Job Offer: Negotiating for the Right Deal & Getting Desired Outcome
Imagine a scenario where you have just accepted an offer before leaving the interview room and the hiring manager informed you that in a couple of hours you would receive an email containing your offer details…
But when the email arrived, you realized that the salary stated in the offer letter is at the lower end of the range you had provided when you were interviewed. And to worsen it further, the work-life balance isn’t what you expected.
Things can become a bit difficult if such a company is a reputable one and you’ve been searching only to get this one offer for about months.
This scenario isn’t uncommon; I mean, it happens to some of us during our job search.
However, it’s not a must that you must accept an offer at face value. Many employers expect you to negotiate, so it’s critical to know how to approach the situation with confidence.
This post walks you through how you can negotiate for a job offer and why it’s important. With these steps, you can be sure to get the job offer outcome you want. Let’s get started.
What is Negotiation?
Negotiation is a communication process where two or more parties work towards a mutually acceptable agreement or solution to a problem or dispute by exchanging ideas, information, and making concessions.
The procedure makes use of our capacity for forming bonds with people, effective communication, listening, problem-solving, making choices, asserting ourselves, and influencing others. Therefore, being able to bargain well is an important talent to have, whether you’re going over the terms of a new job or deciding what to do with your family on the weekend.
Job Negotiation is difficult, though; fear of rejection, a lack of confidence, and the worry that employers may withdraw their offers are a few reasons why people avoid negotiating.
Many businesses do, however, anticipate negotiations, so they won’t be shocked if you object after obtaining a job offer. Additionally, if you have a strong argument and the company has potential for improvement, you can find yourself in a much better situation.
Consider these conversations a crucial component of the application process and a chance to get the offer you deserve.
When considering whether to negotiate the parameters of a job offer, compensation is a key factor. If you accept a job that you feel undervalues your abilities and expertise, you could develop short-term resentment.
Read Related: Creating Your Ideal Career Strategy
You’ll probably feel irritated, and over the course of your career, you might make significantly less money, get fewer bonuses, and retire with a smaller pension fund.
Salary, meanwhile, might not be the most crucial aspect. Your thinking may need to be influenced by the state of the labour market, such as if your industry has a high unemployment rate. Negotiating, however, can be advantageous.
Negotiating is done to:
- Reach an agreement or settlement on an issue
- Improve outcomes and satisfaction for all parties involved
- Increase cooperation and trust between parties
- Address conflicting needs and interests
- Avoid conflicts or disputes
- Achieve mutually beneficial results
- Find win-win solutions that meet the needs of all parties involved.
7 Steps to Negotiating Your Next Job Offer and Getting Desired Outcome
Successful negotiating relies heavily on preparation, strategy, and confidence. So, to help you get the finest job offer possible, here are seven steps to take.
Step 1: Take a look at the whole offer
Before making your next move, take into account the whole reward package, keeping in mind that your base salary is an essential consideration. This includes benefits like bonuses, pensions, health insurance, and work-life balance factors like vacation time, commuting distance, and flexible scheduling.
You can decide that forgoing a temporary decrease in pay or benefits to work for a company with a solid reputation, job security, or promising long-term career opportunities is worthwhile. Later on in your career or when you have established your value, it might put you in a better position. When evaluating an opportunity, there are several things to take into account—weighing the advantages and disadvantages of the offer, if there are any elements you don’t like, rank them in terms of priority. You can use this as a springboard for your negotiation strategy.
Step 2: Keep Market Value in Mind
Find out your market value if you believe you deserve a better opening offer. Take into account the industry average, local competitors’ pay rates, the company’s location, and labour market competition. You’ll be more certain that your request is reasonable if you’re well-informed.
Emphasize the distinctive experience, abilities, and accomplishments you can contribute to the company. But keep in mind to stay factual and impartial. To avoid hurting your argument and coming across as desperate, refrain from bringing up personal needs.
Step 3: Establish your reasons for negotiating
You should express your concerns if your job offer falls short in a significant way. But don’t just act in this way for no reason (unless negotiation is expected in your profession or culture, or at your level of seniority). This is especially true if the offer is competitive for your field, your location, and your qualifications.
If you can’t defend your requests, pushing back at this point could hurt your reputation. A further attempt to argue the point would probably reflect poorly on you if the pay was made known from the start or if it is the company’s “best and final” offer.
