Salary negotiation

warmer

Have you ever haggled over a price (at a market, with a taxi driver, buying something online, abroad)? Did you enjoy it or endure it?

Who in your family / group of friends is the best negotiator? What do they do that you don't?

Have you ever asked a landlord for a lower rent? A friend to repay money they'd borrowed? A shop for a discount on a damaged item? Which of these was hardest, and why?

Do you know what your colleagues earn? Would you tell them what you earn? Why do we find this so difficult to talk about?

For each situation, say what you think most candidates do, and then what you would do.

A. First phone screen. Five minutes in, the recruiter says: "And just so we're aligned, what are your salary expectations?"

B. You get the offer by email. It's 15% below what you were hoping for. The email says they'd love an answer by Friday.

C. You get the offer by phone. It's 10% above what you were hoping for. The recruiter says: "So, does that work for you?"

The number is not the negotiation

The second is fixable with twenty minutes on a salary site. The third is the one worth examining, because it's cultural, and we'll come back to it.

Start by widening what you're negotiating. Base salary is the number everyone fixates on, and it's often the thing with least room. A signing bonus, an earlier review date, a title, extra leave, remote days, a training budget, relocation, the start date; any of these can be worth more to you than a few per cent on the base, and companies find them easier to give because they don't move the salary band.

Then three moves. Anchor with a range, not a point, and put the number you actually want at the bottom of it: "I'd be looking at something between 2,000 and 2200" means you'll get 180. Ask for time. "Thank you — I'd like to take a day to look at the whole package" is not a rejection and no reasonable recruiter hears it as one; it moves you from reacting to deciding. Trade rather than ask. "If the base is fixed, could we bring the review forward to six months?" lands differently from "can I have more?", because it gives the other side something to say yes to.

I've sat on both sides of the offer call, and here is the thing nobody tells candidates: the recruiter has a range, you're almost certainly being offered the bottom of it, and you're almost certainly going to say yes.

Most people don't negotiate. Surveys put it somewhere between a third and a half of candidates who accept the first number, and the figure is higher for women and for anyone who's been out of work. The reasons are always the same: fear of losing the offer, not knowing what's normal, and a feeling that haggling is beneath the relationship. The first fear is nearly groundless. In fourteen years I withdrew one offer over a negotiation, and that was for tone, not money.

And one question, before you ever name a figure: "Can you tell me the range for the role?" Sometimes they will. Sometimes they can't. Either way you've learned something, and you haven't anchored low.

Now the cultural part. Everything above is written for an Anglo-American market, where negotiating is expected and not doing it reads as a lack of confidence. The UK is a quieter version of the same. In Germany and the Netherlands bands are often published and the room is small. In Russia the pattern is different again: salaries appear on job listings, candidates tend to name a figure early, and renegotiating after the offer is less common and can be read as unreliability, though in IT and in international companies the Western script has largely taken over. Know which room you're in before you open your mouth.

Discussion

Which of the three reasons for not negotiating did you most resonate with? (fear of losing the job, not knowing what's normal, feeling that haggling is a bit rude)?

The text argues that negotiating over earlier review dates, number of leave days, remote work etc can be more meaningful. To what extent do you agree?

Is the idea about anchoring with a range with the number you want at the bottom a little hacky?

What's the current situation with regards to negotiating your benefits package in your country?

Now listen to a conversation between Dana (the recruiter) and Ihor (the candidate).

Ihor's target was 2,000EUR; he's currently on 1,500EUR.

Listen for four examples where Igor lost money.

Tapescript

Dana: Ihor, hi, it's Dana from Northlane. Good news! The team loved you, and I'm calling with an offer.

Ihor: Oh! Great. That's ... yes. Great.

Dana: So the role is Customer Success Coordinator, as discussed, start date the first of November, and the salary is 1,600EUR a month gross. Plus the standard package: medical, twenty-eight days of annual leave. How does that sound?

Ihor: Yes. Yes, that's fine. Thank you.

Dana: Lovely. Can I just double-check? You mentioned on the screencall you were on around 1,500 at the moment?

Ihor: Yes, 1,500. So this is more. So it's fine.

Dana: Perfect. And you're happy with the first of November?

Ihor: Yes, I ... sorry, can I ask something? Sorry.

Dana: Of course.

Ihor: Is 1,600 ... I mean, is that the, sorry, I don't want to be difficult. I just wondered if it was possible to… no, actually, it's fine. 1,600 is fine. Sorry.

Dana: Are you sure? I'm happy to take a question back to the team.

Ihor: No, no. It's a good offer. I don't want to make problems before I start. I accept.

Dana: Well, great. I'll get the paperwork over to you this afternoon. Welcome aboard, Ihor.

Igor: Thank you. Thank you very much. Sorry again.

Task

In pairs, rewrite the call from "How does that sound?" onwards. Ihor should end with a better number or a better package, and still get the job.

Roleplay vocab

Yes, we're going to do a roleplay! Before we get into it, let's take a look at some potentially useful vocab:

• Could you give me a sense of the range for this role?

• I'd rather understand the full scope before I put a number on it.

• Based on the role and the market, I was expecting something in the region of…

• That's a little below what I had in mind. Is there any flexibility on the base?

• If the base is fixed, could we look at…?

• I'd like to take a day to think the whole package over.

• I'm very keen on the role. I'd just like to get the numbers right. Would it be possible to bring the first review forward?

• If we could get to X, I'd be happy to accept today. I appreciate you going back on that, thank you. That works for me. Could you send that through in writing?

Student A: candidate

You're being offered a Marketing Coordinator role at a Baltic e-commerce company's Vilnius office. You currently earn 1,400. Your target is 1,800. Below 16,500 you'd rather stay where you are, though you won't say so. What matters to you beyond salary: two remote days a week, because of your commute. You're keen on the role but you have a second interview elsewhere on Thursday.

Student B: recruiter

The approved band for Marketing Coordinator is 1,600 - 1,950. You've been told to open at 16,500. The hard ceiling is 1,950, but every hundred above 1,800 needs a written justification to the finance director, which you'd rather not write. You can offer: up to two remote days without asking anyone; a review at six months instead of twelve; a 500 signing bonus if it closes the deal. The hiring manager wants this candidate and has told you not to lose them.

reflection

"A good compromise is one where everyone is dissatisfied." To what extent do you agree?

How did you get on in your negotiation? Was it fairly balanced or did one side get a clear W?

Did you or your partner manage to use any of the useful vocab?

Is there anything from today's class that you will keep in mind for the future?