Once the initial excitement of a job offer settles, you are faced with a decision regarding the proposed compensation. The question of whether to accept the initial salary or to negotiate is a common consideration for many professionals.
Engaging in salary negotiation is a standard part of the hiring process. Employers often have a predetermined salary range for a position, and the initial offer may not be at the top of that range. A well-prepared counter offer is seen as a sign that you are a confident professional who understands your market value. The decision to counter should be based on careful research.
Factors to Consider Before Countering
The first step in deciding whether to negotiate is to evaluate the offer against market data for your role, industry, and location. If your research indicates the offer is below the market rate, a counter offer is a reasonable course of action. This data provides a foundation for a fact-based negotiation about fair compensation.
Your specific skills and experience are another factor. If you possess in-demand skills, advanced certifications, or a proven track record of success that sets you apart, you hold a stronger negotiating position. Companies are often more willing to be flexible on salary for candidates they believe will bring exceptional value to the team.
A competing job offer can also be a reason to negotiate. If you have a more attractive offer, it can be used as leverage to encourage your preferred employer to improve their terms. Handle this situation with professionalism, framing it as a desire to join their company while also needing to make a financially sound decision. This approach can prompt a more competitive offer without issuing an ultimatum.
There are situations where a counter offer is not advisable. If the company has stated the initial offer is their best and final, negotiating further could be perceived negatively. If the offer is already at the high end of the market range or is generous, it may be wise to accept it. The goal is to secure fair compensation, not to push for more just for the sake of it.
Preparing Your Counter Offer
Once you decide to counter, your research will help you establish a realistic salary range. Websites that aggregate salary data can provide insights into what other professionals with your level of experience are earning.
With your research complete, define your target salary and your walk-away number. Your target salary is the compensation you believe is fair, while your walk-away number is the lowest you would accept. Having these figures in mind provides a framework for the negotiation. It is often recommended to ask for a 10 to 20 percent increase from the initial offer, depending on how it aligns with market rates.
Your counter offer should be more than a number; it needs a value-based justification for your request. Prepare a concise summary of your qualifications, accomplishments, and the value you will bring to the company. Highlight the skills and experiences that make you the ideal candidate and warrant a higher salary.
Consider negotiating beyond the base salary. If the company is unable to meet your salary expectations, you may be able to negotiate for other compensation. This could include a signing bonus, additional vacation time, a professional development budget, or flexible working arrangements. Considering the entire compensation package allows for creative solutions and a mutually beneficial agreement.
How to Make Your Counter Offer
The delivery of your counter offer is as important as the preparation. Your tone should be professional, appreciative, and enthusiastic. Start by expressing gratitude for the offer and your continued excitement about the opportunity. This positive framing helps maintain a collaborative atmosphere and shows you are negotiating in good faith.
Decide whether to make your counter offer over the phone or via email. A phone call allows for a more personal conversation, but an email provides a written record and time to craft your message. If you choose a phone conversation, follow up with an email summarizing the points of your discussion to ensure your counter offer is clearly documented.
When you present your counter proposal, be direct and confident in your request. State the specific salary you are seeking and briefly reiterate the value-based justification you have prepared. For example, you might say, “Based on my research of market rates for this role and my experience in increasing sales by 20% in my previous position, I am seeking a salary of [specific amount].” This approach is clear, professional, and grounded in data.
After you have made your counter offer, be prepared for a period of silence while the company considers your request. Avoid the temptation to follow up excessively or to issue an ultimatum. A patient and professional demeanor during this time will reflect positively on you as a candidate.
Understanding Potential Outcomes
The most favorable result is that the company accepts your counter offer and presents you with a revised offer letter. This indicates that they value you as a candidate and are willing to invest in bringing you on board.
Another common outcome is that the company will hold firm on their original offer. They may explain that the initial offer is the maximum they have budgeted for the role or that it is in line with their internal pay scales. In this case, you will need to decide if the original offer is still acceptable based on your walk-away number.
A third possibility is that the company will come back with a revised offer between their initial proposal and your counter offer. This often represents a good-faith effort to find a mutually agreeable compromise. This outcome demonstrates flexibility on the part of the employer and can be a positive sign about the company culture.
A common fear is that the company might rescind the offer in response to a counter offer. While this is a possibility, it is a rare outcome when the counter offer is professional and based on market data. If a company withdraws an offer in response to a polite negotiation, it could be a red flag about their culture and management style.