Employees often wonder if they should negotiate their job offers with a prospective employer. Is trying to negotiate seen as pushy or overbearing? Or is it expected? The quick answer is that in most cases, yes, employers do anticipate at least some negotiation on job offers. Negotiating shows confidence and gives you a chance to ensure the compensation package meets your needs. However, you need to approach it in the right way. Here’s an in-depth look at whether employers expect negotiation, how to negotiate successfully, when you may not want to negotiate, and how to determine if an offer is negotiable.
Do Employers Budget for Negotiation?
The vast majority of employers do account for negotiation when extending initial job offers. In fact, data shows that employers typically offer around 10-20% less than the maximum they’re authorized to pay for a given position. They know that most candidates will counter and expect to give some ground.
Some key statistics:
– 85% of employers say they leave room to negotiate on job offers, according to a survey by staffing firm OfficeTeam.
– On average, employers offer 90% of the original target salary, according to compensation research firm Salary.com.
– Hiring managers report that 75-85% of job applicants negotiate their initial offer, according to surveys by staffing agency Robert Half.
So in most fields, negotiation is the norm rather than the exception. Employers won’t be blindsided if you try to negotiate. It’s a standard part of the hiring process that they prepare for.
Why Do Employers Leave Room to Negotiate?
There are several key reasons why employers intentionally offer less than they’re willing to pay:
– Their initial offer is based on the salary range for the position. But they know that the best candidate’s market value may be above the standard range. Leaving room to increase the offer allows them to secure top talent.
– It leaves them with some wiggle room if other candidates also negotiate. If the first candidate negotiates up to the max budgeted salary, they can’t offer that same amount to another qualified applicant without going over budget.
– Inflated titles or salary ranges could deter some candidates from applying. A lower initial offer encourages more applicants.
– Employers want to hire the candidate at the lowest salary the person will accept. Starting lower leaves room to increase if needed to close the deal.
– Some industries or roles expect negotiation as part of the culture or process. Employers conform to those norms.
So in most cases, employers do plan for negotiation right from the start. The initial offer is only intended as a starting point.
Should You Always Negotiate Salary?
Knowing that employers expect negotiation, should you always counter their initial offer? While negotiating is recommended in most cases, here are some exceptions:
– **Entry-level roles** – There is often less wiggle room for negotiation if you have little direct experience. Focus on negotiating benefits or non-salary perks instead.
– **Government/public sector jobs** – Salary bands are strict and non-negotiable in many public sector roles. However, you may be able to still negotiate on things like vacation time.
– **Large companies** – Big corporations typically have little flexibility on salary ranges, but may have more leeway on stock options, bonuses, or non-monetary perks.
– **You’re very excited about the role** – If it’s your dream job, you may want to accept the initial offer if it seems fair. Reneging on a job offer after negotiating too aggressively can eliminate the opportunity.
– **The offer is already at the top of your range** – If the initial salary exceeds your expectations, focus on other aspects of the offer instead of trying to negotiate up further.
– **You have little leverage** – Without competing offers or rare skills, you have less power to negotiate. In this case, you may risk the offer being rescinded.
While you should almost always negotiate to some degree, avoid being overly aggressive or adversarial if one of the above factors applies.
Know Your Value
Before negotiating, research salaries to determine your market value. Sites like Salary.com, Payscale, and Glassdoor provide salary ranges for most roles. Data points to consider:
– Average pay for the position in your geographic area. Account for cost of living.
– Salary ranges at specific companies based on reports from current/past employees.
– Experience level – entry-level vs mid-career salary expectations.
– Your skill set – especially technical expertise or niche skills that may command above-average compensation.
You can also check with recruiters or professional associations to get guidance on realistic salary targets. This will help you set reasonable expectations before negotiating.
When Do You Negotiate Salary?
Timing is important when negotiating. Follow these guidelines on when to negotiate:
– **After the initial job offer** – This is the most common time to negotiate. You have the offer in hand, so you know the baseline salary and benefits package being offered.
– **After interviews, before the offer** – You can ask about the salary range or negotiate expectations early. But beware of giving a salary number before hearing their offer.
– **After accepting the offer** – Renegotiating after accepting an offer is still possible, but reopens the hiring conversation. Proceed cautiously.
– **Before interviews** – Negotiating too early looks presumptuous. Wait until your skills are assessed before discussing salary specifics.
– **During interviews** – Salary shouldn’t dominate the conversation. Focus more discussing your abilities and interest in the role.
– **After starting the job** – Renegotiating after a few months on the job can work in some cases but may also frustrate your new employer. Tread carefully.
The first offer starts the negotiation. Don’t jump the gun but also don’t start work before making your case.
How to Negotiate Salary
Follow these best practices when negotiating:
– Have a target number but also a range in mind. Decide on your ideal salary as well as a minimum you’d accept and a reach number.
– Get the new offer in writing. Ask for time (1-3 days) before responding. Review the entire compensation package.
– Don’t make the first move by naming a desired salary. Let the employer anchor the negotiation. Then counter higher.
– Respond enthusiastically but mention you were aiming higher based on your research. Provide your desired number and justify it based on comparable roles.
– If countering with a salary range, start on the high end. Employers tend to settle near the middle.
– Consider asking for a signing bonus to make up the difference if the salary can’t be increased.
