How to negotiate salary (in the UK)

You’re in the right place if you’re wondering …

• “How to negotiate salary as a new grad”
• “How to negotiate a job offer?”
• “How to negotiate a graduate job offer”
• “How to negotiate salary for an entry-level position”
• “How to ask for more money from a job offer”
• “I’m negotiating salary for the first time – what should I do?”
• “Where can I find salary negotiation tips?”
• “How to write a salary negotiation email”
• “How to respond to a low salary offer – sample letter”

Negotiating your salary is one of the trickiest parts of the job application process.

You and your potential employer are approaching the issue from opposing perspectives: you are looking to be compensated as much as possible, and the employer is looking to secure the best person for the least amount of money.

Most job advertisements, especially in the private sector, say something like “competitive salary” which gives nothing away if you don’t know what the competition pays, either.

Public sector jobs are more likely to have a pay scale with ‘bands’ for each job and level, but there’s often room for negotiation here, too.

This guide covers everything you need to know about negotiating your salary, whether it’s your first job or you’re moving up the career ladder.

Main sections of this page

Don’t hesitate to fast forward to the section you think would be most helpful to you.

• “Figure out if you’re in a situation where you can negotiate salary” ⏩
• “Figure out how much salary you are worth” ⏩
• “Evaluate the salary and benefits on offer” ⏩
• “Decide what salary and benefits you’ll ask for” ⏩
• “Submit your salary counter offer” ⏩
  • “Email your salary counter offer” ⏩
  • “State your salary counter offer over the phone, on a video call or in-person” ⏩

Figure out if you’re in a situation where you can negotiate salary

You can negotiate in most instances, but not always.

Here’s how to determine which situation you’re in.

1. Have you received a job offer?

Different employers will discuss salaries at different stages of the hiring process.

You shouldn’t negotiate salary until you’ve received a written job offer. Ideally, you’ll avoid discussing the topic in any sort of detail at all.

If the employer brings up the topic of salary in the early stages of the hiring process, evade giving away your desired salary by saying what salary range you’re looking for. If the employer proposes a salary, say that you’d prefer to discuss the topic if and when they offer you the job.

If you’ve been offered the job, you’ll know the salary the employer has offered.

This doesn’t mean you have to accept it. You’re in a strong position to negotiate upwards. In fact, most employers will expect you to.

Avoid the temptation to say “Yes” to the job straight away. If you want the job, be enthusiastic, but ask them if you can take 24 hours to consider their offer. This is completely normal and most employers will be happy to do this.

Even if you’re happy to accept the salary, giving yourself time to think is always a good idea. If you haven’t already discussed salaries as part of the process, the employer will expect some negotiation at this point.

Incidentally, in most large organisations, the final salary is decided jointly by the business function, HR department and the hiring manager.

So, although you may have discussed the salary with the hiring manager, for example, this could be subject to further discussion between other parties.

2. Have you thoroughly evaluated the offer to the point where you know whether it’s good, okay or bad?

Even if the bottom-line salary looks good to you, make sure it’s a reasonable offer in the context of what value you can bring the employer, and what your peers in similar organisations are paid.

Have you been offered the market rate?

Salaries for the same job will vary across different organisations in the same sector. It’s good practice to make yourself aware of what other people in similar positions to you are being paid as a benchmark.

Read the “Figure out how much salary you are worth” ⏩ section below to find out how to do this.

What benefits are being offered alongside the salary?

Your salary is only one part of your remuneration. Benefits are also an integral part of how an employer compensates you for work.

Read the “Evaluate the salary and benefits on offer” ⏩ below.

3. Can you afford to lose the offer if your negotiation goes wrong?

There’s always the chance that pay negotiations don’t work out and the employer refuses to pay more.

A good idea is to have two salary figures in mind:

• Your target: what you really want to earn
• You walk-away level: the least you’ll accept

Be ambitious and realistic when pitching your target salary. Base it on research and be courteous and professional in your negotiations, and the chances are that you will be offered a salary in between these two points.

Try and keep emotions and guesswork out of your negotiations. Avoid phrases like, “I want to be paid…” or, “I feel I deserve to be paid…”. If you can show that your salary target is realistic and in line with industry averages, you are more likely to be offered what you’re looking for.

