A job search is tough work. There’s no wonder, then, that job seekers rejoice when they receive an offer! All that hard work of updating their resume for each application, wowing the hiring committee during the interview, and following up at every step in the process has paid off. Phew! But hold on just a minute. Should you now be thinking about salary negotiations?
While it’s certainly not a requirement to launch into a negotiation once you receive a job offer, most employers do expect that candidates will want to talk about specifics at some level. According to CareerBuilder, 53% of employers are willing to negotiate, yet only 56% of potential employees enter into that conversation. And with employers admitting that they will sometimes lowball a candidate with the expectation of negotiating, money is certainly being left on the table.
If you choose to launch into this back and forth, there are some guidelines. No, there’s no right or wrong approach, but these suggestions may help you get the most out of that offer and be ready to start your new job with a big smile on your face.
Salary Negotiations Go Beyond Dollar Signs
Even though we’re technically talking about salary negotiations, you can negotiate just about anything as you’re coming to terms with a potential new employer. Some ideas to consider include:
- Time off
- Bonuses, both sign-on and performance based
- Start date
- Where you’ll work
- When you’ll work
- Insurance benefits
- 401(k) match
- Stipend for home office, if working remote
- Wellness programs
If it’s important to you, it might be important enough to bring up when negotiating the details.
The Art of Salary Negotiations
Knowing what you want to negotiate is certainly important to salary negotiations, but knowing how to do it will be your key to success. Your goal is a win-win outcome, so you want to create a conversation where both sides feel comfortable.
Don’t Enter into Negotiations Until. . .
You want to have a formal offer in hand before you start the salary negotiations conversation. How can you know what to negotiate unless you know what’s being offered? When you receive the job offer, it may be verbal over the phone or written via email. In either situation, be sure you have a full offer. Try this:
“Thank you so much for the offer. I’m so excited! Will you please email be the offer details so I can take some time to review them?”
You may choose to tell the hiring manager (or HR, as the case may be) that you’ll be in touch with your response by a certain date. That way, no one’s waiting around. Naturally, get back to them by that date.
Go Through the Offer Line by Line
With an offer in hand, you’ll be able to review it in its entirety. If it all looks good, there’s no rule that you must negotiate. Feel free to respond with a strong YES! However, if there are any components you’d like to discuss further, this is the time. I suggest that you go through the offer line by line, reviewing each component. You can even respond to it that way, saying, “Salary is great, can we discuss benefits?” and so on; alternately, you can answer in its entirety, asking for a further discussion:
“Thank you again for this wonderful offer, and I am excited to join COMPANY. While much of the package is in perfect alignment with my goals, there are some components I’d appreciate exploring further. Would it be possible to schedule some time to discuss?”
Remember to be grateful and gracious in every interaction. Too much whining can lead to the offer being rescinded.
Leverage This “Magic” Phrase
Most of us don’t negotiate things on a daily basis. Perhaps the last time you had to negotiate anything was buying a car or house. In those cases, you’ll quickly walk out of the dealership if things aren’t going the way you want. But it’s different when dealing with salary negotiations. You want this to come to a positive conclusion. If you’re in between jobs, you may actually need it to work out.
Therefore, I’m going to provide you with one “magic” phrase that will lead to more success:
“Would it be possible?”
Use this (or its cousin, “Is there a possibility?”) every time you ask for anything during salary negotiations. Even better is when you sprinkle in some gratitude along with solid reasoning. Here’s what it might look like:
“Thank you so much for this generous offer. As we discussed during the interview process, I am looking to make $120,000 in my next role. While I appreciate your offer of $110,000, I’m wondering if it would be possible to move that number closer to $120K. With my deep experience and ability to provide a fresh perspective to the team, I believe you will get much more than this in what I’m able to provide!”
Don’t Haggle
Negotiating a salary isn’t like trying to get a street vendor to knock $2 off the price of that scarf you’re coveting. Don’t nickel and dime an employer during this process. Likewise, be sure to have all your ducks in a row when you start the conversation. While you may go back and forth a couple of times, you want to be talking about the package in its entirety. What you don’t want to do is figure out the salary and then jump back in with, “Now that we have salary settled, can we talk about your 401(k) match?”
Be Creative!
While we all have a certain amount of money we need to bring in to cover our debts, there are other things you might be able to do to get an entire package to work for you. Remember that every extra benefit you get translates into more money in your pocket. More PTO? Extra money! Better 401(k) match? Extra money! Paid insurance premiums? More money!
One way to make this work for you is to be creative. Here are a couple of examples you might try, if appropriate:
- A candidate was in the negotiation stage with a startup company that didn’t yet offer a 401(k) match. Coming from an established company, this was important for him, but when he asked about the possibility, he was told the company would be offering it with their next round of funding. He countered with the option of paying him 3% more to cover the match. They said yes.
- The company was very close to the candidate’s salary goal but not quite there. She remembered that, during the interview, they’d mentioned a goal they wanted to achieve within three months. During negotiations, she suggested that if she were able to meet that milestone within the timeline, she receive a performance bonus. They agreed to discuss.
It never hurts to ask, even if they say no.
What If You Can’t Achieve Your Goals in Salary Negotiations?
There are some instances when, no matter how diplomatic you are and how much you like the company and the position, the specifics just don’t work out. This is the hard part about negotiations: You have to be okay with walking away.
When it comes to that, remember to remain appreciative of the opportunity:
“Thank you again for the generous offer, and I think COMPANY is a fantastic company with a great culture. Unfortunately, after deep consideration, I have determined that this position will not be the best fit for me at this point in my career. I truly enjoyed meeting the team and wish you much success as you move forward with other candidates.”
You don’t need to go into details or whine about how they wouldn’t meet your needs. Keep your head held high, say thank you, and go about your merry way.
The Importance of Win-Win Outcomes in Salary Negotiations
Although it’s often difficult to remember when you’re in the middle of salary negotiations, the goal here is not to get everything you can out of a future employer. It’s not a personal discussion; it’s business. And as a business, the company you’re in negotiations with wants to get the best employees at the lowest cost. You, on the other hand, want to get all you can. This is why you need to stay focused on generating a win-win outcome.
Be collaborative and grateful of their time and consideration. Do not, under any circumstance, get angry and storm out or ghost them. Not only is this approach immature, but it could also hurt your future chances with this company, should any arise. In a small industry, it could ruin your career trajectory. No one wants that.
Remember that negotiation is an art, not a battle. Approach it with gratitude and grace, and you’ll come across as the confident, capable professional you are. Even if you don’t get everything you ask for, you’ve demonstrated that you’re willing to advocate for yourself—and that’s a skill that employers value.
Most job seekers have no idea if their resume is working or getting lost in the abyss. At Your Career Advocate, I write resumes that get through ATS systems and into the hands of hiring managers, providing you with the tools and education you need (including salary negotiations!) to land more interviews and job offers. Learn more at https://yourcareeradvocate.co.