How To Negotiate Your Salary Going Temp to Hire, Step-by-Step

Before working as a part- or full-time employee for a company, you may start off with a short-term contract. On Upwork, clients can start working with freelancers through contract-to-hire and then convert them to full-time after the initial contract ends. Staffing firms also help job seekers find temporary positions that have the opportunity to become permanent part- or full-time roles. Employers and candidates alike can use this time to test the waters before committing to anything permanent..

Part of the temp-to-hire process is salary negotiation. Before signing an employment contract, you want to negotiate your pay and any other benefits the company might offer. Negotiating a contract that meets your needs and pays you for your full value is easier before you sign an offer than trying to renegotiate afterward.

In this article, we’ll discuss how to negotiate your salary going from temp to hire.

Understand the temp-to-hire process

Instead of making a direct hire, some companies prefer to work with independent talent for set contracts. At the end of the contract, they can choose whether or not they want to make an offer for a permanent position. This process is called temp-to-hire or contract-to-hire.

One way to land a temp-to-hire position is by working with a temp agency. You may be able to find a temporary position on a job board, but often, companies use agencies to fill these roles. The agency will screen and interview candidates, giving a short list of their best recommendations to the employer to make the final decision.

‍Staffing agencies make money when they fill positions. They typically charge a fee upfront to the employer or take a percentage commission off the final salary if they offer the candidate a full-time position. Depending on the agency, they may list the position on job boards or encourage job seekers to send their resumes and work with them directly to find temp roles.

When working a temp-to-hire role, typically, you are employed by an agency for a set hourly contract of anywhere from a few weeks to a couple of months. During this time, the agency might act as your employer and even give you benefits. At the end of this temp contract, the employer has the option to extend the contract or offer you a permanent role. Depending on the company and whether the offer is for a full-time role, you may be eligible for benefits based on the worker classification.  

If you're working a temp-to-hire job and the company wants to convert you to a permanent role, they might extend an official offer at the end of the initial contract. This is your chance to negotiate your salary.

Tip: On Upwork, you can start on a short-term contract with the possibility of transitioning to a permanent role with a company through contract-to-hire.

Prepare for the negotiation

Going into a salary negotiation, you want to prepare so you feel confident and know exactly what you want. Evaluate the offer and take a look at the full compensation package, including benefits like health care, flexibility, and any stock options. Determine what the minimum base salary you'll accept is and then what perks or other benefits—like more PTO or work-from-home days—would help make up the difference if the company's budget is tight.

Collect relevant data

The first step is to research so you know that what you're asking for is fair. Determine the average market rate for your role based on the title, company, and location. Bigger companies may have data from past and current employees on Glassdoor and Payscale that you can reference, along with the U.S. Bureau of Labor Statistics for general industry averages.

You can also look on LinkedIn for open roles at similar companies. In certain states like Colorado and California, the job listing has to have a salary range for pay transparency. This can be helpful for getting an idea of what the low- and high-end averages are for positions like the one you’re being offered.

Hourly and salary ranges can also vary from role to role and company to company. Bigger and more established companies may have higher starting wages and more comprehensive benefits. However, a start-up or smaller company could offer other attractive types of compensation like equity and stock.

‍Tip: You can use the Hourly Rates Guide to see the average hourly rate ranges for different types of freelance roles to help set and negotiate your rate as an independent professional.

Calculate your worth

Once you know what the average hourly and salary ranges are for a similar role, you can start thinking about what your target pay is. Before evaluating your offer and negotiating, you'll need to calculate your worth and know how much you want to ask for. You want to make sure you're negotiating for a fair yet still competitive wage based on your skills and experience.

If you’re working part-time or hourly, you may need to first figure out what your current hourly rate would be as a full-time salaried role:

• Take your current hourly rate and multiply it by 40 hours.
• This is how much you would be earning each week.
• Now, multiply that number by 52, and you'll get your annual salary.

This is assuming you're working 40 hours a week, which is what most companies in the US consider full-time for an entire year.

Remember that where you live matters, even if you’re working remotely. Companies in bigger cities and states with a higher cost of living tend to pay more. These companies often have different salary tiers for employees based on location to make it fair. When working remotely, someone with the same position as you may make more if they live in a more expensive state or city.

Tip: If your offer is for an Independent contractor role, you can use the Freelancer Rate Calculator to get a better idea of your target hourly rate. Once you know your hourly rate, you can turn that into an annual salary if you need to.

Highlight your past accomplishments

During the negotiation, you want to advocate for yourself and the salary you deserve. Demonstrate the value you brought to the team and company by highlighting your accomplishments during your temporary contract. This helps justify your rate and remind your manager of your talents and contributions.

