Negotiate

Should I Negotiate?

If you conducted salary research and found that the offer is fair, you may decide to accept it. In other instances, you might decide to negotiate. Keep in mind that entry-level employees do not usually have a lot of latitude for negotiation. Employers are also less likely to negotiate in slower job markets. Some employers have a policy of starting new employees at a set pay rate, while others allow for some negotiation. Public sector employers often have salary scales for various classes of jobs, and inexperienced hires generally start at the first step on the salary scale.

Salary Negotiation Principles

An interviewer may raise the subject of salary and benefits any time in the interview process. Prepare in advance using the following tips:

• Do your homework – research the market salary range for someone with your level of experience in your target industry. 
• Assess – Consider your budget needs. Calculate the market value for the position based on the industry and location.
• Practice – Negotiation is a skill. Make sure to practice before you negotiate!
• Negotiate – Ask if the offer is negotiable. When you choose to negotiate, be positive and maintain a strong relationship with the employer. After you come to an agreement, make sure to get the final offer in writing before accepting.

Things To Consider

Consider different factors in making a decision regarding the acceptance of a job offer. Few, if any, organizations will provide all that you would like to have in your ‘’ideal’’ job, and you should know on which factors you can make comfortable compromises and which must be met.

1. The Industry
   • History of growth
   • Predictable future needs
   • Degree of dependence on business trends or cycles
   • Degree of dependence on government regulations or actions
2. The Organization
   • Prestige and reputation
   • Public vs. Private
   • Growth potential
   • Size and company culture
   • Financial stability
   • Strong management or leadership team
3. The Job Itself
   • Training and development opportunities
   • Day-to-day activities
   • Amount of stress or pressure, pace of work
   • Requirements to relocate, travel, or work long hours
   • Responsibility, autonomy
   • Opportunity for advancement and/or individual achievement
   • Salary and benefits package
   • Involvement with supervisor, peer associates
   • Physical environment
   • Social significance of work
4. General “Lifestyle” Factors
   • Comfort with goals, philosophy, and/or values of organization
   • Geographic location
   • Recreational and educational facilities, cultural opportunities

Timing of discussion topics is important. Until you have a clear understanding of the job and have had an opportunity to discuss your qualifications, it is premature to discuss salary first-thing. Consider waiting until the end of the first conversation. Avoid being the first to name a salary or a salary range, and instead ask if there is an expected range, if it is not listed on the job description itself.

If you do have to share your salary requirements first, give a range based on your level of experience (typically mid-50’s to -60’s for those still in school, or about to graduate) or whatever is considered a typical entry-level range for your specific industry. This is why it is especially important to do your homework in advance!

• When you get an offer, ask for it in writing and ask the employer to clarify any aspects that aren’t clear to you.
• A successful negotiation involves being assertive, but cooperative, and positive in overall tone.
• If you are successful in any aspect of your negotiation, be sure to ask for a new written offer letter that reflects any agreed-upon changes.

What Else Can I Negotiate?

Start date. It may be some time before you become eligible to take a vacation. Take this into consideration when choosing your start date, and prioritize finding alignment with your new employer’s needs. 

Early performance review and salary review. Propose an early review date tied to a potential salary increase.

Vacation. If you start work in August, and know that you will need time off for a vacation in December, negotiate in advance for extra vacation days.

Professional development. Employers often cover professional association dues and conference fees. Some employers offer tuition reimbursement as well.

Relocation expenses. Some companies expect to reimbursement employees for required moving expenses. It does not hurt to ask about this, if a move is required to start a role. 

Flex time. Nonstandard work hours can help lessen commute time and accommodate other interests.

Hybrid. Be sure to ask: “How many days out of the week am I expected to work within the office?” “Are these days flexible? Will these days change?” “Am I able to work remotely? If so, are there restrictions on where I can work remotely from?”

Signing bonus. A one-time cash bonus received when you start working.

Performance bonus. Received either at the end of the year, or on a quarterly basis, and based upon your performance or the organization’s. Be sure to research your employer’s policies around bonus payment schedules. 

How to Negotiate

• Before you contact the employer, plan what you want to say and practice aloud with a friend, family member, or career counselor.
• Approach the employer early in your decision-making process and maintain professionalism throughout all interactions. Give your employer time to provide counter-offers, if needed. 
• Try to keep your points of negotiation to as few as possible. The above-list is helpful in deciding what is most-important for you, but remember that you are starting a professional relationship with your new employer. Keep the focus on how excited you are to join the organization.  

Strategies:

• Continue to show enthusiasm and provide reasons to support your request, such as relevant internship experience, special skills, high GPA, or current competing job offers. Employers are not interested in any personal reasons you may have for needing or wanting a particular salary (e.g., debt, wanting to make what your best friend makes, etc.).
• Ask whether it would be possible to have a performance review in a not-too-distant time frame (e.g., 90 days or 6 months).
• Propose a discussion of the other aspects of compensation (monetary or other intrinsic worth, such as RSUs) to help increase the value of the offer.

Language:

• “Based on the market rate for this role, and my internship experience and skill set, would you consider the range of ___ (e.g. $55,000- $65,000)?
• “Is there any flexibility for this offer?”
• “Could we establish a 90-day evaluation period, and if I meet my goals, re-visit my salary?