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NEGOTIATING TIPS
The art of negotiation is an important component of completing your job search. Once you have found the right opportunity, evaluated its fit with your ideal career/job role profile, and secured an offer, you have the chance to clarify your responsibilities, expectations, compensation, and performance evaluation, among other things. Successful negotiation is not simply closing the deal, but ensuring a win-win outcome for both you and your new employer. You want to start your new job feeling good about the job and the terms of employment; your employer wants to feel secure in his/her judgment that you are a good fit – and value -- for the organization.
Getting Started
Often, offers are initially extended verbally, over the phone. It is best not to accept an offer on the spot, no matter what the position or circumstance. Accepting an offer ends the negotiation. Always thank the representative for the offer and express your enthusiasm for the organization and opportunity. Ask for a hard-copy confirmation that details the terms of the offer, including information about benefits, relocation, and other elements of compensation (e.g. tuition reimbursement, living stipends, retirement plans, bonuses, etc.). Some organizations prefer to send a confirmation letter after you have accepted their offer. This does not mean you cannot negotiate, only that the letter will detail what you agreed, rather than the original offer. The approach can vary by industry and you can ask colleagues, classmates, alums, etc. about what is typical for the industry you are pursuing. And, you can do this in advance so that you know what is the general practice.
Even if you receive an initial offer letter, the offer you sign should reflect the terms that you have negotiated. Do not sign until you are satisfied with the negotiation and your conversations are reflected in the agreement. Close the initial conversation with a clear understanding of whether you can expect a confirmation letter, when your response is due, and who you should talk to/follow up with regarding questions about the terms of the offer. So-called “exploding offers” are common in some industries. These have a firm deadline for response after which time, the offer is simply withdrawn. Still, most organizations allow at least 24 hours for you to evaluate/consider the offer. If you are in the middle of interviews with other firms, it is appropriate to explain this to the representative and ask for a reasonable amount of time to complete the process and consider all offers. Most firms will give you some time – within reason – as they also want you to be sure that you have made the right decision.
Evaluating the Offer
Evaluate each offer carefully and consistently. Ideally, you will receive multiple offers and it is important to compare them using the same criteria. (See the evaluation Learning Guides with suggestions on how you might approach this.)
Prior to reaching the negotiating stage, research pay ranges, offers, and terms across the industries you are pursuing. For example, nonprofit and governmental organizations tend to have lower pay ranges than for-profit entities, yet many provide alternate compensation via vacation time, overtime pay, tuition or continuing education programs, etc. On the other hand, many large corporations or management training programs make fairly standard offers across the board to their hires; these can be “take-it-or-leave-it” offers. It is best to have a sense of what is “normal” and what you can expect. That will also give you some ideas about what you can – and would like to – negotiate.
Negotiating the Offer
Whenever possible, negotiate in person. This is more common for permanent positions than for summer internships, or when the job is relatively local. Either way, write down your requests, prioritize them, and determine what is your bottom line. Do not bluff; someone may call your bluff. Be prepared to follow through if you decide to draw a line in the sand as a “deal-breaker”. But remember: negotiation is the art of obtaining a win-win solution for you and the employer. Taking a hard stance is usually not an effective means of achieving this.
So what is actually negotiable? Basically, everything and nothing. Some offers, especially internships, are simply non-negotiable and the representative typically tells you this at the outset. Most, though, are negotiable in some or all areas. A good rule to follow is that if you don't ask, you can't get it; so it's worth asking. Just understand your priorities and what is standard or typical for the industry. Consider also the rapport you have developed with the representative; typically, the better your rapport, the more comfortable will be the negotiation.
At every stage of negotiation, remain calm and relaxed, even when d with a deadline. If you have a rational explanation for needing additional time, many organizations will extend their deadlines. And again, always get the final offer in writing.
Internships
- Internship offers tend to be both less complex and less flexible than permanent offers. Quite simply, the stakes for you or the company are not as high as in a permanent position.
- Organizations that have a track record of hiring interns, whether through a formal or informal program, are most likely to provide standardized offers for all summer interns.
