In general, job offer negotiations are rarely easy but can be critical in advancing your career and ensuring you're paid fairly for your skills and experience. How you handle yourself will depend on where you are in your career and what aspects of the role are most important to you.
Here are three typical hiring scenarios:
You’re in a third-round interview for a job at a company you like, but a firm you admire even more just invited you in. Suddenly, the first hiring manager asks: “As you know, we’re considering many candidates. We like you, and we hope the feeling is mutual. If we make you a competitive offer, will you accept it?”
You’ve received an offer for a job you’ll enjoy, but the salary is lower than you think you deserve. You ask your potential boss whether she has any flexibility. “We typically don’t hire people with your background, and we have a different culture here,” she responds. “This job isn’t just about the money. Are you saying you won’t take the job offer unless we increase the pay?”
You’ve worked happily at your company for three years, but a recruiter has been calling, insisting that you could earn much more elsewhere. You don’t want to quit but expect to be compensated fairly, so you’d like to ask for a raise. Unfortunately, budgets are tight, and your boss doesn’t react well when people try to leverage outside offers. What do you do?
Regardless of the scenario, you need a game plan. Start by defining what you want—getting ahead, making lots of money, or living up to another ideal. Then, keep those goals in mind if it’s time to ask for a raise or as the negotiations progress.
Here are some key points to focus on:
Know your worth: Research the average salary and benefits for similar roles. Websites like Glassdoor, PayScale, and LinkedIn Salary can be valuable resources.
Highlight your value: Communicate your uniqueness. Emphasize your skills, accomplishments, and how you can contribute to the organization's success.
Benefits and perks: Consider the entire benefits package, including vacation time, remote work options, professional development opportunities, and other perks that can enhance your work-life balance and job satisfaction. Here’s a sampling of what you can potentially negotiate for beyond salary:
A different start date (if you want a little break before you begin)
Greater 401(k) contribution
More vacation or paid time off
Flexible hours or work-from-home days
Relocation to another branch or office
A signing bonus (this may be tied to relocation if that isn’t covered)
A performance bonus later in the year
Equity percentages or stock options
Home office set-up stipends
Phone, Internet, or co-working space reimbursements
Professional development or external training opportunities
Ability to present at industry conferences.
Onsite childcare
A direct report or budget for freelance talent
A better job title (to boost your resume)
Reimbursement of travel expenses
Be confident and polite: Approach negotiations confidently, respectfully, and politely. Negotiations should be a collaborative discussion, not a confrontation.
Consider the timing: The best time to negotiate is after you've received the formal job offer. Avoid bringing up salary discussions too early in the interview and hiring process.
If you’re pressed about your desired salary and feel you must name a figure, give a salary range instead of your most recent salary. And don’t forget to add, “…that doesn’t include the value of insurance or other benefits.” The bottom of your salary range should be the minimum you’re willing to accept. Your salary research and unique qualifications will dictate the top of the range.
Naming a salary range allows you to find a figure that is also in the range the company has in mind. Many companies base their offers on sliding salary scales.
Here are a few strategies for success when an interviewer asks about your compensation requirements:
“What was the compensation package for the individual previously in this position?” and then base your answer on that information.
“What range did you have in mind?” where your answer is always that the high end of the range is what you were considering; or
“What are you willing to pay an individual in this position with this level of responsibility?” and use that information to answer the question.
Here’s what to avoid:
Negotiating without research: Entering negotiations without having done any due diligence can put you at a disadvantage. Many job candidates have been hit with difficult questions they hoped not to face: Do you have any other offers? If we make you an offer tomorrow, will you say yes? Are we your top choice? If you’re unprepared, you might say something evasive or untrue.
Making it all about money: While salary is crucial, focusing solely on money may give the impression that you aren’t genuinely interested in the company's mission and culture.
Salary comparisons: Your current salary should not be the basis for negotiations. Focus on your value to the new role and the industry's market rates.
Accepting too quickly: Take your time to evaluate the offer and consider all aspects before accepting. It's okay to request a few days to think it over.
Sharing personal financial struggles: While it's essential to communicate your needs, avoid sharing too much sensitive information.
Remember, negotiating a job offer is a standard part of the hiring process, and most employers expect it. A well-prepared negotiation can result in a more lucrative package and a stronger foundation for your future role in the company.
Do you need help to prepare and practice a negotiation interview? Talk with a Life Working® career and Interview coach. If you need advice about career choices, changing careers, or strengthening your resume, check out Life Working® career coaching services, resumes & writing services, and schedule your free 30-minute consultation.