If you have a job offer in hand, and you’re in negotiation stages of what the offer will be, it is fairly safe to say “you have it in the bag”. Now whether or not you let it out of the bag by screwing up the offer is a whole other story.
The point you should keep in mind, if you are offered a job is:
They want you.
You want to work there.
Now you have to agree on a price.
This is how a simple question of asking for more money should go:
Them: We’d like to offer you $35,000 as a salary.
[You’ve done your research, and it’s really a $40,000 – $45,000 job and $35,000 is on the low end but still acceptable]
You: $35,000 is a good offer, but based on my research for my job experience and knowledge, the job is worth $45,000.
Them: Well $45,000 is a bit high for your experience…. *trails off*………….
[OPTIONAL as in this rarely happens:
Silence may or may not ensue. You just sit tight, shut up and wait for them to finish their sentence.
Don’t try and fill the uncomfortable silence by saying: Well okay, I’ll take it.
Whoever blinks first, loses.
The more uncomfortable part might be if more barbed remarks might be thrown at you about your age, and your lack of industry knowledge, yadda yadda, to
which you can bring up more research information if you want]
Now what usually what happens is either they say “No” because they’re really offering you the best (NOT LIKELY) or they negotiate back:
Them: …………but we can offer you $40,000.
You: DEAL!!!
NO TAKE BACKS.
NO REVERSIES.
CIRCLE CIRCLE DOT DOT NOW I’M WHAT YOU’VE GOT!!
(Okay so that last part you should probably omit.
Say something boring and professional along the lines of: Sounds fair, I accept. I am looking forward to working with your company!)
And that’s usually how negotiations go.
(Update)
From my own personal experience, I did something just like the above. I sat there, waited for a better offer, and they came back with 30% higher.
Why? Because they wanted me.
I knew I had experience for the job that none of the other candidates had, and they could see I was really passionate about this line of work even if my grades weren’t amazing.
Everyone else who didn’t ask, started at 30% below what they should have, and to this day, they are still trying to catch up to my original starting rate with their small salary raises every 3 years. (I keep in touch).
Keep in mind that I was also getting the same raises at the same time they were.
Think of it as negotiating for one of the biggest raises you’ll probably ever get in your career at that company.
This move may not work for every company, as noted in the comments below, but it never hurts to ask unless the culture of the industry or company is such that you shut up and take whatever’s given to you.
Does that sound intimidating?
It shouldn’t.
It’s a fact of negotiations as it is a fact in life: Nothing is ever going to happen if you never ask for what you want and if you don’t do anything about it.
If you have the offer pretty much in hand (they are probably not going to be thrilled about having to bring up the pile of people they’ve interviewed and re-sift and re-order them again by level of competency), and it’s just a question of money.
Negotiation is much harder for rates than it is for salary, because every hour = more moola for them in their pockets versus what you end up with at the end of their cut.
Besides, if they really hold firm at $35,000 you have 2 options:
- Take the job
- Walk away
OPTION ONE: Take the job if you really need it
Assume that they are NOT bluffing about the $35,000 and being hardasses, and take the job.
You do not want to be kicking yourself in the butt (how does that work, anyway?) while eating ramen or Kraft dinner out of a clean (I hope!) dog bowl, commiserating with other unemployees on a couch about the job you almost had.
OPTION TWO: Walk away if you’re able to
Walk away if you know you can find something better / Don’t need the job.
Sometimes it’s a bluff. Usually when it comes to rate negotiations, it’s a bluff, especially when it’s just $5 – $20 in the rate. If we’re talking like a 50% reduction from $100 down to $50, there is no in between and you can probably get them up to $75, but it will never meet your minimum requirement.
If you don’t need the money immediately (as in, you can hold out for 6 months more) and you think the market is just starting to heat up, then perhaps there is a better job offer out there for you.
CAUTION: Just don’t be too starry-eyed about this option, without knowing the hard facts of what you’re saying “No” to.
