How to Negotiate a Better Salary

Home » Jobseeker Resources » How to Negotiate Salary

Successfully Negotiate a Pay Rise

Salary negotiation, at any point in a working relationship, can be a tricky conversation to navigate. Whether at the job offer stage, during an annual appraisal, or because of performance or job role changes, salary negotiations are a necessary, but sometimes awkward discussion between an employer and an employee to agree a remuneration package.

You might request a salary increase to improve your position in your current role, or before accepting a job with a new company. An employer will either accept your request, offer alternatives to a direct salary increase, or negotiate.

Negotiating your salary can be daunting, but it is important to ensure you are fairly compensated for your skills, experience, and the value you bring to a company. Whether you are navigating your first job offer, or seeking a raise, salary negotiation is a skill that can pay off significantly over the course of your career. By preparing thoroughly and approaching the conversation professionally, you can secure a salary and benefits package that reflects your worth.

Key strategies to help negotiate effectively

There are several factors to take into consideration when assessing your value to an organisation.

Experience: Your level of expertise and years in the field.
Location: Salaries vary based on geographical region.
Company Size: Larger organisations often have bigger budgets, while smaller companies may offer different perks or flexibility

These, along with job market and industry research, good judgement as to when to approach the subject of pay, and an idea of your expectations as to what you might be happy to accept, will help you in your negotiations.

Salary Research

Before entering salary discussions, it is essential to understand the market rate for your position. Research salary data for your job title within your industry and location to understand what others in your field earn, giving you leverage and helping avoid undervaluing yourself. Useful resources include:

Ashdown Group Salary Guide
LinkedIn Salary Insights
Glassdoor

Salary guides are not 100% accurate, as compensation is influenced by skills demand, geographic location, company size and profitability and your industry experience. Use multiple sources to establish a reasonable salary range rather than a fixed figure.

When to Negotiate

Choosing the right moment to negotiate can significantly impact your success. Salary discussions for a new role should ideally take place after receiving a job offer but before signing a contract, as this is when you have the most bargaining power.

If you are negotiating for a raise or promotion in your current role, consider the following:

Raise the topic during performance reviews or after completing a major project.
Be aware of the company’s financial health and ensure your request aligns with business conditions.

Salary Expectations

Be clear on what salary and benefits you aim for, including base salary, bonuses, perks, and holiday entitlement. When making your case:

Highlight your experience, qualifications, and achievements.
Use specific examples of how you have added value in previous roles.
Be prepared to explain how your skill set benefits the company.

Advice for Those Negotiating Their First Salary

Negotiating your first salary can be particularly challenging due to limited work experience and a lack of familiarity with company pay structures. Alongside a strong desire to secure your first career opportunity you may have concerns about appearing greedy or ungrateful.

Be mindful that asking for too much can deter an employer. Striking the right balance is crucial. Here are some key Strategies:

Clarify Your Priorities: What is most important to you in a role? Is it the company’s reputation, career progression, or salary?
Know Your Leverage: Multiple job offers provide stronger grounds for negotiation.

Consider the Opportunity: Salary is important, but a role that offers strong long-term prospects can be more valuable.
Research Market Salaries: Use job boards and salary surveys to understand fair compensation

Check the Salary Before Applying: Avoid disappointment by ensuring roles align with your expectations.
Use Recruitment Consultants: They can handle salary discussions on your behalf.

Common Salary Negotiation Mistakes...

...and How to Avoid Them

Mistakes to Avoid

Being Confrontational: Approach discussions professionally and respectfully.
Failing to Research: Know what similar roles pay before negotiating.
Assuming You Have Leverage: Employers often have multiple candidates to choose from.
Ignoring Non-Salary Benefits: Consider alternative perks such as flexibility, bonuses, and additional leave.
Over-Negotiating: If the offer is fair, attempting to push for more may backfire.

Alternative Approaches

If the base salary is fixed, negotiate other benefits (e.g., flexible working, professional development support).
If another employer offers a higher salary, use this as leverage while being professional in your approach.
If unsure about negotiating, use a recruitment consultant to handle the conversation.

Salary Guide

Our Salary Guide focuses on the IT, HR, marketing and accountancy sectors, created from data analysed from over 3,550 organisations, 22,000 registered jobs, 314,000 recently active candidates, ONS data and other external data sources.