Getting a job offer in the Philippines is awesome! But the salary part? It can feel a little scary. You want more money, but you don’t want to seem greedy or risk losing the job. This guide will help you navigate salary negotiation like a pro, so you can earn what you deserve without damaging your relationship with your future employer.
Knowing Your Worth: Research & Preparation
Before you even think about negotiating, you need to know your worth. This isn’t just about what you want to earn; it’s about what you deserve based on your skills, experience, and the market rate for similar jobs in the Philippines. Guessing will only hurt you; proper planning will increase your opportunity. Consider this: many candidates undervalue their skills as much as by 30-40%, which could potentially cost them about 100,000 PHP annually.
Researching Salary Standards in the Philippines
Start by researching salary benchmarks for your role. Websites like JobStreet Philippines Salary Report and Prosple Philippines Salary Guide are your best friends. They provide salary ranges for different positions and industries in various locations in the Philippines. Don’t just look at the average; pay attention to the range, which can be quite broad.
Also, you can check out Glassdoor, although the data for the Philippines might be a little less comprehensive than JobStreet or Prosple. But it’s still worth a look. The key is to check multiple sources to build a complete picture. Remember that salaries vary based on factors like:
- Experience level: Entry-level positions naturally pay less than senior roles.
- Industry: Some industries, like BPO and IT typically offer higher salaries.
- Location: Metro Manila usually pays more than other regions, but the cost of living is also higher.
- Company size: Larger companies often have deeper pockets and can offer more competitive salaries.
Don’t overlook networking. Talk to people who work in similar roles and ask them about their salary expectations during offer negotiations. This real-world insight is priceless.
Assess Your Skills and Experience
Once you know the market rate, objectively assess your own skills and experience. Do you have any certifications or specialized training that make you a more valuable candidate? Have you consistently exceeded expectations in your previous roles? Have you developed an uncommon technical expertise that is high in demand? Document everything!
Create a list of your accomplishments and quantify them wherever possible. For example, instead of saying “Improved customer satisfaction,” say, “Improved customer satisfaction scores by 15% in six months.” Employers love data, as it shows actual impact.
Calculating Your Needs and Wants
Finally, consider your personal financial needs and wants. What’s the minimum salary you need to cover your living expenses, debts, and other obligations? What salary would you be happy with—the one that allows you to save, travel, or pursue your hobbies? This is your target salary. Keep in mind that needs outweigh wants when it comes to the barest minimum compensation for your job requirements.
It’s a good idea to have a range in mind – a “walk-away” number (the absolute lowest you’ll accept), a target number (your ideal salary), and a “reach” number (a slightly higher salary that you’ll aim for if the negotiation goes well). Be realistic. Don’t ask for a salary that’s way out of line with your experience or the market rate.
Timing is Everything: When to Negotiate
Knowing when to negotiate is almost as important as knowing how to negotiate. Wait until you have a formal job offer in hand. This means they’ve already decided they want you! Before the offer, you’re just another applicant. After the offer, you’re a potential employee in the driver’s seat, but not in a way that the car is in mid-air. Be aware of your position and use it to maximize opportunity.
Don’t bring up the salary question too early in the interview process. It can make you look overly focused on money and less interested in the job itself. Usually, the recruiter or hiring manager will bring up the topic of salary at some point during the initial screening. At this point, don’t give a specific number. Instead, try to deflect the question by saying something like, “I’m more interested in learning about the role and the company first. I’m confident that if I’m the right fit, we can come to an agreement on salary.”
The Art of the Ask: Negotiating Tactics
Now that you have an offer and you know your worth, it’s time to negotiate. The best approach is to be polite, professional, and confident. Remember, the goal is to come to a mutually beneficial agreement. You want to get paid fairly, and the company wants to hire someone they believe is worth the investment.
Express Gratitude & Enthusiasm
Start by expressing gratitude for the offer and reiterate your enthusiasm for the role and the company. This sets a positive tone for the negotiation. For instance, you can say “Thank you so much for offering me the position. I’m very excited about the opportunity to join the team.”
Justify Your Request
Don’t just ask for more money without explaining why you deserve it. Refer back to your research and highlight your skills, experience, and accomplishments. Explain how you can contribute to the company’s success. For example: “Based on my research and my experience in , I was hoping for a salary in the range of . I’m confident that I can make a significant contribution to .”
Focus on the Value You Bring
Your education, skills, past experience, and proven contributions are what bring value to the company. Frame your negotiation in terms of the value you bring. Example: “In my previous role, I was able to increase sales by a 20% margin in two quarters, using skills I believe will apply to the issues commonly experienced within the company. Given that contribution, I predict I will be able to bring value worth which justifies my salary expectations.”
