“If I make a counter offer they may rescind the offer; “Salary negotiations seem very risky, I don’t want to lose the offer”.

You’ve probably heard these sentiments or felt them at some point in your career. And yes they could happen, but in more cases than not, companies who have made you an offer will not pull your offer because you made a counter.

💡 Tidbit: In most cases everyone involved in the hiring process expects the final offer to be a discussion with the final goal of coming to a mutual agreement.

Salary negotiations are no walk in the park. They can be tough. However, not negotiating your salary might mean leaving money and other benefits on the table.

Why is It Important to Negotiate Your Salary?

There are several reasons why it is good to negotiate your offer, the obvious one being that you may get paid more money. But this is not the crux of it. Let’s delve deeper into three ways the offer you accept can impact you.

Your starting salary sets the stage for your future earnings

This is especially true if you intend to grow at the same organisation, but could also affect your expectations when you change employers.

For instance, if you start with a lower salary at the same company, future raises, which are often calculated as a percentage of your current salary, may result in less substantial increases.

Boosts your self confidence

Imagine working and doing good work, achieving your goals, and contributing significantly to your company’s success. But the salary you earn is lower than what your peers in the industry are making. How would that make you feel?

You’ll likely doubt your abilities and question your self-worth. You might start believing that you’re not doing enough to deserve higher pay, when in reality, the issue lies in your current compensation not reflecting your true value.

Going for what you deserve

Your skills, experiences, qualifications, and everything that makes up your professional identity are valuable. You’ve invested in your growth, aiming for a return on that investment in your career.

When you apply for a role, you expect fair compensation for your contributions. It is okay to ask for more when you know you deserve it — based on all you have to offer.

Differences Between Negotiating a Job Offer and Negotiating a Salary Raise

Negotiating your salary for a new job or a raise in your current job may seem the same as negotiating a job offer. But these are separate things. You can consider salary negotiations a subset of job offer negotiations.

While your salary negotiation will deal with negotiating your base pay or the monetary aspects of your offer, negotiating your job offer will include several elements, looking at other benefits you can gain from the company.

More money is great, yes. But there are so many other benefits you can negotiate whether or not more money is on the table for you to grab. Here are 12 benefits you could negotiate as part of your job offer besides your salary:

1. Flexible working hours
2. Remote or hybrid work options
3. Vacation or leave days
4. Stock options
5. Learning & Development reimbursement
6. Health and wellness
7. A better job title
8. Signing bonuses
9. Severance package
10. Early salary reviews
11. Home office setup — for remote work
12. Internet service reimbursement

💡 Pro Tip

Before bringing up any of the above, ensure you’ve done thorough research on the company’s operations and financial position. Determine whether they are capable of offering the benefits you seek.

For example, a startup with limited to no funding cannot provide internet service reimbursement, a budget for setting up your home office, or health and wellness programmes or insurance. But they might offer flexible working hours if the role is remote, allowing you to focus on other important activities.

So do your research and only make realistic asks.

How to Prepare for Salary Negotiations

Salary negotiations don’t just happen, and you don’t have to wait until you receive an offer before you start preparing to negotiate your salary or job offer. In this section, you’ll discover how to prepare to negotiate your salary or a job offer using a 3-phased guide I developed.

Phase 1 — During the job application

Once you find a role you’re interested in, before or during the application process, do your research and:

Determine your situation and how it interacts with the role you’re applying to

• Are you moving into a role where you have experience?
• Are you moving into a completely new domain and need to accept a more junior role?

Know your salary expectations and the market rate for the role

• Are you expecting a raise from your current amount (Pro tip: when in doubt, always seek a raise), and how much?
• What is the going rate of that role in the market (here salary reports and job descriptions with pay shown are your resources). For example, a PMM may benefit from the Product Marketing Alliance (PMA) salary report.
• What is the range your target company is working with?

It is great to have all this information considered and documented even before your negotiation or offer stage (phase 3). For starters, you can ask the recruiter about the salary range in the first recruiter call or message. Your job is easier if the salary is already in the JD.

Phase 2 — Salary questions on the application form

Usually, in the initial application form you fill out, there’s a question about salary expectations. In that field it’s usually great to write down either of two things:

• A range from your ideal value to your ceiling value
• Your ceiling value only

Understanding Floor, Ideal, and Ceiling Values

• The floor value is the smallest amount of money you will be willing to accept.
• Your ideal value is bigger than your floor and is an amount you will be really happy with. This is your best value possible.
• A ceiling value is a ridiculous amount of money you can quote if the company can afford it. You can calculate your ceiling value by adding 10–15% to your ideal value.

Phase 3 — Offer & Negotiations

Let’s consider two main scenarios that tend to happen at this stage and how you can approach them. This article is about salary negotiations, yes, but negotiating may not always be the best approach and you’ll find out why:

Scenario 1: You’re offered the exact value you requested

When you’re given an offer and you get the exact amount of money you requested, my advice: accept it. Especially if you have done your homework and you gave a value already above your ideal amount.

