Understandably, many people find discussing salaries uncomfortable and embarrassing during an interview. However, most interviewers expect some bartering and, if it motivates you to put more into the job, it is worthwhile for both the applicant and the employer. More than any other negotiation, a starting salary must result in a win-win situation.
Tips for negotiating the best starting salary
Know your value
Prior to the interview, research the company and salary range for the position you are applying for. Conduct a salary research so you can understand your market value by:
- Comparing salaries in job adverts – remember different locations might attract higher or lower wages
- Checking out online salary surveys (e.g. www.ukrecruiter.co.uk/salary.htm)
- Contacting people in the same job or industry to ask what other companies pay.
This is a complex and challenging interview question. Some think that if they quote a high figure they may be disqualified and so they agree to any offer regardless. They may say ‘the salary is not the part that interests me – what is important for me is the actual job’. This sort of response suggests the applicant has low self esteem and as a matter of fact is counter productive and leaves a negative impression on the interviewer.
Low self esteem can also be demonstrated in an opposite manner. An applicant may think that if they quote a very high figure, well above the industry average, it may cause the interviewer to think that the applicant is of high calibre and experience. This tactic may work if the current situation in the market is one in which there is high ‘demand’ for employees and little ‘supply’. However, most often it may also indicate a certain level of insecurity on the applicant’s side.
An interviewer will want to discuss salary as early as possible so they do not waste time with someone they cannot afford. They may also like to dwell on your past salary, in order to keep your salary expectations low. You need to delay the talk of salary as long as possible until you can convince them that you are the person they need. So:
- Avoiding discussing salary until you have a job offer. If you do, you could price yourself out of a job.
- Get the employer to disclose salary before you do.
- Do not disclose past salary. If pushed for a figure, you could say, ‘but of course, I wouldn’t accept that figure at today’s rate of pay’ or ‘but I took that lower wage in lieu of training’. Alternatively, ensure you include the entire value of the package that you received – not just the basic salary.
- If pressed by the interviewers about desired salary, try ‘What kind of salary range are you working with?’ or ‘I’d like to make as much as other employees with my qualifications’ or ‘What is a typical salary for this position?’ or ‘Until I learn more about the responsibilities I cannot make a meaningful suggestion, but will consider a reasonable offer’. Another strategy is name a pay range instead.
Sell your skills
Be prepared to talk about the skills and accomplishments that support the value you consider yourself to have.
Establish your target salary and absolute bottom line
Before you go into an interview, decide what salary you want to earn and what you are willing to settle for. It should be noticeably higher than what you earn now.
Your target salary should be at least 10–15% higher than the minimum salary you’d be willing to accept as this gives you some margin for negotiation. If you come down you should still end up with a salary at or higher than your minimum level.
Don’t be afraid to add extras into your wish list during the negotiation phase – you can then drop these if necessary to appear flexible.
Take into account the whole package
When presented with an offer, include:
- Basic pay
- Bonuses
- Company car
- Gym membership
- Shares/stock options
- Health plans
- Pension schemes
- Maternity/paternity allowances
- Life/health insurance
- Travel allowances and cost of traveling to work
- Meal reimbursement/discounts
- Clothing allowances
- Holiday allowances
- Other staff discount schemes
- Training provision/discount schemes
- Frequent flier/hotel points saving schemes.
There can be a wide discrepancy between a basic salary and the value of the total package – so ensure you are seeing the complete picture.