6 Critical Tips For Negotiating A Job Offer (So You Don't Get Screwed)
Negotiating a job offer can be a tricky business. You want to make sure you get the best possible salary and benefits package, but you also don't want to lose the offer altogether. Here are 6 tips to help you negotiate a job offer successfully:
1. Reach a common ground
The art of negotiation is often wrongly assumed to be about give and take, it is about giving less and taking more. It is unrealistic to think that you can always get everything you want, but it is not unrealistic to think that you can get what you want 9 times out of 10 if you negotiate properly. To get what you want, focus on reaching a common ground during negotiations. This is not to mean that you should accept any job offers presented to you, but rather, trying to focus on common grounds with your negotiation opponent as a tool to get the best deal possible for yourself.
My golden negotiation rule is to be slow to rebuke but to be quick in reaching a common ground. Human nature is to immediately rebuke upon receiving disagreements from others, which does not help in negotiations as the act of rebuking pushes your negotiation opponent away, making it harder for your opponent to accept your requests without losing face. This may mean a lose-lose, as you don't get what you want in the end, and the employer loses the chance to hire you.
Instead of rebuking the hiring manager, you can often try to rephrase your "rebukes" in a way that emphasizes common interests you have with the hiring manager. Or even better, show the hiring manager that reaching a common ground with you in his/her interests. Candidates often fall into the trap of perceiving employers as "enemies" during negotiations, yet the reason why both you and the hiring manager are at the negotiation table is because of one major common interest for both parties - agreeing to work for the employer for the benefit of both the candidate and the employer.
For example, instead of pitting yourself against the hiring manager by saying "I feel like the offer is too low as it does not reflect the skills and amount of experience I possess", try saying "I feel like the offer can be better so that I can decide to take up the job quicker". Note that the latter phrase nudges the hiring manager to think about reaching a common ground quicker with the candidate, or face the implicit threat of losing the candidate in front.
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2. Understand the Right Timing for Negotiations
It is well-known that negotiating one's salary can be a tricky and sometimes daunting task. Candidates who go into an interview without any groundwork or preparation often leave feeling discouraged, and as though they could have gotten a better offer had they known what to do.
Umpteen candidates fail to realize that job offer negotiations commence way before a job offer is given, because they fail to consider the question "how are the terms of the initial job offer determined?".
As the hiring manager assesses the candidate's suitability for a job, one of the main considerations that invariably crosses the mind of the hiring manager is "what is the least salary and benefits I can offer such that the candidate will accept my job offer?" This will be based on a few major factors, such as whether the candidate has other job offers at hand, whether other competing candidates are superior or inferior in terms of experience, whether the candidate is money-oriented or not and so on.
In order to gain an upper hand in salary negotiations, the candidate should therefore create a narrative before and during the interview that he or she is highly sought after in the job market. If the candidate successfully conveys his or her value to the hiring manager, the hiring manager will likely be prompted to offer a higher salary and better terms to keep the candidate's interest in taking up the offer.
Aside from psychologically prompting the hiring manager to give out a better offer, the candidate should also be sensitive as to whether and when he or she should bring up the topic of salary first. Even though many candidates are advised against bringing up the topic of salary first, so that they can gain valuable information about the employer's starting point, this may actually weaken the amount of leverage they have in practice. This is due to the psychological concept of the "Anchoring Effect", where humans are found to often base subsequent negotiations on an initial anchor, which in this case, is the starting point of the salary offered.
From our experience, hiring managers will often anchor lower than expected if given the first chance to lay out the terms of offer, so as to give them wiggle room to negotiate. Due to the anchoring effect, candidates will often struggle to make significantly higher counter offers, which can lead to a result of underpayment. Oppositely, if the candidate manages to anchor highly, the hiring manager will be forced to use this anchor to give out counter-offers, which often leads to higher than market pay if anchored correctly.
There are risks attached to anchoring first, such as negotiating at the wrong time and setting out an unreasonable anchor that significantly decreases one's chances of getting an offer in the end. We will explain how candidates can avoid these common negotiation pitfalls in length below.
To sum up, it is important to be sensitive in regards to when negotiations commence and when it is appropriate to make your demands known. Candidates should realize that "unofficial negotiations" commence far beyond the commencement of "official salary negotiations", since job offer details are determined by the narrative in which the candidate has constructed before a job offer is extended.
3. Do your research
Before you start negotiating, it's important to do your research. You should have a good idea of what the going rate is for the position you're applying for, as well as what the company's budget is for the role. This will help you to come up with a realistic number that is neither too high nor too low.
You can find information on salary rates by researching online or talking to people in your network who are in similar roles. Once you have an idea of what the industry swallow is, you can start negotiating.
Use a Positive Tone
Be as positive as possible when discussing your salary expectations. Assuming that you are extended an offer, remember to first thank the employer for their offer and express your enthusiasm for joining them. Then, you can explain how much you believe your salary should be based on the research you have done.
For instance, you can use relatable examples by mentioning how much other companies in the same industry are paying, which is why you're expecting at least XXX. That will reassure your employer that you are not just making figures up and that you are negotiating in good faith. You can easily find rough salary figures from different sources, such as Payscale, Glass Door etc. Aside from figures found online, we always recommend candidates to carry out research directly from their networks, so as to make sure that the data collected is up to date.
4. Know your worth and Show Confidence
Similar to point 2, you should know what the going rate is for your position and skillset in the current market. This will help you have a realistic idea of what you should be asking for.
Don't be afraid to negotiate! If you're lowballed, don't be afraid to counter with a higher number. It's also important to remember that you're not just negotiating your salary. You can also negotiate things like vacation days, flexible hours, and working from home. So if you're feeling uncomfortable about salary, there are other benefits you can ask for.
The bottom line is that you must appear confident when laying out your demands, whilst showing even more confidence in defending your own position when challenged. It is wishful thinking to think that you will not be challenged when negotiating for a job offer, yet far too many candidates go to the negotiating table unprepared. Being unable to defend your own position upon the slightest rebukes from the hiring manager is one of the major reason why some candidates continue to be underpaid.
5. Be professional and assertive
When it comes to negotiating a job offer, it's important to be professional and assertive. Remember, you're not trying to be friends with the person making the offer - you're trying to get the best possible deal for yourself. So be polite but firm in your negotiation.
Human nature is to think from the other side's perspective and be sympathetic, yet this is not a beneficial quality in negotiations. Don't get me wrong, a good negotiator must be able to formulate what the other side is thinking, but this is not to say you should easily cave into the other side's demands. You must go into negotiations with a clear mindset that the hiring manager is fighting for his/her company's interests, not your interests, hence overly taking the side of the hiring manager will often yield poorer negotiation results for you.
Moreover, if you can't assert yourself during job offer negotiations, not only will your present remuneration be affected, your future remuneration might also be affected since job offers are often based on previous ones. This is why you should not be afraid to negotiate - you should instead be afraid if you don't negotiate.
6. Be prepared to walk away
If you feel like you're not getting a good deal, or if the hiring manager is being unreasonable, don't be afraid to walk away. You never know if the hiring manager will come back with a better offer, but should only take this move if you are 100% prepared to forgo the offer.
By following these tips, you can increase your chances of success when negotiating a job offer.
