“There are a lot of economic factors that go into wage negotiations right now,” said Linda Babcock, an economics professor at Carnegie Mellon University. With rising inflation, a nationwide labor shortage — now every Job seekers have almost two jobs – giving workers “more bargaining power than they traditionally have in a weak labour market”.
With that in mind, here’s how experts recommend you approach salary negotiations in today’s market:
Recruiters address salary issues earlier these days.
“What’s really accelerated over the past few months is that companies are asking candidates very early in the process what their salary expectations are…I’ve seen things happen early in the first interview or screening interview Far more times than I’ve ever done it,” said Kate Dixon, CEO and founder of Dixon Consulting.
But just because they ask, doesn’t mean you have to give a number.
Dixon suggests this: “Without understanding the job and your total return, it’s hard for me to give you an exact number right now. What’s the recruiting range for this position?”
Prices go up… so what should your salary be?
If you’ve received an offer but the salary is lower than you expected, don’t be shy about negotiating – do your homework first.
“There’s more leverage, there’s a labor shortage, companies need good employees, and with inflation, it’s justified to ask for more,” said Rellie Derfler-Rozin, Robert H. Smith Associate Professor of Management and Organization. University of Maryland School of Business . “There is still room for negotiation. The key is to prepare.”
Salary data should take into account several factors, including typical compensation for your role, industry and location, the unique skills and value you will bring to the company, and economic conditions such as inflation and the labor market.
“It’s really important to calibrate correctly. You don’t want to go in and ask for too little, but you certainly don’t want to ask for too much, it’s not credible,” Babcock said.
Online job sites, including Glassdoor and Payscale, can help you find salary ranges for people with similar positions in the industry, but it may also be helpful to talk directly to others in the field.
“I encourage people to go beyond what you find online,” Derfler-Rozin said. “If you know people who have worked there or in similar places, try to have an informal conversation with them and get their advice. People are generally more willing to offer help and guidance… Exceeded our actual expectations. “
While inflation may be part of the reason you’re negotiating higher wages, DeFleur-Rozin said that shouldn’t be the central argument. Instead, she says to focus most of your attention on your unique skills and values.
After expressing excitement about the proposal, she advised: “I hope we can discuss something that appropriately reflects the value I bring to the company based on my past performance, skills and education. Of course, taking into account Factors like that. Cost of living and rising inflation.”
When you don’t want to go to the office every day
With the pandemic forcing many companies to send employees home to work, it may be a lot easier to negotiate full or partial remote work.
If you’re looking for a flexible work schedule, Dixon recommends highlighting how this arrangement can benefit the company.
Dixon suggests this: “Over the past few years, I’ve found that remote work really increases my productivity, so I’d love to work two days at home and three days in the office. What’s going on?”
However, if being able to work remotely is a must for you, don’t wait until you get an offer to make it.
“More and more employers are saying this: ‘It’s a fully remote role’ or ‘It’s a hybrid role,'” adds Dixon.
To ask about work arrangements ahead of time, she advises: “I’d love to talk to you about this role. Given the way I like to work, I’m only considering hybrid or fully remote opportunities. Can you tell me how the organization feels about this?”
get that ring light
While working from home allows you to skip your commute, it does require certain equipment, which can get expensive.
“If you’re in an office and you have a good camera, lighting system, chairs, printer, whatever they’re going to buy you, it’s certainly reasonable. It’s reasonable to ask for those things,” Babcock said.
You can ask if the company offers a work-from-home allowance. And, if they don’t, Babcock recommends coming up with a spreadsheet with a forecast of the items and costs you expect to incur in order to set up your home office.