11 Tips on How to Negotiate a Job Offer

By Derrek Cummings on July 23rd, 2018

If you’ve just been offered a new job, you might be wondering how to start your new career with the best employment contract. Negotiation of your job contract not only sets the tone for your professional relationship with your employer, but it also determines your career trajectory.

• What is negotiable?
• Why should I negotiate my job offer
• When should I negotiate a job offer?
• Prioritize your list of wants, what is important to you
• Should I start with salary negotiation?
• Asking for agreements in writing
• Review any written contracts before signing

Negotiation is a subtle game — you must be prepared and do your research, so you’re confident and minimize stumbles during your interview. If you prepare and practice your answers to questions your employer is likely to ask, you won’t be caught off guard. You don’t want to feel like you left too much on the table.

Your negotiations will likely determine your salary, so make the investment in your preparation — it could be the most valuable time you spend for your job success.

What Is Negotiable?

Salary isn’t the only thing that’s negotiable. Based on your interview and contract negotiation with your employer, you may also improve benefits like:

• PTO and vacation
• Job title
• Start date
• Relocation expenses
• Travel expenses
• Training expenses
• Bonuses
• Mobile devices and equipment
• Car or transportation
• Flexible schedule
• Work-from-home options
• Access to company resources
• Stock options

It’s best to negotiate these benefits ahead of time so that when these situations arise in your new career, there won’t be any conflict between your expectations and your employer’s. Also, knowing your limitations before you get into your new job can help you allot your time and resources more efficiently. Figure out a reasonable offer for all negotiable areas that are important to you.

Why Should You Negotiate a Job Offer Contract?

While it may be intimidating to negotiate your salary and benefits for a new job offer, negotiation with the right tactics can set you up for the rest of your career with a company. If the manager believes you are a confident person who knows what you want, they will be more likely to respect you and pay you for your full worth.

Employers typically want to pay you as little as possible — it’s nothing personal, it simply makes sense from a business perspective. If you don’t ask for more, then they assume the original letter of employment offer works for you, and there’s no reason for them to pay you anything more.

Not negotiating an offer means you could lose out on extra salary and other benefits. And while it may be scary, overcoming this small hurdle can have a tremendous effect on your career and the value of your time.

In a survey published by Salary.com, only about one of every three people even negotiate their original salary and one out of five never do. Even more surprising — almost half of the people surveyed admit to never addressing a raise during one of their performance reviews.

The fear of discussing a higher starting salary has many people leaving money on the table.

In a study about the cost of avoiding wage negotiations, only seven percent of women attempted to negotiate their salary while 57 percent of men did. Negotiation led to an average increased salary of over seven percent.

A seven percent increase in salary may not sound like a lot, but this translates into eight additional years of work to retire with the same wealth as someone who got the higher initial salary.

Throughout the rest of this article, we’ll give you some pointers on how to be well-prepared and negotiate a new job with confidence.

1. Ask Questions During Your Interview

Your research starts before you ever get to your job negotiations — it starts in the interview. The more information you can get from your employer, the better prepared you’ll be for your negotiations.

Listen carefully and ask questions during the interview to learn more about the job.

The interview is the best time to ask questions about your salary and other benefits. Getting the information straight from your employer eliminates guesswork in other research and allows you to digest the information before you sign a contract. You can decide if their offer sounds good to you and you’ll have a better idea of what you can ask for in a counter offer.

Ask questions where appropriate to the context of the conversation. Try not to force anything into the conversation where it doesn’t belong, have your questions in mind, but wait for the right moment to ask your interviewer.

2. Research and Prepare

Confidence in your job interview comes from thorough research and being prepared.

A good place to start your research is on the company’s website or third-party review websites. Once you know what a typical employee’s salary and benefits are like, you’ll have a better idea of what is negotiable.

Look up:

• Salary
• Benefits
• Responsibilities
• Other positions at similar companies

Know what to expect and practice for your negotiations. Be prepared for any tough questions that could come up:

• Are you considering any other job offers?
• Is this position your first choice?
• If we meet your requests, will you say yes?

