Negotiating the Offer

When a company presents its initial job offer to you, it's only a starting point.  In considering salary offers, your primary concern should be with the scope of the job and its potential, the training you will receive and the reputation and future of the company, not necessarily the best salary offered.  Never accept an offer without knowing the full compensation package being presented.  Explore the benefits including health insurance, performance bonuses, pension, 401K, vacation, stock options, etc.  Be sure you understand the total picture and if necessary, ask questions-the employer will respect your thoroughness.  Also make certain that you have a full understanding of the job responsibilities, who you will report to and finally, the employer's policy on advancement and raise increases.  Remember, some interviews may be granted without a salary figure mentioned up front; therefore, it is essential that you are informed about prevailing pay scales to do any kind of negotiating.

If the salary and benefits package is less than you anticipated, try to keep the door open.  Rather than immediately rejecting the job offer, take the time to closely evaluate what's being offered.  Before presenting a counteroffer, know what you want and why you're worth it, and be prepared to express both clearly and confidently.  Highlight your skills, knowledge and expertise-make them see that they not only want you, but need you.  To initiate the negotiation process, you could respond with either of the following: 

  • "The salary is lower than I expected, but I know the position is right for me. 
    Is there any room for negotiating based on my qualifications?"
  • "Thank you for the offer.  I'm flattered that you have chosen me.  However, the salary is less than I had hoped for, so this is an important decision.  Can I think about it for a few days?"

In some instances, an employer may be unable to offer you more money-even if they want to.  A slowing economy or a disappointing year-end sales performance may leave the employer with little room to negotiate your salary.  Moreover, many trainee programs and government and non-profit jobs generally provide its incoming employees with a non-negotiable salary.  You must also consider that the person offering you the job may not have the authority to grant you an additional week of vacation.  In such cases, ask yourself if you are happy with the offer as it stands.  If the offer is still too low, turn it down in a professional manner: 

  • "Thank you for the offer.  The position is what I wanted. However, I have thought about this very carefully and have decided that I couldn't accept the job at this salary. If you cannot reconsider your offer, please keep me in mind for future openings."

Resources:  (1) Handout: "Evaluating Job Offers." and
(2) McMahon, Ryan.  "Tips on Negotiating an Amazing Job Offer."  Diversity: Opportunities & Insight.