How to negotiate a better salary

Whether you’re on the hunt for a fresh opportunity or looking to bump up your existing pay packet, learn how to negotiate a better salary in the tech sector with this handy guide.

In the competitive world of the tech industry, knowing your worth can go a long way.

But when our worth doesn’t align with an equivalent wage, sometimes, if we don’t ask, we don’t receive.

In this piece, we show you how to negotiate your tech salary with poise, professionalism and persuasion to ensure you receive the pay you deserve.

Let’s get started.

How to negotiate a higher salary in your current role

So, you’ve been in your current tech role for a while and feel like it’s time you got a nice little bump up in pay. After all, if you’ve been working hard and hitting targets, why not?

And we understand, it’s not always about the money, it’s what the money represents. Beyond paying bills and fulfilling aspirations, a fair increase in our wages shows the recognition of our performance and the rewards for our efforts.

But despite being embedded in the business already, how you go about negotiating a better salary in your current role is not always an easy discussion depending on the context. Often, it’s a delicate subject for yourself and the business.

So, before you go all guns blazing into your boss’ office demanding more money, here is a guide for how to negotiate a better salary without bringing the house down.

1. Self-assessment

Knowing your worth goes both ways. While you might feel entitled to a pay increase, your superiors might disagree. Either way, like any argument, it comes down to who has the facts.

To demonstrate your point, you need proof, and that takes a solid self-assessment.

You should expect your employer to arrange regular performance reviews to establish your value. However, despite this expectation, only 47% of employees receive feedback a few times a year while 19% receive feedback once a year or less.

If you’re on this end of the no-feedback spectrum, it can be a confusing place to know how well you’re doing in your job and whether you’re even hitting targets that would justify a raise.

Unfortunately, there’s only one thing for it and that’s self-assessing your own performance by checking you achieved your duties on time and to a high standard.

Plus, you can always ask your manager to conduct a performance review to help you assess your performance and ascertain your value to the business.

In line with how to negotiate a better salary, we recommend asking for a performance review before asking for that increase.

3. Company research

It’s not just your own performance you should be reviewing. Working for a business means being part of an organisation with lots of moving parts that could delay or restrict your salary increase. It might be the case that the company intend to increase your salary but isn’t in a position financially to offer it.

Although this isn’t your fault, it doesn’t change the fact that the business is unlikely to negotiate your wage, in which case, it might be time to look at options elsewhere.

3. Negotiation

Research done. It’s time to negotiate with your employer. After all, even if they’re not in the best position to offer you a raise, letting you go might be more detrimental and force their hand. While you don’t want to put your company under financial pressure, seeing you walk out the door might cost more than offering the wage increase you deserve.

Firstly, the best way to negotiate a better salary is to arrange a formal meeting with your superior at a convenient time. If you do receive performance reviews, aim to arrange this conversation three months prior as it’s probably the time when your seniors are establishing who should receive a raise.

Secondly, prepare what you’re going to say without apologies, remembering to be specific. During your self-assessment, you should’ve become aware of your achievements in detail which you can call on when justifying why you believe you deserve an increase.

And lastly, stay calm and keep emotions out of it. We understand not being valued financially can cause mental health problems, with 65% of workers feeling the impact. However, taking a passionate approach is not recommended for when negotiating a better salary.

If your employer refuses to improve your wage, remain professional and channel the disappointment to pursue other options elsewhere.

How to negotiate a better salary with a new job offer

So, you’ve received an offer (congrats!), but you believe you’re worth a bit more than they’re offering.

Nothing is stopping you from negotiating for a better salary, especially if you think you’re worth more.

However, we appreciate you might have concerns, whether that’s the offer being withdrawn or simply getting off on the wrong foot.

We understand these apprehensions, but remember you don’t have to accept what you first get given. It’s a negotiation. And like all negotiations, sometimes, it relies on a bit of back and forth to find the middle ground.

Here’s how to navigate negotiating a better salary in a new tech role:

1. Establish a salary benchmark

Similar to your self-assessment, knowing your worth compared to fellow tech professionals in your position at other companies will help you define what the standard salary is.

Obviously, this can change depending on experience, level and company size. Numerous websites like Reed and Glassdoor have nationwide databases that provide accurate benchmarks for standard salaries.

Just bear in mind that salaries heavily depend on location. For example, the average software engineer salary in London can be upwards of 15% more than in Manchester.

For something more tech specific, you can utilise Revoco’s 2024 Salary Guide.

3. Evaluate the offer

Beyond the salary number, it’s important to evaluate all aspects of your offer.

These offer details include:

• Base salary
• Benefits
• Bonuses
• Equity
• Stipends
• Salary increase expectations

By comprehending the offer completely, you have all the information you need going into the negotiation. Because despite the wage not being the exact number you want, the various benefits and bonuses might outweigh asking for that increase.

3. Negotiation

With your salary benchmark and offer details established, you have your wage expectation in mind and should be ready to negotiate. Unlike, negotiating for a better salary in a current role, this negotiation is not about timing or workplace dynamics.

To negotiate your offer, you should schedule another call with the hiring manager. During the call, show enthusiasm by asking about the specific KPIs of the role and how your position will evolve. These are things you might have already established during your interview, but it’s not too late to bring them up even after receiving the job offer.

Next, you might ask how the role’s KPIs align with the company’s growth trajectory while understanding how team goals and targets are set and why.

Getting all this context on the table of your offer will help you discuss why you believe you should receive an improved offer.

If you wish to aim high, we recommend not going above 30% of the salary benchmark or you’ll risk sounding unrealistic or appearing underqualified.

Ensure you can demonstrate your salary demands based on your prior research and remain open to understanding the salary expectations put forward by the hiring manager.

Like any discussion, it should always remain a two-way street.

Obviously, if you’re working with a recruiter (like Revoco 😏), they’ll be able to best advise you on your worth in the market and handle all the negotiations for you.

Looking for your next opportunity in tech?

At Revoco, we help top tech talent find their ideal role. From getting a better salary package to feeling more fulfilled in the workplace, we help professionals find the perfect home for their skills, values and ambitions.

So, whether you’re a software engineer, data analyst or IT technician, we have an exciting array of diverse opportunities on offer.

Register with us today by uploading your CV and receive the latest job offers, industry news and insights. Alternatively, if you have any questions, please get in touch directly.