HKSM

Negotiating salary and benefits is a crucial skill that can significantly impact your career growth and satisfaction. While many people find salary negotiation uncomfortable, it’s an essential part of the job process that benefits both you and your potential employer. If done right, you can walk away with a better deal without jeopardizing the offer.

Always Negotiate

Negotiating your salary is an important part of the job process. You’ve gone through the interview process, impressed the hiring manager, and now they’re extending an offer to you. It’s easy to feel excited and accept the first offer, but negotiating is an important step to ensure you’re being compensated fairly for the value you bring.

Here’s why you should always negotiate:

1. It’s expected: Employers expect some negotiation. It’s a normal part of the hiring process, and they often leave room for negotiation in the offer.
2. It shows confidence: Asking for a higher salary or better benefits shows you’re confident in your skills and value.
3. It can help you get more: In many cases, simply asking for a little more can lead to a higher offer. Don’t leave money or benefits on the table.

Remember, the employer is offering you a job because they want you. They want you to join their team, and that desire gives you some leverage in negotiations.

Understand the Hiring Manager’s Perspective

Once you receive a job offer, understand that the hiring manager doesn’t want to lose you. They’ve made a choice after going through a lot of interviews and evaluations. They are just as eager to finalize the process and move forward as you are.

Think of the hiring manager’s point of view:

1. They don’t want to go through the interview process again.
2. They are likely excited to have found a candidate that fits their team.
3. They want to make you happy and onboard you quickly, so they can focus on other tasks.

This gives you a unique position of power. You don’t want to push too hard to be rude, but you can definitely ask for a more than what was initially offered.

Do Your Homework: Know the Salary Range

Before you enter any salary negotiation, you must know the salary range for your position. Research is key. If you ask for a crazy amount, it won’t cancel the offer, but it can start the relationship on a negative note. It’s important to ask for a reasonable increase that reflects your market value.

How to prepare:

1. Research salary ranges: Websites like Glassdoor, Payscale, and LinkedIn Salary Insights can provide valuable information about what people in your position earn in your location.
2. Understand the local market: Salaries can vary greatly depending on location, industry, and company size. Make sure you’re looking at salary data relevant to your area and sector.
3. Know your value: Take into account your experience, education, and the specific skills you bring to the role. This will help you determine a fair salary range.

Let’s take an example. If you are offered a position at a salary of $110,000 CAD per year, but research shows that the average salary for a project manager in your area is between $105,000 and $127,000, you know the offer is within range but may be slightly on the lower side. You can use this information to guide your negotiation.

Ask for More Than the Original Offer

One of the most effective negotiation tactics is simply asking for more money. Even if you feel awkward about it, know that it’s common and expected in many negotiations.

Here’s how to approach it:

1. Ask for a little more: You don’t have to go drastically higher. Asking for a few thousand more than the original offer is usually reasonable and can often be granted.
2. Don’t settle for less: If the employer wants you, they are likely willing to adjust the offer. Don’t hesitate to ask for what you think is fair based on your skills and experience.

For example, if you are offered $110,000, you might say, “I’ve done some research and found that the typical salary for a project manager in [AREA] ranges from $105,000 to $127,000. Based on my experience and skills, I was hoping to adjust the offer to $115,000.”

In many cases, the employer may say yes or offer a counterproposal. Either way, it’s important to ask and advocate for yourself.

Negotiate Other Benefits

Salary is important, but other benefits can add significant value to your offer. Negotiating for things beyond salary can improve your overall compensation package and make your offer more attractive.

Here are some areas you can negotiate beyond salary:

1. Vacation time: You can always ask for one additional week of vacation if you feel it’s important for work-life balance.
2. Benefits starting on day 1: In some cases, employers offer benefits that begin after a waiting period. Ask if you can start your benefits on day one.
3. Travel compensation: If you’ll be traveling for work, ask if the company will cover any highway tolls or travel-related expenses.
4. Cell phone: You can ask for a company-provided cell phone or compensation for using your personal phone for work purposes.
5. Tech tools: If your role requires specific equipment, you can ask for a company-provided tablet or laptop.
6. Sign-on bonus: Some companies offer sign-on bonuses to attract top talent. If the salary is non-negotiable, this might be another area to explore.

These small additions can make a big difference in the total value of your offer.

Example of a Salary Negotiation

Let’s put everything together with a concrete example. Suppose you receive an offer that’s lower than what you expect, so here is how to negotiate.

For example, if the offer is $110,000 per year, you could say:

"Regarding compensation, the offer mentions a salary of $110,000 per year. Based on my research, the median base salary for an IT project manager in Toronto is around $105K to $127K, with additional cash compensation ranging from $5K to $15K, depending on the source.

I’m confident that with my skills and experience, I can deliver the value that aligns with compensation in that range. That said, I understand that I’ll still need to prove my skills to [Company Name], and I’m very eager to contribute to the amazing work your team is doing. In light of this, I’d be willing to accept a lower-than-average offer, but I was wondering if it would be possible to adjust the base salary to $115,000."

This approach is polite, professional, and clearly explains your reasoning. It shows that you’re open to compromise while still advocating for yourself. You can download an email template from our website and fill it up.

Advocate for Yourself

Finally, remember that advocating for yourself is a critical skill. No one else will fight for your salary and benefits like you can. It’s important to understand your worth and ask for what you deserve.

Here’s some advice:

1. Do your research: Always know what you’re worth and the typical salary for your role.
2. Don’t settle: You don’t have to accept the first offer. You can always ask for more.
3. Use resources: There are many books, blogs, and YouTube channels dedicated to salary negotiation advice. Take advantage of these resources to improve your negotiation skills.

At the end of the day, salary negotiation is about advocating for yourself and ensuring that you’re compensated fairly. The more you practice, the more comfortable you’ll become with negotiating in a professional, effective manner.

Conclusion

Negotiating your salary is a crucial step in the job offer process. Always negotiate, do your homework, and be prepared to ask for more than the initial offer. Consider negotiating for additional benefits, like vacation or technology, to improve your overall package. And most importantly, advocate for yourself. If you don’t take care of your compensation, no one else will.