Negotiating salary in private sector

[privatesectornewbie]

I’ve worked in the public sector for fifteen years but recently started applying for jobs in the private sector. I’ve recently been offered a role and I think it could be great but I’m feeling totally out of my depth on pay!

I’m so used to the very clear, strict pay processes in the public sector i.e. there’s an advertised salary and that’s what you get, full stop. This is totally different. There was no advertised salary on the job advert but I was asked what my salary expectations were and I gave a range (using a combination of glassdoor and guesswork).

They’ve offered me a figure which is slightly below the bottom end of the range I gave. It’s still an increase on what I’m getting now but I don’t know if I should now be negotiating? Is that expected in the private sector? Or should I be waiting for my first pay review (he said they’re quarterly which again is totally new to me).

Any advice, experience or useful resources would be much appreciated. As you can tell this is all new to me.

Bump

Are you leaving a final salary (DB) pension scheme for a DC one? If so, please make sure you account for at least 15% contribution from yourself to a pension (& make the contribution!).

So roughly I would take my existing salary, add 20% for loss of pension then add a % for the payrise I sought, say 15%.

So yes, now is the time to negotiate. Just respond, thanking them for the offer and stating, unapologetically, the amount you are looking for. E.g. thank you for the offer, however I am looking for a base salary in the region of £60k pa.

Yes! The new salary is around 20% more than my current one so that accounts for the pension difference. But doesn’t leave much extra once that’s accounted for.

Definitely try to negotiate. Private sector salaries are all about negotiation.

If you don't ask you don't get. The only time you make decent jumps is when you move employers.

Thank you. So realistically should I be trying to negotiate up to the minimum of my “salary expectations” (which I had to share with them before the interview)?

Or should I be asking for the top end? And they’ll possibly then meet me half way with a counter offer?

Definitely ask for higher than you want as they likely will decline and counter offer.

Good luck!

Never tell a new employer what you currently earn either!

Bear in mind inflation linked pay increases of up to 10% have been applied to some private sector salaries recently as well, as part of employer cost of living support. Obviously this isn't universal but if you don't ask you dont get!

This is all so new to me. Thank you everyone for the advice!

Does it matter that I’ve already given my salary expectations? I’m making these numbers up but let’s imagine I said my expectations were 55-60k and they’ve offered me 50k.

Would I be able to go back and say no, I’d like 65k. Even though I’ve kind of already said I’d accept 55?

If you said your expectations were 55-60k and they’ve, say, offered you 48k. I’d go back and say 58k and be happy to settle at 55k.

Tell us the actual figures.

I said 72k-78k, they’ve offered 67k…

No. Stick to your guns.

Go for 75k but be prepared to accept 72k.

I think they're taking the piss, honestly.

I think that’s what I need to do isn’t it. Eek!

Remember, they want you enough to have name you an offer, so you have that on your side! You made it clear what your expectations were and this doesn't meet them. Now is absolutely the right time to have this conversation as they definitely won't be coming to you in a years time offering you an extra £5k just because.

Agree with @ParentallyUnprepared . Good luck!

I think given they have been so cheeky to offer you so much less than your stated minimum, you should be be cheeky and ask for your stated maximum!

Definitely negotiate now. You won't get another chance. I would reply thanking them for the offer but you were looking for £78k so their offer is significantly lower than you are able to accept. Ask them if they are able to review and meet your expectations? Be polite but don't waver. I expect my staff to negotiate with me. If they won't negotiate for themselves, how can I ever expect them to negotiate for my business?

Exactly this!

Good luck OP.
Salary negotiations make me so uncomfortable and I tend to give in. At the moment I'm on £60k but generous employer pension contributions means my total "pot" is £80k. And when I tell potential employers or recruiters this they're always trying to get me to accept £60k or even less, with the smallest of pensions. It is really tiresome.