Negotiate salary now or suffer later, say experts

Marisa Beid (name changed), got a perfect job last year. “I was so happy when the company said that I’ve been hired. I just agreed to what they offered me, thinking that must be their pay slab for my kind of position,” she told this website.

One year down the line, however, Marisa believes her company has been unfair to her. “I’m the most qualified person in my team and one of the most productive workers, but what I get is the least,” she complains. 

Marisa is just one example of many people in the workforce who feel they haven't been treated fairly or justly rewarded by their firms. “Who is at fault here?” asks a recruitment expert. "She should have done her homework and negotiated better rather than settling for what was on the table," he said.

Accepting the initial offer, especially if it is below your expectations, can be detrimental in the long run, say experts. Negotiating a better pay package before you start work is the best way to go forward. This will not only ensure that you are paid fairly but will also determine all your future hikes and bonuses, say experts. 

According to Professor Horacio Falcao at Insead, who specialises in negotiation, “[negotiating a better pay] is only important if the candidate is not happy with the offer that is given.”

“However, remember that your entry pay will become the basis for your future raises and bonuses since they are mostly percentage increases over your base salary. Thus, it is important to negotiate your salary before the end of the recruitment process or interview to ensure that you are getting a fair salary to the value you expect to deliver to the company. Even if there are no increases, just understand its logic and fairness already results in better satisfaction with the company and with oneself for arriving at a good and fair outcome,” he told Emirates 24|7.

Some experts believe that negotiating the salary at the earlier stages may not be a good idea but vit should certainly be done before the end of hiring process, and not after one has joined work.

“The interview is probably not the time to negotiate salary; at that time, your focus is to make the best impression you can. Ask questions that convey you are going to be a wonderful addition to the team, not that you are only interested in your own compensation. However, once you have the offer, in most situations, it is a good idea to negotiate salary. As my friend and world-respected negotiations researcher Adam Galinsky always says, ‘You can’t get what you don’t ask for!’” Grainne Fitzsimons, Associate Professor of Management, Fuqua School of Business, told this website.

The belief that a job offer will be rescinded if a candidate asks for higher pay is not as prevalent as many believe, say experts.

“It is less prevalent than most candidates imagine. If a company went through a recruiting process and selects a candidate, they are not likely to rescind a job offer just because of a legitimate question or request. However, if the question or request is made as an inflexible or a non-negotiable demand, then the risk of the offer being rescinded increases not because of the content of the request, but because of thw way it was done," said Professor Falcao.

“There will be times when it is inappropriate to ask for a higher salary, and individuals have to use their own best judgement about whether this is a company that is open to negotiation or not. Candidates should ideally wait until they have the job offer in writing before they negotiate any terms. Of course, everyone knows an example or two of job offers that were rescinded once the candidate started asking for more money and other perks, but most employers expect a highly qualified candidate to stick up for his/her own interests when seeking a job,” adds Professor Fitzsimons.

On negotiating salary in the best possible way, the Insead expert has a word of advice. “In short, the best way to negotiate salary is to not think of it only as salary, but rather as your compensation and even more so as your career. An extra $5k/year today may pale if instead you negotiate to set yourself to make an extra $50k within the next three years," he says.

"Thus, look to negotiate broadly, such as to be allocated to a more interesting position or department with more learning opportunities, challenging projects and growth that may have you promoted faster. Negotiate to have the best mentor in the company and thus find your way to success faster. Negotiate to have a particular training that prepares you to perform better and earn a bigger bonus. Or even, negotiate for a better work-life balance, which may result in less burnout and a more sustainable career. Of course, salary is important and an extra $5k/year is always welcome. Still, we need to remember to keep the big picture of all the reasons why we work for and negotiate them all,” he explained.

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