but knowing how much you spend will give you a better handle on how much money you need to live off each month.

Take a look at what your bills are, including:

Monthly expenses such as electricity and rent or mortgage
Day-to-day living costs like petrol and shopping
Other expenses, e.g. clothes and magazine subscriptions.

Then consider where you would like to be in the future to factor in extra expenditures, such as saving a deposit for your dream holiday or a deposit on your first house.

Once you have done this, you’ll know what the minimum salary you can accept is.

2. Determine your worth

How can you know what a job is worth just from looking at a job advertisement? You need to do a little homework first. These days information like this is straightforward to find. Start by looking at trustworthy websites such as Careers.govt.nz or Payscale.com (nz). This will help you gauge the market value of the role you’re interested in based on your experience.

Don't skim – Payscale.com has a wealth of information about salaries related to years of experience coupled with job breakdowns and how additional skills and knowledge can impact the salary. This will help you determine if it’s worthwhile adding skills and expertise through targeted training.

Compare this with your own professional experience and qualifications. Then, add in your unique experience including your measurable achievements – especially those that have contributed in some concrete way.

Once you have gathered all this information, work out what your ideal salary is. The next step is to work out what the employer is offering.

3. What salary is being offered?

The best way of doing this is to contact the recruiter to ask what the salary range is before applying for the role. Then, if the range is below your expectations, you know not to waste your time applying. If you’re unable to make contact, though, go ahead and apply for the role. Then prepare an appropriate response to possible salary questions in the interview.

The recruiter may ask you questions like:

What is your salary in your current role?
What are your salary expectations?

If you’re early in the application process – say the first interview – it’s best to respond by asking the recruiter outright what the salary range is.

4. Pitching your expectations

If you don't feel confident responding to the recruiter’s question with a question of your own, you can confidently respond with the range you’ve determined through your research, e.g. between X and Y.

The key here is to be confident.

State your range and wait for the recruiter to reply. Don’t be tempted to fill the silence; just stay quiet and wait for their reply.

Here’s an example:

You’ve identified the typical salary range for the job is $60,000-$80,000 and that your salary worth is at the top end of $80,000. This calculated on your experience, specific qualifications, and a track record of measurable achievements.
Your response to the question, “What are your salary expectations?” would be to confidently say, “Ideally between $80,000 and $90,000”. However, don’t be afraid to start at the high end, as this will leave you wriggle room to negotiate and it means you are more likely to be offered your ideal amount, perhaps more. Also, stating an ideal salary range demonstrates you are willing to be flexible.
Be prepared to support your response with an explanation about what your worth is related to: experience, knowledge, achievements and professional qualifications that relate to the role.
Tone is everything – you don’t want to come across as defensive or pushy. Instead, keep it positive and professional.
If you lack confidence in negotiation, role play with someone you’re comfortable with but who is another business professional. They can help coach you and highlight any tricky questions you may have to field. By practising your negotiation skills, you’ll feel more confident, which will be reflected in the way you present yourself at your next interview.
The key to successful negotiations is being prepared. Candidates who wing it come across as unprofessional. Being prepared to discuss salary is part of the process and is another opportunity to demonstrate your professionalism.

Negotiation no-no’s

Hiring managers have seen it all before, so don’t be tempted to fabricate your worth. The truth always shines brightest.

Also, don’t drag out the negotiations longer than necessary. It’s essential to start a new business relationship on a good foot. You don’t want to create the wrong impression before you’ve even started.

If the remuneration package isn’t right, it’s best to thank the interviewer for their time. Then, ask to be kept in mind if something more suitable becomes available in the future.

One final point

Negotiating is an art, so be prepared for a little give and take. Consider any other benefits included with the position, such as flexible working arrangements, additional holiday days, professional development opportunities, profit share, private medical insurance or any other perks. Also, if the job is with a company you’ve always wanted to work for, it may be worth taking a lower salary.

Ultimately, it’s up to you. You know what you want, what you’re worth and what you’re willing to take to secure the role. So be prepared, confident, flexible and open – this is the best approach you can take.

Searching for your dream job?

As a career coach with over 20 years of experience, I have enabled hundreds of people just like you to figure out what’s really important to them and fine-tune their interview skills. If you’re struggling to find yo ur ideal job or need a hand landing your next interview I can help.