Try to prepare for these types of questions by practicing your honest answers beforehand. The goal is to give genuine answers without giving up too much. The more you think about these types of questions before you sit down for negotiations, the more confident and well-prepared you will be.

A few things to keep in mind as you prepare:

• Never lie in a negotiation. Besides being unethical, it can come back to hurt you, and it’s best to begin your relationship with a new employer on a foundation of trust and honesty.
• Be careful not to try to please too much, or you may end up with something less than you hoped for. The more you prepare your answers to possible questions beforehand, the less chance you’ll be put on the defensive and say something that you might regret later.
• Confidence in an interview is key, and when you’re sure of your answers and aren’t worrying about shocker questions, you can relax and make better decisions.
• If you do run into a question that you’re not ready for, relax and remember this simple trick to keeping your calm — always assume that your interviewer has a positive intent. They may have asked you a tough question, but they probably aren’t out to get you, especially if you’ve already made to this stage in the hiring process.
• Attempt to answer their questions as best you can, but more importantly, keep your cool and confidence. If you didn’t fully answer them, they’ll ask you to clarify and give a followup. Don’t get too hung up on the details of their question, try to focus on their intent.
• If you don’t have an answer that precisely satisfies a question, don’t dwell on it — move on.
• It’s best to be personable and genuine — don’t answer everything like a robot. Engage your interviewer as a real person whom you’re trying to help, and you will both have an easier time in negotiations.

3. Only Negotiate After You’ve Received the Job Offer

As we’ve said before, the interview and job negotiation process is a delicate game. Only dig into the details of salary and benefits when you’ve been offered the job. Bringing it up before could make you look greedy or presumptuous.

It’s a good idea to ask about potential salary and benefits in the interview, just be sure to not counter or suggest any additional benefits before they offer you the job.

4. Consider the Whole Job Offer

There’s more to a job than just the salary — first and foremost you have to be happy.

When you’re deciding whether or not to accept a job offer agreement, it shouldn’t be based on salary alone. Consider the whole scope of the job — compensation, benefits and perks.

If the company has other benefits that are very valuable to you, it may be worth giving up some salary. For example, if they are flexible with their vacation days or allow working from home, this could be well worth taking a cut in pay for the added convenience and quality of life — not to mention saving gas money and time commuting in the mornings.

5. Prioritize Your List of Items to Negotiate

It’s a good idea to prioritize the items that are important to you — both in the negotiation and your job interview.

Do you have any must-have benefits like healthcare and vacation time?

Is there a salary figure you have to reach?

Once you know what you absolutely need, place these items at the top of your list and address them first in the negotiation process. You may not be able to get to all of the questions you have about lesser benefits in your interview, so address the most important issues first.

Although prioritization is important, don’t address every term one after the next. If you ask your interviewer for one thing and then another and another, it begins to feel tedious very quickly. Instead, try to get all your terms in the open sooner rather than later, without forcing the issue. Don’t simply list everything you want, let them know what’s most important to you and where you can be flexible.

Once you and an employer can reach an agreement on the foundation of your job offer, you can be more lenient about the less-important details. Try not to haggle over every little thing and be willing to let some things go.

People can sometimes get caught up in the process of negotiations and feel like they have to win every little battle. You don’t want to look greedy or selfish in front of your future employer, and haggling over little items could upset them if they feel that they’ve already done you a favor in other areas.

Being more flexible in the negotiation of your contract also allows for easier change later on in your career. If you’re lenient on some things in the beginning, it’ll be easier to ask your employer for improvements later — instead of them feeling like you got everything you wanted and shouldn’t be asking for more.

6. Start Negotiations With Salary

It’s best to start your negotiations with salary to make sure your work relationship is viable on an essential level. If your employer can’t offer the salary you absolutely need, further negotiation may not be necessary. Once you know that your relationship will work for the both of you, you can begin to discuss the other benefits and perks you’re looking for.

It depends on the employer and your position, but research shows that requesting a higher — and even ridiculous — salary early in your negotiations often leads to a better deal. This phenomenon is called a psychological anchor. It sets a reference point in your employer’s mind that they will tend to gravitate towards.

