Kiminy’s Comprehensive Guide to Negotiating a Job Offer
Kim Johnson
Career Coach for Nerds, Geeks & Introverts → I help smart people communicate, influence, collaborate, and lead (without changing who you are) ?? Job Search ?? Interview ?? Salary Negotiation ?? Career Development
Negotiating your salary is a critical step when you receive a job offer. It's a process that can significantly impact your financial well-being and job satisfaction.
In this comprehensive guide, I’ll walk you through the art of salary negotiation, starting from the initial groundwork and leading up to securing the best deal possible.
1. Know Your Worth
Determine a reasonable salary expectation for the specific job, location, and company you're considering. Know the market value and what constitutes fair pay for your role. Search online, speak with former colleagues, and look at similar roles with a published salary range.
Decide on your $MINIMUM_ACCEPTABLE salary. This is the lowest salary you would accept IF absolutely everything else about this job (apart from the salary) were PERFECT for you. You love the team, all responsibilities are right up your alley, and the other perks and benefits add up to everything you need. Given everything else this role has going for it, you wouldn’t regret accepting this salary.
Decide on your $STRETCH_GOAL salary. This is the most you could reasonably expect to be offered if you ace your interview, demonstrate that you’re the best possible candidate, and the company is feeling particularly generous that day. If they offered this, you'd be delighted and slightly surprised, but not shocked, confused, or left feeling like it's too good to be true.?
2. And What Else?
As noted above, a job offer concerns more than just the money. Every job has unique perks and benefits, but which are most important to YOU? Take stock and write it down, as we’ll use these later in the salary negotiation process.
Some people prefer working remotely, while others want to work hybrid or entirely on-site. How important is that to you? Would you only consider commuting for a significantly higher salary? Perhaps working remotely is not an option you’d consider. Or, maybe that’s not a factor that will sway you one way or another.
Here are a few non-monetary factors that may (or may not) be important to you when considering an offer.?
3. The Negotiation Process Starts Before Your First Interview
The moment the recruiter asks about your current salary or salary expectations, the negotiation process has begun.
Here’s how to talk about salary early on in the interview process:
At some point, you will likely need to share your salary expectations to proceed with this interview. The company needs to know that your expectations align with what they want to pay you so they’re not wasting their (and your) time. Whether employers “should” ask this of their candidates is a separate debate, but it still comes down to whether you want to proceed with this interview or not. If you seem cagey or noncommittal by declining to provide your expectations, there’s a good chance you will not move on to the next round.
When you share your salary expectations, you want to make sure that you:
1) Don’t underbid yourself or impair your ability to negotiate a higher offer, and
2) Don’t bid so high that you scare off your potential employer before they know you’re worth it.
To accomplish both, always share a salary range, not a single number.?
Remember your $MINIMUM_ACCEPTABLE and $STRETCH_GOAL salaries from the “Know Your Worth” section? Here’s how to present them to your potential employer:
“I’m looking to make somewhere between $MINIMUM_ACCEPTABLE and $STRETCH_GOAL, depending on the role, responsibilities, and total compensation package.”
Stating the $MINIMUM_ACCEPTABLE is the signal to the recruiter that you are within their range. If this number is still above their compensation bands, it doesn’t make sense for either party to proceed with the interview process.
The $STRETCH_GOAL signals that you are looking for more than the minimum and are willing to negotiate. This number might be higher than what the company could hope to offer, but they might be able to come reasonably close.
The “depending on…” caveat is the most important part!
This is what gives you leverage to negotiate later on.
If it comes to light that the role requires you to do something you don't want to do (working evenings or weekends, taking out the trash, relocating, etc.) or lacks crucial benefits or perks, those are your bargaining chips.
When it comes time to negotiate that offer, we’ll use your answers to the “And What Else?” section to identify the specific attributes that matter to you.
4. The Initial Offer Conversation
When you receive an offer of employment, do not accept it on the spot, no matter how great it sounds.
