How to Negotiate a Job Offer Successfully
Do you negotiate job offers when you get them? Interestingly, many candidates do not negotiate job offers and instead accept the initial offer.
This is especially true in the case of female job searchers. Only five to ten percent of women negotiate job offers, as opposed to around 50% of male candidates.
In general, companies approach initial offers with the assumption that negotiations will occur. Therefore, a minimal first offer is given that’s below what the company is willing to give you.
Accepting that offer straight away is never a good practice, no matter how much you want or need the position. Not negotiating job offers can result in the loss income and other perks and benefits that are easily attainable.
To successfully negotiate a job offer, you need to research industry averages, really think about the value you bring, and start negotiations by requesting the highest end of what you think you deserve.
Read on to learn more about how to negotiate a job offer to get what you deserve.
Why Don’t More Candidates Negotiate Job Offers?
Many candidates don’t want to ask for a higher salary or make other demands when offered a job as they worry the offer will be taken back.
However, being offered the job means you’re the best candidate the company has found. The company will also assume you’re in demand with other companies or even willing to stay in your current job if you don’t get what you request.
It's unlikely that an offer will be removed if you initiate negotiations. The worst outcome is that the hiring company will outrightly say no but still offer the job on their terms. Most companies are likely to negotiate at least a little. The amount they are willing to negotiate will increase with the candidate’s experience and value.
Some candidates are also concerned about starting on the wrong foot by asking for more than is initially offered. Again, companies are expecting negotiations. You simply need to ensure you know your worth and industry averages and don’t push too much or demand things outside of your worth realistically.
A large percentage of job applicants won’t negotiate a first offer, even though companies expect negotiations.
What Can Be Negotiated?
Salary is the main component of a job offer that will be negotiated. However, many other things can be negotiated before you accept a job offer. Focusing only on salary can result in you missing out on some great extra benefits.
Other things to negotiate on top of starting salary include:
Start date
Paid time off
Flexibility of work location and/or schedule
Job title
Authority level
Bonuses, stock shares, or profit-sharing percentage
Equipment offered including work phone or laptop and company car.
Relocation expenses
Access to courses or other training
Pension contributions
Tips for Negotiating a Job Offer
To get the best results from your negotiations, use the following top tips on how to negotiate a job offer.
Do Your Research
Come into any job offer negotiation as informed as possible. Begin researching salary range before the interview. That way, you’re prepared if offered the job in or shortly after the interview.
Conduct research on industry averages and what people with similar experience to yourself in your location are making. You’ll likely discover a salary range that can help determine the lowest value you’ll accept and the highest value that’s appropriate to ask for.
Job search websites like Glassdoor can help a lot with this. These resources offer information on salaries and benefits which have been added by actual employees. You may even be able to see salaries that have been entered by employees at the company you’re negotiating with.
Some job descriptions will mention salary or salary range. This will give an idea of the top and bottom budgets for this position. Even if this information is available, still do some research to see if the salary offered matches industry averages.
Talk to a Recruiter
If you use a recruitment agency, it’s a good idea to discuss job offers with them. They will have a good idea of industry averages, especially if you use a boutique agency focused on a few niches.
Recruiters can give you feedback on what you think you deserve and offer tips on how you can negotiate to get what you would like. They will have a good idea of what the company is willing to offer as well.
Understand Your Value
An important step in negotiating a job offer is understanding your value and the leverage you have. Knowing your worth and how you compare to other candidates will help in negotiations.
The outcome of this depends on your current employment situation and experience. If you’re slightly underqualified but given the job as the company is willing to train you, you will have limited negotiating ability and shouldn’t push it. The same goes for those taking entry-level positions and, in some cases, those that are currently unemployed.
However, if you meet all of the job description requirements and even have more experience than requested, you'll have a lot more leverage.
Use the value you feel you bring to explain why you deserve more than what is initially offered. Backing up requests with reasons will make acceptance of your requests more likely.
Before beginning negotiations, research average salary and benefits for the position.
Only Start Negotiating When You Have an Offer
Only start negotiating once you have an offer! While this may sound obvious, many bring up salary and other benefits in interviews. Try to avoid asking questions or negotiating until you have been offered the job and have the company’s initial offerings in front of you.
Once you have the offer, thank the company for it and restate your interest in the position. Then ask if you can have some time to evaluate the job offer and how much time works for them.
You can then take time to think about what you want added to the offer before getting back to them to start negotiating. Even if the offer is what you want, negotiating a little can get you even more.
