Here is a step-by-step guide on how to negotiate your salary before starting a new job.

Salary research

In order to maximise your take-home pay package, you need to know what companies are paying for someone with your level of experience and the job you’re targeting.

The more data points you have relating to salary market rates, the stronger your negotiating position will be.

Salary for the same job title varies by company size, industry, and location. To ensure your data is accurate, focus your research on one particular job title at firms of similar size, industry, and location. Use this spreadsheet to help you keep track of the average salary ranges.

How to find out the average market pay rate

Review job boards and company career websites

Review job listings on popular job boards to see what companies in your industry are paying. Focus on roles in your target industry that match your level of responsibility. 

Review government and public sector job listings too, as they are usually required by law to publish salary ranges. 

Recruiters and hiring companies

Start talking to people who are hiring for your target role. Track down recruiters on LinkedIn, Google, and start applying to jobs online.

As you begin interviewing with other companies, you will start to learn what they are paying.

I will be diving deeper into this later on, but if the salary is not listed on the job advertisement, bring it up in the first conversation.

“Just to make sure we are in the same ballpark, can you tell me what the salary range is for the role?"

In my experience, the best recruiters are transparent and don’t play games when it comes to discussing salary. 

Talk to people in the same job or industry as you

Talking about salary with your coworkers is taboo for a number of reasons. We can get trapped into believing that our entire self-worth is tied to numbers on a pay cheque. 

Many of us were raised to believe that money matters should be kept private. You may have concerns about being judged. Office politics could be at play. You may think you'll be labelled a troublemaker. Or you're just a private person. I get it all. It can be a touchy subject.

But openly discussing your salary with coworkers is one of the most effective ways to find out the fair market rate, and you’ll quickly learn if you're being underpaid. 

You're not breaking the law either. Unless your contract includes a confidentiality agreement around your salary (which you should double check), legally, there's nothing preventing you from openly discussing your salary with coworkers.

How do you bring it up?

You don't have to outright ask how much a colleague is earning. You can be cute about it.

Simply get the ball rolling and say something along the lines of:

"I did a bit of research on the market rates for our roles. Turns out we should be earning around [Number]. I'm thinking about asking to be brought up to [Number]. What do you reckon, do you think that's fair?"

And just see how the conversation plays out.

Of course, if you're close with your coworker, you may feel more comfortable telling them how much you're earning. They may return the favour and reveal their own salary. And these conversations can be very fruitful.

Talk to your peers

If you don't feel comfortable talking to your colleagues, see if you know anyone in your industry working at other companies in a similar job. This could be ex-colleagues, ex-managers, 1st connections on LinkedIn, or anyone you know on a first name basis.

Again, keep the conversation light:

"I'm thinking about applying for new jobs. I'm looking for a salary package in the range of [Number] and [Number]. What do you think about that, does it sound reasonable?"

They may give you an indication of what the market rate is, or if they're a kind soul, they'll spill the beans and tell you what they're on.  

Sometimes the old "I'll show you mine if you show me yours" can get people to reveal their cards, especially if you know them well enough. 

Salary calculator websites

Online salary calculators are not completely accurate because the data is self-reported by individuals.

However, they do provide a broad idea of what you can expect to be paid.

I don’t recommend taking data from these websites at face value. Glassdoor can be highly inaccurate. A couple of exceptions, though, are Payscale.com and Salary.com, which offer a more comprehensive reporting structure compared to others. However, the data is largely based in the US. 

If you’re working in tech, Levels.fyi is also worth looking at to gather a baseline. 

It can also be useful to research companies that publish salary reports in your home country. It’s worth Googling ‘salary data’ + your target industry and seeing what you can find.

Save your evidence

Compile all your research findings and establish the average lower and upper salary ranges for roles you're interested in. This gathered information will prove invaluable during negotiations, as using evidence-based arguments can significantly aid your negotiation strategy.

Define your target salary package

Once you have a good idea of the average market rate and the benefits you'd like, identify your target salary range. 

For example, if the average salary range for the jobs you're interested in falls between 50k and 65k, and you meet all of the requirements on the job description, and have managed each of the duties listed, you should expect to be paid at the top end of that range (65k).

Reminder

The negotiation begins from the very first conversation. Personally, I would never leave the first interview without talking about the salary package on offer and outlining my expectations.

I continually hear horror stories from people who were dragged through 4, 5 and 6 rounds of interviews, only to find out the salary package was way off at the very end of the process. Hours upon hours of valuable time wasted. This can all be avoided by stating your expectations from the very first conversation. 

