Negotiating Your Job Offer
You got the offer. Now What?
You can’t start evaluating and negotiating a job offer until:
- You get an offer
- You understand that offer
Through the interview process, make sure you have all the information you need to make your decision. You can address supervision, work environment, details of the job in an interview. You can address salary and compensation after you get an offer.
What is the salary and other compensation for this position?
What type of insurance benefits am I entitled to (health, life, dental, disability, eye care)? When do they become active? What is the extent of their coverage? What is the cost to me?
Is there a 401(k) plan? (This your retirement plan. Start planning for retirement right away.) What are the details? Does the company match my contributions?
What’s the company’s vacation policy? Sick policy?
Is there tuition reimbursement?
Would the company reimburse moving expenses?
What are the different areas to live like within commuting distance of the company?
What are typical commuting costs? Is there parking available?
What is the starting date?
How will my work be evaluated? How often are performance reviews ties to a raise?
These questions will give you an excellent understanding of what the full offer is.
The other thing you need to do before actually negotiating is to plan your salary.
Step 1. Work out your minimum cash requirements for any job. You must know what you need to make to keep yourself afloat.
Step 2. Get a sense of what your skills are worth in the current market. Online salary surveys, trade publications and associations, the career services office, people who work in that industry or at that company are good places to find salary information.
Step 3. Come up with a figure that would make you smile.
Your salary range is between Step 2 and Step 3.
Opening negotiations
It’s always best to negotiate face-to-face. Avoid it over the phone if you can.
Express your sincere interest in the offer. You must want the job first, before you can realistically negotiate.
“I like the job and know I have what it takes to be successful in it. Your salary offer is close, but not what I was expecting. Is there any room for negotiation?”
You can expect the person you’re talking with to have to find out if there is room. They may not know right away. Be prepared to let them know your range when asked.
Roadblocks
Many times, especially for entry-level positions, there is no room to negotiate salary. You may come up against:
- You don’t have enough experience.
- Other employees aren’t making more.
- The budget won’t permit it.
- That’s what we pay new hires.
If this is the case, you may be able to negotiate future salary.
- A single, lump sum signing bonus. It’s nice to have but it has no impact on your future earnings. Signing bonuses are not calculated in as salary when it comes to future raises.
- A 90-, 120-day performance review with raise included. You can negotiate the percentage increase now, if you have confidence in your abilities.
- A title promotion and raise after three or four months. You may want to accept a position with the possibility of a promotion in the near future.
- A year-end bonus. Projections on the current year or what last year’s bonus was have no credibility for what the bonus will be. Get a five year history of year-end bonuses to get a realistic idea of the future.
- Things other than cash. Commuting expenses, cell phone bills, entertainment allowances are all things that companies may be willing to pick up and they represent real dollars to you because it’ll decrease your out-of-pocket expenses.
Whatever the final agreement may be, make sure you get it in writing. Too many go-between people may misinterpret something in your agreement with the company.
The following sources contributed to this guide:
- Knock ‘em Dead 2004 by Martin Yate (available in the Career Resource Room)
- “Suggested Salary Negotiation Guidelines for Recent College Graduates” by David Gordon (http://www.adguide.com/pages/articles/article257.htm)