Even if you jokingly suggest an insane salary like one million dollars, it still anchors your employer’s expectations in the upper range of the salary bracket. Fortune Magazine published findings from a study by the University of Idaho, in which they found that candidates potentially could receive a higher salary offer from using similar tactics.

If you can’t first tactfully suggest a high salary, the next best move is to allow the employer to suggest the first viable figure.

When asked how much you’re expecting for compensation, it’s best to politely avoid giving a set figure if you can. When asked, tell them that you will “consider any reasonable offer” and let them make the first move. And if you were able the successfully insert your psychological anchor earlier in negotiations, you’ll be in a great position.

Letting them make the first move also protects you from asking for too much. If it looks like you think you’re worth much more than what the company can give you, they might be reluctant to hire you. Managers know that if you feel undervalued, then you’ll probably be looking for another job that gives you proper compensation.

Once they give you the first offer, you’ll have a better idea of how to negotiate from there — as opposed to taking a stab in the dark and hoping that you didn’t undersell yourself.

The first person to bring up money in any relationship is more likely to look selfish. And to protect themselves from offending you, managers will actually increase their salary offers.

One more useful tip — try not to be impressed with their first offer. The more you can stay neutral, the better your bargaining position will be. Even if you are really excited about how much they’re offering you, accepting the terms too quickly can make them feel they’re giving you too much and they may be less likely to give you a raise in the near future.

Your employer doesn’t have to know that this is the most money you’ve ever made, and you should do your best not to get too excited — it sets the tone for the rest of your business relationship.

7. Base Further Negotiation on Success of Salary Negotiation

Gauge your employer’s reaction to your salary negotiations — it’ll indicate their willingness to bargain in other areas. If you’re very satisfied with the agreed salary, you may be willing to compromise on other items. If the salary negotiation isn’t successful, you may have the leverage to push for other items — politely, of course!

The success of your salary negotiations can determine the rest of the job negotiation. And as negotiations continue, it’s best to have a backup plan if things don’t go as you expect.

Prepare a “Best Alternative to a Negotiated Agreement,” or BATNA — it’ll help you remain confident and relaxed if Plan A doesn’t work out. Consider other job offers in your BATNA — is what this company is offering as good as your other job offer? If you know where you stand before negotiations, you can use it to your bargaining advantage.

Establish a lower limit for the salary — an amount where the job is still worth it to you and better than your best alternative solution. This is called your “reservation price.” Having this limit ensures you avoid agreeing to a job contract and then realize another offer was better.

You might have more bargaining power than you think — use the salary negotiation as an indicator. The company may need you as much or more than you need them, especially if you have specialized skills or any unique advantages.

Remember, time is on your side. Never be too quick to accept any terms of a negotiation without time and consideration, especially if you have multiple offers. If an employer thinks you’ll be happy with whatever they offer you, they’ll give you the bare minimum.

8. Understand the Other Person and Their Constraints

While it’s important to negotiate the best terms for your new job, you have to remember that the hiring manager doesn’t have unlimited resources to offer you. They‘re probably constrained by a budget, and this means they can only give you so much. Being politely aware of this takes pressure off of your employer.

• If you let a hiring manager know that you understand that their negotiations aren’t personal, it gets them off the defensive, and they’ll be more likely to offer a better deal. Empathizing with their situation lets them know that you aren’t trying to beat them in a personal game. People appreciate an employee who understands their constraints — they’ll feel more connected to you personally and more likely to help you out.
• Understand the person who’s interviewing you and making the offer. Are they just an HR rep or are they your future boss or someone who you’ll be working closely with? They may be told by a higher authority that they can only offer so much. Even if the person interviewing you is your best friend, they’re likely confined by certain restrictions that negotiation won’t be able to change.
• Tactfully figure out which areas are negotiable and which are not to try to avoid talking points that cause tension. When you know what is non-negotiable, you will be able to focus on your other benefits or maybe ask for additional benefits to balance out lacking areas.

If you’re one of several new employees being hired for the same type of position, your employer may not be able to pay you too much more than anyone else — it would cause workplace turmoil and everyone would want a raise. However, you may still be able to negotiate things like starting dates, bonuses or vacations. If you’re being hired into a smaller company, there may be more wiggle room and flexibility in salary, job title and other benefits.

