Salary Negotiation
Evaluating your offer and determining if you would like to negotiate is an important step in the job search. It’s always best to have a strategy in mind when you get to this point of the hiring process.
Getting an offer from a company means they are excited about you as a candidate and want to work with you. While the idea of negotiating your job offer may be uncomfortable, it’s a normal part of the job search and most employers expect it. Here are some tips to help you prepare for negotiating.
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Your first step
To start a job offer negotiation conversation, first reaffirm your interest and enthusiasm in the company’s mission and the job position. State what you would like to negotiate in a clear, concise manner. Include questions in your negotiation, like “is this feasible?”, or request a conversation if you’re following up on an offer over email. For example, “I am excited about the opportunity to work at this company. Please let me know if it is better to talk more about this over the phone or in person.”
How to respond if you’re offered a job on the spot:
- Express your appreciation for the opportunity.
- Request time to consider the offer.
- Request the total compensation package in writing.
- Agree on the timeline to respond.
Now that you have a timeline to respond, find out what you can negotiate and how much to ask for. Then you’ll know what to say when you negotiate.
What can you negotiate?
Typically, the company will tell you the total compensation package (salary, commission, bonuses, paid time off, benefits such as health, life, retirement, etc.). If not, ask for it in writing. Once you have that information, there are several components of the job offer to evaluate and potentially negotiate, including:
- Your starting salary.
- Timeline for raises.
- Your start date.
- Work modality (hybrid, fully remote, fully in-person).
- Relocation expenses.
- Signing bonus.
- Stock options.
- Performance review cycle and salary increases.
- Work schedule.
- Professional development.
- Paid time off.
How much to ask for
Remember, your total compensation isn’t just your annual salary. It also includes things like health care benefits, paid time off, transportation perks, bonuses and more. When it comes to negotiating, doing research to get an idea of what a typical offer is for similar job positions can help ensure your counteroffer is within reason.
Glassdoor allows you to see self-reported salaries from current and former employees at specific companies. Also, Payscale will evaluate your offer letter and compare it to industry and area statistics. Both of these resources can provide data to strengthen your negotiation.
With most online tools, salary information will be reported as a range. For most entry-level positions, the lower start of the range will be the most appropriate pay bracket. If the salary offered is within the low range for similar positions, consider an initial counteroffer 10-20% higher, and if the salary offered is within the average range, consider a counteroffer 5-7% higher.
In addition to compensation data, you should research the cost of living for the area you’ll be working in. When you get an offer, you will want to make sure it’s enough to pay for food, rent, transportation and bills. Ideally, you’ll also have enough for savings, fun and any other expenses you have.NerdWallet and Best Places can help you compare two cities and how much you’ll need to earn to meet the cost of living.
What to say
Be sure that you are organized with your negotiation clearly stating what you want and the value you will offer. Strive for agreement and harmony in your negotiation and that you appreciate their offer and that you are negotiating to benefit both the company and you.
Overall, we recommend that you start with a figure that’s no more than 10-20% above the initial salary. If the pay is in-line with average pay, but you believe you can negotiate based on your skills and experience, consider a range between 5-7% above. While there’s no “one right way” to negotiating your job offer, we’ve outlined a possible structure below to help organize your request.
- Appreciation and excitement
- Value/skill statement
- Negotiation point
- Research (concise, clear)
- Request for agreement, harmony
Example: “Thank you so much for your offer; I’m really interested in (company), especially after meeting such an innovative and collaborative team. I would like to discuss the proposed salary for the role. Through my research, I see that the average market rate in (location) is ($_k). Based on my previous (job experience), where I (example of your work), I believe my skills align with the average market rate for this role. What would it take to get to $_k (amount) or a _% increase (percentage).”
Handshake has additional advice for the entry-level applicant to consider. In the end if you don’t get the salary you were hoping for, consider the benefits you’ll be getting from the job or other areas that may be up for discussion, like work schedule or flexible work arrangements. Overall, it’s all about deciding if the job is the right fit for you.
