You’ve just received a job offer and it’s for a great position. The only problem is that the salary isn’t quite what you were expecting. Now you have to decide whether to take the job or try to negotiate a higher salary. If you’re going to try to negotiate, there are some rules you should follow in order to give yourself the best chance at success.
In this blog post, we’ll go over the best way to approach getting the total compensation package you deserve by walking you through the salary negotiation process, how to write a salary negotiation email, and what to prepare for in the hiring process. By following our instructions, you can make sure you get the salary you deserve and an employer that’ll be a good fit.
If you’ve received a job offer, congrats! You’re probably feeling pretty good about yourself right now. But before you start celebrating, it’s important to take a step back and evaluate where you are in the negotiation cycle.
Are you at the beginning stages of negotiation? This is where you’ll want to do your research and figure out what your bottom line is. What are you willing to accept in terms of salary and benefits?
Or are you further along in the process? This is where you’ll need to start making some tough decisions. Are you willing to compromise on certain aspects of the offer in order to get what you really want?
Remember, there is no right or wrong answer here. It’s all about what works best for you and your situation. So take some time to think things through before making any final decisions.
The most important thing to remember when negotiating your salary is to be confident. Do your research beforehand so you know what a fair salary range is for your position and be prepared to stick to your guns. It’s also important to be respectful and not to ask for the moon; after all, they did make you an offer. Finally, don’t forget to account for other benefits like vacation time, health insurance, and 401k matching.
If you’re expecting a job offer, there are a few key things you can do to prepare for salary negotiations. First, research the company’s typical salaries for the position you’re applying for. This will give you a good starting point for negotiations. Next, think about your own financial needs and what you would be comfortable with in terms of salary and benefits. Finally, be prepared to negotiate in person or over the phone by having your arguments and points ready. If you follow these tips, you’ll be in good shape to negotiate a fair salary when you receive a job offer.
An essential part of your process for preparing for the offer is to set your minimum acceptable salary before you even start the interview process. This is arriving at what you need, not necessarily what’s the fair market value of your labor.
The first rule of salary negotiation is simple: don’t reveal your salary requirements until you have an offer in hand. Why? Because once you give a potential employer your salary offer, it’s very difficult to negotiate up from there. So no matter how much the hiring manager presses you for a figure, hold firm.
Once you have an offer, it’s time to do your research and come up with a fair market value and evaluate if the offer letter is appropriate given your experience level and is competitive to similar roles. Use sites like Salary.com and Glassdoor to get an idea of what others in your field are making. Consider the cost of living in the city where the job is located, as well as any other factors that might affect your decision (like whether you’d be able to telecommute part of the time). Then, add 10-15% to that number to arrive at your minimum acceptable salary.
For example, let’s say you find out that the median salary for your position in New York City is $60,000. Adding 10-15% would give you a minimum acceptable salary of $66,000-$69,000. Of course, if you can get more than that, even better! But this is the least amount you should accept.
1. Do your research as you’re job searching, make sure you understand the appropriate pay range. Know the industry standard for your role and location. Use sites like Glassdoor and Payscale to get a sense of what others in your field are making
2. Be honest: Be transparent about your current salary and what you’re looking for in terms of salary and benefits.
3. Don’t lowball yourself: If you have done your research, you know what you’re worth. Don’t sell yourself short just to try to save face during negotiations.
4. Most importantly, give a range. Explain that depending on the work-life balance, benefits, equity compensation, and culture, the expected offer should be between $XX,XXX and $XX,XXX. Explain to them that, while money is important, there’s more to enjoying your future job to you than money. You’re hoping to find a place you can grow with the company and get rewarded for your hard work.
Whether you’re a recent graduate or an experienced professional, negotiating your salary is always a daunting task. Here are a few tips to help you get started:
1. Do your research: Before you start negotiating, it’s important to do your homework and know what the market value is for your position. Use online tools like Salary.com or PayScale.com to get a range of salaries for similar positions in your area.
2. Be prepared to compromise: In any negotiation, both parties need to be willing to give and take. If you’re not prepared to budge on certain aspects of the offer, be upfront about it from the start.
3. Don’t be afraid to ask for what you want: If you don’t ask, you’ll never know what you could have gotten! When making your counteroffer, be confident and clear about what you’re asking for and why you deserve it.
4. Have a backup plan: At the end of the day, the decision is up to your potential employer. If they aren’t willing to meet your expectations, be prepared to walk away from the offer. A common mistake is not having a backup plan after playing hardball and ending up with nothing at all.