Because of employer restraints, you may reach a dead end in some areas of negotiation. Avoid giving the employer an ultimatum of any kind. Usually, they can’t get around their constraints, and it could lose you the job. Also, it’s hard to back out of any ultimatum once you’ve said you need something.

People sometimes resort to an ultimatum if they aren’t getting what they want or out of frustration. Stay calm and try to avoid this type of pitfall. If the interviewer gives you an ultimatum, try not to address it right away with a yes or no answer — this can lead to tension or even break a deal. Instead, acknowledge their point and how you understand their constraint. Then move on to other issues — you can always consider the ultimatum later on your own time.

9. Remain Positive and Likeable

Negotiate by framing things positively and politely, but also firmly enough where your desires are well understood. Remember, a manager’s negotiations are often constrained by what their company allows — it’s usually not personal when they say they can’t offer you something. Don’t get upset and don’t feel guilty when asking for what you want.

A few more tips to stay likable:

• Don’t treat a job negotiation like a game that you’re trying to win. Approach the conversation with the same demeanor that you wish to project throughout your career. Chances are, you’ll end up working with the person who’s negotiating with you, and you want to start the relationship on a positive note.

• You should almost always negotiate in person or over the phone, so have your talking points ready and written out to reference when needed.
• Maintain the attitude that what you’re discussing will be good for the both of you. When you make a demand, back it up with research and other reasons to make it legitimate to your employer — not just that you want it. When it seems like you’ve done your research, your employer will take your demands more seriously.
• It helps to acknowledge your employer’s reasoning when they’re reluctant to give you what you want. Logically present your arguments and build trust — show your employer you’re trying to work with them.
• It’s always good to express your gratitude for being considered for a job opportunity. Throughout your bargaining, let them know you’re excited about the job.
• With any negotiations, there will be some tension as you go back and forth. Being prepared for this and staying neutral is your best option for keeping yourself and the interviewer level-headed.
• Back up every counterpoint you make with reasons so that it doesn’t seem like you are arguing.
• Be persistent but don’t cross the line — if you feel any tension, ease up.

• It may help to do a mock interview with one of your friends, even if it isn’t completely serious. It’ll give you an idea of how your prepared points sound when they come out of your mouth.
• Have your friends tell you how they feel about the tone of your points.
• If you arrive at a point that the manager says is “nonnegotiable,” don’t take it personally. Instead, politely ask the reason why and if there is anything you can do to make it negotiable — perhaps giving up a less important benefit or agreement.
• If a manager says one of your must-have terms is out of their hands, you may be able to ask if you can schedule a meeting with someone who can make it negotiable.
• While it’s important not to treat a negotiation like a battle, in many ways, it is. It’s a subtle game, and you want to leave your employer feeling like they won. It’s not worth causing tension and animosity because you were hoping to get one extra weekend off.
• Leaving your employer feeling like they won will often pay off later. They’ll have a better attitude towards you and will be more likely to reward and help you throughout your first few months.

Maintaining likeability is critical for your negotiations and sets the tone for your future working relationship. A manager won’t try to give you anything extra if they don’t like you.

10. Ask for the Agreement in Writing

Having a job proposal in writing is essential. Employers will usually offer a written contract but if not, politely ask for one before agreeing to their offer. It’s important to get everything down on paper so that if there are any disagreements about benefits or what your employer expects of you, you have an iron-clad reference to resolve the issues.

Even if you know your employer, having a written contract is a wise legal move. If your work relationship unfortunately turns sour and you have to seek legal help, having an explicit work agreement may be vital to the success of your case.

A written agreement is especially important for any position with opportunity for extra compensation, such as a commission-based salary or sales position.

Be sure that the details of your duties and your benefits are thoroughly laid out in your contract. This ensures you can avoid conflicting ideas about the work you should have to handle and the perks you should receive.

11. Review Any Written Employment Contracts Before Signing

Review any written contracts to ensure what you verbally agreed to is accurately expressed in your work agreement.