“What are your salary expectations?”

You're in the first interview. Towards the end of the conversation you ask the recruiter what the budget is for the role (because they failed to provide a range within the job description). 

“Just to make sure we are in the same ballpark, can you tell me what the salary range is for the role?"

It's not uncommon for the interviewer to throw the ball back at you and ask for your salary expectations. 

In this instance, there are a couple of approaches to take.

Option 1

There's no harm in delaying your answer if you are unsure about what the role fully entails.

You can simply reply with:

“Before I can give an accurate salary range, I’d like to know more about the role and what’s fully involved.”

From there, ask the questions that you want answers to.

Option 2

It’s best practice to provide a range upfront when asked about your salary expectations. I don't recommend being evasive and responding to this question with "market rate" or "I want to be paid fairly".

I know you’re worried about being lowballed, but once you’ve done your research, it helps reduce the chances that will happen.

Avoiding the question around salary doesn't show confidence. You want to demonstrate to the recruiter that you know your value, you know where you're going, you’re educated on the market, you’re transparent, and you’re not here to waste anyone’s time. This signals to the recruiter that you’re a serious operator, and you will be perceived as more valuable.

When you’re asked this question, it’s best to give a range. Be sure that the lower range is a number you’d happily accept, because recruiters tend to lock onto the lower figure.

If you're unsure of the fair market rate, a simple solution is to just add an extra 20–30% on top of your current salary.

The importance of asking follow-up questions

Once you provide a range, ask follow-up questions. You want to know the package they offer inside and out. By asking in-depth questions around pay, it also shows your competence, which again, feeds into building your candidacy. 

The more information you have around pay, the less likely it is that you'll be lowballed. 

What questions to ask?

1. Find out how your salary expectations compare with the range of the role

Every interview is an opportunity for you to gather data about what companies are paying for someone with your level of experience and skill. Understanding how your salary expectations compare ensures you're aligned with the industry average and prevents undervaluation.

2. Ask what criteria or experience level would warrant being paid at the top of their range

Knowing the criteria for the top of the salary range lets you highlight your most relevant experience, which increases your chances of being paid the upper range. 

Now let’s put it all together. Here’s how the conversation might go:

Recruiter: “So, what are your salary expectations?”

(1) You: “I'm considering opportunities in the range of [Number] and [Number]. I’m open to negotiation and incentivisation based on the performance and growth of the company. How does that range compare with the budget for this role - what is your budget for this position?”

Recruiter: "Your range falls within our budget for this position. The salary package is between 50k and 60k.”

(2) You: "Can you help me understand what kind of experience or performance would justify being on the higher end of that range?"

Recruiter: “For the top range, we’re seeking a manager who's proven to achieve [Company-related goals], with experience running process improvement initiatives for global fintech organisations.”

(Immediately jot this information down in your notepad)

You: "I appreciate your transparency. Thank you."

Asking for more money after giving your initial expectations

The range you provide in the first interview is not a binding contract. Don’t worry about lowballing yourself when you give up your initial salary expectations. In the early stages, your expectations are only an estimate.

You reserve the right to increase that amount as you discuss the role further. You can always ask for more money if you find out the demands of the job exceed your initial expectations.

However, I recommend taking this step as early as possible in the process. Delaying your request until the final hour can leave you with less room to negotiate.

“I gave a range of [Number] in our last conversation, but after learning the role involves X and Y, I’d be expecting a total salary package of [Number]. I’m bringing it up now to make sure we’re all aligned before progressing any further.”

Asked about your current salary

I really hate to say this as I believe it to be a disgraceful practice by companies, but refusing to divulge your current salary might affect your application negatively in some scenarios. Not all, but some. You may be seen as ‘difficult 'by a hiring employer. Keep in mind though, it’s impossible to please every employer you encounter during your job search. Some may see you as evasive, while others may not care in the slightest. 

Regardless of what you decide to do, the one way to avoid being lowballed is by doing a deep dive on the market rate so you know what is acceptable and what is not.

If you decide to share your salary, be sure to mention your expectations. Here’s a good line to use as a guide:

“I’m currently being paid [Number], but from my research the market rate is [Number] so I am only considering offers at this level or above.”

Again, if you're unsure of the fair market rate, consider adding an extra 20–30% on top of your current salary.

It’s worth mentioning that agency recruiters get paid when you get hired, so if they can’t get a competitive offer from their clients (the hiring company), they won’t make any commission. They may be more motivated to get you paid fairly versus an in-house recruitment team at a smaller business.