How To Phrase Asking For Time To Review & How To Review The Offer
When you receive a job offer, it’s common to feel pressure to accept or decline the offer immediately. However, it’s important to take the time to review the offer and make sure that you’re comfortable with the salary and benefits package being offered.
Here are some tips for how to phrase asking for time to review an offer, as well as how to review the offer itself:
1. Thank the employer for making you an offer.
2. Express that you need some time to review the offer and compare it to your other options (if applicable).
3. Ask if there is a specific timeline for when they need an answer from you.
4. If they do have a timeline, try to negotiate more time if possible. Employers often expect candidates to take at least 24 hours to review an offer, so anything beyond that is appreciated.
5. When reviewing the offer, consider factors such as salary, benefits, vacation time, work schedule/hours, location, and company culture/values. Make sure that the overall package meets your needs and expectations in order for you to be happy in your new role.
6. If you have any questions or concerns about the offer, be sure to raise them with the employer before making your final decision.
If you receive a lowball offer, don’t panic. There are a few things you can do to try to negotiate a higher salary.
First, take a deep breath and calm down. It’s important to remember that the first offer is usually not the final offer. There is room for negotiation.
Next, do your research. Know what the average salary is for the position you’re applying for in your area. This will help you have a better idea of what to expect and how much negotiating room you have.
Then, counter-offer with a salary that is realistic and based on your research. Be sure to explain why you are worth the salary you are asking for. Finally, be prepared to walk away from the job if they cannot meet your salary requirements.
If you’ve received a job offer, congratulations! The next step is to negotiate your salary. Here are a few tips on how to calculate your counteroffer:
1. First, research the average salary for your position in your city. You can use sites like Glassdoor or Salary.com to get an idea of what the going rate is at both competitors and the company that just offered you a job.
2. Next, consider your experience and skill set. If you have more experience or advanced skills, you may be able to command a higher salary than the average.
3. Finally, think about your lifestyle and financial goals. If you need to earn a certain amount of money to meet your financial obligations, make sure your counteroffer reflects that.
Keep in mind that there’s no right or wrong answer when it comes to calculating your counteroffer. It’s ultimately up to you to decide what you’re worth and what you’re willing to accept.
When it comes to negotiating your salary, email can be your best friend. You can take the time to craft a well-thought-out message that makes your case without having to face the person you’re asking for more money from.
Of course, there are some things to keep in mind when using this strategy. For one, you don’t want to come across as entitled or demanding. Be polite and thankful for the offer, while still making it clear that you’d like to discuss the salary.
Typically, we believe that you should phrase your email like this:
Hi –
I hope you had a great week.
(Add something personal here). Example: “I know you mentioned you and your family were going to the beach this weekend. It sounds like it’s going to be a great time!”
So, over the last few weeks, I’ve taken some time to revisit the work I am doing at .
Over the last few weeks, I’ve taken some time to revisit the work I am doing at .
(Compliment)
I have to say that I’m incredibly grateful for the opportunity to learn from you and your team, the culture here is incredible, and I know I’d be proud to say I work at . It’s an opportunity not many people get and I recognize that even more now that I’ve gotten to know you and the team.
That being said, I’d like to have a conversation with you about the offer.
(The ask.)
While I am a team player and am happy to help those around me, I want the offer you provide to make sense given my resume and the requirements of the role.
The current requirements of the role are:
According to feedback from my prior managers, and my peers, I am doing all of these tasks very well. In addition to the listed job duties, I’ve helped my prior company improve its efficiency in onboarding new accounts and improved the profitability of the organization by X%.
Because of my contributions to the company and my team, my prior company has grown and improved the way serves its clients dramatically. The market rate for someone with my experience, education, and workload I am now carrying in the Denver area is $120k a year. For those reasons, I am asking you to consider increasing my salary from $90k to $120k.
Needless to say, this isn’t a small increase and I can appreciate the fact the organization would like time to consider the fact I’ve presented to ensure I didn’t miss anything. I’d appreciate the opportunity to discuss this in person with you. Please let me know when works best for you.
(Salutation)
Sincerely,
Elton John, CFP
Financial Planner
That’s it. By following this process, if you’re worth a raise, you’ll get it.
It can also be helpful to do some research ahead of time. Know what the average salary is for your position and region, so you have a good starting point for negotiations.
Finally, don’t be afraid to ask for what you want. It may seem daunting, but remember that the worst they can say is no. And even if they do say no, you can always counter with a different request.
If you’ve received a job offer, congratulations! Now it’s time to negotiate your salary. Here are some tips on how to do so:
1. Do your research. Before entering into negotiations, it’s important to know what appropriate salary expectations are for the position you’re being offered. Use online resources like Salary.com or Glassdoor.com to get an idea of what others in your field with your set of technical skills, education level in comparable positions are making. This will help you determine what salary range is appropriate for you to request.