Write down a list of your achievements since starting the temporary position, and then pick the most notable and impressive. Try to use quantifiable data—real numbers—whenever possible. You may need to dive into your past work with the company and pull up any results and statistics to make your case more compelling.

You can use the STAR method, a popular interview technique, for more qualitative contributions. STAR stands for situation, task, action, and result. This method can help you frame your achievements in an engaging story.

Choose the right timing

Negotiating your salary is strategic, including your timing. You want to make sure you choose an appropriate time to have a discussion with the hiring manager. Typically, you want to wait until you have a written offer to negotiate.

The offer will show you the total compensation package, which can make a big difference. The salary may sound lower than what you wanted to make until you factor in healthcare, 401k matching, paid time off, and other benefits. On the other hand, you may want to ask for more if you aren't happy with the benefits they offer.

Your manager may be direct and ask, "What are your salary expectations?" Or, they may send you an offer and wait for you to accept or negotiate. If they send you a written offer, you can take some time to research and either ask to set up a meeting or reply back with your negotiation.

Verbal offers are trickier. You could ask for a written offer first, but they may want to discuss the base salary with you before that step. If this happens, you can ask to think about it and wait until your next one-on-one or set up a meeting to go over salary expectations in more detail.

When negotiating salary, remember to keep it professional and, before accepting anything, get it in writing. You want to have your negotiated salary, benefits, work hours, job description, and other details in a written offer before signing any papers or accepting. This will protect both parties from any misunderstandings.

Practice negotiation scenarios

If this is your first time negotiating or you're feeling nervous, practicing negotiation scenarios can help you feel more prepared and confident. Already have a number in mind and know the lowest base salary you can accept, what perks you expect, and what you can be negotiable with. You may have to decline the job offer if they can’t meet your expectations.

If you have friends or colleagues who are involved in the hiring process where they work, you can see if they’d be up to practicing different scenarios with you. Practicing may help you think about what it looks like to “meet in the middle” when negotiating, the kinds of things that might be negotiated, and how to behave during the negotiation process. Rehearsing beforehand can make you feel more prepared and confident during the real negotiation.

You can also use a generative AI tool like ChatGPT to rehearse different scenarios. Think of it as practicing chess against a computer. During your prompt, let ChatGPT know that you’ve been offered a job and want to practice salary negotiation. Ask it to act as the hiring manager. Tell ChatGPT the company’s maximum salary, along with benefits, and then ask it to start with the offer letter.  

While AI isn’t a substitute for the real negotiation, it will allow you to give the AI as many different starting parameters as you’d like, as many different times as you’d like. You don’t have to worry about taking up too much of someone’s time practicing. Play through many different possible outcomes and maybe even brainstorm some ideas that you wouldn’t have considered otherwise. You’ll get tired before it does!

Negotiate your salary

Today, companies expect negotiation, and the offer they give is rarely the best they can do. If you received an offer and want to negotiate the salary, see if you can set up a formal meeting with the hiring manager to sit down or video chat and discuss your compensation.

Example:

"I have enjoyed working with the company over the X months and am excited about the opportunity to work here as a full-time employee. Can we set up a meeting to go over the offer and salary in more detail? Thank you!"

During the negotiation, you want to be professional and enthusiastic, especially if you plan on accepting the job either way. Even if you have to walk away, try to leave the door open in case they have another opening in the future that you're interested in.

Initiate the conversation

When you go into the meeting, you want to start with your accomplishments and contributions before asking for a higher salary. Sell yourself first rather than use it as a defense if they say no. They want to feel like they're investing in you and that you'll have a positive ROI (return on investment).

Example:

"I appreciate you taking the time to discuss my job offer and salary. Since starting this role, I have [list accomplishments]."

Be clear about what you want. The most common strategy is to start with a higher number, expecting the employer to counter with something lower. Once you say a number, increasing it is more difficult—they'll likely stick with that lower number. Changing your mind can make you seem less confident and sure of yourself.

Example:

"Based on my research of average salary ranges for similar positions in the area, I was hoping we could agree on a slightly higher salary of $X based on my experience and skills [you could get more specific here].”

Navigate the negotiation

Negotiation is about compromise—coming to a decision that makes both of you happy. You can start with a higher salary than you'd accept, so you can come down a bit and look like you're compromising. The company may not be able to offer you a permanent part- or full-time position in the salary range that you're hoping for, and you'll have to decide if you want to say no.

After working temp-to-hire with a company, you become familiar with their practices and you already have an hourly pay rate. The offer is when you can try to increase your salary before accepting a permanent role.