Unfortunately, you could be in the position that there’s a strong back-up candidate for the job who will accept a lower salary. If the employer doesn’t feel strongly enough that your superior skills, qualifications or experience outweigh the difference in salary, you may lose out.

4. What’s the likelihood that you’d receive promotions and pay rises in the short to medium term?

Many initial salary offers come with a three- or six-month review period, so you may be willing to settle for less than you’d like to start with.

Ask if there’s an opportunity to move the next pay review forward, if it’s far off. If they accept, make sure the chance is put in writing.

5. Is the employer currently doing well?

Employers who are doing well may be in a position to offer a better salary and benefits.

If you know they have just won a big contract which will impact significantly on their profits, for example, they may be willing to stretch the initial offer.

Equally, if you can see from recent news or market data that the organisation is struggling, or if there’s a recession, they may not be in a position to offer more than they already have. Admittedly, few companies recruit when they’re struggling financially, so you’re unlikely to find yourself in this scenario.

Figure out how much salary you are worth

Knowing what you’re worth is pivotal to negotiating salary.

What you’re worth depends on a number of factors, including:

• Where you live and where the job is based: salaries in London are generally higher than the rest of the UK, for example, largely because the cost of living is so much higher in London
• How much experience you have: someone with five years’ experience in a role or sector will be able to command a higher salary than someone who’s just starting out
• Your leadership skills and experience: leadership skills are highly prized by employers, as they signal you could be an asset in the long term
• Your level of education: if you have a PhD, masters or bachelor’s degree in a specialised area relevant to the job, you’ll have an advantage over candidates who don’t have them
• Your professional qualifications: if you already have specialist qualifications or skills required by the job, you may be able to command a higher salary

Monetary pay isn’t the only thing you can negotiate. Your wider benefits can also be discussed as part of the overall package you receive.

You could consider:

• An increase in the number of paid holiday days, sick leave days or paid study/training days
• Flexible working hours or the opportunity to work from home for a number of days per week or month
• An increase in the employer’s pension contribution
• A company car or travel allowance
• Health insurance or life insurance

Note, however, that smaller organisations may have less leeway to add benefits and allowances they don’t already offer. In this instance it may be easier to focus on maximising your monetary pay.

Here’s how to determine your value to a company.

1. Find out the average salary for the job title you’re interested in on the Totaljobs Salary Checker

The Totaljobs salary checker lets you check average salaries for any job or industry in any UK location based on recent job adverts on the Totaljobs website, one of the UK’s largest job boards. You can also use the salary planner to compare your current role with the one you want to achieve.

2. Search current listings for the job title you’re interested in on Milkround

If you’re looking for a graduate job, you can get an idea of average graduate salaries on MIlkround.

If you’re looking for all other types of jobs, check the listing on our sister site Totaljobs.

3. Check the latest UK earnings figures from the Office of National Statistics (ONS)

The Office for National Statistics publishes average UK earnings on its website.

The data is often very dense and tricky to navigate, but this page shows average earnings for different parts of the UK.

You can filter the results by full time, part time and male and female earnings.

4. If you’re a woman, overpower the gender pay gap

The gender pay gap is reducing, but it is still real.

Research by Totaljobs revealed that women are paid, on average, over £6,500 per year less than their male counterparts.

This huge discrepancy appears to be baked into the system, both at the employer and candidate level.

Employers generally pay what the market demands; women may not expect to earn less, but the research shows that they feel less comfortable negotiating a salary or asking for a pay rise, and receive less in bonuses than their male counterparts.

Given these statistics, it’s even more crucial, if you’re a female candidate, to do your research and be aware of your worth.

Organisations with over 250 employees are legally obliged to publish a gender pay gap report. Those employing 250 are encouraged to do so, too. You can search for an employer’s gender pay gap report on the Gov.UK website.

Use this as a guide to determine how you should pitch your salary level. Journalist Lucy Mangan proposed that women simply add the gender pay gap difference to their salary requests.

Knowledge is power: armed with research, you will feel more confident negotiating a salary that reflects your skills, qualifications and experience.

