Negotiating for Industry Positions
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Learn about preparing to negotiate no matter what industry you are going into.
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Tooling Up: Salary Negotiation, Part 1 | Tooling Up: Salary Negotiation, Part 2
How To Think About Negotiating
It's Professional
Many employers appreciate candidates who advocate for themselves. It's an opportunity to discuss your needs and find a mutually beneficial agreement and assess the company's culture and values to ensure a good fit.
If They Withdraw
It's rare for an employer to withdraw because you tried to negotiate but it can happen. If they do so, do you really want to work for them?
Usually, it's because the candidate was arrogant or demanding. Approach negotiations with professionalism and respect.
Weigh the Cost
A lot is at stake: earnings over time, a missed opportunity to demonstrate interpersonal skills, and a possible loss of standing (E.g. "We could have hired them for less..." rather than "We are lucky to hire them!" for $8,000 more).
Be Collaborative
Approach negotiation as a collaborative discussion around a common goal. If you've gotten this far you and the employer both want you on the team. The rest is simply about agreeing on terms.
You're both assessing the value of this match. Know what you want, and speak as an equal in the conversation.
Prepare Carefully
Research Salary Ranges
Before your first interview, take the time to research and understand salary ranges for similar positions. Use multiple reliable salary calculators like Salary.com, Glassdoor.com, and Payscale.com.
This will empower you to confidently discuss salary if the employer brings it up early on.
You'll be able to provide a figure within a reasonable range and work towards a mutually agreeable salary later in the process.
Timing matters
It's best to avoid discussing salary too early in the process. Your strongest position for negotiations is when you have received an offer. If asked about salary early on, you can respond by saying something like, "I can only determine a reasonable salary within the total compensation package." This allows you to focus on showcasing your skills and experience first.
Highlight Your Match
Remind them of all the ways your skills and experience match what they need, and talk about your potential contributions that will meet their needs.
Negotiations can extend beyond salary to include other benefits, but avoid discussing personal needs like student loans or family obligations. Employers generally view these as your personal responsibilities and such arguments don't add value to your candidacy.
Only Accept When You're Ready
If you accept an offer and then try to negotiate more you are forcing an employer, who was counting on you, to restart the whole hiring process. This can damage your reputation as well as that of your school.
When You've Received an Offer
Don't Say Yes or No Right Away
Don't rush into a decision. Show your gratitude for the offer and let them know that you look forward to discussing it further. Take a day or two to carefully review the terms and total compensation. Negotiating for more time is also possible if needed.
This is Only the First Offer
Employers usually have room to offer you more. Ask for a meeting to discuss your questions about the offer, and arrange to meet in person if possible, or otherwise by video or phone. You want to be able to assess how the conversation is going.
Share Salary Research & Your Strengths
Use your salary research and unique strengths to advocate for yourself. Emphasize that you are an excellent fit for the role. Respond to any counter-arguments with a positive "Yes, and..." approach rather than a defensive "Yes, but..." approach.
If you've interned with the company before, mention how you've already saved them training costs, which could justify a higher salary or bonus.
Master Nonverbal Communication
Your body language speaks volumes. Show confidence by sitting up straight, maintaining eye contact, and listening actively. Keep an open and interested demeanor throughout the conversation.
What to do if the offer is too low?
It's important to take the time to evaluate the full compensation package and consider your financial needs. Here's a step-by-step guide to help you make an informed decision:
Evaluate Total Compensation
Some things are worth more than money. Look at benefits such as retirement, health insurance, paid time off, etc. Consider the entire value of working for them, not just the paycheck.
Calculate Your Take-home Pay
Subtract 30% from the gross salary for taxes and other paycheck deductions, such as healthcare premiums, 401k retirement contributions, and your share of other benefits. Divide by 12 to estimate your net monthly pay.
Budget Wisely
Plan on 50% of your net pay for basic needs (housing, food, transportation, etc.), 30% for savings and debt, and the remaining 20% for other things you want. Considering the local cost of living, can you afford their offer?
Propose a Salary Review Timeframe
If the initial offer doesn't meet your expectations, you can suggest a timeframe for a salary review based on achieving certain objectives. If they agree, ensure that the timeframe and new salary are documented in the final offer.
Negotiate Additional Benefits
Besides salary, there are other aspects of the job that you can negotiate. These may include more time off, childcare support, moving expenses, flexible working hours, tuition assistance, a company-provided laptop, or even a job title. Sometimes, these benefits can be more valuable than a higher salary.
Request an Amended Offer
If you successfully negotiate new terms, ask for an amended offer letter that reflects the changes. Take the time to carefully review the written statement of the terms and the complete compensation package, not just the salary, before signing any documents.
Consider the Response & Future Prospects
Reflect on how the employer responds to your negotiations. This can give you insight into their openness to new ideas and requests in the future. You can also highlight that your negotiation skills can benefit the organization in various ways, such as negotiating with vendors or advocating for your team's resources.
Decide if It's the Right Fit
Think about whether accepting the offer aligns with your long-term goals. Consider factors like the value of the experience, company culture, your potential manager and team, and overall job satisfaction.
Get the Final Offer in Writing
Before accepting any offer, make sure you have the final offer in writing. This will help avoid misunderstandings and provide clarity on the agreed-upon terms. Once you accept an offer, the negotiation process comes to an end.
If You Decline, Do It Gracefully
If you decide not to accept the offer, express your gratitude for the opportunity and explain that it's not the right time for you. Show that you value the potential for future opportunities with the organization and end the conversation on good terms.
Here are some non-salary items you could negotiate. These will get you started, but you may come up with more:
- Sign-on bonus (amount & when paid)
- Early performance & salary review (sooner than the customary review, if the salary max offered seems low)
- Higher or different responsibilities that you are qualified to take on
- Different Title (be ready to propose one if you want to negotiate this, and state the benefit to them)
- Vacation days (often grouped with sick days and personal days as PTO– Paid Time Off –so more is better)
- FlexTime (different starting/ending hours, usually around core hours when everyone should be available)
- Teleworking (come with a plan for when you’d work outside the office, and how it would benefit them)
- Moving expenses
- Tuition reimbursement (amount, reimbursement timing, grades, and other requirements)
- Car (provided or value of allowance, if you must drive for work aside from commuting)
- Subsidy or reimbursement for gym membership, transportation costs, child care, etc.
- Variable compensation (potential bonus $/%, commission, stock options, etc.)