If you don’t feel comfortable sharing, here are a couple of lines you can consider hitting them with:

“I've spoken to a few recruiters and peers in the industry, and I'm in the early stages of interviewing with a few companies in our sector, and the market rate for an [Job Title] is falling between 70k and 80k. I'm actually being underpaid right now, so for my next role, I am only considering offers at this level or above.”

Or

“I’m not comfortable sharing that information and would prefer to discuss my salary expectations, which is between [Number] and [Number].”

When delivering your answer, it’s important to keep the right tone. Your knee-jerk reaction might be to say “mind your business you nosey ^$%£.” You don’t want to come across as adversarial. Calm. Cool. Collected. Understanding. I know there are lots of horror stories out there, but contrary to popular belief, many recruiters have good intentions and are looking to get you paid fairly, so it’s helpful to keep things kosher and not lose your head.

Can’t get the salary

If a recruiter won’t give up the salary, consider moving on. Of course, if you’re in a pickle you may have to just stick it out until the offer comes, but as mentioned, the risk here is that you waste your time. 

If you suspect you’re going to be lowballed, hit them with something along the lines of:

“I don’t think I can move forward since the salary package is a major factor in deciding my next move."

There are plenty of employers out there that respect your time, value transparency, and pay their people fairly.

Counter-offering

As you move further through the process and the job offer comes in, you may need to counter-offer. 

Here's an approach you can take:

Base your counter-offer on the specific objectives the hiring manager wants you to come in and achieve.

Early in the interview process, gather this information by asking:

"What are you hoping is achieved in this role within the first 12 months?"

Or

"What would success look like in the role a year from now?"

The interviewer will detail some big goals that will either generate revenue, save revenue, or a combination of both.

After they spill the beans, gather more information by following up with this question:

"What are the biggest challenges getting in the way of achieving these objectives?"

This line of questioning forces the interviewer to lay out the biggest problems they're facing and the goals they want the new hire to accomplish. 

With a complete understanding of what the hiring manager wants, you can tailor your pitch accordingly.

The structure of your counter-offer:

1. Refer to the company’s desired goals and/or problems.

2. Provide evidence of your ability to achieve said goals and/or solve their problems.

3. Reference your plans for the future, and if possible, detail how the company will benefit financially (through an increase in revenue, a reduction in costs, or a combination of both).

4. Go for the ask, and if possible, reference evidence that their offer is below market rate.

Counter-offer negotiation pitch (V1)

(1) Refer to the company’s desired goals and/or problems

"As you mentioned earlier, my main objective in this role will be to [Specific Company Goal, e.g., 'expand into the European market' or 'achieve a 20% growth rate this year'].”

(2) Provide evidence of your ability to achieve said goals and/or solve their problems

"This goal is something I am very confident I can not only reach but exceed, given my track record while working at [Past Company], where, under similar circumstances, I [Specific Achievement, e.g., 'led the team in a successful market penetration in Asia'].”

(3)* Reference your plans for the future, and if possible, detail how the company will benefit financially (through an increase in revenue, a reduction in costs, or a combination of both).

"Looking ahead, I've already put together a plan to help us [Reach specific company goals / Achieve specific initiatives, e.g., 'streamline our supply chain operations' or 'optimise our digital marketing strategy']. Based on my projections, this could result in [Financial benefit or increase in metrics] for the company."

(4) Go for the ask, and if possible, reference evidence that their offer is below market rate

"Bearing all that in mind, along with the market salary research I presented in our earlier discussions, your salary offer of 48k is a solid number that we can work from. How can we bring the total salary package to 55k?”

*Part 3 of this counter-offer strategy involves going the extra mile in advance, which you may not have time for. However, focusing on Parts 1, 2, and 4 will still give you a strong foundation for negotiation.

Counter-offer negotiation pitch (V2)

Here's an alternative counter-offer pitch worth trying:

“As I said, I’m really excited at the prospect of joining your team because [Discuss how you will bring value to the team and achieve their biggest objectives + why you want to work at the company]. Bearing all that in mind, along with the market salary research I presented earlier, is there any way we can make up the difference?”

Leverage other job offers

If you have received another offer, let the recruiter know. It shows you’re in demand, plus recruiters want this information as it helps them keep their offers competitive. It can also speed up the process for you because if they match the competing offer, it will mark the end of your job search.

Give them an ultimatum

“I’ve been offered [Number] by another company, but you are my top choice. If you can match it, I’ll sign right now.”

If applicable, mention what benefits you’re being offered by competing companies:

“As well as a base salary of [Number], they’re also offering to support my relocation to [City] with a sign-on bonus of [Number]. If you can match their package, I’ll sign right now.”

