By Don Goldstein

Photo by Christina @ wocintechchat.com on Unsplash

Congratulations! You have successfully passed multiple rounds of interviews and you’ve received an offer. What’s next? Are you so relieved and pleased that you accept the offer on the spot, or do you enter into some form of negotiations? Most employers – with a few exceptions – will expect you to negotiate. Some public, government, and university jobs have set institution-wide pay scales with established benefits. There might be a union which is representing all employees in negotiating a contract. However, in most other instances negotiation is acceptable and even expected.

Why should you negotiate?

This one is fairly obvious. It can make your life better. It can result in more money, better working conditions and increased job satisfaction. Be aware of the dangers of not negotiating. Your starting salary is the base for future salary increases so it can have a real effect, even years down the line.

What can you negotiate?

(This is a broad list and not all the items will apply to every company or position.)

• Finances- Salary, stock options, profit-sharing plans, retirement plans, signing bonuses, overtime, compensatory time, relocation costs, tuition assistance, student loan assistance, commuting costs, travel allowance and meals, and dates for the next salary review
• Benefits- These may come as a company-wide package but there may be some leeway particularly on items such as dental and vision insurance, life insurance, childcare, and mental health.
• Time off- Vacation days, personal days, maternity/paternity leave, sick time, and family leave
• Position title and working conditions – Your job title, the tasks of the position, flexible schedule, and working from home
• Perks- Employee discounts, gym membership, free parking, and meals
• Start Date

Determine who you will be negotiating with

You might be negotiating with your direct manager, an HR rep., the COO, the president of the company, or someone else. It is important to know who you will be negotiating with as you develop your strategy.

Determine how the negotiations will take place

Pre-Covid, most negotiations would take place in person, face-to-face. Now it might be conducted through Zoom or even email. You may not have a choice, but if you do, use a platform that best suits your own needs and style. In the jobs where I have been able to negotiate, I always preferred email. Since I’m not particularly fast on my feet, this format gave me the opportunity to craft my replies carefully. Email also provides a written record of the offers and responses.

Do your research

Determine the market value of your education, training, and experience in a particular field. It may also be helpful to reach out to past colleagues and acquaintances for advice. While it may be inappropriate to ask someone else’s salary, you can share your offer with your contact and ask if that person think it’s fair. (Check out additional tips for negotiation research in Figuring Out Your Worth: Preparing for Negotiation.)

Your mindset

Get into a positive mindset for negotiating. Research has found that it helps to recall a time when you’ve been assertive in the past. It is also important to go into negotiations believing in your self-worth. Never undervalue yourself, and remember why they selected you. What were the reasons that made you the best candidate for this position? Reflect on how you are uniquely qualified to meet the job’s challenges and demands, and remember all the experience and attributes — including your potential — that you bring to this position.

Be persistent without being a nuisance. Steel yourself that this might not end in one session and there might be some back and forth. As long as the negotiations are polite and not dragged out, you have no reason to fear that the offer will be rescinded. In all my years advising students about negotiating, only one offer has been pulled. On the other hand, I can think of dozens of situations where the student got more money, more vacation time, and other concessions.

Your Strategy

Start by reviewing the entire offer including salary, benefits and perks. Usually, salary is the number one issue. If they have offered you $90,000 and you think you deserve $100,000, ask for $105,000, remaining flexible to meet in the middle. Prepare your rationale for the ask. Your personal financial situation and your need for more money should never be brought up in the negotiations. This is not just about wanting more money, but it’s about a fair compensation level for your level of skills and experience. Point out deficiencies in the offer without seeming petty or greedy. Help them understand why you deserve what you’re requesting.

Beyond salary, reflect on other aspects of the package that are important to you and rank their importance. Think about other perks such as vacation days, relocation expenses or a more flexible work arrangement. What are you willing to compromise, and what is non-negotiable? Anticipate what the employer might say to justify his/her initial offer and be prepared to counter. Don’t get sidetracked by the offer of bonuses. Bonuses are at the discretion of the employer and can magically disappear at the employers’ whim. Try to create a win-win situation for you and the employer. A good point to mention is that it would be mutually beneficial if you started your job on a good note, feeling valued and listened to.

If the employer says no to everything, ask how much time you have to make your decision. If you cannot get the salary you want, ask when the next review period would be. Finally, if the employer says no to everything without sufficient justification, you might want to reconsider whether you really want to work for this company.

On the Job Negotiations

Self-Promotion

You might think that your good work should speak for itself, but that might not always be enough. I worked for an organization that had a yearly promotion process. This organization had always been fair to me, I had a good reputation, and I just assumed that I would be promoted without having to lobby for it. Anyway, someone else on my team, who had been actively marketing herself, got the promotion. On another job which did not have a formal performance review process, I became perceived as a success only after I started to emphasize my accomplishments and not be so forthcoming about my problems. I wasn’t lying. I was emphasizing the positives. In some cultures, self-promotion might be perceived as boasting, but if you don’t speak up for yourself, no one else will. Besides, if you talk about yourself in a serious, objective way, it is not boasting.

Performance Reviews

Not every company has a formal performance evaluation process, but most larger and established organizations do. If your company does have one, do not underestimate its importance. It can be a vital tool to establish goals which can set employer and employee expectations. The evaluation process also influences how you do your job, giving direction to your work. It is a tool to make sure that the goals of the employee align with the mission of the organization and your team. It can also be the basis for promotions or establishing a formal record that can be used to justify a firing, a downsizing or a layoff. It can be good for an employee to know where they stand and whether they are valued. It can sometimes give you an indication that you should start looking around for another job. It’s also useful for both employees and employers to know whether there is a mismatch in how the employee sees themselves compared to management. Overall, the performance review should be aimed at improving the performance of the employee and should never be used as a tool of retaliation.

A good performance review should be a collaboration between the employee and the manager. It should be a learning experience that results in better performance. It should start with a review of the goals that were set and agreed to from the prior review and should end with agreed-upon goals for the upcoming year. The employee should have a chance to review the evaluation and perhaps make a case for amending it. Standards for promotion should be clear. If you can accomplish A, B, C, and D, that should result in your promotion. Finally, the evaluation should take into account the full amount of time between the last review and the present, because there is a tendency to just relate to the last few months. As an employee, it is in your interests to keep a running log of your accomplishments throughout the year so that they are not forgotten.

If your company does not have a formal process for raises and promotions, then you will have to take the initiative of having a conversation with your manager, usually at yearly intervals. The same advice as above pertains to these situations. Decide what you’re going to ask for. Create a strategy. Present your accomplishments and your value to the organization. Anticipate what the employer might say and be prepared to counter it.

Additional Resources

Looking for more information on negotiations? Check out our webinar on negotiating or schedule an appointment with a career advisor for personalized assistance.