Don’t forget this guy Scott from the NY times who just graduated, still lives with his parents and turned down a perfectly acceptable job offer at $40,000 a year just because it wasn’t a managerial grooming position being offered to his privileged ass right off the bat.
Over the last five months, only one job materialized.
After several interviews, the Hanover Insurance Group in nearby Worcester offered to hire him as an associate claims adjuster, at $40,000 a year.
But even before the formal offer, Mr. Nicholson had decided not to take the job.
To which I say: Yeeeeeeaaaaaaaaaaaaaahhhhhhhhhhh.
So practice being more confident in fake negotiations with a family member or a friend, practice, practice, practice and don’t fold under pressure.
Just a girl trying to find a balance between being a Shopaholic and a Saver.
I cleared $60,000 in 18 months earning $65,000 gross/year.
Now I am self-employed, and you can read more about 
I just wanted to add my own anecdote. I made $63,000 at my position in 2011. In 2013, I received an offer for $50,000, for the same position. They made me this offer even though I had fully disclosed my salary history. When I heard this offer, I told them I’d have to think about because I wanted the position but didn’t want to accept it for $50,000. The HR woman said she could talk it over with the hiring manager but that she didn’t expect him to approve a bigger salary. I asked for a week to think it over. She never got back to me with a better offer, and when my deadline was up I turned the position down. I just couldn’t accept the same job for over $13,000 less than what I made two years ago.
I’m glad I didn’t accept, but I wonder if there was something I could have done to make for a more successful negotiation process. Maybe they were just crazy though, since they did offer me $13,000 less after I had given them a full salary history that went back 7 years, 5 of which I had been making more than what they were offering me.
Hey FB, this is really good advice!! I am currently super broke and have two interviews on Tuesday. They are offering below minimum wage as it is an apprenticeship, but i know deep down that I am worth more!! I will definitely use some of this advice… thank you 🙂
Hey,
Just negotiated a 50% increase (from $20/hr to $30/hr) for a part-time contract job!
At first the HR woman said it wouldn't work for her company. With HUGE butterflies in my stomach, I said that it was the lowest I was willing to accept given my level of expertise, and we ended the phone conversation. I thought I had blown it, that it was the end – but somehow I held myself back from calling her back and begging her to give me the job for the lower price ($20/hr as a student is not bad, by any standards).
Yet just an hour later, she emails me back and says they agree to the salary. 🙂
I think this worked because:
1. I knew they wanted me
2. I had expertise for a specific project that no one else on their staff could efficiently handle
3. I was willing to walk out.
This really shows me that this works! And this is great practice for bigger fish later when I graduate. 🙂
I am SO PROUD OF YOU!!!
Is that weird? Being proud of someone I don\’t know? Whatever. CONGRATULATIONS! 🙂
Thanks for writing a good article on how to negotiate, I read a lot of articles about it but they weren't helpful or implied lying or something unethical. I have a friend who got an accounting job for about 20k, even though he has a bachelor's and doesn't have work experience in accounting he should have gotten it in the 40k range. This was a couple of months ago. IMO if a company can get a worker for cheap then they usually will. I really think its up to all workers to fight for themselves.
Exactly. If a company can get you for half your price, they\’ll save the money. It\’s really our job to ask for more.
Although I’ve been employed before, I’ve never been in the position to negotiate a salary before, and I’m curious- when you come to an agreement (or perhaps before), can you get the actual number in writing? If so, how do they present it to you- in a contract, or in an acceptance letter, or something else?
Yes. They give you an actual number in writing. They provide it to you in an employment contract that tells you your benefits, what you agree to when you sign it, and your salary per year plus vacation time and so on.
Thanks much!!
You\’re welcome 🙂
You can also try to negotiate other perks that are not direct salary and benefit both you and the firm–for example, subsidizing a course in the field that would be beneficial to both you and the company. A friend of mine was able to get the company to pay for about 15K worth of school expenses as the courses covered skills the firm desperately needed. However, given her starting salary and the market rate for her job, I don't think she could have gotten them to agree to a 15K salary bump. Another friend negotiated a monthly housing subsidy because he lived very far away from the job and renting a place closer to work meant spending more hours working rather than commuting,again benefiting both him and the firm.