If something isn’t in your contract that you agreed upon, it’s probably an honest mistake — contact your employer to have it resolved. Always remember to stay polite and assume positive intent.

You don’t want to get caught in a “but you said” argument later in your career without a written agreement, not to mention if there are any legal employment disputes. By thoroughly reviewing the written contract for your work agreement, you make sure that everyone is on the same page.

If you have any concerns or issues, Weisberg Cummings, P.C Employment Law Attorneys can help you review contracts and noncompete agreements.

Contracts are designed to protect both employers and employees. However, contract disputes can arise for multiple reasons — employee classification, overtime, independent contractor issues and more. It’s critical to seek legal help to ensure you receive rightful compensation and protect your rights as an employee.

At Weisberg Cummings, P.C., we’re committed to being the professionals you can turn to for any legal employment need. We take personal responsibility for all of our clients, and our lawyers have over 40 years of combined experience in a broad range of legal matters.

Whether you’re an independent contractor or an employee, you can protect your rights. At Weisberg Cummings, P.C, we handle multiple kinds of contract issues and disputes, including:

• Employee Misclassification: We can help if your employer has denied agreed-upon benefits such as wage, overtime compensation, medical leave, unemployment insurance or a safe working environment.
• Title VII: If your employer has unfairly discriminated against you in any way, you may be entitled to monetary compensation. We also offer consultation about related severance payments.
• Severance Issues: Before agreeing to any severance agreement, it’s wise to seek advice from a legal representative. We’ll help you ensure that you receive proper compensation and resolve any severance disputes. Severance disputes can arise from layoffs, downsizing, employee structure changes, company ownership change, sexual harassment or employer retaliation. Severance agreements should resolve all issues between the two parties to avoid further legal problems. If you’ve been asked to sign a severance agreement, consult with a qualified employment lawyer before you sign. We’ll help you be sure that your deal is favorable.
• Noncompete Agreements: These agreements are designed to stop you from working for a competing business after you leave your employer. Before signing a contract like this, our team can help you determine if the demands are reasonable and not too strict.

We use our real-world experience to find practical legal solutions at affordable rates.

A Final Salary Pep Talk

If you just landed a job, it’s understandable if you are nervous about negotiating your salary and benefits. It can sometimes feel like you’re begging for employment and that once you get an offer, you shouldn’t negotiate because of all the other qualified candidates. You might feel like the hiring manager will be offended if you even ask — but they won’t be and you should.

If you prepare yourself with solid arguments about why you deserve the benefits you’re asking for, then your interviewer will have no reason to be offended. They may tell you why they can’t do something for you, and then you can make a more well-informed decision from there. Asking in the right way lets you rest easy knowing that you are asking for fair compensation, while your prospective employer will see you’re the kind of person who has ambition and can calmly and politely function in a high-pressure situation.

Your takeaways:

• Be genuine and do your research. There’s no reason to fear the hiring manager. It’s easy to build up the negotiation process in your mind, but remember — it’s just another person behind the desk. They’re human just like you are. They also make mistakes and don’t always say the perfect thing.
• Don’t rush through negotiations — instead, treat them like a marathon. Pace yourself and take your time. Don’t be afraid to send emails and ask detailed questions. Stay polite and enthusiastic throughout the entire process.
• Remind the hiring manager what value you will bring to the company, and don’t forget to reinforce the impressive reasons why you got the job offer in the first place. By demonstrating your worth, you increase your value in the eyes of your employer.

Not only does negotiation determine the salary trajectory of your career within that company, but it also lets management know what kind of professional you are. You stand up for yourself and understand what you’re worth. When an employer respects you from the beginning, you’ll often have a better career experience in other ways than just money.

We know how to help you through the stresses of the first stages of job negotiation because we’ve been through it too. If you have any questions or need advice, we’re more than happy to help.

Weisberg Cummings, P.C Employment Law attorneys are here to help you review job offer contracts and agreements. We handle all of our cases in our offices in Harrisburg, Penn., and we’re proud to serve our local employees and businesses. Through technology, we are are also able to assist clients throughout Pennsylvania or those looking to relocate to Pennsylvania. Contact us today for a free initial consultation.

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