– Be polite, positive, and appreciative. Avoid threats or high pressure tactics. Offer creative alternatives if they are resistant.
– Get final offer details in writing before formally accepting the job. Make sure negotiated terms are included.
With preparation and an assertive but pleasant approach, you can negotiate successfully without alienating the employer.
Non-Salary Items You Can Negotiate
Besides compensation, consider negotiating these other aspects:
– **Performance bonuses** – Agree on eligibility and target amounts.
– **Stock options or equity** – These can significantly increase long-term earnings.
– **Tuition/training reimbursement** – Continued education benefits are attractive.
– **Vacation & sick days** – Especially negotiate for more paid time off.
– **Work hours/arrangements** – Seek flexibility for telecommuting, a compressed schedule, etc.
– **Title & role definition** – Clarify responsibilities and advancement opportunities.
– **Start date** – Ask for time to transition from current job if needed.
– **Relocation package** – If moving for the job, negotiate support for housing, travel, etc.
Many perks besides base pay can improve your employment arrangement. Employers may be more flexible on these extras, even if they can’t meet your exact salary request.
When is Negotiation a Bad Idea?
While negotiating is recommended in most scenarios, here are some situations when it may hurt rather than help your chances:
– The employer states upfront that the salary offer is firm and non-negotiable. Take them at their word.
– You’re told that negotiations could result in the offer being reduced or withdrawn based on budget constraints.
– The role is with a small company without standard salaries. The owner controls compensation personally.
– It’s a written “take it or leave it” type offer without the opportunity for an interactive discussion.
– You sense that negotiating aggressively could damage the goodwill established during interviews.
– The offer already aligns very closely with your expectations entering the process.
– The job is with a government entity or unionized workplace with strict pay grades.
– You have limited leverage due to being unemployed, having fewer credentials, or the employer having alternate viable candidates.
While you should still negotiate in most of these situations, take a less forceful approach or focus on non-monetary terms to avoid inadvertently losing a decent job offer.
What if the Employer Won’t Negotiate?
If your attempts to negotiate are rejected, you have three options:
1. **Accept the original offer** – If it is generally in line with your requirements or target range, take the job on the employer’s proposed terms. Build a track record of strong performance and pursue higher compensation down the road.
2. **Decline the offer** – If the pay simply doesn’t meet your basic financial needs and appears unlikely to change, don’t feel obligated to accept the role. Be willing to walk away.
3. **Propose compromises** – See if the employer will improve other aspects of the offer (start date, vacation, work location, etc.) even if they won’t budge on salary. Get their best and final terms.
4. **Request time to consider** – Ask for a day or two to evaluate the full offer and determine whether it aligns with your career goals. This also leaves the door open to continue discussions if they are willing.
While rejecting initial negotiation attempts is discouraging, don’t give up too quickly or take it personally. Persistence and creative problem-solving may lead to an acceptable solution.
What to Do After Accepting a Job Offer
Once salary and job details are finalized, here are some steps to take:
– Review the offer letter in detail to make sure agreed-upon compensation and job details are correct. Get any discrepancies fixed.
– Formally accept the offer in writing (email is fine) and express your excitement to join the team. Follow any other acceptance procedures they require.
– Immediately notify other employers where offers are still pending that you are withdrawing your application and pursuing another opportunity.
– Discuss your new job only in positive terms – avoid bashing the negotiation process or employer conduct. Maintain your professionalism.
– Connect with new coworkers, managers, and mentors via LinkedIn to start getting to know them and learning more about the company.
– Update your resume, online profiles, and networking contacts about your new role. Publicize your success!
– Develop a plan for transitioning work, notifying contacts, and tying up loose ends at your old job.
– Make necessary personal arrangements for the new commute, work hours, relocation, etc. involved with the job switch.
– Pat yourself on the back for landing a new position! Enjoy the excitement leading up to your start date.
With preparation and practice, salary negotiation doesn’t need to be stressful or intimidating. Remember that employers expect a conversation about offer terms. Approach it professionally and there’s a good chance you can negotiate improved compensation compared to the initial proposal. Know your value and advocate for fair pay.
Key Takeaways
– Most employers do leave room in their budgets to negotiate job offers as they expect candidates to make counterproposals. Offering less than their ceiling leaves them flexibility.
– Negotiation signals confidence and gives you a chance to ensure the offer matches your skills, experience and needs. However, avoid being overly aggressive if you have little leverage.
– Research salary ranges carefully so you know your market value. Have a target and range in mind before negotiating.
– Timing is critical – bring up salary after receiving the offer but before accepting it. Focus on non-monetary terms if needed.
– Besides base pay, consider negotiating performance bonuses, stock options, tuition help, time off, flexible scheduling, job title, and other perks.
– If an employer won’t negotiate at all, you can accept the offer, decline it, propose other concessions or ask for time to consider options.
– Once terms are finalized, notify the employer formally in writing and stop job hunting. Transition positively into your new role.
Conclusion
Negotiating job offers is expected in most industries these days. With the right preparation and approach, you can negotiate win-win outcomes that get you fair pay while respecting the employer’s needs. Confidently initiate those salary discussions, know when to press for more versus compromise, and recognize when negotiating could risk the offer. Enter with data-driven expectations, maintain a collaborative tone, and demonstrate the unique value you bring. With some finesse and perseverance at the negotiating table, you can get your new career started with compensation that truly reflects your worth.