I recruit in-house for a big US bank in Singapore and Hong Kong. The job market in both cities is recovering in early 2021, but isn't as healthy as it was in 2020. But there are still too many candidates who are pushing me too hard on pay after receiving their job offers.
In my opinion, they are deluded: banks clearly hold the upper hand when it comes to pay. With that in mind, here's my realistic guide to negotiating your compensation in Q1 2021.
Don’t haggle like it’s 2005
It’s best to forget the “25% increase on your base” discussion that used to be popular in Asia. Instead of plucking a big salary rise out of the air, get an idea of your own market worth by reviewing recent salary surveys and speaking with a reputable recruitment consultant who has been on the ground in Singapore or Hong Kong for a few years.
Don’t wait to divulge your comp
Make sure you have your previous three years total compensation numbers on hand – these days banks will look that far back. They will also want your full total compensation breakdown, including not just your base salary and bonus, but benefits such as health insurance. And it’s crucial to get this information correct upfront to avoid confusion at the offer stage.
Shop around at your peril
Tucking an offer under your arm and trying to use it to negotiate with a rival bank is a dangerous practice in 2021. Now more than ever, we are seeing deadlines put on job offers and banks are sticking to them. If they get the feeling you are using their offer as leverage, they may move onto the next candidate, leaving you stranded.
Don’t hold out for more
Markets like Singapore and Hong Kong are no longer experiencing the strong shortage of banking talent that we saw earlier this decade. This year, banks in Asia might have a back-up candidate ready if you become too demanding when it’s time to sign the contract. Holding out in the hope that the bank’s budget will be magically increased by 10% is no longer a good move – the job market is simply too competitive.
Be easy to deal with
Salary negotiations can be tricky as your emotions might already be running high after weeks or months of interviews. The best way to get a positive result is to communicate clearly with your potential employer. If you’re difficult to contact during the negotiations, it can give the impression that you are not interested in the opportunity. If you need some time to think about the offer, be specific about the exact number of days or hours, and don’t keep them waiting any longer.
In the following situations, don’t even negotiate
If you are moving jobs because you feel that your current position may be offshored to a lower-cost location, or because you are moving to the buy side, don’t expect a pay raise.
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