A common advice that Nolan Church, former Google recruiter and current CEO of salary data company FairComp, offers job seekers is to ask questions while negotiating salary with prospective employers.
The point is, “If you don’t ask,” Church told CNBC Make It, “the answer is always no.” He, however, had a few pointers that candidates must take note of before demanding a fatter paycheck than the initial offer.
It’s important to understand how companies come up with the offer in the first place. Two elements play into their calculations, Church said.
Many companies “spend usually tens of thousands of dollars a year on compensation data” from data providers with real-time, up-to-date figures about pay in their industry. “That’s how they’ll create bands,” or salary ranges for specific positions, he added. And “typically, companies begin the offer negotiation at the bottom of the band” when it’s time to make that offer.
The second guiding principle in how companies build their offer packages is the compensation philosophy. This includes where in the spectrum of salary ranges they fall — if they pay more than most companies, the same, or less, etc.
Figure out which salary band you’re eligible forAfter the interview process, Church recommends job seekers ask their prospective employers “how does this level map to your bands internally?” Church said.
When companies are finalising their salary bands, they often have “levels one through 10” which can be reflected in titles but aren’t always clear. The former Google recruiter gave the example of the software engineer position, which both freshers and people with decades of experience can have.
“Figuring out the specific level that you’re at will indicate the level of seniority the company believes you have” and therefore the kind of salary they think you’re eligible for, Church told CNBC Make IT.
How to ask for a higher salary package
According to Church, one of the best ways to take time while considering asking for a fatter paycheck once the recruiters have answered all your questions is to tell them, “I’m really excited about this offer. Give me a couple of days to process and I’ll circle back with you.” Then start doing some research, he said.
The former Google recruiter also suggested looking up sites that can offer data about salary and levels and reaching out to connections in the industry who can help give you a better idea about the pay the position deserves.
Finally, when you get back to your prospective employer, say something like, “I know you said this about the compensation philosophy,” Church recommends. “I’m really excited. I want to join, if you can hit this number… I will sign today.”
They might get back to you and say yes, they might get back to you and offer a little bit less and they might get back to you and say no altogether. But if you don’t ask, you’ll miss out on the chance to get a higher pay, Church added.
