How to Negotiate a Salary Counter Offer for a Job

How to Negotiate a Salary Counter Offer for a JobHow to Negotiate a Salary Counter Offer for a JobWhats the best way to negotiate a counter offer when youre bedrngnis thrilled with the job offer you received? How much leeway do you have when you get a job offer? Whats the best way to make a counter offer? When should you stop negotiating and accept or reject a salary offer? These are great, and challenging questions. Its wonderful to receive a job offer, but less wonderful if the salary or rate doesnt match your expectations or requirements. So when you find yourself with a surprisingly low offer - or simply feel you deserve better or could get more - its only reasonable to consider negotiating your way to a better salary. What is a Counter Offer? A counteroffer is an offer made by a candidate in response to a salary offer from an employer. A counter offer is issued when thejob offerpresented by a prospective employer isnt considered acceptable by theapplicant. An employee migh t also issue a counteroffer to their current employer if they are awarded a promotion and dont agree with the new compensation offered for accepting that punkt. A counter offer can also be made by a company when they learn that a valued employee has received an offer from another organization. In this case, the employer would offer more money or other incentives for an employee to stay with the company. When considering a counter offer, there are several things you can do to increase your odds of getting more pay, and a few things that could stand in your way. Do ThisResearch salary ranges for your desired positionKnow that greater than 50 percent of employers expect to negotiate for entry-level job salariesUnderstand that employers will offer the lowest pay they think youll acceptConsider how much you need or want the job, market rates, other opportunities, and the current job marketFocus on facts, such as the value you bring, rather than on emotionsBe prepared to ask for other ben efits if a higher salary isnt an optionDont Do ThisRely on your gut feeling or financial needs when choosing your counter-offer rangeSet the bottom of your range lower than what youre willing to acceptNegotiate too aggressively or theyll rescind the offerExpect to get more if youre not willing to askNegotiate just for the sake of negotiatingMake a bluff if youre not really willing to walk away Should You Make a Counter Offer? A CareerBuilder surveyreports that over half of workers (56 percent) dont negotiate for more money when they are offered a new job. The reasons include not being comfortable asking for more money (51 percent), worrying that the employer will decide not to hire them if they ask (47 percent), or not wantingto appear greedy (36 percent). A Glassdoor survey reports that womenare less likely to negotiatecompensation than men, with twoout ofthree women (68 percent) not negotiating paycompared to about 52 percent of men. Even though many job seekers arent comforta ble negotiating, manyorganizations do expect candidates to make a counteroffer. Fifty-three percent of employers say they are willing to negotiate salaries on anfangsbuchstabe job offers for entry-level workers, and 52 percent say when they first extend a job offer to an employee, they typically offer a lower salary than theyre willing to pay. So there is room to negotiate for many candidates. How Much Compensation to Target You dont need to mention in the email how much more money youre hoping to make that discussion will unfold after the hiring manager sees your email and agrees to schedule a meeting or a phone call. (Hopefully. More on the other possibility in a moment.) Ideally, youll have set yourtarget salary rangebefore the first interview, but if you havent, theres no better time than the present. You want to have a good idea of how much youre hoping to get and willing to take long before you start negotiating in earnest. Research is crucial for this. Dont make the mi stake that many job seekers commit where they set their price based on a gut feeling or financial obligations that need to be fulfilled. By doing so, you could either be pricing yourself out of a job you want or selling your skills far shorter than necessary. Instead, research salary ranges for the exact job title and duties, as determined by thejob descriptionand what youve learned during theinterview process. There are a lot of angeschlossen tools that can give you a sense of whats reasonable. For example, the salary information site PayScale.com will create afree reportfor you, based on your answers to survey questions about the job youre targeting, your experience, skills, education, and geographic location. Finally, dont set the low end of your range lower than youd like to accept. Hiring managers have a budget, and may even get bonuses for keeping costs low. Theyll often offer you the lowest number they think youll take not because they want to low-ball you or devalue your sk ills, but because its their job to stay on target, budget-wise, as well as hire good candidates. What Can Happen When You Counter Offer But while you can negotiate, its possible that the employer might rescind the job offer if you do so too aggressively. Some employers arent thrilled with candidates who go back and forth over salary offers multiple times. Also, there may be a set salary range for the position and there may not be much room for further negotiations. Its possible the negotiation process could leave both you and the employer feeling frustrated and disenchanted. In an ideal world, this situation wont arise, because, during the interview process, you will have gotten a sense of what the company has in mind for a salary, and made your salary expectations clear. Of course, its also possible that the negotiation process will go smoothly, resulting in a counteroffer thats everything you want, and is acceptable to the hiring manager and company as well. When you are decid ing whether or not to negotiate a counter offer, keep these considerations in mind the salary conversations you had throughout the interview process, the market rate for the position, your current salary, how much you need this job, the availability of similar positions, and the job market in general. If you feel that as a candidate you deserve more, and that your expectations are reasonable based on the position and industry, use the tips and strategies below to negotiate a counter offer. How to Negotiate a Counter Offer If you have received an offer thats not what you expect, you do have a few options Ask if there is any flexibility in the starting (or future) salaryConsider perks you may be able to negotiate in addition or in lieu of salaryTurn down the offer, realizing that the company may not make a counterofferCreate an opportunity for more discussion One of the best ways to open discussions after you have received an offer is to ask for meeting to discuss the offer. Revie w a counter offer letter and counter offer email message you can tailor to fit your circumstances if youre going to make a counteroffer. Tips for the Negotiation Process While we have mentioned a lot of reasons to be cautious while negotiating, its also good to remember that if you dont ask for something, you generally wont receive it. It is possible that the company has more money available for your salary (and in fact, they may expect a certain amount of negotiation to take place, and have crafted the offer accordingly). Here are some tips to consider while negotiating a counter offer Know Your Value and the Industry Rate for Your PositionThe best negotiation tactics are rooted in facts, not emotion, so spend some time researching. When negotiating your counteroffer, youll need to make a case for why you should receive a better offer. This case will be built on your value Youll want to remind the employer of why youre a particularly good match, offering experience and know-how that other candidates do not. (Most likely, employers would prefer not to restart the interview process they picked you for a reason) As well, youll want to let employers know about the market value for the position. You can mention the salary range for similar positions at other companies. Here is how to research a company, and here are salary calculators to help you know industry rates. Dont Rush ItSince you need to have a lot of information to make a reasonable counter offer, its worth taking some time before you begin negotiations. Start by sending a thank you note for the job offer, and establishing a timeline for when youll be in touch. Dont Forget Non-Salary BenefitsBefore you crumple your offer letter into a ball, look beyond the salary. Perhaps you get other benefits and perks (such as tuition reimbursement, the ability to work from home a week each month, etc.) that make up for the lower salary. Or, if you dont, perhaps there are some non-salary benefits that you could as k for that would make the lower salary more palatable. You can ask for a signing bonus, for health care coverage to begin immediately if the company has a 30-day period waiting period, additional vacation days, coverage of your moving expenses, etc. Dont Push Too MuchThink about why youre negotiating- is it because you genuinely think that the position merits a higher rate, or are you negotiating for the sake of negotiating? If you are comfortable with the offer, you might not want to push too hard just to get a little more. The very best job negotiations end with both employee and employer happy with the resolution. Dont Say Too MuchThere are some things that wont help your case when youre negotiating salary. Know Whats Really Important to You?Youre going to negotiate differently depending on your circumstances. Getting a job offer after youve been unemployed for a year is different than an offer when youre employed at a tolerable job. Dont bluff if you are not actually willing to walk away from the job offer. But if you are lucky enough to be considering two job offers, do use that to your advantage.