Should you be negotiating your salary? Canny candidates are increasingly doing this in Scotland
"Negotiating over salaries for new positions died down over the last few years but now an element of brazenness is reappearing," says Gareth Biggerstaff, head of professions, Scotland, at recruiters Search Consultancy in Edinburgh.
"Often this year we are seeing candidates negotiating over packages with potential new employers. In many cases their remuneration has been flat for a few years and they are looking for a deal that allows them to catch up."
Negotiation is most prevalent among candidates with in-demand skills in risk and compliance, IT and marketing, especially the use of new media to target consumers and business customers.
"IT security specialists may be able to achieve better rates than the usual day rates and fixed term contract rates if they negotiate," says Mark Beacom of Michael Page Scotland. The same goes for candidates for senior roles in risk and compliance and other business-critical FSA-regulated roles.
The big news in negotiation is that the counter-offer is back.
"Candidates are now commonly prospecting the market and using offers to negotiate a better package for their existing job," says Biggerstaff.
As a result, he says, Search Consultancy in Scotland saw its drop-out rate (the percentage of candidates not taking up new job offers) soar from 5 per cent over the whole of 2011 to 17 per cent in the first six months of 2012 alone.
Biggerstaff has seen some candidates negotiate their salary up by 25 per cent.
Harris Keillar at Keillar Resourcing in Edinburgh has seen the same trend, but warns: "Allowing yourself to be 'bought back' by your existing employer can damage your reputation for loyalty, and if you genuinely want to move on, it will not solve you problem."
Negotiating successfully takes forethought.
Simon Horton, author of Negotiation Mastery, who has taught negotiation skills at Dresdner Kleinwort, and Credit Agricole, and coached senior managers at Lloyds and BNP Paribas, says: "Check if it's worth trying to negotiate first. Research current salaries for roles with similar skills and experience and network among people in your target institution."
Recruitment consultants may also help with research and even negotiate for their own candidates.
Only start negotiating once the offer has been made. If they ask you to name your price before that, suggest the specifics are left until later.
Once the offer is tabled, try to name your price before they do. "You are in a strong position here. They think you are the best person for the job so you can ask for the best salary," says Horton.
If they bid first, they are likely to start low.
With a low offer, look at the whole deal - overall it may beat your existing package. If they won't move on pay, you may be able to improve the benefits.
If it's still not good enough, make your case using external benchmarks such as market rates for similar jobs and setting out the value you could add to the company.
"Know your value, and be firm, friendly, realistic and honest. Tell them if you are talking to other companies, as it may help," says Horton.
Have a plan B, so it is not a disaster if you do not get the job. You will be more confident and relaxed, which should help your negotiations.