My last three pieces have primarily discussed transitioning from undergrad to grad school and highlights of interviewing processes. This week I want to discuss a topic that I briefly mentioned in my last post: The art of job offer negotiation.
Robin Pinkley and Gregory Northcraft, authors of Get Paid What You’re Worth, provide some insights into the art of proper negotiation and interesting facts/figures. According to their research, only 25% of job applicants attempt to negotiate their job offer. Of that 25%, an overwhelming majority are men.
Virtually all employers, large or small, will accept negotiations as long as they are done professionally. Many applicants do not even attempt because they are timid or are grateful enough for the job offer that they fear losing it. Do not be timid. Do not be afraid.
Why negotiate?
· Many employers will offer a lower salary than they are willing to pay because they expect negotiation.
· The employer wants to finalize the deal. Most of the time they are willing to invest a bit more in order to achieve that.
· Negotiating a job offer can mean not only a better salary, but a substantial increase in earnings over the course of your career. When raises are handed out, they are often percentage based. This accumulates over time and can add up (see Finance 101).
When to negotiate:
· Never negotiate before receiving an offer. After receiving a formal offer, make sure to negotiate before you formally accept the position.
· Negotiate only if you are willing to accept the position. Negotiating an offer that you are not going to seriously consider is a waste of your time and the employer’s time. Focus more on the company you want to work for, than who you can get the most from.
· Negotiate once. You have one opportunity to negotiate professionally, so make sure to come forward with a single set of negotiations.
What to negotiate:
· Salary – typical accepted numbers are in the range of 4-6%. Throw out a high value, and see what the employer comes back with.
· Vacation/Leave days – this is sometimes an alternative to salary. If you can squeeze in five extra days of paid vacation, go for it.
· Benefits – these are much harder to negotiate as they are often regulated by another agency. If the opportunity exists, take advantage of it.
I hope this helps those of you on the verge of interviewing, accepting, and starting new jobs. Let me know if you have any questions.
Rock Chalk,
Matt Williams
More resources:
Pinkley, Robin L. and Gregory B. Northcraft, Get Paid What You’re Worth, 2000.
Bryant, Rebecca and Amber Marks, Go Ahead, Haggle, Chronicle of Higher Education, November 8, 2005, http://chronicle.com/article/Go-Ahead-Haggle/44981/
The Riley Guide, www.rileyguide.com/offers.html