Be Prepared to Compromise
Negotiation is a two-way street. The company might not be able to meet your initial salary request exactly. Be prepared to compromise and consider other benefits, such as:
- Sign-on bonus: A one-time payment to sweeten the deal.
- Performance-based bonuses: An opportunity to earn more money based on your performance.
- Benefits: Healthcare, retirement plans, vacation time, sick leave, etc.
- Professional development: Training, certifications, or conference attendance.
- Flexible work arrangements: Remote work options or flexible hours.
Consider salary as just one element of total compensation. It’s important to understand the overall value of the employment package offered.
Handle Objections Gracefully
The hiring manager might push back on your salary request. They might say that your request is too high or that they can’t afford to pay you that much. Don’t get defensive. Instead, listen to their concerns and try to understand their perspective. Remind them of the value you will bring. For example, if they say your request is too high, you can respond by saying, “I understand that budgets are tight. However, I believe that my skills and experience will allow me to quickly contribute to the company’s bottom line. Perhaps we can discuss a performance-based bonus to bridge the gap.”
Don’t Be Afraid to Walk Away
Sometimes, despite your best efforts, you and the company just can’t come to an agreement on salary. If you’re not comfortable with the offer, don’t be afraid to walk away. It’s better to turn down a job than to accept a salary that you’re not happy with. However, you should only do so in a respectful and professional manner. For example, “Thank you so much for the offer. Your company is a great place and your team seems fantastic. However, I cannot accept the offer due to the compensation offered. I wish you all the best.” Keep in mind that walking away is a gamble and should be a last resort.
Negotiating Benefits and Perks
Don’t overlook the power of benefits and perks! If you are not successful with the salary negotiation, attempt to increase the non-monetary compensation. Paid time off, work-from-home arrangements, professional courses, and insurance all add up to a good compensation package if executed strategically. Even subsidized parking or a gym membership can add up to significant savings per year.
Negotiating for benefits is often easier than negotiating for salary, as it has less a direct impact on the company’s budget in the present. However, benefits have overhead costs. A performance bonus structured to incentivize productivity gives room for the candidate to increase their earnings while having more direct effect on the profits of the business. A good way to structure a bonus is to propose an income where performance is rewarded.
Communication is Key: Email vs. Phone Call
Decide how you want to communicate your counteroffer. While email is fine for some parts of the negotiation process (like clarifying details or sending documents), a phone call is often the best way to discuss salary. It allows for a more personal and interactive conversation, where you can gauge the other person’s reaction and respond accordingly.
If you choose to negotiate via email, keep it concise, professional, and well-written. Proofread carefully before sending. For example:
Subject: Job Offer –
Dear ,
Thank you so much for offering me the position at . I am very excited about the opportunity to join your team.
After reviewing the offer and considering my skills and experience, I was hoping for a salary in the range of . I am confident that I can make a significant contribution to .
I am also interested in learning more about the company’s benefits package, particularly .
Thank you for your time and consideration. I look forward to hearing from you soon.
Sincerely,
The Etiquette of Negotiation: Maintaining good relationships
Above all else, be professional and respectful throughout the negotiation process. Don’t be aggressive or demanding. Avoid ultimatums and threats. Remember that you’re building a relationship with your future employer. You don’t want to start off on the wrong foot. It’s not strictly about the money. Showing professionalism, respect, and consideration will leave a positive lasting impression with your future employers.
Be polite! Even if they aren’t able to budge on the salary, a good attitude demonstrates that the person will be pleasant to work with. The hiring manager may be more inclined to fight for increased compensation if they anticipate having a good working relationship with the candidate.
After the Negotiation: Sealing the Deal
Once you and the company have reached an agreement on salary and benefits, get everything in writing. Review the offer letter carefully to ensure that all the terms are accurate. Don’t be afraid to ask questions if anything is unclear. Only sign the offer letter when you’re completely satisfied with the terms.
Thank the hiring manager and recruiter for their time and effort. Express your excitement to join the team and start your new job. A simple thank you can go a long way in building a strong relationship with your new employer.
Mistakes to Avoid During Salary Negotiation
It is important to be mindful and avoid simple mistakes which can potentially lead to a negative outcome.
- Being unprepared: Negotiating without doing your research is like walking into a battle without a weapon. You’re likely to lose.
- Being unrealistic: Asking for a salary that’s way out of line with your experience or the market rate will make you look out of touch.
