As an HR Executive with over 15 years of experience, I want to provide you with 5 insider tips on negotiating a job offer. I have made countless offers in my career and have seen a lot of mishaps that I want to help you avoid making.
Have you ever received a job offer and thought should I negotiate this? Have you ever thought will I lose out on the offer if I do? Should I just take the first offer I just received and be grateful I received one at all after months of searching? This article will guide you with 5 insider tips on negotiating a job offer.
Commit to Actually Negotiating Your Job Offer
So you received a job offer?! Congratulations! That is exciting, especially with the months of hard work to get you to this point. Searching for a job is a job in it of itself. A job search can be quite time consuming.
There are many steps that go into this process, from updating your resume to applying to so many jobs you lose count, countless rejections slowly chipping away at your ego, phone screens, any interview requests you have received, to then finally getting that offer you have been waiting for. So, should you accept or negotiate?
ALWAYS NEGOTIATE!
So many candidates are fearful of asking for more, but fun insider fact, we expect it. Let go of the fear. Fear can hold you back from getting what you deserve. The lack of negotiation can also stem from imposter syndrome, where you feel like you don’t deserve it or haven’t earned it. Just because you ask (negotiate) does not mean you will lose the offer. Worst case scenario is that you get a ‘no’ and are right back where you started with an amazing job offer!
Employer Side
So having been on both sides of the situation, given offers and received offers, there is one thing that is true for both, they are both a lot of work! Recruiters also have multiple steps in their process as well. Recruiters first meet with their hiring manager to set expectations, collaborate on an accurate job description, post the job, review resumes, phone screens, interviews, and then the final offer stage. Not to mention the education the recruiter may have to provide the hiring manager on market data and the current candidate pool etc., as they sometimes need a reality check.
Recruiting for one position can be lengthy and sometimes a very frustrating process, so imagine recruiters having to do this same process for more than one position at a time. The worst part is losing a great candidate and having to start over. The reason I described this process is to understand that the last thing a recruiter wants to do is lose the candidate their hiring manager FINALLY has chosen. At this point, you have the upper hand, so use it!
Do Your Research
As much as I am saying negotiate, I’m also encouraging you to be reasonable with your negotiation. Before you decide to negotiate, be sure to do your research. Most offers expire after 48 hours, so use those two days to make sure your counteroffer is reasonable. You will want to research the market for your position, with current years’ experience, along with your location; all of that plays a role in what the position will pay. I recommend using Salary.com to look up this data to see if you are within the average range of compensation. If you are below average you must negotiate, if you are above average that may be a bit more challenging, but again it never hurts to ask. Let’s look at an example.
Example
If in your current position you make $63K, but your research shows the average market for your position, with your years’ experience, in your location is at $70K, then you are underpaid. Use that information going into a job search. Meaning if a recruiter asks for your preferred compensation, start with the $70K. You don’t have to share what you are currently making; you just need to tell them what you expect this role to pay.
Now they will know your minimum is $70K and will proceed forward with that number. They will likely offer at least $5K over your minimum, so they would offer you $75K. If you counter $5K over, most of the time it will get approved immediately. No one wants to lose their chosen candidate over $5K, a drop in the bucket for any organization. Should they accept your counteroffer, you just increased your salary from $63K to $80K!
Now not every situation will work that way, as some positions are hourly or you may be within the average range already, but always ask for something! Higher level positions, such as leadership roles, will have more wiggle room for larger compensation counteroffers just based on the nature of the role. Again, it comes down to research!
Insider Tip
Many companies are posting ranges, as some state laws have required that, but be careful as some employers are being shady and giving ridiculous ranges like $50K to $150K so they don’t have to be tethered to a reasonable range. My advice is to steer clear of these companies, they are lowballers who do not value their employees and/or are clueless as to what they want and that is not an organization you want to join. No one wants to feel devalued right off the bat!
