How to Negotiate a Salary Before Accepting an Offer
You've been through a grueling series of interviews, and finally you have the offer letter in your hand. You've secured your dream job. Don't celebrate just yet---there's one more step to go through before you settle into your new role. You want to ensure you'll be compensated fairly for your expertise and experience, so don't be afraid to negotiate on salary. This has to be handled appropriately---after all you don't want to start off on the wrong foot in your new job, but there are ways to get what you want, and at the same time make the company feel it's getting a great deal.
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Instructions
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Find out what you're worth. Ideally, you'll start this process at the beginning of your job search, so that when the offer comes, you're already prepared with a figure or range in mind. This will involve doing research among colleagues and associates to establish what the going rate is in your industry for someone in the role you're seeking. You can also find out relevant information on websites such as PayScale or Vault. Remember to factor in your own personal experience and achievements when setting your figure.
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Do your research on the company in question. Again, by working your contacts and by reading the signals you get during the interview process, try to get a sense of how urgently the company needs to fill the position, and how much competition there is for the role. This will give you valuable information about the strength of your bargaining position when the salary negotiation begins.
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Express enthusiasm and excitement at the offer when it arrives, and at your new opportunity with the firm, and then follow up by requesting a formal meeting to discuss compensation. Don't be afraid to politely insist that this is carried out face-to-face with a decision maker who has the authority to carry out a real negotiation.
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Rehearse a reasoned argument for the figure you want to present at the meeting. This should highlight your strengths and experience and should be fact-based. You can also introduce the research you've done into industry standards. Work especially on a straightforward and pleasant tone for your presentation. Many people can become emotional or nervous when discussing money, but it's best to maintain a professional and relaxed demeanor at all times.
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Expect a counter-offer. It's a rare salary negotiation in which you're granted exactly what you ask for the first time. This may mean you want to pitch your initial figure on the higher side of an acceptable range.
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Be prepared to get creative. Some companies will have no flexibility on base salary, sometimes because of circumstances beyond their control. In this situation, you can suggest other methods of compensation, such as a relocation allowance or signing bonus, or you can suggest a reevaluation of your salary within six months if you perform well in the role.
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Know your bottom line. Consider whether there's a figure at which you will not accept the offer. This will depend on your personal situation and how badly you need the job.
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Tips & Warnings
Most companies will expect you to negotiate on salary, so be confident in seeking this discussion. After all, it's one way you'll be demonstrating the business skills and savvy that the company hopes will add value once you're working for it.
References
- Photo Credit handshake image by Anatoly Tiplyashin from Fotolia.com
