Salary Negotiation

Salary Negotiation

You aced the interview, and the recruiter calls to offer you the job, now what? People often think they shouldn’t negotiate but companies expect you to negotiate. Remember, if you don’t ask, you won’t receive. According to fidelity, 85% of Americans negotiate their first offer.

Communication and confidence are the keys to negotiating. You must make sure you are prepared and do your homework before starting the negotiation process.

Find out who the decision maker is during the negotiation process. When negotiating you want to be clear and precise, thankful and excited to work for that company, and highlight the skills you could bring to that company. You want to provide direct examples from your past experiences of how you could help that company achieve their goals.

Do Not Accept the Position on the Spot

Even if you are 100% sure you will take the position ask for a few days to think it over. Show gratitude and interest in the company but take time to evaluate the offer.

• If the offer is given over the phone ask to review it in writing.
• Companies differ in the amount of time they allow for offers to remain outstanding. Some will allow one to two weeks or longer for a decision to be made while others may only give a candidate a day or two.
• Do not be afraid to ask for an extension if given a short time to make a decision.  The extension may not be granted but it cannot hurt to ask.

Can I Negotiate?

You can always try to negotiate an offer, but you must have facts or data to support your request for higher compensation.

• Some companies hire a large number of entry level employees into a “training class” where the salary is fixed and there is often no room for negotiation.  Again, there is no harm in asking if the salary is negotiable.
• Smaller firms and companies that are only hiring a couple of employees may have more wiggle room for salary negotiation.
• The Leeds industry coaches can also look up historical salary data for companies that have hired CU students in the past. This will help to gauge if the salary being offered is fair and in-line with industry standards.

Know Your Worth

Before negotiating take the time to do research and know your value in the marketplace.

• Check websites such as those listed below to get a sense of the standard salary for the job you are pursuing. Compare your offer to the salary of similar jobs in the same location.
• Keep in mind that start-ups and smaller companies may not have the funds available to pay the same salary as larger, established firms.
• While researching, also consider the cost of living (rent, food, taxes, etc.) in the city of employment. For instance, the cost of living is higher in cities such as New York and San Francisco than in cities like Denver and Chicago.

Evaluate the Entire Offer

• Take into consideration the entire compensation package: hours & travel/commute, health & life insurance, vacation and sick time, 401k and pension plans, flexibility, company culture/work environment.
• Some companies may also offer a relocation allowance and a signing bonus. Companies are often more inclined to increase a signing bonus or moving allowance than a base salary since these are one-off expenses.

Salary Calculators:

• https://www.salary.com/
• https://www.indeed.com/salaries?from=gnav-homepage
• https://www.glassdoor.com/Salaries/index.htm

Cost of Living Calculators:

• https://www.bankrate.com/calculators/savings/moving-cost-of-living-calculator.aspx
• https://www.payscale.com/cost-of-living-calculator