How to Negotiate an Offer Letter
If an employer is interested in hiring you, you will usually receive an offer letter. This is a starting point for negotiating an employment agreement that both you and the employer find acceptable. There are several aspects to an offer letter than can be open to negotiation--but before you begin the counter-offer process, you need to research to make sure you have facts to back up your assertions.
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Instructions
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Research a median salary profile of your position based on numbers throughout the United States. You can find information for median salaries on websites such as Payscale.com or Salary.com. A median salary analysis on one of these websites will take into account the average cost of living where you reside, your years of experience and the size of the company you are considering.
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Analyze the other terms of employment such as paid vacation time, sick time, retirement savings, profit sharing, health benefits and company perks such as a company car or cellular phone. Use benefits from previous jobs as your frame of reference. For example, if your previous employer offered 10 days of paid vacation in the first year of employment, use that as a minimum requirement for your newest job offer. See what kind of retirement matching percentages the company is offering, and compare that to your previous experience. If your new employer is offering retirement matching up to 10 percent, but you are expecting 12 percent, make a note of that and put that in your counter-proposal.
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Draft a counter-proposal to the company outlining your desired salary and benefits, and explaining why you feel you deserve more than what is being offered. In your first paragraph, open with a note of gratitude for the job offer, and explain that you have reviewed it thoroughly. The next paragraph should highlight the areas of the contract that you agree with so that the employer knows what conditions do not need to be negotiated. Follow that with one paragraph for each condition of the offer letter that you would like to negotiate. Start the paragraph with the company's offer, and then get right to your counter-proposal. Explain briefly why you feel you deserve more than what the company is offering, and include backup documentation where appropriate. For example, if you are asking for more base salary, include your median salary analysis as supporting documentation. An example of a good counter-proposal sentence is, "While this salary can be considered fair, it is my feeling that my experience and expertise warrant a salary more along the lines of xxx." Be cordial but direct. Avoid phrases like "I believe" or "I think you will agree," as they convey apprehension on your part. Close the letter with a statement asking for a personal meeting to discuss your counter-offer.
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Include your contact information at the end of the letter.
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Use the closing "Sincerely Yours."
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Mail the letter certified asking for a signed and dated receipt.
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Call the human resources manager five business days after the receipt date if you have not heard back.
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Go into a meeting expecting to get what you have asked for in your letter. If you use self-assured language in your letter and show confidence in your demeanor at the meeting, the company will see that you stand by your proposal. Remain courteous and pleasant at all times to help make the negotiations smoother. If the job is important to you, have a compromise in mind for each of your proposal points. But be prepared to walk away from the negotiations if the company will not meet your compromise. The company offered you the job because it feels you are the most qualified candidate, so showing the conviction to walk away can help your negotiation.
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Tips & Warnings
Get all final arrangements in writing. Do not sign the agreement until you have reviewed it to make sure that everything you negotiated for is in the written contract.
References
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- Photo Credit business 87 image by Nathalie P from Fotolia.com
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Comments
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I did recently perform the tips stated above, but I am anxious to hear back from the company, thus it has been only 2 days. I spoke to the President in my interview and it is a small company so I feel I can call him directly to get their feedback. I will call for a follow-up meeting to discuss my terms.
