New research[1] released today from Glassdoor, a jobs and careers community, reveals that almost one in five (18 percent) UK employees confess that they would exaggerate their current salary when speaking to potential employers. This is far higher than those that would exaggerate salaries with friends (8 percent), partners (7 percent) or colleagues (6 percent). This tendency to inflate salaries increases to almost one in four (24 percent) among those 16-24 years old.
Of those employees that would inflate their salary with a potential employer, the average ‘inflation’ is 18%. Based on the median salary in the UK (£22,044)[2], this is an increase of £3,968. Recent figures show that the average salary increase for UK employees was just 1.7%[3] so this fictional pay rise could be problematic for employers when it comes to benchmarking salaries. Further research shows that one in three (32 percent) existing employees would ask for a pay rise if they found out a new recruit was earning more money than them.
Just under half (47 percent) of UK employees, claim they would take a more honest approach and tell potential employers their actual current salary. This figure increases to 52 percent among those that are 45-54 years old (the highest for any age group). The most honest region in the UK is the North of the country, where 53 percent of employees living in the area would give out their actual current salary.
Jon Ingham, Glassdoor career and workplace expert comments: “Inflating your existing salary when speaking to new employers is not a strategy I would recommend. There are far more effective ways to negotiate a higher salary when you are applying for a new job – the secret is to do your homework and then not be afraid to ask,” said Jon Ingham, Glassdoor career and workplace expert.
Ingham adds, “Most employers do not intentionally try to scrimp on salary offers, but they will usually start with an amount that is lower than what they are willing to pay, based on the assumption the candidate will try to negotiate upwards. This ‘buffer’ ensures the employer is not paying a disproportionately higher salary than they pay existing employees in similar positions. Failure to synchronise salaries across a business for both new and existing candidates can lead to a sea of discontent if employees discuss their pay with colleagues. Use websites like Glassdoor to assess what you should be paid for specific jobs at specific companies so you can use information to power your negotiation.”
Ingham’s top tips for negotiating salary during the recruitment process:
1. Don’t be afraid to negotiate, employers fully expect you to do this.
2. Research is key. This will enable you to pitch an appropriate salary range for the job based on your research of similar jobs in the same region and sector.
3. Be realistic about where you are in your career and what you can achieve – don’t expect to have much negotiating power if you are just a few years into your career.
4. Make sure you express your interest in the job and the company before you start trying to negotiating a counter offer. Tell the recruiter why you would love to accept the role, how much value you can bring to the organisation and so on.
5. Negotiating a higher salary can often go backwards and forwards several times. Do not panic if this happens, if often means the employer is trying to meet you halfway.
6. If securing a specific salary for a new role is a deal breaker, you need to have a clear ‘walk away’ figure in your head.
7. Practice your negotiation skills with a family member or friend. If your manifesto for a higher salary doesn’t convince your role play partner, it’s unlikely to seal a better deal with your new employer.
8. Be prepared for "no" as another possibility and prepare in advance as to how you will deal with this.
9. If you can’t get the salary increased to the level you request, you could ask them to increase other elements of the package such as the bonus for example.
10. Alternatively, you could agree to review the salary following the successful completion of the probationary period.