All great points! I like the nearer commute and schooling options.
There are plenty of things to negotiate, it\’s just a matter of what you want.
Negotiating with my employers has been quite an interesting go for me. When I entered the work force – on a contract position doing something I could do but not in my field, I started a a decent salary. Knowing I had benefits and was working for a affiliiation of a great company, I wasn't too bad off. Along came an opportunity in my field. It was for slightly more money, a decent benefit package, and required I drive an hour one way in good traffic. Although I knew I had a really good thing at the place I was at – and that my contract would be renewed, I also knew that they were bringing in a new job description with new qualifications that I didn't have, and moving in a different direction – I would have lasted another year or so.
I took the other job, worked hard for them, garnered one raise in my 2 years with them (up for another but I left) and another opportunity came about in the same field, with a competing company. The one I was at asked if they could have a shot at keeping me, understanding I was looking at the dollars and the work load. I said sure. i spoke to the new company, got in writing my starting salary, and the amount of the raise after 3 months with them, as well as the scope of the job. The only thing missing was the company matched RRSP contribution from the new company – that was factored into the salary at the place I was at. I presented my current employer with the offer, and asked him if he could match or best it.
His co-CEO scoffed at the offer saying there was no way they would match it, so I moved on. Fast forward to 4 years later, and I'm about to see a raise that will effectively double my salary from the previous employer. Raises at this new company have typically been given every two years, and equates to about 15% of my previous year's salary. This year I'll try to negotiate a leave of absence so I can finish school, adjust my pay so I'm still seeing an income while I'm away and keep my job secure for when I'm done school. My worth to the company within the industry by completing the degree will offer the company the clout it needs to be considered reputable and back up my training in the industry such that I'll be able to increase the bottom line each year from degree completion on.
I love this series of articles. For those out there that think they can't get anything – ask and wait and see. Don't assume you know the answer before you ask the question.
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That is really fantastic. You\’ve done an AWESOME job. In fact, you\’re exactly what I\’ll be talking about in a couple of days (weeks?).. in this month anyway. All about job hopping. 🙂
My job offered $70K right out of college and I thought it was low based on m experience compared to other students hired. I didnt want to negotiate because of the bad economy, in hindsight, I should have done it. Thanks for this eye-opening post, I will keep this in mind for the future.
Also, I think its also good to act like you have options, which in most cases you would if you know your stuff.
Thanks FB!!!!
Blessing http://www.workingmomjournal.com
You\’re welcome!
I love using the uncomfortable silence to your advantage! Somebody wants to fill that void….just don't let it be you.
Another thing I've always done is to interview for a couple jobs within the same short time frame. Then if you get more than one offer, you can use competition to your advantage. You'll almost always get a couple days to consider an offer and during that time you can call them back and tell them that while you love their company, you are contemplating another offer that may be hard to resist because it's XX more dollars….then let them sit on that and don't be surprised if they call you back with a higher offer.
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Exactly.
I always take time to \”consider\” the offers, take them to other companies and then ask them to match it.
You know what else is negotiable? The job offer.
When I was interviewing my senior year of college, I was declined for the job I wanted at a very large financial institution, and I contacted the recruiters and interviewers and told them they made a mistake and this was the perfect job for me. They reconsidered, then reinterviewed me, and then hired me and I've been one of the top performers ever since I've been there.
Lesson: Everything is negotiable.
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That is freaking awesome. 🙂 I love stories like that.
I worked for my firm for 16 months as a casual employee before being offered a permanent position, my rate of pay as a caual was around the $17 an hour mark. And when I was told there was a position open for me I was asked if I could manage on $13.20 hourly as this was the going rate for my job, I was so annoyed that I was getting offered a $4 an hour drop in wages that I replied " COULD YOU " Maybe not the right way to go about getting what I needed, but I came out of the discussion with $15. Mind you 4 years later I still hav,nt made it back up to the casual rate. Perhaps this method of wage negotiation only works in Corporate positions.