5. If a relative or friend manages people in their line of work, ask them their opinion

If you have a friend or relative who hires or manages people in a similar position to the one you’re looking at, ask them what they think of the salary you’ve been offered or are looking to achieve. They may be willing to share their opinion with you.

Don’t ask other people you know in the same line of work what they earn. They may feel uncomfortable telling you, and many employers discourage their staff from discussing their salaries with other people.

6. Ask recruitment consultants at recruitment agencies

If you’re applying for the job via a recruitment consultant, they should be more than willing to discuss how you can maximise the salary and benefits.

In most cases, the consultant’s commission will be directly linked to your starting salary, so making sure you get a good deal is in their best interests, too.

A good recruitment consultant will be realistic, though: it won’t benefit them if you pitch your salary at an unrealistically high level.

7. If you’re a graduate, orientate yourself with typical graduate starting salaries

If you’ve spent some time working in a particular sector or market, it’s likely you’ll have a reasonable idea about average salary and benefit packages.

But if you’re a graduate and looking to take the first step on the career ladder, you probably won’t have this information, making it harder to know where to pitch yourself.

As well as researching graduate salaries on sites like Milkround, it can help to know the level of salaries graduate employers are currently offering.

The Institute of Student Employers (ISE) publishes an annual report looking at the graduate and student employment marketplace from the point of view of its membership, which includes many of the UK’s largest graduate employers.

Its latest report, published in late 2020, found that the average (median) starting salary for graduates was £29,667. Broken down into sectors, average starting salaries were:

• Legal: £38,250
• Digital and IT: £31,500
• Finance and professional services: £31,425
• Health and Pharmaceuticals: £29,125
• Energy, engineering and industry: £28,000
• Built environment: £27,500
• Retail and FMCG: £27,500
• Charity and public sector: £26,000

Some sectors offer much higher starting salaries for graduates. The most generous graduate salaries in 2020 were those on offer from the investment banks, (a median starting salary of £50,000), consulting firms, (£45,800), law firms (£45,000) and oil & energy companies (£38,500). (Data from High Fliers Research, The Graduate Market in 2020.)

The gender pay gap still exists amongst graduates: female graduates typically ask for £2,000 less than their male competitors.

Evaluate the salary and benefits on offer

It’s easy to focus on the bottom line, but an attractive salary is not the only thing you should be looking for in a job.

You also need to consider the monetary value of the benefits on offer. It’s worthwhile calculating their individual values then adding them to your base salary to get a total figure for your ‘package’.

Here are the main factors you should consider when evaluating your job offer.

1. Where does the salary offer fall between the amount you really want to earn and the least you’ll accept?

For advice on calculating your own worth, see the ⏪ “Figure out how much salary you are worth” section above.

2. Is there a bonus plan?

Many employers pay bonuses to all staff depending on the company’s performance.

Some bonuses are related to your own personal performance, especially if you work in a sales-related job.

3. What’s the pension plan?

When you’re looking to start a new job or career, you’re not only thinking about what you earn now, but how much you will have to live on once you retire.

The state retirement age is increasing and state pension provision is reducing, so the pension benefits provided by your employer (or those you arrange for yourself) are going to become even more important as you get older.

Your employer must pay 8% of your salary into a pension plan – 3% of which must be paid by the employer, the remainder coming out of your salary.

However, most employers are more generous, putting in between 7% and 14% in the private sector and 20% in the public sector. Some have additional benefits such as death in service, benefits for partners, early retirement options and personal financial advice.

4. Private health insurance?

Because of the NHS, it’s easy for us in the UK to take for granted how expensive medical care is.

Private medical insurance coverage varies greatly, but the most comprehensive policies will give you access to speedy and free hospital care and dental treatments.

5. Have you been offered share/stock options?

If you work for a company that’s listed on the stock market, you may also be able to buy the company’s shares at a preferential rate.

Typically, this option is only available to more senior roles.

6. Does the employer offer more than the state minimum parental leave?

This may not be an issue now but good provision can be a game-changer if or when you decide to have children.

7. Flexible working hours

This is more a quality of life consideration than a remuneration one, but these sorts of benefits shouldn’t be overlooked.

8. Company car?

A car is one of life’s great expenses, so the offer of one makes a huge difference to your overall remuneration.

