A mid-level manager’s advice on salary negotiation

Himali
Himali
Sep 5, 2018 · 5 min read
Photo credit: Unsplash

I was let go from a job after just moving across the country leaving all my family, friends and contacts behind. The silver lining was that while the company wasn’t doing so hot, it was actually full of good people that were just stuck in an unfortunate situation. The last ones standing were eager to help the bystanders caught in the mess that was unfolding in front of us. All this to say, I landed on my feet. With interviews lined up within weeks, it meant that the worst part of it all followed suit… salary negotiation. I read a lot about it and tried it in practice. This was used for a new job but much of it can be applied to a raise or promotion as well. Here’s what worked for me.

  • Never give the first number. They will tell you they need to know to see if you’re in the range of what they can afford. If it’s something you really want and you think the job description is aligned with where you would want to be, then it should be in the right spot. You can push back by saying things like:

“I’d expect the range for the [title] role would be aligned with other companies in the industry for base salary, performance bonus and/or quarterly salary reviews (of course, in addition to the awesome perks that you already offer). I’m happy to chat over the phone with you or with [HR rep name] to figure out what that looks like and I’m sure we’ll come up with something we’re both comfortable with.”

  • When you are ready to negotiate, you should be really aware of what’s included in the offer and what’s important to you in negation.
  • Does the salary they offer fit in an acceptable range for the same or comparable positions at other companies? (Do a Google search and look on Glassdoor)
  • How much and what experience are you bringing to the table? Especially if you know what specific experience they want from you.
  • How often do they offer bonuses and raises or reviews for promotions? Is there a compensation plan?
  • For a promotion — what have you accomplished since the last review? What impact has it had on the org? Write it down and know the numbers.
  • Do your research and understand other costs — break it down by the following:

Other costs

  • Transportation — do you have to travel to work versus another opportunity? Are there any moving costs?
  • Stock options — how many do you get? What’s the vesting period?
  • Vacation — if another company offers more vacation, what’s the cost of those days
  • Health benefits — how much do you realistically anticipate using. Of course you can only factor the planned benefits like travel insurance, regular dental checkups, and if you live in BC, the cost of Medical Services Plan, plus for dependents (MSP — like OHIP), etc.

Other perks

  • Do they offer budgets (personal or team) for networking, health and wellness, learning and development, vacation allowance, etc? How much is it and how often does it reset? Factor that into your salary.

A note on what’s important to you… Of the things offered or not, you should be aware of what’s really important to you. Is having a short commute so you can get home to your family and hobbies important? Is it more vacation time? Flexible hours? Money $$$? You should know where you would put emphasis in negotiating and use those as bargaining chips. I.e. if they can’t offer you more money, can they build into your offer that you’ll have a compensation review in 6 months? List these in priority order. It’s important that you’re aware of this for yourself so you know where you’ll “give”.

If you’re not sure what they offer, then ask! This should play into your decision to accept the offer and your confidence that the number they’re offering is a fair one. Ask questions like:

  • “I noticed that vacation kicks in after 3 months but I already have a family trip planned. Can you accommodate this?”
  • “Are the health benefits extended to spouses?”
  • “Do you have an employee stock option program?”

Once you’ve had a chance to calculate those costs, you should be crystal clear on a range or a number that you’re comfortable accepting. Still, DON’T GIVE THAT NUMBER! If you do this successfully, then they should give you a number in an offer letter. Don’t sign it. Go back to them with a counter offer.

Offering a percentage increase from what they offer is good way to get to a higher range. Plus, knowing what they do or do not offer (from above), you can work that into your counter as a negotiating card. You can ask questions like:

  • “I’m feeling confident in my decision to move forward with this organization. I had a chance to review it and I have a few questions for you.
  • The salary is definitely in the right range. As we discussed, without a bonus structure or formal salary review process and given competing offers and my past experience, I’m wondering how we can get the base salary 6% higher? “
  • At this point, they will either accept or counter with something else. Have empathy for the company but know that they often have leeway and they just need something to work with. But it’s important not to give the first number because they will typically already know what they have budget for and what’s out of their range — don’t give them the upper hand to low-ball. Hopefully they’ll accept or meet you in the middle, but this should help inform you of what you’re willing to accept

This may feel intimidating especially if you’re feeling that darn imposter syndrome that even the most unlikely people experience. If you’ve done your research and know what is fair market value but are undervaluing yourself, I urge you to think about how you might feel if you take the job without at least asking. If you’re worried that “they might retract the offer if I ask them for more money” — chances are they won’t and if they do, think about if that’s the type of organization where you’d want to work.

Wishing you all the best! Let me know if these tips were helpful and if you’d like to see more.

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