Welcome to The Get, by Neo—a new personal finance magazine for Canadians. No acronyms, just good info.

For this week’s No More Ls, we’re covering how not to lose out on money when you get a new job.

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They say never accept a first offer. Whoever “they” are, they just might be right. Here’s how to negotiate more pay.

By Rob Csernyik

After working on hundreds of salary negotiations, Jillian Climie wants to put a big fear to rest. Asking to negotiate your pay is unlikely to cause an employer to rescind the offer. “I’ve seen that probably once or twice in my career, and it was a big red flag for the company,” she says.

Climie has worked as a compensation manager and analyst at retailers Lululemon and Aritzia, and now helps clients secure higher salaries, as a co-founder of The Thoughtful Co. Recently, one of Climie’s executive clients negotiated a 15% salary increase and a bonus based on compensation she was leaving behind at her current employer.

But it’s not just the Kendall Roys of the world who need to learn to negotiate contracts. Polls suggest that about three out of five workers accept the salary they’re first offered. Many people don’t feel comfortable negotiating and don’t know how to start researching how much they’re worth on the job market. 

Fear is costly, and the process is nothing to stress about. To get the salary you deserve, realize that your new employer won’t be shocked or angry when you push back on that first offer. “Especially within the corporate world, people are used to negotiating,” Climie says. “It’s such a normal part of the employee-employer relationship.”

A few simple steps can help you get the best payday possible and create opportunities to build more wealth as you build your career.

Hit pause before saying yes or making the ask

“You’re signing an employment contract that is legally binding,” Climie says, so it’s important not to feel distracted by excitement or pressure. Instead, give yourself space to review the salary offer and contract terms before saying yes or starting negotiations. This is especially critical with verbal offers.

Companies have different compensation approaches which may not initially be apparent until you see the full package. “Maybe the salary looks a bit low, but the company offers an incredible bonus structure or flexible work,” Climie says.

Don’t forget that it’s possible to negotiate other things that could “increase how much money you’re keeping in your pocket.” This can range from registered retirement savings plans and pension contributions to professional development and moving expenses. It could also include the number of paid sick or vacation days, remote work options, family benefits like childcare assistance, or health benefits for your partner and children. Even a gym membership or parking spot saves you money. 

“There are lots of different levers you could pull on,” Climie says, and it’s worth asking for what you value. “I don’t think I’ve had a client where they’ve gotten nothing extra, even when the salary is more locked.”

Trust your network’s intelligence, not artificial intelligence 

Climie admits it can be tough for some job hunters to know where to start with negotiations, or even if the annual income offered is enough. Try looking for comparable positions advertised with salaries and then taking into account factors like your education and experience. This isn’t a science, but a “helpful overall gut check,” she says. Though talking about income can feel uncomfortable, it’s worth pushing past this fear and asking trusted mentors, industry friends, and former colleagues for salary advice.

Two areas she suggests avoiding are job review sites and AI tools. Sites like Glassdoor and Indeed can offer overly broad ranges and non-vetted figures, she says. As for AI, it still hasn’t mastered creating pictures where people have realistic-looking hands—it may not give you accurate digits either. AI chatbots offer huge aggregations of data which might steer you wrong by being too broad. Plus, Climie points to a study from Germany that suggests ChatGPT may have gender bias when offering salary recommendations.

The power of compounding salary increases

Many people remain working at companies waiting passively for promotions and compensation increases which never arrive. That’s why it’s necessary to get comfortable negotiating when getting hired. “It doesn’t need to be a big, aggressive thing, but it’s so worth it to ask.” Like interest in a savings account, small salary increases at first jobs compound over time as your career progresses. Some studies suggest an initial increase can turn into hundreds of thousands of dollars more in lifetime earnings. This helps you secure the bag for a lifetime, not a moment.

If the hiring manager won’t budge on salary and benefits, and you still want the position, ask that the contract be open for review later, like during annual performance review, or even once your probationary period (typically three months) is complete.

While not a solid guarantee for a pay increase, she admits, it leaves the door open for you to prove your worth and make your case for increased compensation.

Step up your earnings with bonus and equity structures

Workers in roles that impact company revenues, like sales or taking ownership over a product or project, may not have considered discussing bonus structures, but Climie recommends it. These may include cash or stock bonuses, which companies often view as lower-risk forms of compensation because they don't pay out unless they get revenue themselves.

Stock options, such as restricted stock units, which an employer promises to grant at a future date, can be an important wealth-building opportunity. Equity arrangements are often longer term and linked to performance, but when a startup does well, “that’s where I see some of the biggest payouts,” Climie says.

Next time you’re making job moves, remember to make money moves too: review your contract, research your ask, raise your voice, raise your voice, negotiate—and get ready to rack up wealth.

Rob Csernyik is an award-winning, full-time freelance journalist specializing in business and investigative reporting, as well as long-form features.

Read more from this issue of The Get:

1. True or false: “Splurges are bad for your credit score.”
2. The Cost of Seeing Sports Live: How much would you spend on play-off tickets
3. “How did I get here?” asks Canadian comedian Rick Mercer
4. Will my partner’s credit score affect my own?

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The Get is owned by Neo Financial, and the content it produces is for informational purposes. Any views expressed are those of the individual author and/or of The Get editorial team., not of Neo Financial or any of its partners or affiliates. The content is not meant to replace professional financial advice, and it should not be the sole source for making any financial decisions. Always do your due diligence before deciding what to do with your money. Read The Get’s editorial mandate.