by Prepare For Canada | May 6, 2022

Salary negotiation is a touchy subject. Most job seekers are still unclear about the best practices for negotiating their salary. As a newcomer to Canada, the subject can be even more intimidating. You’re new to the country and you may be unfamiliar with common job search practices. Many people fear that if they ask for more money they will miss out on the job. Others may immediately accept a job without knowing you have the option to negotiate your salary and other aspects of your job. 

Negotiating your salary in Canada is common. It’s part of the hiring process. So, you shouldn’t shy away from the topic. As with other aspects of the job search process, there is a time and place for everything. There will be some jobs where there is no room for negotiation. As well, there are certain times when it is better to discuss money with your potential employer.

Here are some specific actions, tips, and advice for when and how to negotiate your salary in Canada. 

Let’s get the most important piece of information out of the way first. You can absolutely negotiate your salary when applying for jobs in Canada. A job offer is just that – an offer. You can negotiate all aspects of it, including your salary.

This applies to entry-level positions as well. Most people incorrectly assume entry-level salaries are non-negotiable. But this is not always true. Companies will make exceptions for candidates they feel are the right person for the job. However, you usually have less wiggle room for these types of positions because these jobs are easier to fill. 

There are a few common situations where you will find yourself in a position to negotiate your salary. They are:

• Multiple job offers: You are in the process of interviewing with a company when another employer shows interest in you. The first company makes you a competitive offer to secure your services. You have the option to negotiate to ensure you receive a strong employment offer.

• Low salary offer from the employer: You received a job offer from a company you want to work for. But the salary is lower than you expected. It is important to negotiate to ensure you receive a salary you are worth.

• A recruiter reaches out to you: You are happy in your current role. A recruiter or other employer reaches out to you to inquire about your willingness to make a career move. You don’t want to leave your current job, but you also want to maximize your earning potential. So, you ask for a raise, knowing you have other job options.

Salary negotiation is a normal part of the job search process. While it can be an intimidating process, it’s completely normal. Here are some reasons you should negotiate your salary before accepting a job offer:

• Higher earning potential: It’s simple, the people who negotiate their salary make more than those who do not.

• Employers can offer more: Companies do not usually put their best offer up first. There is often wiggle room.

• Other compensation is involved: Even if a company is not willing to offer you a higher salary, they make be willing to offer you other types of compensation such as an annual bonus, higher commission, stock options, or even more vacation time.

• Know your value: When you negotiate you are showing an employer that you know your value.

• If you don’t ask, you won’t get what you want: Higher salaries are often an option, but if you don’t ask, an employer is not going to offer them.

If you are going to negotiate your salary, you need to approach it the right way by taking these actions:

You need to understand the salary trends for your industry and your specific position. Consider your skills, education, and level of experience. All these factors play a role in determining how high of a salary you can command. This will take some research.

The more information you have, the stronger case you will be able to make to justify your salary request. You can’t ask for more money “because you think you should make more.”

Learn how much other companies pay for a similar position. Research the employer’s compensation structure. Find out how much people are paid for similar job titles or your level of experience. 

Use websites such as LinkedIn, Glassdoor, and job boards such as Indeed to get this information.

You can ask around to see what other people are saying about the hiring practices of the company that you are planning on negotiating with.  This will give you an idea of how receptive they are to the idea of negotiating salary.  

If you plan to ask for a higher salary, expect the employer to ask you to justify why you should get more money. You can expect employers to push back and need to understand your positions.

Have several well-thought-out reasons why you should have a higher salary.  For example, your knowledge of different languages could be a great asset for a global company. Or, you may have extensive training in a particular area that can bring new insights to the organization.

If the employer is willing to negotiate, have a clear salary in mind. You should also expect them to counter your offer.

They may offer you more but not as much as you are asking for. Don’t forget you can also negotiate more than just money. So, choose a number that you know is a little higher than you expect. They may offer you more but not as much as you are asking for. For example, a job has a salary of $40,000 per year. You believe you should make a little more. You ask for $50,000. The employer counters with an offer of $45,000. You meet in the middle, and everyone is happy.

Don’t forget you can also negotiate more than just money. If they are not willing to budge on the salary you can ask for other things such as more vacation time or paid sick days. 

This is important and often overlooked by employees. Get all agreed-upon salary terms and conditions in writing. This will ensure everything you have spoken about is documented.