Strategies for responding to a low-ball salary offer

While hiring managers may appear guarded during salary negotiations, many companies are open to offering more than their initial proposals indicate.

"Niani Tolbert, a career coach and former recruiter, advises job seekers to expect a company to offer them a salary that is at least $5,000 to $10,000 lower than what they would actually give them, as businesses are trying to save money."

Adam Broda, a senior manager at Amazon and career coach, has over a decade of experience in the hiring industry. He reveals that companies frequently begin job offers with a lower salary than they're prepared to provide, hoping candidates will negotiate for a higher salary.

While many individuals are uncomfortable with negotiating, even if it means leaving significant amounts of money on the table, a recent Pew Research Center survey found that 60% of U.S. workers did not request higher pay during their last hiring. However, there is always a possibility that a salary offer may fall significantly below your expectations. According to Tolbert, if an employer offers $20,000 or more less than what you expect, traditional negotiation tactics may not be as effective.

Instead of requesting a monetary benefit, you may want to negotiate for a non-monetary benefit, such as an additional week of vacation time or the flexibility to work from home.

Negotiating a higher wage after receiving a low-ball salary offer is not always hopeless.

Watch your tone

Negotiations can be emotionally charged; responding abruptly or with frustration could end the conversation quickly.

If you approach negotiations with a warm, respectful tone and make your request clear, you'll be more likely to get what you want, according to Erin McGoff, a career educator in New York.

"Often, the person you're conversing with isn't the one who ultimately decides about your salary increase, but rather the one who must present your case to someone else. They are your ally and an important person to win over."

Collaborating with the hiring manager can help increase your chances of receiving a higher salary offer.

DON'T MISS: The ultimate guide to negotiating a higher salary

Leverage timing to your advantage

One of the most powerful negotiation tools at your disposal is timing.

What responsibilities will you be assuming when you start your new role, whether it's supporting an important project or product launch, or filling in for several team members who have recently left?

Tolbert asks, "What factors contribute to the company's decision to pay you more, rather than losing you as a candidate?"

According to Tolbert, candidates who can explain how their start date timing aligns with the company's objectives have the "highest chances" of receiving a higher salary.

"Tolbert states that it is difficult to dispute with someone who is self-assured about their worth and the benefits they bring, as those are the individuals he would want to provide more to."

Know your walk-away number

For a successful negotiation, you need to have two numbers: your ideal number and your walk-away number, as Broda states.

Your reservation price is the minimum amount you're willing to accept in a negotiation.

If the employer's offer is higher than your ideal number in a negotiation, you should lead with your ideal number. However, if the employer can't meet or exceed your walk-away number, it's better to reject the offer and explore other options.

Being honest with the hiring manager about those numbers can facilitate a smoother negotiation.

"According to Broda, the more information the hiring manager has, the better they can assist you. To determine if they can meet your expectations, communicate the ideal number first and assess their response. If they cannot match it, it may be necessary to leave."

Earn more money at work by taking CNBC's new online course, "How to Negotiate a Higher Salary." Expert instructors will teach you the necessary skills to increase your paycheck, including preparation, confidence-building, effective communication, and counteroffer crafting. Pre-register now and use coupon code EARLYBIRD for a 50% introductory discount through Nov. 26, 2024.