Today’s workers know their worth, and more often than not they’re now asking for it during job negotiations. New research from global staffing firm Robert Half reveals 54 percent of professionals tried to negotiate a higher salary with their last job offer.
There’s plenty at stake in today’s tight labor market, notes Jim Jeffers, metro market manager of Robert Half in Madison. Job seekers should always be prepared to negotiate with a prospective employer — and companies need to make sure they’re making an attractive offer.
Madison’s unemployment rate (2.3 percent in December 2019) has remained well under the national rate (3.6 percent in January 2020) for some time. It continues to be a job seeker’s market, meaning skilled candidates often have the upper hand in negotiations.
As a result, explains Jeffers, employers are doing more to sweeten the pot for specialized professionals — for instance, more than three-quarters of tech leaders surveyed (76 percent) by Robert Half Technology said their company offers IT staff more than the norm when it comes to things like remote work opportunities and sign-on bonuses. The top reasons cited for providing these extras were to gain a recruiting edge over competitors and to boost staff retention.
So, when are employers most likely to lay their cards on the table? In a separate Robert Half survey, 35 percent of senior managers said they discuss pay with candidates at the first in-person interview, while 20 percent wait for the second meeting, and 13 percent talk about compensation during the initial phone or video screening. Fifteen percent don’t bring it up until making an offer.
Additional survey findings include:
- Two-thirds of men surveyed (66 percent) asked for more money, versus 46 percent of women.
- Professionals making more than $100,000 per year were most likely to negotiate an offer: 64 percent of this group said they had gone to the bargaining table.
- Of those who didn’t request a higher salary, 55 percent said it was because they were happy with the amount proposed.
Effective hiring strategies beyond pay
A 2019 study conducted by Robert Half revealed 43 percent of U.S. workers lost interest in a job offer because the company was unwilling to negotiate elements beyond salary. Factors like job title, professional development opportunities, and perks still matter to professionals and should be discussed at the bargaining table. Additionally, here are a few other effective hiring strategies for employers:
- Shorter, expedited hiring processes. Many highly skilled job candidates get offers quickly, and this has caused employers with lengthier hiring processes to pick up the pace.
- Increased focus on soft skills. Companies are recognizing that soft skills are important and may be willing to train someone on technical skills if they like their attitude and work ethic.
- Flexibility on requirements. In another survey by Robert Half, 84 percent of HR managers said their companies are willing to hire and train a candidate who lacks required skills.
- Greater emphasis on perks and benefits. Savvy employers know they need to go the extra mile to get top talent on board. Extra paid time off, sign-on bonuses, and remote work opportunities are just some examples.
Jeffers offers the following tips for job seekers and employers to negotiate winning offers.
Tips for professionals:
- Do your homework. Prepare in advance by researching salaries, perks, and benefits using resources such as salary guides.
- Practice. Role-play a negotiation with a trusted business professional, mentor, or recruiter.
- Ask for help. A recruiter can also provide guidance or negotiate on your behalf.
- Exude confidence. Many employers expect candidates to negotiate. Share examples of your contributions in previous roles to reinforce how the company’s investment in you will pay off.
- Be flexible. Negotiations are a two-way street. If necessary, consider compromising on other perks and benefits, such as extra vacation days in place of a higher starting salary.
- Get it in writing. Once you’ve agreed on terms, ask for a letter that outlines the specifics of the offer to prevent misunderstandings down the line.
- Remain professional. Regardless of how the negotiations turn out, be professional and courteous. It’s best to walk away with positive impressions on both sides.
Tips for employers:
- Be willing to negotiate. In today’s economy, specialized talent is in high demand and short supply. Top candidates are often weighing multiple job offers. By being inflexible, you may lose your top candidate to a competing employer.
- Offer competitive compensation. Let candidates know that your firm values its employees by making an offer that’s on par with or ahead of industry standards. It’s important for hiring managers to have knowledge of prevailing salaries in their industry and geographic area.
- Don’t take too long to make the offer. Delays in the hiring process commonly result in employers losing their first-choice candidates.
- Be creative. If you can’t meet a candidate’s salary expectations, look for ways to modify other components of the package, like extra vacation days or remote work options.
Additionally, Jeffers warns against these common pitfalls that can often derail salary discussions:
- Showing up unprepared. Enter negotiations with a solid understanding of current local salary trends for your position by reviewing resources like salary guides.
- Playing games. Tactics like misleading a prospective employer about your current salary or other job offers often backfire. Be honest about your situation.
- Making it all about you. Don’t base your request for a larger starting salary on the fact that you want a new car or bigger down payment for a home. You’ll make a much more compelling argument by talking about the value you can bring to the organization.
- Viewing money as the only object. Look at the full picture when evaluating an offer. Salary is just one part of the equation; a generous benefits package or opportunities to learn and grow with the company may compensate for lower pay.
- Drawing a line in the sand. Be wary of taking an adversarial stance. How you conduct yourself during this process sets the tone for employment with the firm, and you want to start on the right foot.
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