Being transparent and detailing the specifics of your competing offers will give recruiters ammunition to negotiate on your behalf with the hiring manager. 

Don’t lie here, otherwise you risk losing the job if they call your bluff and tell you to take the competing offer.

Remember that if you have received one job offer, you have done everything right. You have proven that you're capable of conducting a successful job search. So if you get one, you will get others. 

Negotiating through email

In many cases, salary negotiations will take place after the interview. I recommend moving the negotiations to email because it creates a paper trail.

Verbal promises don't always hold up. It's essential that you get everything in writing in case any disputes arise down the line.

Negotiating through email also allows both parties to consider all options and takes the pressure off of making an immediate decision.

Email negotiation template:

Hi [Hiring Manager],

Thank you for offering me the [Job Title] role. I’m excited to join the [Department Name] department at [Company Name].

In relation to the salary package, your offer of [Number] is a solid number that we can work from, but I would like to discuss the proposed package.

Considering my track record in helping [Companies/Teams] achieve [Relevant Target], which I'm confident I can replicate within the [Department Team] in a focused [Number]-day timeframe, and based on the market salary rates I've gathered from industry peers and recruiters, I believe an adjustment to within the [Number - Number] range would be more reflective of the value I can bring to your team.

[Company Name] is my employer of choice. I have been a long-time admirer of the work you and your team are doing, and I’m excited to come in and bring the [Department Name] department to [Main Objective].

I feel we are nearly there. If we can get the range towards my target of [Number - Number], I will be happy to accept this offer.

Warm regards,

[Your Name]

Should you negotiate?

It depends.

If the company meets or exceeds your original asking price, there are potential risks to asking for more. The worst-case scenario here is that the company might withdraw the job offer, especially if they have other candidates who are willing to accept the salary package. 

You need a reason to negotiate. The recruiter is usually taking your request and bringing it to the hiring manager to see what can be done. So give them ammunition.

Root your argument in logic. Maybe you have competing offers or you’re sacrificing a juicy performance bonus by leaving your current role. 

Your best bet is to lay out your salary expectations from the very first conversation; that way both parties will be closely aligned by the time the offer comes.

Handling a counter-offer from your current employer

If you receive a counter-offer after handing in your notice, tell your manager the reasons why you decided to look elsewhere. Try to resolve these issues before deciding to accept the counter. Otherwise you'll be back on the hunt in a couple of months’ time.

References

If a hiring company asks for a reference from your current manager, it may jeopardise your current job. And in the unlikely event that the job offer falls through, you're in a pickle.

You've got to protect yourself at all times. So if you're asked to provide a reference from your current employer, offer alternatives, like a trusted colleague or someone who has recently left your workplace. Go as high up as possible: manager, supervisor, team leader, etc. 

Use this script as a guide if you have any concerns about references:

"As I'm currently employed at [Current Company Name], I am hesitant about providing a reference from my current employer. I'm concerned that it might jeopardise my position there, especially in the unlikely event that the offer doesn't go through.

Could we consider alternatives for this part of the process? I can provide references from [offer alternatives instead of your line manager—ex-manager who recently left, team leader, supervisor, etc.] who can speak to my abilities and work ethic.”

Of course, if you have a strong relationship with your current manager you may have no issues. But when it comes to your livelihood, minimise risks where possible.

Reminders

• Have a 'walk-away' number. Enter the salary discussion knowing the absolute minimum you are willing to accept. You don't have to accept any offer.

• Practice negotiating with your friends or family. You will be far more comfortable when it comes to game day. Set up roleplays that involve the hiring manager objecting to your counter-offer. How will you respond if they say "It’s just not in the budget"? 

• To make sure the juice is worth the squeeze, find out how much your base salary will be after tax.

• If the salary offer is too low, respond with grace. You don’t want to make it a war, nobody will win.

• Ask for what you want. Step into the discomfort. This is your life. The sooner you start asking for what you want, the sooner you'll get it. If you don't ask, the answer will always be no.

Trust nobody

• I know I'm super pessimistic when it comes to job offers and companies in general, but it's only because of the horror stories I continually come across due to the nature of my work.

• Never rely on promises made to you in an interview. Rely on what’s written in the contract.

• Don’t hand in your notice until you have countersigned the offer letter and received written confirmation of acceptance from your new employer.

• Keep applying for jobs and lining up interviews until you start the new job.

Good luck getting the money you deserve. If you need help negotiating your salary in your current role, here is a step-by-step guide on how to ask for a pay raise.