How to negotiate salary offer during interview 2021

Negotiating your salary can be one of the most stressful parts of the hiring process. What are your salary expectations? Do you know how to answer this without jeopardizing a chance of a job offer? Yet be true to yourself and your value. In this article, I’ll teach you 4 steps to negotiating the salary you want and deserve.

Negotiation is an art and a science and some even say it’s a skill because you can learn it. There are dozens of great books on negotiation but, I’m going to give you my crib notes version of how to negotiate your salary and overall compensation. Salary negotiation is a big deal and a big topic. So, I’m going to break this down into four steps and give you some of my guidelines around accepting, rejecting, and confirming an offer.

Step 1 Understanding

Negotiating salary is understanding, the thought of negotiating may feel uncomfortable. It does involve some risk and you may view it as a win or lose situation. Knowledge of the basic components and negotiation can help you avoid an attitude that can’t be counterproductive to the spirit of negotiating.

Here are five things you need to know and be prepared for.

• Communication:

This begins with strategic thinking, presentation skills, confidence, and patients. Requesting a higher salary because of a fast learner is not a justifiable reason for an employer. Examples of outstanding workplace achievements, meaningful contributions, breadth of knowledge, or unique skills that you bring to the role or team are appealing and what you want to focus on communicating.

• Factual Information:

Be prepared to research, any lawyer will tell you the key to presenting a strong case in the courtroom is in the hours of preparation. Networking with others is a great way to gather information. Research via websites may be informative but, don’t rely on it exclusively. Most salary surveys are gathered from very large organizations in urban cities from employment agencies and government statistics. So, they don’t always relate closely enough to your personal situation.

• Strategic thinking:

I recommend you don’t initiate the topic of salary or benefits at your first interview. You need to determine the interviewer’s communication style and decision-making behavior. As the interview unfolds, you may get a sense of whether your negotiating style should be straightforward. Fact for fact based on research or a more relaxed and ambiguous way of drawing out the figures. And you’ll be in a stronger negotiating position if you wait until you receive a job offer.

• Genuine interest:

Demonstrate sincere interest in the job and the organization. An employer isn’t interested in discussions with you if you appear to be job shopping.

• Patients:

Negotiations may require a series of meetings or communications and may involve you making a counteroffer. Plan your strategy to cover as many positive outcomes as you can think of.

Step 2 Planning

You need to know what it is you want. If you don’t already know there is more to wages than the money. Draw out a little grid like this and fill in the following.

Salary benefits, indirect benefits, perks, personal values, and resources. In the salary box right down the amount of money, you need to pay the bills, and then write the figure you want to earn. In the benefits box, things like whether or not the company gives paid medical or health benefits or if its cost-shared, paid medical generally represents 2 to 5 dollars an hour in value. Do they have paid or extended vacations? RRSP matching, stock options,

In the indirect benefit you want to things like. Do they have flexible hours, telecommuting, transportation costs, free parking, and paid personal days. Then in the perks box, you want things like a cell phone, a fitness membership, and professional dues paid parking or a company car.

In the personal values box, what is or is not important to you? List things like reputation, ethics, safety, or healthy workplace, extended overtime demands. And in the resources box listings like, what you need from an employer to do your best such as, training, professional development, or current technology. If you’re a senior-level manager,, executive, or specialist you may want to negotiate more than employment standards act severance. In the case of termination or downsizing within two years of being hired.

Step 3 Awareness

An employer may probe your salary expectations by asking a simple question like, what was your last salary. It’s your personal choice whether to disclose or not. You can be straightforward and give the amount as an hourly rate, a monthly rate, or an annual amount. If, you prefer not to disclose you could respond with something like this.

“In view of a signed confidentiality agreement (or Non-disclosure agreement) with my previous employer. I’m not at liberty to disclose but what I can share is my 3-year (or 5 years) average which is__________.”

