Congratulations on getting that job offer! But what if you aren't happy with it? When you are coming to a new organization without a lot of business background, you may be bringing a lot of skills and training, but not a lot of proven performance. You'll be hired on your resume and skills and maybe your references, but you will be promoted and get raises based on your performance. What can you do if the offer isn't what you expect?
One thing you can't do is say "I need more money". What you need and what they are willing to pay are two different things. And face it, without a track record you don't have a lot of negotiating power.
But there are some things you can do if you aren't thrilled with the offer:
- Have a competing offer - Hands down, you're in a better position if you have an offer from another company. Yes, I know that getting even one offer today is tough enough. Some people stop looking if they think they are getting close to being offered a job. My advice is to look even harder and keep going on interviews. You'll be in a much better negotiating position if you have a second offer.
- Do your homework - The basis of any friendly negotiation is knowledge, not power. With sufficient information, you might be able to convince a future boss that the offer is, as we say, 'below market'. That means you have to know what people in the same industry with the same skills in the same role are being paid. There are various sources for this information and your college counseling office should have access to other references. A word of caution: make sure you looking at the right comparables and don't inflate your experience and value.
- Understand the whole offer - You aren't just getting a salary, there should be other benefits associated with the job: health care (hopefully), vacation, maybe a laptop and a cellphone, 401(k) contributions, commuting expenses, etc. A good health care package with a choice of doctors might be worth a lot to a employee with a young family, but three weeks vacation is what a single guy wants. When the offer is made, make sure you understand what else there is besides salary and ask questions if you are unsure. It's ok to ask to talk to the HR (Human Resources) people if your future boss isn't sure about the details.
- Ask questions - If the offer and the benefits are below your expectations, it's ok to ask 'where does this offer fit in with other people in this position with my skills at the company?'. You're smart and skilled so you should be in the top 25%. If not, ask why.
- Be honest - It's also ok to say "I really was expecting more. I looked at the average of entry-level people in the industry and this offer is below the median. [Make sure you have done your homework and this is true!] I like the company and I'd like to work for you. Can you help me understand how you arrived at this offer?" Be honest and inquisitive, never threatening or accusatory. Never say "I can't take this job at that salary." What you are trying to communicate is that you don't understand how they arrived at this lower offer, given the facts as you understand them.
- It's not just about salary - You'll have more room for negotiation with a smaller company. The larger companies have armies of people dedicated to making sure that standard hiring practices and procedures are being followed, and they tend to make it hard for the people doing the hiring to deviate from the standards. Still, if you can't get the salary you want, you might be able to get a hiring bonus (tough in many industries these days). Or maybe if you are moving, a small relocation stipend.
The one thing everyone should ask for (even if you're happy with the offer)...
If you can't get them to budge on salary or benefits say "While I'm not completely satisfied with the salary, I really want to come work for you because I think this is a great company and I can contribute a lot. Can we agree on a performance and salary review in 6 months, instead of a year? Because I think I can convince you that I am a quick learner and will be adding a lot of value by then." In fact, even if you are happy with the offer you should ask for an early review. Managers may have the flexibility to commit to an early salary review, because it doesn't cost them any money right now. It gives you a chance to address any issues that you didn't realize when you accepted the offer - like hugely increased commuting costs or big co-pays in the health package. You'll have time to understand more about what is important at the company and prove your own value. And once they've invested six months in you they'll be more interested in keeping you happy. It's worth a try and getting a raise in six months instead of twelve is worth a lot.
But back to my original point - your first salary negotiation is hardest, because you are being hired on faith. Once you have proven yourself, the uncertainty of your performance is lowered. So if the salary isn't great, but you like the company, the people and the prospects, give it try.
See the rest of my job-hunting advice and how to make the most of your first job.