2. Be prepared to explain why you deserve more money. In addition to knowing the going rate for your position, you’ll also need to be prepared to explain why you deserve a higher salary than what’s being offered. Be ready to talk about your experience, skills, and accomplishments that make you the ideal candidate for the job and deserving of a higher salary than other candidates.
3. Don’t be afraid to ask for what you want – but be reasonable. It’s important to have realistic expectations when negotiating your salary. If you ask for too much, you may price yourself out of the job; but if you don’t ask for enough, you’ll end up leaving money on the table that could have gone into your pocket. A good rule of thumb is to start by asking for 10-15% more than what’s being offered and see where the negotiation takes you from there.
4. Be ready to compromise and walk away if you can get a better offer elsewhere – but don’t give in too easily. You’re worth something and this job is too, obviously. Still, there’s a reason you marry the person you do; because they value you more than anyone else you’ve dated and you, them. An important negotiation strategy is knowing when to spot when a prospective employer values you, a lot. As Rocky Balboa says “If you know what you’re worth, go out and get what you’re worth but you gotta be willing to take the hits.”
There are a lot of non-salary benefits that can be extremely valuable to employees, and it’s important to think about which ones you need and care about deeply before negotiating your salary. Some important non-salary benefits to consider include:
Health insurance: This is an important benefit for many people, especially if you have a family or chronic health conditions. Make sure to find out about the coverage offered by the company and whether there are any restrictions or limits.
Paid time off: How much paid vacation time do you want? What about sick days and personal days? These are all important factors to consider when negotiating your salary.
Retirement savings plan: Does the company offer a retirement savings plan, such as a 401(k)? If so, how much will they match? This is an important benefit to consider, especially if you’re looking for long-term security.
Other benefits: There are many other benefits that can be extremely valuable to employees, such as tuition reimbursement, child care assistance, and flexible spending accounts. Consider which of these benefits would be most important to you and make sure to ask about them during salary negotiations.
When it comes to negotiating for equity in the company, there are a few key things you need to keep in mind. First, you need to make sure that you are clear about what you want and why you feel that you deserve it. Normally this involves explaining what sacrifices you’re prepared to make (i.e. lower salary), why you’re the right person for the role who has unique value, and the skillset you bring and how the company can leverage it to help the company blast off.
Second, you need to be prepared to compromise and be flexible with your demands. Lastly, you need to be able to justify your request with solid reasons.
If you can do all of these things, then you should have no problem negotiating for equity in the company. Just remember to stay calm and collected throughout the process, and don’t let emotions get in the way of a good deal.
Some types of stock options and equity compensation that you should consider negotiation for include:
If you’re negotiating for Incentive Stock Options, ask for the employer’s most recent 409a valuation, or alternatively, search for the company’s ticker in google. Ask what the exercise price is going to be on the incentive stock options. Incentive Stock Options provide a fixed purchase price for the stock even if the stock is selling for much more. It makes sense to negotiate for Incentive Stock Options if you intend on staying with the company for a very long time and are extremely confident that the firm will do incredibly well.
Alternatively, Restricted Stock Units are actually shares of stock and have guaranteed value. You can sell these at some point in the future and take the cash. The only downside is, the value of the restricted stock may be less than ISOs because you typically will get fewer RSUs than the opportunity to buy via ISOs.
If you have 100 shares of company stock that are worth $100,000, you’re happy! Alternatively, if you could buy 1,000 shares with a strike price of $200 because you have ISOs, you’d be really happy if the stock skyrocketed up to $1000/share because you could still buy for $200/each. In that scenario, the stock would be worth $1,000,000 which you paid $200,000 for (meaning you made $800,000).
If on the other hand, the company does TERRIBLY and your ISOs are worthless because the stock is trading for $200/share, you’d still get $20,000 (100 shares x 200 each= $20,000).
After you have finished negotiating your salary, there are a few things you should do in order to seal the deal. First, thank the person you were speaking with for their time. Second, confirm the details of the offer in writing. This will ensure that there is no confusion about what was agreed upon. Finally, ask for a start date so that you can begin planning your transition to the new job.
If you’re like most people, negotiating your salary is not something that comes naturally. However, if you follow these 10 simple rules, you’ll be better equipped to get the salary you deserve. Remember, the goal is not to lowball your employer or to make them feel like they can’t afford you — it’s simply to ensure that you are being fairly compensated for the work you’ll be doing. With a little practice, you’ll be an expert negotiator in no time!
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