Top Tips for Negotiating a Job Offer
You did it. You interviewed like a champ, you followed up, and you got the job offer. Congratulations!
But wait. Your work isn’t done yet. Now you must negotiate your compensation, your perks and your start date.
Where do you go from here? Will you blow it, come across as greedy, if you ask for too much? Will you sell yourself short if you ask for too little? Many applicants simply accept the first offer for fear of jeopardizing it. Often, they leave money and perks on the table.
Now you finally have some real power. They want you. They selected you over all of the other candidates. You have some leverage to ask for what you want.
Some bonus advice for negotiating your job offer. Former FBI agent Chris Voss offers his advice on negotiating a great offer:
The first rule is that you don’t play the numbers game until the time is right. Do whatever you can to avoid being the first person to name a number.
Early in the interviewing process, both you and the employer will likely try to determine if there’s a match in terms of compensation. If you speak first with a recruiter, she may provide a salary range and will likely ask you how much you’re making and how much you want to make in your next position.
When asked to name your price early in the process, your first response should be deflection. You don’t want to price yourself too low or too high before you know the company’s position. The best answer is, “For the right opportunity, I would be open to considering any competitive offer.”
Do what you can to find out the company’s salary range for this position and the going market rate for similar positions. If the recruiter won’t give up the information, conduct some research through your network.
Sites like Payscale.com, Salary.com and Glassdoor.com also provide information on average compensation and even salaries for specific jobs at specific companies. This will help you set some parameters around what you’re worth.
For some companies, there is little or no negotiating room beyond the set salary range and benefit package.
When to Negotiate
The company that wants to hire you has also done its research and knows what their competitors are paying. You should know this, too, so that you’ll know whether their offer is competitive and fair.
The conventional wisdom is that the hirer will open with a offer fifteen or twenty percent below what is budgeted to allow room to negotiate. Always let the hirer make the initial offer and take it from there.
If you’ve done your research (see above), you’ll know if the offer is generous or stingy. If the number seems less than competitive, you should feel free to counter. Can you name a number that would satisfy? Counter with a number slightly above what would make you happy. The end game is bartering until you reach a number both sides can live with.
You must approach this negotiation with some diplomacy. After all, you want to get the best possible offer you can get without jeopardizing a “good enough” offer.
Make it clear that you remain very interested in the position throughout the negotiation. Don’t be afraid to drop hints about other offers and possibilities. Let them know that you’re an in-demand candidate and have other options. However, don’t deliver an ultimatum unless you’re fully prepared to follow through. It’s also generally best to avoid revealing which other companies you are considering since this can tip your hand.
Even for companies without the ability to meet your salary demands, there may be room to negotiate. For the right candidate, they may be able to offer perks to make up for a lower-than-desired salary. Think about vacation time, office space, telecommuting privileges, training, and other criteria that could improve your quality of work life. You might also be able to negotiate a three-month or six-month review with an associated pay increase if you have met specific goals.
Get It In Writing
Once you’ve reached an agreement and accepted the offer, make sure you receive a written offer letter that includes all of the details that were negotiated.
Until you have the offer in writing, it’s just talk. That means you should keep your other options open. Don’t cancel other interviews or announce your new job to everybody you know.
Now Get to Work
Once you have the offer in writing and your start date scheduled, it’s time to celebrate! Congratulations on your new job and your excellent interviewing performance.
You may be breathing a sigh of relief that you’re done with the job interview process (for now). You’ve conquered the dragon.
Just remember that you never know when the next opportunity will come along. Now you’ll be prepared. The communications and persuasion skills that you learned and developed during the interview process will also help you on the job.