Thank the person providing the offer, and let them know you need to think it over. Let them know when you’ll get back to them or when they can reach back out to you.?
Give yourself at least a day to prepare your counteroffer.
5. Preparing Your Counteroffer
You do not need to have another offer to negotiate this offer.
You do not need to use your current or previous employment salary to negotiate this offer.
You can negotiate an offer simply because you want to propose some changes before you accept it, whether it’s salary or something else.
Take note of the non-monetary factors that are important to you, as you identified in the “And What Else?” section.
Also, consider these additional points that you can negotiate beyond just the base salary:
Remember that when someone shares the "total compensation" as part of the offer conversation, that value can sometimes include perks and benefits that are irrelevant to you. Perks might include tuition reimbursement if you were to go back to school, pet adoption fee coverage, and discounts at various retailers. When considering an offer, only consider the benefits and perks that matter to you, as a "total compensation" quote is hard to compare when it includes frivolous additions.
Decide on the few most crucial points you’d like to change about the offer and the exact salary you’d like to counter with.
6. During the Counteroffer Conversation
Share your counteroffer clearly and confidently.?
"I'd like to be making X” (then expect them to potentially meet somewhere in the middle) or "I need to make at least X” (if you're truly willing to walk away for anything less).
"Thank you for the offer. This role would be perfect for me if I only needed to commute into the office only 2 days a week instead of 3. If that's not possible, I'm looking for a salary of …”
Propose all of your changes at once. Salary negotiations typically include an offer from the employer, a single counteroffer from the candidate, and then a final offer from the employer.?
Be likable. Refrain from annoying your boss-to-be or the HR department.
No reasons or excuses. You don't need to say WHY you require that salary. That's simply what you're worth and what they must pay to have you. Remember that, at this point, they like you. They want to hire you. You have the higher ground.?
No sob stories. They don't need to know that you're desperate, need this, are struggling, or are willing to accept anything. An employer won’t give you a higher offer because they feel bad for you. They simply give you what they need to get you onboard within their budget.
Don’t come across as petty, needy, or arrogant. Make it clear that your goal is to work for them, but you require a certain salary and a few changes to the offer to make that happen.
Depending on who you're talking to, you can optionally reiterate what you bring to the table to make you worth more than the initial offer. But they already know what you do, which is why they want to hire you. At this point, it will come down to their salary band, your performance during the interview, and how much they need you.
7. The Final Offer: Accept or Decline
When the employer provides their final offer, weigh everything and decide if you want to accept or decline.?
Even if they didn’t budge, you can still accept. Even if they gave you everything you requested, you can still decline because it’s still not a good fit for you.
Be courteous. If you need additional time to consider the final offer, ask for it. Be upfront with your timelines and whether or not you’re waiting on other offers. Remember that you will work closely with these folks if you ultimately accept the job, so be sure you’re maintaining a positive early impression.
If you decline the final offer, don’t burn bridges.?
If you accept the final offer, GET EVERYTHING IN WRITING. You may need proof of what they agreed to in your employment offer, especially if that HR specialist, recruiter, or hiring manager leaves the company later. Ensure that all agreed-upon terms are documented in writing. This provides protection in case of changes or disputes down the line.
Salary negotiation is a vital skill that can shape your career.
With the knowledge of your worth and a strategic approach to discussing salary, you can confidently negotiate an offer that’s perfect for you.?
So great and so easy to understand Kim Johnson. My coach Majo Molfino used to tell me to ask for a number that made me laugh out loud. Because then it really was a stretch number. I once countered on an offer that was almost twice what I was currently making. The response was, "With your experience, we really can't go any higher." I was proud that I asked so I knew I got the max of what they would offer. And it set the stage for a promotion 6 months later, with a nice pay raise, rather than at the 1-year mark.
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1 年Very informative article Kim Johnson. Thank you for sharing.