9. Public transport allowance gift or loan?

Commuting can cost thousands of pounds a year.

10. Training budget?

Does the employer pay for you to undertake training that will advance your career prospects as well as your value to the organisation?

11. Allowance for attending conferences?

Attending conferences is one of the best ways to develop your professional network and open uip future job opportunities.

Often attendance requires travel (sometimes flights) and hotel attendance, so if your new employer will cover the costs it’ll be a great benefit to your bank balance.

12. Clothing allowance?

In some jobs, such as law or finance, you’ll be expected to dress a certain way.

Some employers will offer a clothing allowance to offset the cost of buying suits, for example.

13. Discounts with lifestyle providers

Including, but not limited to:

• Gym membership
• Cinema tickets
• Physio sessions
• Eye care
• Exclusive access to theatre, music and sport tickets

14. Are salary increases guaranteed in the future?

Even if the starting salary is at the lower end of your desired scale, you may find that the salary and benefits can increase relatively quickly once you pass an initial probationary period.

15. Put it all into context

It may be your dream job, but if you’re going to have to travel for two hours either way to get to work, move to a location you’d rather not live in, or give up something you enjoy to take the job, make sure you’re compensated with a great salary and benefits.

Very few jobs are ideal in every respect, so weigh up the pros and cons before you make a final decision.

Decide what salary and benefits you’ll ask for

If you want to take the job, and you’ve decided you’re going to negotiate, the first step is to decide precisely what you’ll say in your counter-offer.

1. Figure out what matters to you most

It’s highly probable you will need to compromise on your ‘dream list’. But so will the employer: that’s what negotiation is all about.

Is the salary figure the most important, or are you prepared to sacrifice some of that for an excellent pension or a travel pass to help with the expensive commute?

In their 2019 Salary Negotiation Report, Harvard Law School suggested allocating points to every item, such as 100 points for the right salary, 50 points for a company car, 10 points for an additional week’s holiday, for example, and then adding up different combinations for your ideal scenario.

The idea is to know which are the must-haves and which you are prepared to give up if necessary.

2. Decide what’s your perfect combination of salary and benefits

You’ve figured out your worth.

You know the top amount people are paid for this kind of role.

You’ve evaluated the benefits on offer.

You’ve considered what types of benefits employers in general can offer.

And. you’ve decided what’s most important to you.

Now combine all these things to come up with the best possible package you could receive.

Don’t forget to add in benefits that haven’t been offered, but could realistically be offered.

3. Decide what benefits you’d be willing to be flexible on

Would you open to a little bit more of this, and a little bit more of that, if they won’t give you more salary?

Are there any left-field benefits you’d request in the middle of negotiation, for example language classes for a language that’s spoken in one of the employer’s key target markets?

4. Decide what’s the bare minimum you’ll accept

Before you enter negotiation, you need to know your ‘red line’.

This could be what you’ve already been offered, or it might be more.

At the end of the day, you could find the employer is very inflexible and ‘what you see is what you get’.

In this case, unless it’s a job you desperately want and you can see the situation changing in your favour in the short to medium term, don’t be afraid to say, “Thanks but no thanks,” and withdraw from the process.

This doesn’t have to be a negative development. If you part on friendly terms after a generally positive experience, you may find that the employer remembers you when there is another job vacancy and contact you before it is advertised publicly.

Submit your salary counter offer

Here, we assume you’ve got through all the previous sections of this guide.

We also assume that you’re not rushing an email back to the employer or hurriedly picking up the phone to discuss the offer with the hiring manager.

If possible, we advise negotiating over email, because you’re afforded much more thinking time whenever the employer responds.

However, they may prefer to negotiate over the phone, on a video call or in a face-to-face meeting.

Most applicants find a negotiation conversation more nerve-wracking than an email negotiation.

Naturally, through preparation is the key to persuading the employer to move on their original offer.

Fast forward to your situation:

• I’ll email my counter offer ⏩
• I’ll state my counter offer over the phone, on a video call or in person ⏩

Email your salary counter offer

Below is a step-by-step process for writing your salary negotiation email.

Feel free to fast forward to our “Salary negotiation email template” ⏩ below.

