Negotiating

So, all of your hard work in creating a strong resume, preparing concise cover notes, networking and conducting a focused job search has paid off – you were invited to interview, you have interviewed well, and you anticipate receiving an offer. Whew! Well, it is still not time to rest! You need to carefully prepare for the review of the offer package and negotiation.

Compensation Packages

Compensation is the total cash and non-cash components of an offer package that a company presents the chosen job candidate. Some of the more commonly included offer package components are listed below:

  • Base salary

  • Bonuses

  • Signing bonus – some companies will offer if they cannot meet your salary target

  • Stock options – some companies offer usually depending on level of position

  • Health Insurance – packages are typically standard and not negotiable

    • Medical insurance – co-pays, deductibles, & coinsurance and when benefits commence

    • Dental insurance

    • Vision insurance

  • Life insurance

  • Disability insurance

  • Retirement savings plan and company match

  • Paid time off

  • Tuition reimbursement

  • Flexible work schedule

  • Remote work

It is important to value each of the compensation components so you can accurately compare your current compensation package to what a potential job opportunity may be offering, or to compare two competing offers you are considering. You should also consider and value qualitative components such as company culture, job location, commute time, etc.

Preparing for the Negotiation

Prior to entering a negotiation, you should research the market value of the position and your current market value. You need to know your desired salary, as well as the lowest salary you would accept for the position. The salary surveys that are available online (salary.com, glassdoor.com, payscale.com, etc.) will provide geographic salary averages by job title. Professional associations in your field may also be able to provide relevant market salary information. In preparation to negotiate, develop supporting statements of how your experience, skills, qualifications and accomplishments justify the salary you seek. The more prepared you are to tie the company’s goals and objectives to how your unique set of skills and experience will help the company meet those objectives, the stronger your position will be to support your desired compensation proposal.

The Negotiation Conversation

Most people are uncomfortable with the idea of negotiating. Consider this a collaborative, not adversarial opportunity for the resulting offer to be a win-win for both parties. You may be presented with the offer in writing or verbally. If received in writing, you will have time to review the complete offer package and can prepare for a follow up conversation. If verbal, take a moment to process the offer. It’s normal to ask for time to review the initial offer. You don’t have to accept the offer right away during the first phone call. If you need more time, ask them for more time to review the offer and you can schedule another time to get back to them. If you are satisfied beyond your expectations, accept the offer. Each conversation will be unique.

If you want to negotiate but are unsure of how to approach the conversation, I’ve provided some sample scripts that might help you get started. You might say something like:

  • “I am very excited to be offered the position. I have reviewed the offer and I am very pleased, but I was hoping the base salary would be a bit higher.” Then stop talking. If it’s your first time negotiating and you are nervous, you might feel like you want to fill up the space with words. Try to resist that feeling. Allow some time to pass and wait for the recruiter to speak next. They may then ask how much more you were looking for. You should be prepared from your research to share that number. A recruiter may then say they need to discuss it with the hiring manager, and will get back to you.

  • “I am very excited to be offered the position. Is this your best and final offer, or is there room for discussion?” If they encourage a discussion, be concise and direct with your request, like in the previous example. Rarely will a recruiter risk losing the hiring manager’s top candidate without discussing the request with the hiring manager. The recruiter may then say they need to discuss your request with the hiring manager and get back to you.

  • If it is the final and best offer, you need to be prepared with whether you will accept or decline.

For some additional guidance on how to approach negotiations, Stanford Professor Margaret Neale provides valuable insights in how to negotiate in the YouTube Video: Negotiation: Getting What You Want. She suggests four steps to negotiating a good deal – assess, prepare, ask, and package alternative proposals.

Why is Negotiating So Important?

Promotions and job changes are opportunities to secure some of your largest salary increases. If you do not negotiate, you may find your peers who did are making a considerable amount more than you are. Do your homework to understand what the hiring manager’s pain points are that you can resolve, understand your market value and the market value of the position, and prepare a packaged set of alternative proposals for the recruiter/hiring manager to consider. Salary, bonus, stock options, time off, remote work and flexible work arrangements are more frequently negotiated. Like developing interviewing skills, developing and honing negotiating skills will serve you well throughout your career.