Salary negotiation tips and strategies for new job offers

Salary negotiation isn’t just about getting a bigger paycheck right now – it’s about setting the stage for your earning potential in the years ahead.

Every salary increase often builds on the one before, so getting your salary negotiation right is crucial for your career growth. Whether negotiating a salary for a new job or discussing a salary increase during your annual performance review, knowing how to position yourself is key to getting the compensation you deserve.

Step 1: Do your research and know your market rate

When you know your market rate, you can enter a salary negotiation with confidence and realistic expectations. If you skip the research, you might end up selling yourself short, which could hurt your finances in the long run and leave you feeling unfulfilled at work.

And if you set your sights too high, you might scare off the employer or miss out on great opportunities that still offer good pay and a chance to grow your career.

How to research your market rate:

• Use reliable salary comparison tools like the Michael Page Salary Comparison Tool to understand what people in your role typically earn. These tools give you data specific to your job, industry, and location.
• Be cautious of online salary portals where people share their salaries. You don’t know how accurate or recent that information is. They can give you a rough estimate but don’t take them as the absolute truth. Think of them as a starting point, not the final answer.
• Compare multiple salary guides from different recruitment agencies and organisations (aim for at least three) to get a more accurate picture of salary data ranges for your role. Individual guides, like Michael Page 2024 Salary Guide, may have varying data based on their job market coverage and research methodology.
• Look at job advertisements for similar roles in your industry. Companies often include salary ranges in their job postings, giving you an idea of the market rate for the position you’re applying for. Pay attention to whether the job includes additional benefits or bonuses, as these can affect the overall compensation package.
• Talk to recruitment consultants to gain insights into what companies are offering in your field.

Step 2: Understand your worth beyond the job title

Your market value is not just based on your job title; it’s influenced by your unique skills, experiences, and the additional value you bring to the company.

Show the company what makes you unique – your strengths, past successes, and how you can make a real difference. This will give you a stronger position, especially if the role requires a wide range of skills.

How to understand your worth beyond your role:

• Identify transferable skills you bring to the role that go beyond the job description, such as leadership, project management, or expertise in cutting-edge technology.
• Quantify your achievements: Use metrics like sales growth, cost savings, or increased efficiency to show the direct impact of your work.
• Highlight any specialised knowledge you have that is in high demand but rare in the market.

Example: If, as a Marketing Manager, you have successfully managed a digital campaign that has increased conversions by 25%, this quantifiable success justifies a higher salary within the given market range.

Step 3: Navigating salary during career transitions

If you’re transitioning into a new field, your experience may not perfectly align with the traditional career path. However, your skills are still highly valuable. The key is to understand the typical expectations for entry-level roles in your new field and then demonstrate how your unique background gives you a significant advantage.

How to discuss your pay when switching roles

Industry changes:

• Research similar-level roles in your target industry to understand typical compensation ranges and structures
• Identify and communicate how your current industry expertise could bring fresh perspectives to the new sector
• Demonstrate your commitment through relevant upskilling, certifications, or training specific to the new industry
• Highlight experience working with stakeholders from your industry
• Focus on universal achievements that transcend industries (e.g., cost savings, process improvements, revenue growth)

Function changes:

• Map out how your current functional expertise complements the new role
• Emphasise projects where you’ve already demonstrated skills relevant to the target function
• Showcase cross-functional collaboration experiences that align with the new role
• Highlight any informal experience or side projects in the new function
• Demonstrate how your unique background could innovate the new function

Example: A finance professional moving into a business development role can highlight their deep understanding of financial modelling and risk assessment as valuable skills for evaluating business opportunities. Similarly, a marketing professional transitioning to product management can highlight their customer insight expertise and experience in gathering market feedback.

Step 4: Timing is everything

Timing is key when it comes to salary discussions. Bringing it up too early can throw the whole hiring process off track, and you might even jeopardise your chances of getting the job. The best time to discuss salary is usually after you’ve received a formal job offer. That’s when you’re in the strongest position to negotiate.

How to time your salary talks for maximum impact

Wait for a formal offer: The best time to negotiate salary is after you have received a job offer but before you accept. At this point, the company has already invested time and resources in you, and you have the upper hand.

If the salary discussion comes up earlier, respond with a range based on your research. Avoid giving an exact number until you have more details about the job and responsibilities.

Example: If a recruiter asks about salary expectations early in the interview, you might say, “I would love to discuss the role in more detail before finalising compensation, but based on my research, I’m looking at a range of $40,000 to $45,000 for this role.”

Step 5: Present your salary expectations strategically

Providing a clear salary range instead of a specific figure allows flexibility while demonstrating that you’ve done your research and understand your market value.

Offering a range can help you find common ground with the hiring manager while ensuring you don’t undersell yourself or price yourself out of consideration.

How to state your salary expectations at job interviews

Provide a well-researched salary range with a 15% to 20% spread between minimum and maximum. Your minimum should be a figure you’d be comfortable accepting, while your maximum should align with the upper market rate for your experience level.

Back up your range with data from multiple salary guides, market reports, and industry benchmarks that reflect your experience and skills.

Consider the total compensation package, including bonuses, healthcare benefits, signing bonus, stock options, professional development opportunities, additional leave, flexible working hours, remote working options, and other variables, when determining your range.

Examples: “For a Human Resources Manager role with my level of experience leading regional campaigns, I’m looking at a monthly salary range of ₫62,000,000 to ₫66,000,000, depending on the overall package and scope of responsibilities.”

“Based on my research of similar roles in the technology sector and considering my expertise in digital transformation, I’m targeting a range between ₫100,000,000 to ₫110,000,000 monthly. This aligns with market rates for professionals with my skill set and leadership experience.”