Even if you're happy with what you're currently making, try asking for a slight salary increase. It's often easier to get a pay increase upfront at the offer stage than to wait for a promotion or raise once you have the job. Your future raises and pay is based on this initial salary.

Negotiating your salary will help you become more comfortable and develop this skill. You can explore different strategies like:

• Asking for a very specific number
• Using strategic body language
• Pretending you're negotiating for someone you care about

Respond to outcomes

As you enter the negotiation, be open-minded and positive about the experience. The answer may not always be yes, but at least you tried. You may need to adjust your expectations, but knowing your bottom line can make the decision easier if you’re unsure whether or not to accept the offer.

When negotiating your salary, you have to prepare for three different outcomes:

• Yes. You get what you want, and the company agrees on your number.
• No. The company doesn't have the budget for a higher base salary.
• Maybe. The company is open to a higher salary but wants to talk about specifics in more detail.

If the answer is yes, the negotiation is easy. You get what you want, everyone is happy, and you can sign the offer and discuss start dates and onboarding.

Sometimes, the role has a strict budget, and it's not possible for your manager to increase your base salary. This is when you need to get creative with other types of compensation, such as:

• PTO
• Stock or equity options
• Tuition reimbursement
• Student loan repayment
• Bonuses
• Commission
• Scheduled raises
• Overtime pay

These benefits don’t have to come directly from the budget for the role, and the company may have more flexibility here. Run through different variations of these benefits and calculate how they'd increase your salary over time to determine what you want to ask for and accept.

When the answer isn't a yes or a no right away and more of a maybe, this is when you have to really negotiate. The two most common angles are value and market rate. You want to demonstrate the value that you bring to the team—this is your elevator pitch.

The other part of your pitch is the market rate. Show them that you've done your research and know what a fair range for this role is based on the industry and location. Typically, you want to ask for 10-20% more if the salary is below industry averages and around 5-7% if it's fair.

Proceed post-negotiation

The goal is to end the negotiation with a positive experience, regardless of whether or not you want to accept the offer. Sometimes, you can't come to an agreement, and that's okay. Even if the company wants you, they may not have the budget to meet your expectations.

Regardless of the outcome, you want to show appreciation and remain professional. Declining an offer can feel awkward at first. You don't have to decide right then. Ask for a day to think over the offer—then decline in person or over email.

Example:

"I appreciate the time you took to discuss the salary and possibility of me working full-time for the company. While I've enjoyed my time here, I can't make the current salary work with my financial requirements."

You don't have to accept the offer on the spot, either. It's okay to say, "This sounds great. Can I please take a day to review the offer again before accepting?" Make sure to see the official revised offer with your negotiated salary and benefits.

Once you've decided you want to accept the negotiated offer, human resources will likely need this in writing. You can verbally tell your manager, but you should also send a formal email with your acceptance.

Example:

"I would like to formally accept the offer to work as the [position name] at [company]. I am looking forward to starting on [date] with the agreed salary of $X and [negotiated benefits]."

Tip: If you need to decline the offer but want to keep the door open, you can add your manager and other colleagues on LinkedIn to stay connected.

Summary

At the end of a temp-to-hire job, the company may offer you a permanent role. Depending on the offer, you may become a part- or full-time employee with benefits, or work as an independent contractor (full-time or part-time) on a longer or ongoing contract. When you receive this offer, you have an opportunity to negotiate the salary.

Before you start negotiating, you want to prepare and research. Figure out the market rate salary range for the position. You can find out what competing companies pay for similar roles. Keep in mind that salary can depend on the role's location along with your skills, experience, and education.

Once you know the base salary you'd accept, you can set up a meeting with the hiring manager. Demonstrate your value and let them know what you want. Consider the full compensation package, including benefits, which you can use as a bargaining chip if the company doesn't have any flexibility on base salary. Be ready to compromise and meet them halfway.

Be professional and enthusiastic during the negotiation—even if you don't end up accepting the offer. Avoid burning bridges. You want to leave the door open in case another opportunity opens up down the road.

Advocating for yourself and negotiating the salary you want is a valuable skill. Every offer you get is a chance to ask for more–—many employers even expect this, so their offer is actually lower than the budget for the role. Prepare and rehearse until you feel confident—each time you do this, you'll start to become more comfortable.

Find work on Upwork

Freelancing can give you more control over your career than traditional employment. You can learn skills and immediately start gaining experience and building your portfolio. This can help you land better jobs and earn promotions down the road. All you have to do is create an Upwork account, complete your profile, and start submitting proposals to jobs that interest you. If you know you want to work full-time for just one client, you can explore contract-to-hire projects. It all happens right here.