I would love to hear some insight to how people have negotiated their salary after receiving and offer. Are companies expecting you to come back and negotiate the salary? I have a job currently so I feel like I have better footing to negotiate. I don’t want to ask for less than I could get, but not so much they laugh at me.
Part 2 is possibly leveraging my offer for a higher salary at my current position. Should I ask for them to match it, or for even more since I know they would not want to lose me. Anyone been in this situation?
I suggest the following-
- Do some research to see if the salary offered is competitive
- Take a look at not only the salary, but also benefits such as holidays, health plans, bonuses, work from home flexibility, taxes, relocation, etc.
- Decide where you think you want to be, NET. It is important to ad the costs of the benefits
- Check to see how you think you stack up against the next person in line for the job (there are always a few they have considered after they make their offer should you turn it down). Make an honest assessment of your strengths and weaknesses. Have a friend or mentor help. This will help you decide your leverage. For example, you may have similar portfolio as others looking for a similar position, but maybe offer a additional experience or skill (for example can not only do ID, but also graphics, or have experience in management that others at your level may not).
- Put together a counter offer if you think this is viable. be sure to have some solid reasoning behind it (ie. Now I’m making X at Y, but in the new city, living expenses are higher). Often it’s easier to negotiate benefits rather than salary increases, or future reviews for salary increases (ie. a 6 month review pending possible increases). This gives the company an easier way to justify hiring you and taking the risk if things don’t work out and shows that you know you are worth it and willing to prove it to them. Of course you risk a review with nothing coming to you. Bonuses depending on performance if possible are another good way to handle this, but you have to do your research to know the economic footing of the company.
- That being said, having a good idea of how the company is performing is also key to negotiating. If they’ve had a terrible year, they are going to be might tighter on the purse strings. If it’s a rapidly growing company, that is in your favor. Same goes for the comparison of a small company with tighter budgets vs. a large company that can be more flexible.
I’d suggest not doing any renegotiating of your current position until doing the above and checking if a counter offer is still available. Worst thing you could do is make a counter offer with the new company, while trying to squeeze more out of your current one, and they both tell you to take a hike.
BTW- similar points as above go for trying to renegotiate your current position. How valuable or replaceable are you to them, how is the company doing, what are your reasons for leaving, etc. One thing to note is that it is often difficult to renegotiate a current contract once they know you are looking to leave. Either you look like you are shaking them down, or that you are not happy, in which case they don’t want you either way at any cost.
PS, the reasons for leaving you told the new company are also important. If you are trying to expand your experience, get into a different industry, move laterally, etc. it’s once thing, but just looking to make more $ is another and reflects on how they view the offer.
Thanks Richard, that’s a lot of great information. I happen to be in a situation where I am happy where I am, and would continue to be happy if I stayed but the main benefit for me is the location change. I live in Dallas now, and the new position is in Chicago. I am from the midwest so moving back would be nice. This would be my first job change after college so it’s good to hear all those things.