If you haven't received a pay rise for ages, or you're just sick of your job and are in the market for a new one, it's tempting to chase those dollars. Inflation isn't helping the situation, and we're seeing more technology professionals seduced by the prospect of a higher hourly rate or a large bump in salary.

While it's true that changing jobs can give you a pay increase, it's also important to be realistic and understand how market conditions are affecting what employers can offer.

Yes, it's possible to get that pay rise you're hankering after. But here are a few considerations to keep in mind before you negotiate a salary and when you're evaluating contractor pay rates.

First, Do Your Research

The most experienced professionals can still make incorrect assumptions about the salary level or pay rate they can negotiate. Don't be one of those people! Researching market rates will always be an important part of the job search equation.

Just as (sensible) organisations conduct pay research and do salary benchmarking, so should you when job hunting. Look at a wide range of information sources - including job ads, salary surveys and industry news. Websites like Glassdoor and PayScale can be helpful at times, but we don't recommend relying on them completely, as they rely on self-reported and other unverified data.

If you can ask people in similar roles what they're earning without being indiscreet or overstepping boundaries, it's a question worth asking. However, we do recommend that you don't rely on anecdotal data alone. A well-meaning colleague can't account for all the variables that influence remuneration, such as specific experience, geography and public vs private sector.

Talk to Tech Recruiters (We Have the Data)

There is a third, even better way to cut through the fluff and actually get real answers that are better than "trust me, bro" - and that's by talking to a tech recruitment agency. All day long, we're consulting employers who hire talented professionals like you, so we have effective sample sizes from which we can identify average salary ranges.

If you're looking for a contractor job and need guidance on day rates or hourly rates, we've got a whole team devoted to helping you out - learn more about that here.

Be Prepared to Negotiate Salary

You may be the most confident and skilful full-stack developer or project manager to stalk the streets of Auckland, but you will be quickly undone without preparing for your salary negotiation. Negotiating pay is more of a delicate ballet than a high-adrenaline property auction. In a nutshell, your objectives are:

To understand the market pay range for the role, and where you sit within that range:

This is where your research will come into play. Consider factors including your experience level, niche expertise and credentials - these will influence where you fall within the salary spectrum. If you're working in a high-demand domain like cybersecurity or cloud architecture, you may have more leverage to negotiate above the median salary.

To demonstrate the value you will offer the organisation for the salary or pay rate you expect:

Employers don't just pay for experience; they pay for results. In the job interview, be ready to articulate your impact with real examples. For example, you improved system uptime by 30%, reduced deployment time by half, or led a team that delivered all projects ahead of schedule. Concrete achievements help justify your desired pay packet. It won't hurt to highlight specific skills, such as expertise in a specific tech stack, leadership abilities, or a track record of solving critical business problems.

Be open to non-financial options that can be part of the job offer:

If the salary or pay rate on offer isn't as high as you'd like, consider negotiating other benefits. Additional annual leave, remote work flexibility, professional development budgets, or even equity options can sweeten the deal for you. It helps to reflect beforehand on what type of benefits will mean the most to you. Perks like wellness programs, paid training, or tech allowances could help you save money, depending on your needs. Weigh up the full offer, not just the dollar figure, and be strategic in what you negotiate to align with your career goals.

Negotiating IT Contractor Rates

Before you go full steam ahead, there's an art to negotiating your rate and terms as an IT contractor. Unlike permanent roles, contracts come with a different set of rules. Playing your cards right can lead to better gigs, longer engagements, and, ultimately, a fatter paycheck. Here's how to approach IT contractor rates like a pro:

1) Accept a shorter contract - it's a foot in the door, not a dead end

A three-month contract might seem like a risky gamble, but in tech, short-term gigs often turn into long-term engagements. Employers like to test the waters before committing, and if you prove your worth, they'll be reluctant to let you go. So, instead of waiting around for the elusive 12-month contract, grab the shorter one, smash expectations, and watch that extension roll in.

2) Be willing to negotiate on rate - it's not just about the numbers

Sure, you want top dollar, and fair enough - you bring the skills. But contracts are a balancing act. If the project is exciting, offers networking opportunities, or will look great on your resume, wiggling on your rate (within reason) can pay off in the long run. Plus, once you prove yourself, you'll have far more leverage to push for a higher rate in future renewals. It's about playing the game strategically rather than maxing out the initial offer.

3. Be open to moving for the first month - flexibility pays off

No one loves uprooting their life, but being open to relocating for the first month can make you a more attractive candidate. Many contract roles (especially those tied to critical projects) demand some initial on-site commitment before transitioning to remote or hybrid work. Show that you're willing to meet them halfway, and you'll often find that flexibility comes later. Plus, who knows? You might even enjoy the change of scenery!

Why You Should Be Open Minded

Keeping an open mind ensures that you don't just chase the highest paycheck. Evaluating a potential role on factors like flexibility, workplace culture, growth plans, customer focus and management style is extremely important. These can have a much bigger influence on your day-to-day experience at work.

We've often seen candidates take jobs with slightly lower pay but excellent career progression potential, and guess what? Those decisions have turned out to help them earn more in the long run. Others have opted for more flexible working arrangements, even if the salary was below what they really wanted - and yet they haven't looked back. Taking the long-term view is always beneficial.

By understanding your market value and considering the full scope of what a role offers, you can make a more informed decision that supports both your financial and career goals.

Negotiate Better with Tech Recruitment Expertise

Tried everything and still haven't found the role you want? Talking to a tech recruiter who knows the ins and outs of dev, product and data specialist jobs will cut out the guesswork. At Digital Garage, we love helping talented tech people find jobs they love. Drop us a message or give us a call to chat about what you're looking for and how to win your next role.

Knowing Your Worth in the Current Market