Or

“I’m not at liberty to disclose specifics, but what I can share based on my skills and experience is that my salary expectations for this role would be in the range of ______.”

Your last salary may not reflect the role or industry you are currently applying for. So, if you want my personal opinion I wouldn’t disclosure my last salary. You don’t want the potential employer to eliminate you because you made more in your past job than what they can offer. Or less than you deserve because you made less based on industry, role, or geographic location.

Not all employers are fair and ethical in their hiring practices. The most common question you can expect during the hiring process is what your salary expectations? Here’s how you see the picture when the range is $80,000 to $90,000 dollars you’ll expect and get $92000or even any $96000. Here’s how the employer sees it, $88,000 is the midpoint in the range and they’re immediately doing the mental math to get you to the $80,000 or maybe even up to the $84000. Wherever the middle of the range sites the employer wants to negotiate left of center and you prefer to hear fingers and right of center.

Step 4 Techniques.

In order to develop your presentation skills on the issue of discussing salary, you need to be confident. By going three steps 1, 2, and 3 you’re now able to take a business-like approach. Never approach salary negotiation from your personal need. Approach it from what is in it for the employer to hire me and speak of those needs and values. Create a solid answer to the interviewer’s probing or direct question such as.

“As you can see from the research I’ve done using similar job postings, some web site analysis, and taking into account my degree of experience in this field. I place the range between $62,000 and $70000.  Would this be in line with your thought?”

Or

“I’m new to this area-my salary history is based on cities where the range would be $68,000 to $80000. My local labor market research tells me the range here would likely be $48500 to $52400. In view of my 6 years of experience, I’d place myself at the midpoint of this range, which is in the area of 50,000 to start.”

Or

If your new university grad it to be something like this.

“As I am entering this field for the first time (University Graduate) I am happy to start at an entry-level rate you suggest and after I have proved my value as an employee, perhaps there would be an opportunity to discuss an increased starting rate. “

If you sense that there’s no more money or improvement on the benefits or perks package you could respond with something like this.

“I am willing to accept what you’re currently offering in anticipation that after six months we can review my performance and look at 2-3% increase.”

There could be other negotiable issues if the salary is fixed. Some benefits packages involve flexible options. Try asking for an extra week of paid vacation or a week without pay. Companies whose cash flow is not fit enough to offer large benefits may be able to offer flexible work hours, time off, annual bonuses, or some work from home options.

Counter Proposal Letter

Some occasions may require a counter proposal letter. If this is the case structure letter like this.

First paragraph

• Begin with the statement of interest. This is critical in setting the tone and direction of the negotiation.

• Thank the employer for the job offer.

• Include some key benefit statement of how you intend to make a direct and immediate or long-term positive impact on the organization. 

The second paragraph states the items offered and either indicates agreement or your counter-offer.

The third concluding paragraph could go something like this “I would be happy to meet with you to discuss any of the above items in more detail and I offer this letter with a sincere willingness to negotiate. ABC Company remains my employer of choice and one in which they plan to build my future and contribute to the highest possible level.”

Now here are some guidelines in accepting or rejecting an offer if you have questions on any aspect of the offer or the job, clarify. Ask for time to review and indicate when you expect to make your decision. If your offer is with company A and you prefer company B you can advise B that an offer has been extended to you. But, that your interest lies with them and you’d like to know the current status. If your offer is in writing review the important facts such a salary, hours of work, title, vacation, allowance, expenses, etc., and accept in writing.

Confirming the offer:

If you accept an offer by telephone ask for written confirmation. The letter should contain the job title, start date, salary, and benefits information, vacation allowance and any other details agreed to. This can be a legally binding document and protects you should the person who hired you, leave the organization avoiding any verbal agreements.  If you do not receive anything in writing you can send the employer a letter of understanding and you take the initiative to itemize what was agreed upon. Unless the employer contradicts any points, this is a legally binding document, whether a letter or contract keep a signed copy for records.

I hope these tips and strategies help you when shooting your next job offer.