Whether you’re negotiating your salary after a job offer or promotion, or you're simply looking to request a higher salary, it can be very nerve-racking. However, when done well it can give you the opportunity to obtain a higher salary and stand out from other applicants or employees, helping you further progress your career in the future.
In this article, we’ll explore how you can negotiate your salary.
What is salary negotiation?
Salary negotiation occurs when an employer and employee (or potential employee) discuss their compensation package. When salaries are negotiated, this doesn’t only consider the annual salary, but may also discuss the benefits involved in the package. This could include things like private medical care, gym memberships, enhanced maternity or paternity pay.
The benefits of salary negotiation
There are a number of benefits to negotiating a salary, including:
- Higher earning potential for the future - Every time your salary increases it sets a new benchmark that increases their earning potential even further. This means your future percentage increases (e.g., annual rises, promotions) will be calculated from a higher base, so your overall earnings grow faster over time.
- Fair compensation - Negotiating your salary helps you feel fairly compensated for your skill set and the work you complete.
- Enhanced benefits - Discussing a pay rise gives you an excellent opportunity to negotiate the benefits you have too. However, when negotiating your benefits, it’s important to consider how these balance out with the salary you are requesting too.
- Boosted confidence - Knowing that you have successfully negotiated a salary can give you a whole new level of confidence that transpires into quality work and potential enhanced loyalty to the company you work for.
- Increased motivation – Being paid what you feel reflects your experience, skills, and the value of the work you deliver can increase your motivation and help you feel more committed to your current employer.
Salary negotiation tips
Timing your salary negotiation
One of the most important steps in salary negotiation is knowing when it’s the right time to do so. Here are a few examples of when it is a great time for negotiating a salary:
- When being offered a promotion - Often when someone is promoted it comes with higher responsibilities, such as leading a team or managing an individual. As a result, a higher salary should be expected to warrant the increased responsibility and skill set.
- At the end of a positive recruitment process – If the salary hasn’t already been set or discussed, you might find an opportunity to negotiate a salary that aligns with your experience and skill set when you’re offered the job.
- After completing training or qualifications - This can increase your chances of achieving a higher salary as it shows that you’re committed to developing and progressing your career and bringing more to your current employer.
- If your experience no longer matches your salary - If you have worked in a role for several years and you now have extensive experience that has helped improve your skill set even further, requesting a higher salary may make sense if it no longer aligns with your experience.
- When salaries for your job role have increased - Researching job market salaries will help you understand if you’re being underpaid, allowing you to request a higher salary.
It’s also important to recognise when it might not be a good time. For example, if your business has just announced losses or made significant redundancies, they may not be able to increase salaries at that time. The timing that’s right for you might depend on a range of circumstances, so its important to plan.
Research your industry
Researching average salaries for your industry and job role will help you understand whether your current salary exceeds or falls short of the average salary.
You should also consider:
- How many years of experience you have in that industry.
- How many years of experience you have in that job role or a similar job role.
- Your impact and achievements so far in your role.
- Your level of education - do you have any qualifications, degrees or extra training that could boost your salary?
Consider how these points align with the salary you’re putting forward.
Build a case
You’ll want to provide evidence for excellent performance, driving results, and proof of experience, as this will give you solid reasoning for why you should receive a pay rise. For example, if you work in sales, you should provide evidence of what sales you have made and revenue you have driven for the company. You can also include where you have gone above and beyond in your role, and shown how you offer value to the wider team and business.
Be honest
Remaining honest throughout the negotiation process will ensure that you don’t land yourself in a sticky situation. Do not say things like ‘I have another job offer for X amount of money’ if there are no job offers, or inflate previous salaries as this could backfire on you.
Consider what benefits are included in your job offer
When negotiating your salary, it’s important to look at the full package — not just the headline figure. Consider the benefits you already have and whether there are any additional perks that would support your wellbeing or reduce your day-to-day costs. Reflect on any expenses you currently cover yourself, as well as benefits you’ve received in previous roles or have seen offered elsewhere. If they matter to you, include them in your negotiation strategy. These might include travel expenses, additional annual leave, flexible working arrangements, or private healthcare.
Consider how you plan on negotiating
There are a few ways you can negotiate a salary. For example, if you have been emailed a job offer and they have queried your desired salary you may want to undertake salary negotiation over email to explain your reasoning for your desired salary. During this you should also state that you’re more than happy to discuss this over the phone or video call, as this can be deemed more professional and is a much easier format for negotiations. You should also be prepared to discuss this in person if you’re discussing this with an existing employer, such as in your next performance review with your manager.
Thank the employer
Even if your desired salary has not been met, it’s still important to thank the employer for their time, as this can maintain a positive relationship, that could lead to them making another offer later down the line.
Salary negotiation can feel intimidating, but it’s also a powerful moment to recognise your worth and take control of your future. With the right preparation and a clear sense of the value you bring, you can approach these conversations with confidence and secure a package that supports you.
