Negotiating salary is an art. Some people are amazing at it, able to obtain as much as 20% more than the salary they are offered. Others find that they are far too nervous to negotiate a higher salary, or that they simply do not feel like they have the skill set. Still others may be incorrectly asking for more money than they are offered in a way that could prevent them from getting the position.
There are many strategies people use to negotiate salary. But before you use any strategy, you’ll want to look at it from the employer’s point of view to understand your chances of receiving a higher offer.
What the Employer Thinks About When They Negotiate Salary:
Every company is different. Some companies have a policy never to offer more money, others are very amenable if you deserve it. In general, the average employer will look at the following items when considering which employees deserve a higher pay:
Employers are far more likely to accept a counteroffer if you are applying for a highly sought after position. One of the reasons so many tech people move to places like the Silicon Valley (and why companies move there) is because companies will actually fight over the best talents and offer huge sums of money to the people that are best skilled.
Not everyone can work in places like Silicon Valley or has the same level of competition, but the same principles still apply. Companies compete for the best talent and since they are looking for the same people, they are more likely to entertain larger counteroffers.
2. Your Skill Set
When recruiting new people, employers are looking for an investment that will bring them the best return. Do you possess a strong background and excellent abilities that are going to translate into greater revenue? Have you been coasting by and simply hoping to get more money, but do not necessarily have the experience or achievements to deserve a high pay? You will need to ask yourself these questions honestly and make sure you present the right picture to the employer if you are to successfully negotiate a higher salary.
3. Market Data
If you’re going to negotiate salary, you have to first see how much similar jobs are getting paid in the market, using salary websites and other data. Employers use the very same data so do your research to know what the companies are seeing as well.
If a company needs to hire someone skilled quickly, they are more likely to pay more than a company that is simply keeping their options open and doesn’t need someone urgently. Similarly, if they decide to pass on you after the offer, how hard will it be for them to find someone else? Are they in serious need of you, or could they wait a few days and find someone just like you?
Other Salary Negotiation Considerations:
The above considerations are what employers are thinking when they decide whether to accept a counter offer. In addition, they may look for factors that include:
- Inter-Company Value – How much revenue can your work bring to their company? This answer may differ from other types of companies depending on their customers, their products, their services, and more.
- Starting Value – Every company offers you at least some dollar value in their range of expected values. If they start very low, it is unlikely a very high counter offer is going to be accepted because they already assume to be paying you less.
- Type of Business – Some companies are barely staying afloat. Others are highly successful. Others are run by greedy people. You won’t always know the type of company, but you can sometimes gauge these factors at the interview.
Before you negotiate salary, put yourself in the mind of the employer and try to imagine what they are seeing, thinking, feeling, and more. This will help you when you figure out what to counter offer, and the likelihood of it being accepted.
- 5 Salary Negotiation Mistakes Costing You Thousands
- Interview Question: What Are Your Current Salary Expectations?