How to Approach Negotiations
Negotiating job offers is a normal and professional part of the hiring process. It's about finding a fair agreement that values your skills and aligns with your needs. You deserve a work environment where you can thrive and be valued.
Can employers withdraw an offer if I try to negotiate?
While it can happen, it is rare.
Sometimes, if a candidate comes across as arrogant or demanding during negotiations, an employer may no longer want such a person on their team, and may choose to withdraw the offer.
Approach negotiations with professionalism and respect. This is a collaborative conversation, an opportunity to discuss your needs and find a mutually beneficial agreement.
You can also assess the company's culture and values to ensure a good fit.
Most employers respect candidates who advocate for themselves and make a clear case for the value they bring.
By negotiating thoughtfully and collaboratively, you show confidence in your worth, and in the value you bring to their department and institution. This is impressive to them.
Some employers might view any attempt to negotiate as an affront.
In such cases, it's worth questioning whether this workplace responds that way to any requests or ideas that employees might present. Is this a culture you would want to join?
How should you prepare for negotiations?
Do Salary Research
Before your first interview, take the time to research and understand salary ranges for similar positions/locations.
Use reliable salary calculators like Salary.com, Payscale.com, Glassdoor.com, etc., and if the institution is public, or the state has salary transparency lawasm you can look up salaries. This will empower you to confidently discuss a reasonable number if the employer insists on knowing your salary expectations early on. Then 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, and have leverage. If asked about salary early on, you can deflect with something like, "I can only determine a reasonable salary within the total compensation package. I'll be happy to respond to an offer."
This allows you to focus on showcasing your skills and experience first.
Highlight Your Match
During discussions, remind them of how your skills and experience align with their needs. Emphasize the potential contributions you can make to their success.
Negotiations can extend beyond salary to include other benefits, but avoid discussing personal needs like student loans or family obligations. Employers generally view those as your personal responsibility, and such arguments don't add value to your candidacy.
Treat it as Open for Discussion
Employers often have some flexibility when it comes to making offers. Ask for a meeting to address any questions you have and to explore the details of the offer.
Whenever possible, try to have this conversation in person or through video or phone calls. Negotiating via email can make it challenging to gauge the tone of conversation.
You've received an offer, now what?
Don't Say Yes or No Right Away
Don't rush into a decision. Show your appreciation 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, and to consult with anyone who might advise you.
Negotiating for more time is also possible if needed.
Assess the Total Compensation
Compensation isn't just about the salary. Consider other benefits and perks they offer, like healthcare, retirement contributions, and additional benefits. Are those in line with workplace standards?
Compare the offer with any other offers you might have received.
Emphasize Your Case
Use your salary research and unique strengths to remind them of your excellent fit for the role. Respond to any counter-arguments with a positive "Yes, and..." approach (reiterating your case), rather than a defensive "Yes, but..." approach.
Advocate for Yourself
Make your case by focusing on the benefits both you and the employer will gain. If they're offering you the job, it means they want you, and that is why you have leverage to make salary and non-salary requests, such as flexible time, more paid time off days, etc.
Listen to their points of view, but remain confident in expressing and reiterating your own.
Master Nonverbal Communication
Your body language speaks volumes. Sit up straight, maintain eye contact, and listen actively. Keep an open and interested demeanor throughout the conversation.
Commitment is Key
When considering an offer, be prepared to commit only when you are ready to commit. Flipping on an accepted offer (known as "reneging") can be detrimental to both the employer and your reputation. It forces the employer to restart the long and costly hiring process, and can harm your professional standing as well as your institution's reputation.
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:
1
Calculate Your Take-home Pay
To estimate your net monthly pay, subtract around 30% from the gross salary to account for taxes and deductions. Then, divide the remaining amount by 12. This will give you an idea of how much money you'll actually receive each month.
2
Budget Wisely
Plan to allocate ~50% of your net pay for basic needs like housing, food, and transportation. Aim to save around 30% (for unexpected needs, to build up funds for important expenditures, to bolster your retirement investments, etc.), and use the remaining 20% for things you want.
Consider the local cost of living to see if the offer aligns with your financial requirements.
3
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 potential new salary are documented in the final offer.
4
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, an employer-provided laptop, or even a different job title. Sometimes, these benefits can be more valuable than a higher salary.
5
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.
6
Decide if It's the Right Fit
Think about whether accepting the offer aligns with your long-term goals. Consider factors like valuable experience, company culture, future opportunities, and overall job satisfaction.
7
Get the Final Offer in Writing
This is very important before you accept any offer. If you successfully negotiated new terms, ask for an amended offer letter that reflects the changes. Checking the final offer will help avoid misunderstandings, and provide clarity on the agreed-upon terms.
Take the time to carefully review the written statement of terms and the complete compensation package, not just the salary, before signing any documents.
Once you accept an offer, the negotiation process is over, and you no longer have the same leverage to negotiate.
8
If You Decline, Do It Gracefully
If you decide not to accept the offer, express your gratitude for the opportunity and the valuable conversations, and explain that the opportunity will not work for you at this time.
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 (scheduled 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.)