Don’t Accept the First Offer
As just mentioned, don’t accept the first offer. Whether that’s because the company offered what you wanted or because you are concerned about negotiating.
First offers are generally set below what the company is willing to offer as they expect some negotiation. Therefore, taking the first offer can leave benefits on the table. Remember, a small percent increase in salary can add up over time.
Always come back with a counteroffer. Giving a high counteroffer to the company's likely low first offer will result in a good compromise.
Remember as well, that you’re likely moving to a role with more responsibilities than you currently have, so you need to be compensated appropriately.
While entry-level or under-qualified candidates will have limited negotiating ability, still you can ask for a small additional amount. However, be willing to take no for an answer and don’t ask for too much more as you’ll have little leverage.
Have a Best Case, Likely, and Walk Away Value in Mind
Before you begin negotiating a job offer, decide on a best case, likely, and walk away offer. Also, prioritize things on your list and think about what can be added to make up for not getting certain things.
A certain salary may be top of your list, followed by a certain number of paid days off, certain benefits, and lastly the job title you want. Prioritizing what you want in advance helps to decide what you’ll negotiate and when. For example, you’ll begin negotiating salary if it’s top of your list. Then if you don’t get the salary you want, you can move negotiations to focus on the next thing on your list, such as extra paid days off.
Decide at What Point You’ll Walk Away
Some people will take a job opportunity for the opportunity itself regardless of pay, but that is not the case for most.
You need to make sure you’re getting at least the minimum that you deserve. It’s therefore important to decide on a “walk away” value before negotiations begin. This includes the minimum salary you want and other benefits that you'll not take the job without.
Deciding this will make it less likely that you’ll say yes to an offer that’s below your worth.
Ask for the Salary at the Top of Your Range
Many will ask for a salary that falls around the middle of the range they want. However, you should start by asking for the highest value in your range.
Employers are likely to negotiate down, so you’re more likely to end up with what you want if you initially ask for a higher value.
Always begin negotiations by asking for what you deem the top of the range offer.
Use Specific Values
Research shows that candidates that use numbers like $73,750 as opposed to $75,000 are more likely to get what they ask for.
Using specific values like this suggests that you’ve done detailed research on the amount you’re worth, making it harder to reject your suggestion.
Keep Other Compensation in Mind
Always be sure to keep other monetary compensation in mind when negotiating salary. This includes bonuses, stock shares, or profit-sharing.
These additions to the salary offered could result in a larger yearly takeaway than what you would get at another job with a slightly higher salary but no, or minimal, additional compensation.
Consider other benefits too, including things like professional development and access to courses. These benefits may increase your value going forward.
Think About What Else Can Be Negotiated
As mentioned, always think about what else you want to negotiate on top of your salary. We previously listed other things to negotiate, and you must consider these elements to get the best offer.
Start with negotiating salary. If you get the salary you want or a number close to that, you can ease up on other items on your negotiation list. If you don’t get that salary, then you can work harder on getting other things.
Even asking for a more senior title or extra responsibility, such as being listed as a manager for employees working with you, can help with future salary negotiations.
Show Your Continued Interest in the Job as You Negotiate
When negotiating a job offer, continue to show how much you want the job. Of course, always be willing to compromise and set a tone where it’s clear that you are trying to find the best offer for everyone involved.
If you don’t get the salary you want, think about what else can be negotiated, such as extra paid leave.
Know Who Has the Authority to Give You an Offer
Before you negotiate a job offer, find out who has the authority to offer you the agreed-upon deal. Always get the offer in writing as well before saying yes to taking the job.
For example, you may negotiate with HR but the offer needs to be signed off on by management. Just because HR says yes doesn’t mean the offer is certified until management agrees to it in writing.
Know When to Stop Negotiating
You'll get to a point when all that can be offered has been extended to you. Therefore, you need to know when to stop negotiating.
If what you want cannot be offered and you feel this can be obtained elsewhere, then decline the offer. Pushing too much before you even begin the job can cause issues with management and they may even take back the offer.
In Conclusion
While getting a job offer is exciting, you must be careful not to take the first offer and be prepared to negotiate. Even a small increase in initial salary and/or benefits can have a big impact in the long term.
Hopefully, these tips on how to negotiate a job offer successfully will help you to get the best possible offer during your next job offer negotiation!
If you would like some help searching for a new position, preparing for an interview, and preparing for job offer negotiations, Lynne Palmer can help! Get in touch today to learn how we can help you with your next job search.