Step 4: Analyze your negotiating position
Your bargaining stance, also known as your BATNA (Best Alternative To a Negotiated Agreement) should determine how much you’re willing to give up. If you can’t get exactly what you want, this is what you’ll settle for, so you should be certain of this in your mind before engaging in talks.
If you can’t get exactly what you want, this is what you’ll settle for, so you should be certain of this in your mind before engaging in talks. Your negotiation position will be stronger If you are currently employed rather than if your job is unstable or if you have been unemployed for a while. If you’re evaluating alternative offers, especially if the terms are better, you’ll also have greater leverage. Just be careful not to play businesses against one another since you can lose.
Clarify in your mind why you want the job and which requirements on your wish list you’re ready to give up if the company is willing to work with you. Even if the employer is unable to raise the salary, you might ultimately discover there is greater flexibility in other benefits, such as vacation allowance.
Be careful not to fall short of the higher standards you set for yourself by negotiating a far better deal. When you join the company, people will start paying more attention to you, especially if you’re paid more than the other members of your team.
Step 5: Practice your delivery style & strategy
It is imperative that you keep up positive relationships with your potential employer because the fact that they have extended a job offer to you indicates that they are interested in hiring you.
If you are anxious about bargaining, rehearse your arguments until you feel comfortable delivering them and have a list of prompts ready in case you forget any of your main points. This will help you feel more in control of the situation.
You and a friend could work on your presentation style together. Inquire as to whether or not the individual believes that you are asking for an increase that is reasonable, as well as whether or not they believe that you are communicating pleasantly and fairly.
Instead of waiting for one request to be taken care of before moving on to the next one, you should get ready to tackle the essential issues that are on your list at the same time. This kind of back-and-forth technique will undoubtedly put the goodwill of the other side to the test.
Step 6: Behave in a Manner That is Both Professional & Courteous
Begin the negotiation process by expressing how happy you are to have received the job offer, even if it is not up to the standards you had set for yourself. Make it perfectly clear what it is that you want, but stay away from making threats. If you do this, you will not only weaken your position, but also your relationship with the potential employer.
Keep in mind that you might end up working with these individuals in the near future.
It’s possible that you’ll be tempted to negotiate a deal through email, but it’s much more effective to do so in person or over the phone. This enables you to create rapport, reduce the likelihood of misunderstandings, and cut down on the amount of back-and-forth conversation.
7. Understand When It Is Time to Walk Away
If the distance between what you expect and what is being offered is too wide, you may find that the discussions come to a complete standstill. There is a possibility that a smaller company will not be able to offer the same level of compensation or perks as a larger organization. Or, it’s possible that a more established company must adhere to stringent pay bands, but a newer company does not have to deal with such restrictions. It’s always good to Know when to walk away and decide if you are going to take what is being offered to you or move on to the next opportunity.
You will always be able to put the skills you’ve developed via negotiating to use while looking for a new employment. Just keep in mind that you should always conclude your conversations with the other party on a positive note, as you never know when the two of you might run into each other again.
When it comes to earning what you want and deserve from your profession, negotiation is a crucial life skill.
Consider the entire offer while considering whether to bargain, and maintain a professional demeanor at all times.
The next time you receive a job offer, pick an appropriate moment to start conversations and decide what the absolute minimum is that you would take based on your market value and negotiating position. Avoid negotiating just for the sake of it, and know when to leave a deal if it’s not a good fit for you.
Negotiating a job offer can be a delicate process. Here’s a recap:
- Do research: Know the industry standard salary range and benefits for the role you’re applying for.
- Be confident: Be assertive and confident in your negotiation, but also remain professional and courteous.
- Focus on total compensation: Consider salary, bonuses, benefits, vacation time, work-life balance, and other perks.
- Know your must-haves: Identify the non-negotiables in your offer, and prioritize those in your negotiation.
- Make a case for your worth: Highlight your qualifications, experience, and accomplishments that make you valuable to the company.
- Be flexible: Be open to compromise and look for mutually beneficial solutions.
- Get it in writing: Ensure that any agreed upon changes are reflected in a revised offer letter.
Remember, the goal is to reach a mutually beneficial agreement that satisfies both you and the company.