- If the organization is one that you pursued, and has never or rarely had an internship relationship before, negotiation of your role over the summer may be very feasible. In particular, you may be in a position to evaluate their needs, combine these with your goals for the summer, and create a position very well suited for you.
- Some governmental or nonprofit organizations obtain grants or allowance for summer internships that may constrain any and all elements of their offers. Often you will be aware of this from the start. If not, the representative will likely tell you while extending the initial offer or when you broach the subject of the degree of flexibility in their offer.
- Especially for summer internships, salary should not be the sole issue driving your decision. A 10-12 week internship is an excellent opportunity to explore something new and obtain a unique experience.
Permanent Positions
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Separate the base salary issue from all other points you wish to negotiate. Then start there. Salary should not be the only basis on which you will make your decision, yet it is often the most uncomfortable subject for individuals to broach with prospective employers. Base salary is important because it is often the basis for other compensation, such as bonuses, increases, retirement contributions, etc. Negotiating your salary first may also give you insight on how to handle other compensation issues, particularly if you discover that base salary is either non-negotiable or constrained by other factors.
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Understand your needs before you discuss salary. Be prepared to support your request with factual data from the market. Starting salaries for positions are determined across industries by current market price (often with a $5,000 spread). Research the industry and know what is the appropriate range for your area of interest.
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If the salary is not negotiable or the company is constrained in some way, you may be able to increase your total compensation package in another way. For example, ask for earlier salary review, minimum performance bonus, signing bonus, additional vacation time, etc. Consider what is important to you. “Good health benefits” are a common element of offer packages. First, you are entitled to them. Second, they are not a reason for the organization to lower your starting salary.
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Once you have negotiated your salary, put everything else on the table. You should not keep negotiating a few items, then adding a few more. Let the representative know your concerns and all of the issues that you wish to address. This puts an appropriate boundary on the discussion and helps the representative to be creative in meeting your needs. Not everything will be negotiable but you always have the right to ask. For example, “I'm very pleased with the salary we were able to agree on. Now, I'd like to address three other items of concern: vacation, bonus eligibility, and relocation assistance.”
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If you anticipate needing unpaid vacation time prior to your eligibility (for example over the Christmas or Hanukkah holidays or Ramadan, for a relative's wedding, etc.), request this up front. Sometimes, employers are flexible with extra time off, particularly if they cannot be flexible on starting salary or bonus.
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Start dates may or may not be negotiable, depending on a few key drivers. If you are entering a rotational program as a member of a “class”, the start date will probably not be negotiable. If you are being hired as a member of a project team, then the project dates will determine your start, sometimes in a very short time frame. In this situation, it may be more appropriate to request an unpaid leave or time-off period upon completion of the project. The organization's fiscal calendar, normal business cycles, or the terms of a grant or external funding may also drive the start date.
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Other commonly negotiated items include, but are not limited to:
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Position: title and grade level; areas of responsibility, accountabilities; reporting relationships, authority; headcount and budget (for more senior positions).
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Position requirements: travel; necessary hours; performance evaluation – frequency, by whom, on what basis; location of job – telecommuting, transfers, training programs; outside obligations – representation on professional or community boards, pro bono service.
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Compensation package: base salary; signing bonus, ongoing/annual bonus program; paid time off – vacation, sick, family, short- and long-term disability; sponsored training programs and time off; retirement program and eligibility; stock options; stock purchase plans; expenses – automobile, travel, entertainment, subscriptions, memberships, fitness centers; tuition reimbursement.
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Starting considerations: offer confirmation and start date; terms of employment/termination agreement(s); relocation - assistance, timing, requirements; benefits eligibility.
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Cultural considerations: review of corporate policies and procedures; management style – relationships within organization.
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Visa/authorization to work issues: sponsorship for and assistance with obtaining appropriate visas; sponsorship for and timing of application for green card.
Getting Help
The Office of Career Development staff is available to help you in all aspects of evaluating and negotiating your offers.
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