As someone that has worked with thousands of candidates on their job search, I’ve learned a few things about negotiating salary that I would like to share. Most people feel that they can only negotiate their salary if they are currently working and are earning a salary that they can refer to, or are fielding multiple offers that they can play off of each other. While having these helps, even without a current job there are things you can do to maximize your negotiating power when interviewing, even if you’re an entry-level candidate entering the job market.
Do your research
Before you embark on interviews, understand what the market value is for your position. Understanding the demand for your role and what firms are paying for this type of position will give you the confidence to know what to ask for when the attorney poses the question, “How much are you looking for?”
How can you find out this information?
- Several national HR and Recruiting firms conduct salary surveys of their clients and compile this information into an annual pamphlet, which can be found online. Google “Salary Survey 2016” and you should be able to see the latest versions of these, many times offered free.
- Glassdoor.com captures market data on specific positions and what their salary ranges are.This can vary widely based on the size of the company/firm but does give a range.
- Recruiters!Although I may be biased, I can say that recruiters in a chosen field are typically the best source of information for what the market is paying for a given profession. We speak to hiring managers and others in the field daily, so we have a pretty good gauge on what the market rate for a specific position is.
- Informational Interviews with others in the field. When attending an industry event like a trade show or job fair, you will meet others that are further along in their career.Conducting an informational interview would be a great way to learn about what salary you can expect to make for a particular position now and in the future.
Discussing salary during your interview
I see most interviews follow a 3-step process: The first interview is when a company determines if a candidate might be a fit for them, the second interview is a chance for the candidate to examine if the company is one that they would like to join; and the third step in the process is for there to be a mutual discussion of what the particular details of the position will be. I always recommend that candidates shouldn’t bring up salary requirements until at least the 2nd or 3rd interview. The majority of the time a good Recruiter or HR Manager will explore the range that a candidate is looking for, to make sure you are in the right ballpark, so it won’t be up to the candidate to mention compensation. However if you do get to a third interview and the company has made no mention of salary, now would be an appropriate time to mention it.
How do you answer the question, “How much are you looking for?”
Here is an effective answer: “My first priority is this opportunity to work with your company, as I think your organization fits with my short and long term career goals, and I could contribute greatly to your growth. Through my research, I’ve learned that the market value is typically ___. Through my other interviews and exploratory conversations, I feel that the minimum I would consider is ___.” Notice that in this example you are giving an actual salary figure. Most companies and hiring managers do actually want to hear a number, and it can be frustrating for a hiring manager to determine if you are even in the same ballpark as their pay scale. Know your bottom line prior to your first interview & what you would be willing to accept. Not every offer has to be negotiated at the end, so if you know what you would accept, then let them know that at the outset.
Understand company constraints and capabilities.
Small companies will have certain advantages but also some constraints when hiring employees. Generally, smaller companies mean smaller budget for employee salaries. However, a smaller firm or company might also have a greater flexibility to negotiate your titles, time off, or review periods, and these are things that you can negotiate during your job interview.
Larger companies can typically pay more, but also have set pay schedules for set years of experience, and can’t vary from their pay scales for one employee.
When Negotiating…
Make all your requests at once. When negotiating with a company, you would never want to ask for a salary that you ultimately would be unhappy with. If you are going to negotiate, then be prepared to say ‘yes’ if the company agrees to your initial demands. Additionally, my opinion is that you shouldn’t ask for certain demands one item at a time. Discuss all of the items that you would like to negotiate, that way your potential employer only has to get approval from the powers-that-be once.
Make a business case for your demands. Hiring managers and companies will be willing to hear what you have to propose if you can make a business case for it. Sell the company on why they should be willing to give you these things by helping them understand the return they will get on their investment in you.
Communicate time & response expectations clearly. There is nothing wrong with taking time to think about an offer. Most companies don’t have a problem with having you take a day or two to review the details of the offer or discuss it with your family, etc. If you aren’t ready to say yes immediately, then I think it’s always important to communicate when they can expect to hear your answer to their offer. When receiving an offer, give an exact day and deadline that they can expect to hear back from you. Hiring managers translate silence as lack of interest, so you want to make sure that you are both on the same page with the timing of your communication. “Thank you very much for the offer and this information, and initially this all looks great. Do you mind if I take a day to review the details, and give you my answer no later than Friday at noon?”
Lastly, always be positive.
Understand that you cannot take any negotiations personally. If you are insulted by a company’s initial offer when interviewing and negotiating for your next job, this can start employment off on the wrong foot! Do you part by consistently vocalizing how excited you are to join the team and company, and how obtaining the desired position remains your number one priority. Likeability and positivity can help nudge a stuck negotiation along, so keep these in mind so the interview process doesn’t turn adversarial.
