Strategies for Salary Negotiation Before Joining a Company

Before you even think about negotiating salary during the interview process, it’s crucial to know the right timing. The timing is more important than the negotiation process itself, and it also depends on the offer presented. Once the proposal is on the table, you can begin using your negotiating skills.

In multi-stage interviews, salary negotiations typically happen after you’ve passed initial screening and are shortlisted as a viable candidate. At this stage, they are interested in you, but need to finalize the compensation and benefits package.

Here are 6 key points to remember when negotiating your salary before joining a new company.

1. Gather Information

Many interviewees fail in salary negotiations because they lack sufficient information about their own worth and the employer’s compensation standards. You need to know what your potential employer typically pays for the position you’re applying for. If you can’t find this information, at least understand what competitors are offering for similar roles.

Additionally, know the demand for your skills. Are they in high demand, or is the market saturated? Assess your qualifications and experience to determine your value before negotiating a salary.

2. Do Not Mention A Figure

Avoid stating a specific salary figure during negotiations. Interviewers might try to get you to commit by asking questions like, ‘What is your expected salary?’ or ‘What salary can you start with?’

Providing a range below the industry average (see #1) can work against you. The company might have a higher budget, but if you quote a lower figure, they save money by offering you less. Conversely, quoting too high can lead to disappointment if they can’t meet your expectations.

Instead, say something like, ‘I will accept your best offer.’ This approach encourages the interviewer to offer you their best salary package and gives you leverage to negotiate based on your needs.

3. Aim for a Win-Win Negotiation

Many candidates view salary negotiation as a battle, but it should be a win-win situation. The company doesn’t want to overpay, and you don’t want to be underpaid. A balanced approach is ideal for successful negotiations.

Typically, companies start negotiations with an offer that’s slightly lower than the budgeted salary for the position. Understanding this can help you navigate the negotiation process more effectively.

4. Timing Is Everything

If you accept an offer without negotiating, the company might think you are desperate for the job. Negotiate to achieve a salary range that works for you. If the offer is close to your expectations, try to negotiate further to get what you want.

If negotiations don’t go in your favor, move on and look for other opportunities.

5. Don’t Negotiate from a Position of Weakness

Negotiating with a losing attitude can prevent you from getting your desired job. Your confidence matters, and if you appear too eager, the company might undervalue you.

Instead, make the company wait before committing to anything. Let the interviewer ask more questions. This waiting game can help you gain negotiating leverage and might even lead to a better salary offer.

6. Make Decisions Based on the Offer Letter

The offer letter can reveal more about the compensation package. Sometimes, companies offer additional benefits instead of a higher salary. These can include better pension plans, transport allowances, dental or eye care, flexible working hours, or compassionate leave.

Evaluate these benefits carefully. If they don’t align with your lifestyle, negotiate for a better offer. Take your time to read through the offer letter before making a decision.

7. Maintain and Close Negotiations

Many candidates focus too much on salary during negotiations. Remember to highlight your value to the company. If you can’t demonstrate your worth, your negotiations might fail.

Regularly assess your negotiation strategy to ensure you’re on the right track. Showing the interviewer how valuable you are can make the negotiation process smoother and leave a positive impression. This way, you emphasize that you’re concerned with more than just salary – you’re also focused on contributing value to the company.

Conclusion

Once negotiations are over, it’s truly over. Always end negotiations on a positive note. You never know when you might negotiate with the same person at a different company in the future.