Pro tip: Be prepared to explain both ends of your range. Your minimum represents the baseline value you bring to the role, while your maximum reflects your optimal contribution potential based on the role’s scope and your capabilities.

Step 6: Handling the discussion about your last-drawn salary

In many parts of Asia Pacific, employers often ask about your past salary. It’s tricky because while you want to be honest, how you answer can really impact your negotiation. The goal is to focus on what you bring to the table now, not just what you made in your last job.

How to manage the discussion about your previous salary

Professional deflection strategies:

Initial response:

• “I understand you’d like to know my previous salary, but it’s more helpful to focus on the value I can bring to this role. I’d love to make sure my compensation aligns with both your budget and the market rates. Can you share the salary range you have in mind for this position?”
• “I’m not comfortable disclosing my previous salary at this time. Could we instead discuss the salary range for this position?”

If pressed further:

• “My previous salary may not accurately reflect my current market value due to [reason, e.g., increased responsibilities, new skills acquired, etc.].”
• “Based on my market research and experience in this field, I’m seeking a salary within the range of [X-Y]. This aligns with the market value for professionals with my skills and experience in this role.”
• “I’m concerned that disclosing my previous salary may limit my earning potential in this role. I’m confident in my abilities and deserve a competitive salary.”

Emphasise market value:

• “I’m open to discussing my salary expectations further once we’ve had a chance to discuss the role and responsibilities in more detail.”

When previous salary disclosure is unavoidable:

• Frame the context by explaining any unique circumstances of your previous role. Highlight any upskilling, additional responsibilities, or achievements since then.
• Example: “While my previous base salary was ₫X, I’ve since completed [relevant certification/achievement] and taken on [additional responsibilities] that have significantly enhanced my capabilities.”

Important note:

• These are general strategies; the best approach may vary depending on the situation and your comfort level.
• If you encounter significant resistance from the employer, consider whether this is the right opportunity.

Using these tips will help you handle those tricky salary questions and make sure you’re not shortchanging yourself.

Related: Why do I need to tell recruiters and employers my last-drawn salary when making a career move?

Step 7: Be prepared for rejection and stay professional

Not every negotiation will go your way. But how you handle a ‘no’ can still impact your future. Stay professional, ask for feedback, and you might be surprised at how it can open doors down the line.

How to handle salary negotiation rejection professionally

If your salary request is rejected, don’t become defensive. Instead, ask for feedback on the offer and find out what it would take for them to meet your expectations.

If the company has budget constraints, discuss alternative benefits, such as performance-based bonuses, additional paid leave, or opportunities for salary review after a set period.

Example: If the salary offer is below your expectations, politely respond, “I understand the budget constraints. However, based on my skills and experience, I believe my compensation should align with the market rate. Is there any flexibility in the budget, or could we discuss other elements of the compensation package, such as benefits or additional responsibilities?”

Related: What to do if you don’t get the pay rise you want

Step 8: Closing the conversation on a positive note

Ending the salary negotiation on a positive note is crucial, regardless of the outcome. Maintaining a professional and respectful demeanour preserves your reputation and potentially opens doors for future opportunities, even if you don’t accept the current offer.

How to conclude salary discussions effectively

Express sincere appreciation: Whether you accept or decline the offer, always express gratitude for the opportunity and the time the employer invested.

If accepting:

• Confirm all terms in writing: Once an agreement is reached, obtain a written offer letter summarising all agreed-upon terms, including salary, bonuses, benefits, start date, and other relevant details.
• Express enthusiasm: Reiterate your excitement about joining the team and contributing to the company’s success.

If declining:

• Be direct and polite: Clearly and respectfully decline the offer while acknowledging the company’s time and consideration.
• Provide a concise and professional reason for declining: Briefly explain your reason for declining, such as another opportunity better fitting your career goals. Avoid negative or overly personal reasons.
• Express continued interest (optional): If it feels right, you can mention that you're still interested in the company. For example, “I appreciate the opportunity to learn more about [Company Name], and I hope to stay in touch for future potential roles.”
• Maintain professionalism: Do not burn bridges. Even if you decline, maintain a professional and courteous demeanour throughout the conversation.

Example (declining offer): “Thank you again for offering me the position of [Job Title] at [Company Name]. I truly appreciate the time you’ve taken to interview me. After careful consideration, I’ve decided to accept another offer that is a better fit for my current career goals. I appreciate the opportunity to learn more about [Company Name], and I wish you all the best in your search for a qualified candidate. I hope our paths may cross again in the future.”

Additional tips:

• Be mindful of cultural norms. Directness may be less common in some cultures. Tailor your approach accordingly.
• Follow up with a thank-you note: Send a brief note or email to reiterate your appreciation and maintain a positive connection.

Following these guidelines, you can effectively close the salary negotiation while maintaining a professional and positive relationship with the employer.

Mastering salary negotiation strategies for career advancement

Knowing how to negotiate your salary is essential to advancing your career. When you understand your market value, and are able to communicate your worth and confidently navigate the negotiation process, you can secure a compensation package that truly reflects what you bring to the table.

And remember, negotiation skills are something you can always improve and refine over time. Practice these strategies, adapt them to your situation, and you’ll be a pro at salary talks in no time.

Related: How to handle the conversation about your resignation

Explore more salary insights

Get a comprehensive view of salaries across various industries and roles with our 2024 Michael Page Salary Guide, which features the average salary of roles in Vietnam’s dynamic job market, or use our Salary Comparison Tool to see how your compensation compares to industry standards.

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