💡 It’s good to stick to your word; nobody wants to work with people who do otherwise.

Nonetheless, after you have asked and been offered what you wanted, the only reason you may negotiate is:

• If you genuinely have a better offer and want them to match that or
• If they don’t provide certain benefits you had assumed they provide (pension, health insurance). In this case, you’d be negotiating to bridge that gap.

Scenario 2: You get an offer lower than the range or amount you shared

This is where you start negotiations, keeping in mind your ideal value. The point here is that you have thought through the three numbers (floor, ideal, and ceiling values) already and have justification and rationalisation for each of them.

So in your counteroffer, be it on a call or in an email or text, you need to state those reasons. And it always helps to remind them that you shared this number in your initial call or applications.

How to Negotiate Your Salary or Counter a Job Offer

Salary negotiations will always differ, and you can’t use one email script or message for every negotiation you go into. That’s why it’s important to understand the reasons behind the message, that way you can always craft your negotiation messages based on your understanding of countering job or salary offers.

The cue here is to understand your situation and tailor your approach to that.

With that said, here’s what you need to consider when preparing to counter an offer that has been presented to you.

Key Elements for Crafting Your Salary Negotiation Emails or Messages

1. Express Appreciation: Show gratitude for the role and convey how excited you are to contribute to the company’s success. Specify how your experience aligns with the company’s goals.
2. State Your Expectations: While expressing enthusiasm, mention that you were expecting a salary within a specific range (X-Y) or a particular amount (Z). Clarify if you had previously discussed this in your application or interviews.
3. Support with Research: Back your salary request with data from your research, such as the market rate for similar positions. This shows that your expectations are based on solid information.
4. Highlight Your Value: Explain why you deserve the amount you’re asking for. Discuss the unique experiences, skills, and qualifications you bring to the table and how they benefit the role and the company.
5. Discuss Other Benefits: If there were benefits you expected like insurance, professional development budgets, etc., that were not included in the offer, politely inquire if they can be covered.
6. Close with Enthusiasm: End by reiterating your excitement about the role and expressing appreciation that your expectations can be met. This leaves a positive impression and shows you are keen on contributing to the company.

💡 Pro tip: Be respectful, well-prepared, and confident in the value you bring to the table.

Your Salary Negotiation Questions Answered

1. Is it bad to negotiate salary after they already told me what the role pays?

No, it is not bad to negotiate a salary after you’ve been informed about the pay. But if it is outrightly stated that negotiations aren’t allowed, that is different. Otherwise, you are at liberty to start a conversation. Ask if it is possible to negotiate, and proceed from there.

2. How do I negotiate my salary increase without risking the job offer?

Approach the negotiation with a positive attitude, emphasising your excitement about the role and your commitment to the company. Start by expressing gratitude for the offer, and then calmly present your case with facts and figures about your market value, qualifications, and achievements. You can either suggest a salary range (considering your floor, ideal, and ceiling values) or present a fixed number (your ideal value), and be prepared to discuss other benefits if a higher salary isn’t feasible.

3. Is salary negotiation risky?

Yes, salary negotiation can be risky, but you can tread cautiously and get the offer you deserve. Understand the company’s policies and be respectful and professional throughout the negotiation process. Avoid ultimatums and maintain open communication.

4. How do I convince HR to negotiate salary?

Present a well-researched case, including market salary data and your unique qualifications. Emphasise how your skills and experiences align with the company’s goals and how you can contribute to their success. Be prepared to discuss your accomplishments and future potential.

5. What is a reasonable salary negotiation?

A reasonable salary negotiation is based on market research, your qualifications, and the company’s budget. Aim for a figure that reflects your value without overpricing yourself. Use salary surveys like Payscale and job market trends to determine a fair range. For industry or role-specific salary reports, ask in your communities and search Google.

6. How do I negotiate a salary increase in my current job?

Identify and document all the reasons you need a salary increase — performance, changes in market salaries, etc. Once you have that data, prompt your manager or the appropriate stakeholders about wanting a raise, and then have the conversation.

7. How do I negotiate the salary when given a range?

Aim for the higher end of the range by emphasising your qualifications and how they align with the top end of the range provided. Use your research and achievements to justify why you deserve the higher amount.

Ensure that the amount you propose is one you are comfortable with, even if it is slightly reduced during negotiations. This way, you have a buffer and still land on a salary that meets your expectations and needs.

8. Can you lose a job offer by negotiating a salary?

Unfortunately, yes. People have lost job offers because they countered the initial offer sent by the company. However, people have also got raises and increased salaries because they negotiated. Salary negotiations can be risky, but sometimes it is worth taking that risk. Remember to tread cautiously.

Conclusion

Salary negotiation is an essential skill that can significantly impact your financial well-being and career satisfaction. It’s understandable to feel apprehensive about negotiating, especially with the fear of losing a job offer. However, by preparing thoroughly and understanding your worth, you can approach negotiations with confidence.