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Could be only for corporate positions. Could you not have asked to hold firm at $17? Or ask for a raise now?
I think what they factored in was also the cost of an employee — benefits, dental, medical, retirement, support, etc. That adds up to an amount per hour for them.
I don't think it's unusual for "full time workers" to make less on a per-hour basis than casual employees, unfortunately. As FB pointed out, the cost of your benefits, vacation, sick leave, etc. factor in. Also, casual employees actually carry less risk from a cost standpoint–they are easier to fire if they don't work out or something goes wrong, and they are easier to cut out of the budget when times are leaner or there is less work.
Which is precisely why casual, temporary or freelancing employees should ask for more. To counteract that risk.
I really liked your post and your advice. Keep it up!
Thanks!
That's awesome. This was how I negotiated my first salary, as well. I gave them a range of what my research showed I should be paid, and they offered me the low end of my range. It was a bit intimidating to ask, but now I know how to do it again.
And about that NY article. Again, the sense of entitlement that bugs me. Who does he think he is?
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I think just asking and practicing helps.
I still get sweaty palms and nervous when I ask, so it never goes away. 🙂
I took a job offer for less than I was hoping for. I negotiated a deal (in writing) that stated if I cut costs in the first 60 days I would get a 15% raise. It gave me the opportunity to show them what I could offer and the company had nothing to lose! It wasn't easy but I got a 10% raise after 4 months and an additional 10% after the following 6 months.
That\’s AWESOME! What a great deal 😀
Love it, and important topic! Holding out before signing can also be a useful technique for a job offeree. It gives you more time to pursue other jobs (which might have higher salaries), and makes them sweat a bit about if you will sign or not. Ultimately you'll have to decide one way or the other, but just holding out can often improve your situation.
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Like I said, it also really depends on whether you desperately need the money or not. It never hurts to ask, but if they turn you down the first time, really consider if you should accept or leave.
Good tips. It's tough to win negotiations in this bad economy. There are so many people desperate for a job that will undercut you. Also, your story of paying off 60k in debt is very inspiring.
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Thanks Mark. 🙂
I think it depends on the firm's structure and salary structure. For new hires at large companies that hire large groups of new college or professional school graduates to start together, there's often little room for negotiation. For example, most big investment banks have a pretty fixed starting salary for first years out of college. Most large New York law firms also have a fixed starting salary they pay every first-year coming out of law school. Playing "hardball" and trying to get more than your entering class in this type of environment could be pretty damaging to your career, because it shows you don't really know how big law firms function.
On the other hand, if you're going to a smaller law firm, a startup fund, or a regional investment bank, then you might have more room for salary negotiation since you aren't coming in with a big class in an organization that has a strict hierarchy.
For me, it was not the case. I negotiated a 30% raise a a new hire at very large firm. The ones who didn\’t ask, earned 30% less than me starting off.
A lot of my other friends also managed to ask for raises in the 10% – 15% range. It\’s just a question of asking, although I am not sure about law.
Big law firms have flat starting salaries for entering classes. These salaries are usually published and made public via memorandums, and it’s understood that you accept the flat salary and everyone in your associate class makes the same base salary. Bonuses are often determined by entering “class” as well and made known to everyone in the firm.
Big investment banks also typically have the same starting salary base for everyone. Bonuses can vary widely, though.
I had no idea about those law firms giving out set salaries. Most of my i-banking friends started at $90 – $100k plus a 20% bonus each year.
I only had one friend who started at $130k without a bonus.
Good advice, and that NY article always annoys me (it's not like accepting one job means you can't keep looking for what you really want), but in the end I guess someone smarter ended up having the opportunity to get a job. Jeez.
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It annoyed me reading that article. I really wanted to shake him.