- Being aggressive or demanding: This will alienate the hiring manager and damage your chances of getting the job.
- Focusing solely on salary: Benefits and perks can be just as valuable as salary.
- Lying or exaggerating: This will eventually catch up with you and damage your reputation.
- Accepting the first offer without negotiating: You’re almost always leaving money on the table if you do this.
- Burning bridges: Even if you don’t get the job, you want to leave a positive impression. You never know when your paths might cross again.
Negotiating a Salary Increase in Your Current Company
Everything we’ve talked about applies when you’re asking for a raise at your current job. The preparation is identical: know your worth, understand the market rate, and quantify your accomplishments.
However, you have the advantage of already being familiar with the company’s culture and budget. You also have a track record of performance that you can point to. Before asking for a raise, document your achievements and demonstrate how you’ve contributed to the company’s success.
When you schedule a meeting with your manager to discuss your salary, be prepared to present your case in a clear and concise manner. Explain why you deserve a raise and what you hope to achieve with it. Be confident, but also be willing to compromise. Remember that your manager has to justify your raise to their superiors.
The timing of your request is key. Wait for a good time in the company. Some good examples is when the company has achieved success, expanded operationally, and is flush with cash. However, if your job role has successfully generated significant value, this is a good talking point with your manager, as the manager may be happy to extend your contract to guarantee your performance.
Sometimes you may not be able to receive a raise with your current manager, but this may be a good opportunity to discuss your long-term career plans within the company, which you can use to pivot positions to a more lucrative team.
Understanding Cost of Living & Salary Expectations
It’s essential that salary expectations align with the cost of living in the job’s location. A 50,000 PHP salary in Metro Manila might not go as far as a 40,000 PHP salary in a province with lower living costs. Numbeo is a great resource for comparing the cost of living in different cities. Consider expenses such as rent, transportation, groceries, and utilities.
Furthermore, be aware of the minimum wage laws in the Philippines. The current minimum wage varies across different regions and sectors. While you should aim well above the minimum wage, knowing the baseline is important. You can find the latest minimum wage information on the Department of Labor and Employment (DOLE) website and here.
FAQ
What if they ask me about my salary expectations before giving me an offer?
Avoid giving a specific number. You can say, “I’m more interested in learning about the role and the company first. I’m confident that if I’m the right fit, we can come to an agreement on salary.” You can also provide a range, but make sure it’s a wide range that’s based on your research.
What if the offer is much lower than I expected?
Don’t get discouraged. Thank them for the offer and explain that you were hoping for a higher salary based on your research and experience. Present your case in a calm and professional manner. Be prepared to walk away if they’re not willing to negotiate.
What if they say they can’t afford to pay me what I’m asking for?
Ask if there’s any room for negotiation on other benefits, such as a sign-on bonus, performance-based bonus, or professional development opportunities. You can also ask if there’s a possibility of a salary review after a certain period.
How do I handle multiple job offers?
Having multiple job offers is a great position to be in. Use the offers as leverage to negotiate a better salary and benefits package. Be transparent with each company about the fact that you have other offers, but don’t reveal the specific details. Let them know that you’re seriously considering their offer, but you need to be sure that it’s the right fit for you.
Should I discuss salary with other candidates or coworkers?
It’s a personal decision. Sharing salary information can be helpful in determining fair compensation, but it can also create jealousy and resentment. Be careful about who you share this information with. Keep in mind that in some workplaces, discussing salary can be discouraged or even prohibited.
Is it okay to ask for more than the salary range advertised in the job posting?
Yes, it’s okay to ask for more, especially if you have skills and experience that exceed the requirements listed in the job posting. The salary range is often just a starting point. However, be realistic. Don’t ask for a salary that’s way out of line with your qualifications.
What should I do if I’m asked about my salary history?
Many employers ask about salary history to gauge your previous earnings. You can politely deflect by saying something like, “I’m focused on what this role offers and how I can bring value to your company. I’d prefer to discuss my salary expectations based on this role and the current market rate.” If pressed, provide a range or mention your desired salary for this specific position.
References
JobStreet Philippines Salary Report
Prosple Philippines Salary Guide
Numbeo
Department of Labor and Employment (DOLE)
Ready to take control of your job hunt and salary negotiations? You now have the tools to not just get a job, but to land a job that genuinely values your skills, experience, and potential. Don’t underestimate your worth, and remember that every negotiation is a conversation. Practice these strategies, refine your approach, and go out there and claim what you rightfully deserve. Your dream job, with the compensation you deserve in the Philippines, is within reach. Prepare diligently!