1. “Reply all”  to everyone who was on the email containing your job offer

The employer will only add people to the email thread who need to know, so it’s best to keep them all informed, even if only the sender will action your counter-offer.

2. Open with the same greeting the employer used in their email(s)

Use the same level of formality when you reply as the employer does in their initial email.

So if they address you, “Hi, [your first name]”, respond with “Hi, [their first name]”.

But if they start their email with “Dear Mr/Ms [your last name]”, reply with “Dear Mr/Ms [their last name]”.

3. Thank them for their offer

Show them that you appreciate the offer of a job and that you would love to work with them. Do not say that you ‘accept’ their offer.

4. State that you’d like to discuss the package on offer

State that you’d like to take the job if there were some changes to the package.

5. State the reasons why you’re worth more, and state your proposed salary (and benefits)

State the reasons why you’re worth a better package, preferably making reference to specific areas of your research.

• Your research shows that the average salary for this role in this sector is typically higher than you have been offered
• You have been offered the average salary, but have above-average experience and could bring a lot more to the role
• The job description underplays the actual responsibilities of the role
• You’re happy with the salary, but will be giving up valuable benefits in your current position that you would like them to match

State the specifics of your counter-offer, i.e. exactly how the salary and benefits differ from what you’ve already been offered.

6. Indicate that you’re open to further negotiation

Don’t present your counter-offer as ‘take it or leave it’.

You’re asking the employer to be flexible, so make sure they know that you are, too.

Say you’re happy to discuss further, but don’t suggest a further meeting or phone call. You are asking them to consider your proposal, so let them respond in the way that suits them.

7. Close with the same sign-off the employer used in their email(s)

Say you look forward to hearing from them soon, and sign off with the same level of formality they used in their job offer email.

For example, if they signed off: “Kind regards, [their first name]”, sign off similarly in your email.

8. Make sure they can contact you

Add your phone number under your name, so they don’t have to go through your application details to find out how to contact you.

9. Proofread thoroughly before you send

Before you press “Send”, proofread your email to make sure there are no errors.

Pay special attention to the spelling of the recipient’s name and the figure you are asking for as a salary. (It’s very easy to miss a figure off when typing: you don’t want to ask for £2,950 instead of £29,500.)

10. Check the email has sent

After you’ve sent the email, check that it’s in your ‘sent’ folder and not stuck in your outbox.

Salary negotiation email template

Here’s a template you can use to write a salary negotiation email.

State your salary counter offer over the phone, on a video call or in-person

Below is a step-by-step process for negotiating your salary on a call or in face-to-face.

This process will work whether you called them, or they called you.

1. Thank the employer for the offer

This sets the scene for a positive discussion.

2. Reiterate how much you’d like to work them

This spells out that you sincerely want the job, and at the same time reinforces the idea in the mind of the employer that this will be a positive conversation.

3. State that you’d like to discuss the package on offer

This needs to be spelled out, before you begin making your case.

State that you’d like to take the job if there were some changes to the package.

Most employers will be prepared for you to negotiate.

And, you’re perfectly within your rights to negotiate.

So, say it with confidence.

4. State the reasons why you’re worth more, then state the salary or package you’re looking for

State the reasons why you’re worth a better package, preferably making reference to specific areas of your research.

State the specifics of your counter-offer, i.e. exactly how the salary and benefits differ from what you’ve already been offered.

For example;

Another example of a different negotiating position:

Make sure you can quote the research you are referring to – the report you read, how you obtained the figures and so on – and are able to send them links if asked.

Make sure your proposal is proportionate, so the reduced working hours equate to the going rate for the job, or the salary increase takes you to a reasonable industry average for the additional responsibilities.

5. Let them know you’re willing to negotiate

The employer may agree straight away to your counter-offer, but it’s more likely they will want or need to think about it further and possibly discuss with colleagues.

Don’t expect an immediate answer.

If they say they will go away and think about it, ask roughly how soon they will be able to come back to you.

Say that you’re happy to consider alternative solutions if the one you are proposing doesn’t work for them.

6. Reiterate your interest

When you’ve agreed a date or time to talk again, take the opportunity to say once more that you’d really like to work for them and are sure that you can reach a solution that works for both of you.

Be courteous and polite, thank them for their time and say that you look forward to speaking with them again soon.