Salary Negotiations Are Gaining in Popularity

As we’ve previously reported, jobseekers who did not negotiate their salaries before excepting a job offer were more likely to lose out on future earnings with that company. We also discussed how fewer candidates were willing to negotiate during the hiring process, but that’s about to change!

In a new Robert Half survey respondents were asked: “Thinking of your last job offer, did you try to negotiate for higher pay?,” 55% said yes, while only 39% answered yes in 2018. Furthermore, 68% of male employees tried to negotiate pay, versus just 45% of women.
A separate survey finds many employers are willing to make a deal with candidates: 70% of senior managers said they expect some back-and-forth on salary. About six in 10 are more open to negotiating compensation (62%) and nonmonetary perks and benefits (59%) than they were a year ago.
When broken down by age, more professionals ages 18- to 34-years old (65%) asked for higher compensation compared to those ages 35- to 54-years old (55%) and 55 and older (38%).
Robert Half also broke the data down by region with Boston, Massachusetts (80%); Denver, Colorado (78%); and Washington, D.C. (78%) having the most managers who said they expect jobseekers to negotiate salary.
Additionally, Houston, Texas (73%); Los Angeles, California (72%); and Miami, Florida (71%) have the largest number of executives who are more willing to discuss pay than they were a year ago. Managers in Washington, D.C. (71%), Houston (70%), and Los Angeles (70%) are most open to negotiating nonmonetary perks and benefits compared to last year.

Let’s Make a Deal!

If you’re interested in negotiating salary with potential new hires, here a few tips to keep in mind:

• Avoid offering round numbers. For example, most employers offer round number dollar amounts, like $53,000 annually. However, offering candidates a specific dollar amount, like $53,500, appears to be more thought out and finalized. As Medium reports, when you throw out specific amounts, “[i]t just appears like you’ve really considered everything to come up with that figure.”
• Consider other benefits if salary isn’t an option. As we’ve recently reported, if salary can’t be negotiated, let the candidate sell themselves on what would make them come work at your company. Sure, you can’t offer them $5,000 more than they asked for, but can you offer them extra vacation time? A flexible schedule? Sometimes negotiations aren’t just about money, they’re about what you can provide to the candidate that he or she is not getting from their current employer.
• Make and KEEP promises for a higher salary in the future. Again, if you can’t offer a higher salary now, you can promise to offer a higher one in the future. However, the important word here is to KEEP that promise! Nothing ruins an employer brand faster than broken promises. It goes without saying that if you can’t keep your promises, don’t even bother trying.

Salary negotiations can be difficult for both parties, but keep in mind that this person may ultimately work for your company, so it’s best to be professional and not get emotional during the negotiating process. You’ll come out on top if you guide the candidate through the process, rather than being judgmental and pushy.