5 tips for pitching a higher salary
Salary discussions can be tricky. When you’re going for a job, you don’t want to undersell your experience or skills, but you also don’t want to pitch your salary expectations too high.
Similarly, if you’re employed and asking for a pay rise, you want to give yourself the best chance of success.
Proposing the right salary can be a delicate task, but good preparation and a compelling pitch will help increase your chances of success.
Factors that affect a salary range
“The more in-demand your skills are, the keener a hiring manager is to secure your signature,” says Andrew Brushfield, Director at Robert Half Australia. Brushfield adds that if you are going to ask for a higher starting salary, you need to be able to explain clearly - ideally with the use of evidence and examples - why it makes sense to pay you more.
“Employers may be interested in your level of experience, qualifications and educational background, plus your ability to sell, your industry contacts and personal clients, and perhaps even your knowledge of competitors,” Brushfield says. “The more fact-based your submission is, the more likely the employer will be comfortable to agree to your request.”
How to negotiate salary: A comprehensive guide
It can be daunting negotiating salary with a potential employer, especially if you really want the job, and you're scared of potentially pricing yourself too high. Remember that salary negotiations are a common, and often expected, part of the hiring process. It's worth negotiating to get a remuneration package you're happy with.
Here are the steps to negotiating salary.
Step 1: Self-assessment
The key to knowing how much you can ask for knowing what your skills are worth, which means you have to identify your most valuable abilities and your level of expertise.
Step 2: Market research
Research the market rates for your skills in your area and in your industry. Look at salaries in your profession at your level and take into account how rare and in-demand people with your skills are. You should be ready to justify your salary requirements and you’re asking for a particular figure or range.
Consider looking at the fastest growing salaries in your industry, to get an idea of whether your expectations are realistic, and search for salary information online that can give you insights into salary benchmarks and trends.
Step 3: Be realistic
While it can be tempting to aim high when suggesting a salary, it’s important to be reasonable. Aiming way beyond any of the comparable salaries you’ve found in your research could make things harder for you.
“If you’re negotiating a higher starting salary you could jeopardise your position altogether, with the job going to someone else,” says Brushfield. “You also need to be wary of pricing yourself out of the market for new jobs.”
Step 4: Set a salary range
If you’re asked to propose a salary, it’s better not to mention a specific figure. Draw on your research and instead give a preferred salary range. “A range doesn’t lock you into a concrete figure,” says Brushfield. “You want to leave some flexibility to negotiate if the employer’s offer is below your expectations.”
When setting a range, make sure the bottom figure is still one you’d be happy to earn. There’s no point negotiating if you don’t get a figure that you feel fairly compensates you. If you add a salary expectation to your SEEK Profile, you let employers know what your expectations are ahead of time.
Step 5: Consider other incentives
Salary is undoubtedly one of the most important parts of a remuneration package, but also consider alternative or additional workplace incentives you’d be open to accepting. “Perks, such as flexible work hours, additional leave and professional development opportunities are in demand by employees,” says Brushfield. Think about what matters to you aside from money, what benefits you would like and what this may be worth.
Step 6: Practice the conversation
Rehearse what you plan to say with a friend or relative, or record yourself, so that you can make a convincing case. Feeling and sounding confident will go long way to persuading your employer that you’re worth the investment.
Step 7: Outline your value in real terms
Prospective employees can have anecdotes ready of times when they made, or saved, their former employers money, while current employees can supply more immediate proof.
“Give concrete examples of why you deserve a higher salary, such as how your actions have benefitted the company and what the results of your efforts are,” says Brushfield. “If you can prove your impact on the business's bottom line, the chances of securing a higher salary will improve.”
Step 8: Pick a good time to mention salary
If you’re interviewing for a new role, it’s important to be ready to discuss your salary expectations at the right time – which is usually once you’ve shown that you’re suitable for the job, but before you sign a contract.
For current employees, opportunities can also occur during performance reviews or at the conclusion of big projects. Prepare what you’ll say when you ask for a pay rise by looking back to what you’ve achieved in the past 12 months.
Step 9: Negotiate
It’s important to be flexible when negotiating a salary. Your employer may offer you a partial raise and commit to a future raise or bonus further down the track. They might offer you more annual leave or ask that you meet certain criteria first, like extra training or taking on a more senior role.
Step 10: Don’t settle for too little
If your potential, or current, employer can’t meet your salary expectations, consider staying where you are until you find a better offer. Agreeing to work for less than you think is fair not only negatively affects your finances but can degrade your morale and motivation too.
Common mistakes when negotiating salary
For the best chances of getting the salary you’re asking for, there are some pitfalls to avoid.
Being unprepared: make sure you’ve done your research, so you can justify your raise or salary expectations with real data.
Taking it personally: try to keep the tone productive and remain emotionally cool – positive and persuasive rather than entitled or upset – in your negotiations.
Asking at a bad time: if you’ve just had a mediocre performance review or there have been recent lay offs in your department, you may want to wait for a better time.
Being inflexible: there should be a little “wiggle room” in your salary expectations, especially if it’s a job you really want or a role that is strategically important to your eventual professional goals.
Not highlighting your value to the company: focus on the benefits you bring to your employer rather than the benefits a higher salary will bring you.
Example of a salary negotiation
To help you prepare for your own salary negotiations, here’s a sample of what a discussion could look like with a potential employer.
Hirer: We’re really impressed with your application, and we’d like to offer you the role at a $92,000 per year package, will private health insurance and a performance bonus of up to 10%.
Job seeker: Thank you so much, that’s really exciting and I’m thrilled at the offer. However, based on the responsibilities of the role and market rates, I was hoping for closer to $100,000.
Hirer: Hm, $100k is slightly above the budget, but I can take this figure back to HR and the department head. Can you walk me through your figure?
Job seeker: I’ve done research on similar roles in our Melbourne and $100,000 seems to be a competitive rate for someone at my level. I also have the exact experience listed in the job criteria and have years of expertise in this niche. I could hit the ground running and also bring in additional knowledge from my current role.
Hirer: If we were able to meet the $100k base, would you be ready to accept the offer?
Job seeker: Yes, I’d be happy to accept straight away.
Hirer: Okay, let me get final approval and revert to you by tomorrow.
Discussing money and salary expectations can be nerve-racking, especially if you’re not feeling prepared. But by researching what similar roles are paying, preparing for salary discussions, and considering the value of other work benefits, you’ll have a better sense of where you stand and be ready to maximise your chances of getting the salary you’re after.
Find out the latest salary trends for your role and industry, so you can negotiate your next salary confidently.
