Picture this: after a long, arduous job hunt, you finally have an offer at hand. It may be your first job or the job of your dreams. But here’s the catch: it’s not as well-paying as you’d hoped. What do you do? Turn it down and go back to the hunt? Or take the offer as is and find other ways to manage your finances? There’s a better option: negotiate your job offer. If you’ve ever wondered how to evaluate a job offer, read about the steps you should take to negotiate effectively!
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Can you negotiate a job offer?
Yes, you can! It’s a valid question, though. To many people who are on the hunt for a job, especially if it’s their first one, negotiation may not even occur as an option that’s on the table. But negotiating your job is not just about the money. It’s about getting what you’re worth. This could be a salary that matches the market value and the impact you’re going to have on the organization, useful benefits, and perks, bonuses, or even ensuring that the job title matches your profile.
Negotiation as a compounding skill
In fact, it’s a pretty good idea to start learning how to negotiate job offers early in your career. For one, it would give you a headstart, and by the time you take on your fourth or fifth job, you’d be pretty good at negotiating. Or that’s the hope, at least. But preparing for negotiation before the beginning of the job hunt allows you to accelerate your career & salary faster than you would without it. Let’s say you manage to get a higher salary at your first job. This increases your salary when you get a hike and at subsequent jobs as well. Sounds like a dream, right?
What to negotiate in a job offer
What you’re negotiating in a job offer depends on the organization and the industry it’s in. These stakes also differ depending on whether you’ll be working for a startup or a multinational company. Most people look to increase their base salary, but there are a lot of other aspects of your compensation you can consider negotiating.
- Ownership or equity (especially for startups)
- Stocks (mostly in the case of publicly owned companies)
- Bonuses and commissions
- Job title
The bottom line is there’s a lot more to a job offer than just the money. Ultimately, this is a personal decision, dependent on your goals. It also differs from job to job, and how the company functions. So it’s a good idea to be cognizant of how they work.
Who are you negotiating with?
Your point of contact is likely to be a recruiting or a hiring manager. In some cases, it may be a human resources professional who decides compensation and pay. While some of these roles may have overlaps, the exact person who has a final say in your compensation package differs according to the company. So it’s best to negotiate with the right parties. Remember that the recruiter is probably reviewing lots of resumes and finalising offers with other people too. These are busy people who try to bridge the needs of the organisation while also ensuring you get a fair deal.
So it’s best to approach the whole negotiation process with empathy and a professional demeanour. Consider the company’s perspective and express curiosity and enthusiasm when you’re making the negotiation. They also want to see that it’s not just about getting a better deal for yourself, but about you taking an active interest in the goals they want to achieve.
When to negotiate a job offer
Let’s be honest, there isn’t a single answer to this. And it’s likely that negotiating a job offer is going to take more than one conversation. A rookie mistake is to negotiate towards the end when all the cards are set on the table. So instead, think of the negotiation process as a dance, of sorts. It’s a matter of timing: gauging when it’s a good idea to explain your circumstances to the recruiter or interviewer and get the ball rolling.
Consider starting early in the process, so you are upfront about your terms (and your deal breakers too; you don’t want to give the recruiter a nasty shock later on). Be strategic in your approach, and thoughtful of how they will respond to the terms you lay down. You want to be assertive for sure, but with the right amount of enthusiasm for the company, the role, and the potential contribution you’ll be making to the organization.
5 tips to negotiate a job offer
It’s easy (perhaps even romantic) to think a recruiter who values your talent will recognise all this and start you off with a fair offer. And some actually might! But the reality is that a lot of companies are likely to think twice before giving you a “fair” deal. So it’s in your best interest to do your research and take a proactive approach to the terms of your job offer. Here are 5 tips that will help you negotiate a job offer as a fresher or an experienced professional:
- Evaluate the job offer thoroughly
- Research the average salary for the role
- Learn to see signs of tension
- Provide context for why you’re asking what you’re asking
- Understand where they are coming from
Evaluate the job offer thoroughly
When you get the offer letter, request some time to think about it. Take a thorough look at all the components of the offer. See if the salary meets your expectations and whether it’s enough for you to achieve your financial goals. Think about external factors like commutes, work hours, and holidays and how these will affect your life. Look for the perks and benefits that the job gives you. With all of this in mind, skillfully negotiate the terms and conditions of employment. Don’t forget the scope of the job, what future opportunities it promises, and what the learning curve will be like for you.
Research the average salary for the role
At this point (or in fact even earlier) in the hiring process, you’ll want to do some research about what the compensation for someone in the role is generally like because this is the best chance to increase your salary. This will help you see if you’ve been given an offer that’s at par or below industry standards. You can generally find stats like this with a simple online search, but it’s also effective to get in touch with people who’ve been in similar roles (preferably in the organization you’ve applied to).
Pro tip: Be careful about how you leverage this during the complex negotiation process, though. You don’t want to be too direct with something like this and come across as abrasive!
Learn to see signs of tension
Job offer negotiations are rarely easy. If not done well, they can get tense, awkward, and emotionally difficult. Don’t get to this point, at any cost. If you sense that the recruiter is dismissive of your concerns, you might want to take a step back. What you want is open communication and transparency throughout the process. The negotiation process might also give you insights into what the company’s work culture is like. If your interactions with the recruiter feel uncomfortable or unsafe, reconsider the job offer.
Provide context for why you’re asking what you’re asking
When you’re talking to the recruiter about the terms you want to negotiate, contextualize what you’re asking for with the reason behind it. Allow them to see what’s at stake for you. Explain why your requests are justified. For example, hearing that someone is requesting flexible work hours because they also have a family to take care of puts a lot of things in perspective. These conversations get the recruiter on your side and allow them to re-evaluate the offer better.
Understand where they are coming from
While you think about how you should negotiate the job offer, put yourself in the recruiter’s shoes for a minute. They’re human too, and perhaps had the same conversations when they got offers. Give them the benefit of doubt they’re extending you and be sensitive about the constraints they might have. Be amicable and polite, even if things don’t work out in your favour.
Want to hear an expert’s advice on negotiating job offers? Check out JobTok’s episode “Aki Taha on How to Negotiate a Job Offer”.
