When and How to Negotiate Pay for a New Job
Negotiating can be intimidating, but knowing your value makes all the difference.
No matter how exciting the opportunity, salary is a major factor in accepting or declining a job offer. Knowing how to negotiate salary for a new job and that you’re being compensated fairly for your skills and experience has a direct impact on job satisfaction. As such, understanding the nuances of when and how to negotiate salary for a new job in Canada – during an interview or after getting the job offer – is incredibly important.
After all, there’s a fine line between success and failure: If you bring up salary too early, for example, it can signal you’re more interested in the paycheque than the job. Or if you quote a desired salary figure without doing the proper research, you might leave money on the table or price yourself out of consideration. How to discuss salary in an interview is a conversational art all its own.
So how to negotiate pay for a new job with a potential employer? Ask any hiring professional worth their salt how to negotiate salary, new job duties, benefits, etc. during an interview, and they’ll tell you this: When the topic of compensation comes up, you need to be diplomatic and prepared.
Do your research. Have a good understanding of what’s a fair starting salary for the job and the company you’re considering.
Don’t rush the money talk. Good timing is critical when negotiating.
Do think beyond the paycheque. More paid time off, for example, might be on the table if a higher salary isn’t.
Don’t volunteer a salary figure or range. You don’t want to be evasive if asked, but it’s generally best to try to get the employer to give a number first.
Do be honest. A deceptive job applicant is a rejected job applicant.
Don’t assume you have to accept the first offer. Even in a challenging job market, negotiating in good faith is always acceptable. Ask for what you want.
Ready to get into the nitty-gritty? Following are more detailed tips on when and how to negotiate salary during an interview.
Mentioning salary in your cover letter or during the initial phone evaluation is a no-no. Don’t bring it up during your first interview, either. Use these opportunities instead to show your suitability for the role and let the employer get to know you.
By the second interview, it’s usually acceptable to ask about compensation, but tact is key. Express your interest in the job and the strengths you would bring to it before asking for the salary range. Make the employer feel confident you’re there for more than just the paycheque. If they bring up money first, provide a range that leaves room for negotiation. Showing that you're flexible is the key toward working out a compensation package that’s acceptable to both you and the employer. Just be sure you fully understand the job requirements before answering questions about your preferred salary.
As a general rule, it’s best to get the employer to offer a figure first. As any expert in knowing how to negotiate salary for a new job will tell you, knowing the company’s starting point can give you some leverage during salary negotiations. But sometimes you can’t avoid going first. Some online job application forms will ask for your required salary, generally to ensure that candidates’ expectations line up with the organization’s budget.
In such a case, offer a range (not an exact figure) that would be acceptable to you. The same rule if it comes up during your first interview: Either give a salary range, or smile, defer and turn the question around: “I’d rather not talk in detail about money this early in the process. I’d like to first learn more about the job and the company. But may I ask what salary range you’re considering for the position?”
At the beginning of the process, even before your phone evaluation, do your homework. A key aspect of learning how to negotiate a starting salary for a new job is finding out the latest salary ranges for your city, industry and the job title you’re applying for - the 2025 Canada Salary Guide From Robert Half can help with this.
Our Salary Calculator, a powerful tool which aggregates salary data for hundreds of positions across industries and experience levels, can help you to localize these figures for markets across Canada.
If you’re offered the job but know the salary doesn’t meet local standards for the position and industry, it’s perfectly acceptable to request additional compensation.
As with any negotiation however, you need to give solid reasons for your position. Talk specifically about your skills, experience and prior successes, especially those that have had a measurable effect on a company’s bottom line.
According to the 2025 Canada Salary Guide From Robert Half, 90% of Canadian hiring managers are reporting difficulty finding skilled talent, which is driving up salaries. That’s why nearly one third – 32% – of those managers are increasing starting salaries for new hires, while 30% are adding new perks and benefits.
Key to knowing how to negotiate salary for a new job is recognizing the importance of honesty. Never mislead a prospective employer about your current compensation or invent other job offers in an effort to get more money. They’ll eventually learn the truth, whether through a background check or when your job performance doesn’t match your supposed experience.
Instead, emphasize the value you can bring to the organization when discussing salary during an interview, and be honest about your situation.
Learning how to negotiate pay for a new job is important, but be sure to evaluate the entire compensation package. An interesting job with a lower starting salary could have a generous employee benefits package or opportunities to learn and grow with the company. You want to fully understand the whole picture, including health insurance, retirement plans and vacation days.
According to the 2025 Canada Salary Guide From Robert Half, more than one third – 39% – of Canadian hiring managers are offering hybrid jobs to attract workers, while 37% are offering flexible scheduling. Employers restricted by a smaller hiring budget might be more willing to sweeten their perks to close the deal.
Congratulations, you got the job offer and the salary you wanted! Now ask for it in writing. Never resign from your current position without having the compensation, job title and responsibilities, and other details documented.
Knowing how to negotiate salary for a new job is like knowing how to dance. You don’t want to start too early, and you don’t want to step on anybody’s toes. Being prepared with salary research and a strong ability to communicate your most relevant strengths will help you put your best foot forward.
Looking for more resources? Check out these 2024 Workplace Trends and 2025 Predictions for Canadian Professionals.
