When a candidate accepts a job offer the employer must decide if they are willing to negotiate. Employers approach negotiations similarly for both candidates and current employees. Knowing how companies evaluate your request will increase your chance of success.
Employers will typically look at these areas when considering salary requests:
1. How Much Can I Negotiate?
Candidates typically propose a higher salary than the company has provided. The company will first decide how desperately they want the candidate and how much they can afford to determine if they are willing to negotiate.
They consider such criteria as:
- Are there other candidates available with these skills?
- Is is hard to find candidates to fill this role? If the role is difficult to fill, or if it is a candidates market, the company may try to reach an agreement with the candidate..
- What are current employees making at the company, for the same role? Employers want to maintain a fair playing field by keeping pay scales in line across roles, since it can have a significant impact on teamwork.
Candidate Tip: Research the number of candidates in your market with similar skills before submitting your salary requirement. How many are there? Do they work for similar companies? Have similar skills? Know the market demand for your skills will help when you create your salary requirement.
2. Look at Past Performance
Once companies determine if the can negotiate, they they look at your performance to find if a candidate is worth negotiation. They typically look at skills, experience, culture fit and performance from previous roles.
- Skills: Employers will want to review your skills and past performance to get a sense of how you will perform in the role. The want to know if you have the experience, abilities and skills the position requires.
- Culture Fit: Companies will also look at your ability to work with team members an clients, while meeting expectations for the role. Will this candidate be a valuable asset to the business?
- Compensation: Will the candidate accept the compensation for the role, or are they below market rate for the candidates talent.
After these questions are answered a company determines if they should negotiate with the candidate. If they do, they will begin negotiations.
Candidate Tip: Provide detailed, measurable performance metrics and examples of previous success during the interview process. Make it clear why you will excel in the role to ensure the company will negotiate compensation.