How to Negotiate a Job Offer

Aside from the interview, salary negotiation is one of the most challenging phases of the job search. As you move up or move around in your career, you’ll develop strategies for how to negotiate salary in a job offer.

First, find out if the salary is negotiable. Some jobs are truly fixed-rate, including some hourly wage jobs and some civil service roles. While this is uncommon, some offers have been rescinded during the negotiation process, but that can usually be avoided with the advice below.

You may want the job at any salary, but you’re at the job offer stage – so you know they’re interested. Now you just need to get the best deal. Recruiting is expensive and time-consuming. The employer wants to hire you, not look for new candidates. Use this to your advantage.

Guidelines on How to Negotiate a Job Offer

1. Do your Homework

Just because the salary offer feels like it is enough to cover your expenses doesn’t necessarily mean that it is the market average. As such, it is critical to do your research and know what your role is worth before you step into an interview and negotiate for a higher salary. One great resource for this is O*NET where you can see salary information by job and geography.

One way to do so is to check online for salary comparison, this will allow you to calculate the average salary range based on your sector, location and work experience. There are websites like Glassdoor you can explore; these typically share salary numbers revealed by members and are categorized by job positions for easy viewing.

2. Establish your Worth

You have a number in mind. But never agree to discuss it until you’ve established your qualifications. Your value to the organization is sometimes more than just the position that you are applying for. For instance, if you are applying for the role of a Customer Service Supervisor with 20 years of experience already under your belt, you are going to be able to command a certain amount of salary.

Don’t be rattled if the employer makes an offer first, and it’s lower than expected. You should show excitement at being offered the role but you should follow up by asking about flexibility on the compensation piece. “I’m really excited about this opportunity and think it’s a great fit for me professionally, but that salary/hourly wage is a little lower than expected. Is there any flexibility here? I was expecting something closer to XYZ because of this reason.”

3. Give an Exact Number or Small Range

Research shows that when you provide a more precise amount, it implies that you have done more extensive research and are more informed of your market value, and you would more likely get an offer closer to what you are looking at. This can be even more persuasive if you can back up your request with data or other evidence.

4. Bridge Gap with Other Benefits Aside from Base Salary

If the salary on offer isn’t enough, perhaps you can negotiate for other benefits in your compensation package, such as better incentives, bonuses, flexible work schedules, additional leave, transportation allowance, etc. And while we are on the point, don’t be limited by your imagination.

Another great way to close the gap is via non-monetary incentives or perks. These can include work-from-home options, health plans, and subsidized parking, meals, and training opportunities.

Do’s and Don’ts in a Salary Negotiation

1. Do’s: 

• Be realistic - Be respectful with your salary expectation — and don’t be overly aggressive. If you’re gracious and reasonable, your potential employer will be more willing to work with you. Try a figure in the mid to high range of the numbers you researched.
• Be confident - Sell yourself! Confidence is essential to being a strong negotiator. Make a strong case for yourself. Don’t hesitate to remind them how qualified you are and what your strengths and achievements are. Prove to them you’re a perfect match for this position!
• Show gratitude - Focus on making a good impression and building relationships, not necessarily on a target number. Show them you’re courteous, respectful and easy to work with. Don’t object to the offer right away. Wait a few days and then continue the negotiation. This shows you’re contemplative and you’ve carefully considered their offer and you’re still interested in the job.

 2. Don’ts: 

• Don’t accept a job offer on the spot – Don’t be carried away knowing that an employer offered you a job offer. Most companies make initial offers at the bottom of the range, building in a little wiggle room and expecting you to negotiate. If you’ve already done your research, then you should know what salary is possible and what numbers are reasonable to aim for.
• Don’t inflate your current earnings - This is dishonest and your potential employer may have ways of confirming this information. Don’t get caught in a lie.
• Don’t accept or reject a position based solely on the salary being offered - There is more to a job than its salary and perks; you have to make sure the entire package is a good fit. Keep in mind that you should only spend the time negotiating for a position that you are invested in accepting.
• Don't rush in your conversation - In response to an offer, restate the offer, sit quietly, and think. Allow everyone time to consider. This technique may also prompt the employer to justify the offer, which could continue the negotiation process, or it could lead to a better offer.
• Don't be stubborn - Be confident in what you’re requesting, but understand that a negotiation is just that—a conversation, not a dictation. Listen to what the other side has to say and take it into consideration when offering up numbers. Money is a sensitive subject for most people, but you should never let a company have full control over your worth. Be both knowledgeable and understanding when discussing a salary negotiation.

No Assurance in Salary Negotiations

At the end of the day, there are no real guarantees in salary negotiations. Beyond the value you can potentially bring to the company, there are many considerations to be had from the employer point of view (such as tight budgets and even tighter competition).

Two other things to consider as we conclude: 

1. While this is rare, some offers have been rescinded during the negotiation process - this is usually because a candidate is overly aggressive or the company has another strong candidate willing to take the job at the lower pay amount. 
2. It is also important to know when to wrap up negotiations. While this has happened to candidates before, a reasonable employer won’t withdraw an offer just because you tried to negotiate. But dragging out the salary negotiation can frustrate the hiring manager and start out your relationship on a sour note. If the company can’t meet your requirements after a few discussions, respectfully withdraw and focus on opportunities that better match your compensation expectations.

If you want to watch a video on how to discuss salary during the interview process, here is a great resource.