Determine What You Value
Determine what you value. You’re like, what does that mean?! I value money! Of course you do, we all do to some extent, but its not everything. Negotiations are not always just about salary. Below is a list of things that you can try to negotiate. Its up to you to determine what is more important to you. Keep in mind some companies don’t have wiggle room on some items, such as their PTO policy or they don’t have stock options available, but it doesn’t hurt to ask.
- Compensation – Is a salary increase your main objective?
- Annual Bonus – Is having an end of the year bonus more motivating for you?
- Sign On Bonus – Is having up front cash more valuable to you?
- Schedule Flexibility – Is freedom and flexibility more valuable than money?
- Equity / Stock Options – Are you looking to remain long term and want a stake in the company?
- Additional PTO – Is your time more valuable than money?
- Title Change – Is your title vital to your career progression?
Think about what matters to you most. What is the goal here? If you are only focused on one aspect then go all in, but if you are open to an either-or situation then feel free to toss out more than one option. I once negotiated a title change and a comp increase. I would have been happy if I had received at least one. Both were valuable to me, so I wanted to see what options were available. I received both! I just had to ask!
Creating Your Counteroffer
So now you have determined you are going to negotiate, no matter how uncomfortable that may make you. You have done your research, know what you value most, and now it’s about putting together the counteroffer. It’s about to get real folks!
Remember recruiters will be anticipating this and will not be offended. When negotiating you can either verbally connect with the recruiter or put it in writing in an email. Either works but I recommend an email. It’s more professional and to the point. Not to mention the recruiter will need to speak to the hiring manager as well. Remember this isn’t personal, it’s business. You deserve to be appropriately compensated. Go in with confidence and don’t let anyone convince you otherwise!
Something to keep in mind is that not all companies are created equal. Some companies may lowball you, some may be fair, and some may be more generous. Recruiters are the bridge between the hiring manager and the candidate, so it’s another layer of protection while you negotiate. Your recruiter may give you tips and suggestions on how the counter may be taken. They then take it to the hiring manager and provide their insight as well on if the counter was appropriate. They are your advocates here. Use this resource.
Example
You want to counter with a $10K increase and a $5K sign on bonus, but the recruiter may share that they don’t see that the $10K over with a bonus will get approved but could see $5K increase with the $5K bonus. Again, they could come back and say we will meet you in the middle with $5K from your $10K. Remember it’s a negotiation. At the end of the day, it’s up to you if you feel you have done your research and feel confident in your counteroffer, then go for it.
Insider Tip
While moving through the 5 insider tips on negotiating a job offer, don’t be demanding, entitled and rude while negotiating. I’ve had candidates come at me with a demanding entitled attitude. I shared the experience with the hiring manager and recommended passing on this candidate due to the disrespect. Not exactly the type of hire anyone would want to bring onto their team. You are valuable and have every right to negotiate but with professionalism and respect.
Be Prepared for the Response
Be prepared for the response, is exactly that. If they come back and say we accept your counteroffer, well hooray for you! You did it! But if they come back and only accept half your counter, are you ok with that? Will you walk away from the offer completely? Will you try to counteroffer again, which I do not recommend. You will likely get a no for the second round, so get it right the first time.
If they completely say no to your counter, how will you feel about it? Some candidates have felt lowballed and when a counter is not accepted, they are willing to walk away. Are you? Or are you just grateful for the original offer and everything else is icing on the cake? Only you can decide that but be sure to think your counteroffer through to the end.
So, to recap the 5 Insider Tips on Negotiating a Job Offer the first step is to commit to negotiating and moving through the fear. You have the upper hand! As you move through your job search journey be sure to do your research. Your location, position, and years’ experience play a role in compensation ranges so get educated! Once you are comfortable with moving forward, determine what you value most in such a negotiation. Next step is pulling the trigger, creating and sending your counteroffer. Know what you will accept and walk away from. Be prepared for the response.
Hopefully for your next job offer, you follow these tips and walk away from an offer with everything! You deserve it!
