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Rules For Negotiating A Job Offer
Rules For Negotiating A Job Offer
THE RULES
are tight, and your boss doesn't react well Don't underesti- Make it clear they
when people try to leverage outside offers. mate the impor- can get you.
What do you do? tance of likabilitif. People won't want to expend politi-
Each of these situations is difficult in This sounds basic, but it's crucial: cal or social capital to get approval
its own way—and emblematic of how People are going to fight for you for a strong or improved offer if they
complex job negotiations can be. At many only if they like you. Anything you suspect that at the end of the day,
companies, compensation increasingly do in a negotiation that makes you you're still going to say, "No, thanks."
comes in the form of stock, options, and less likable reduces the chances Who wants to be the stalking horse
bonuses linked to both personal and that the other side will work to get for another company? If you intend
group performance. In MBA recruitment, you a better offer. This is about to negotiate for a better package,
more companies are using "exploding" more than being polite; it's about make it clear that you're serious
offers or sliding-scale signing bonuses managing some inevitable tensions about working for this employer.
based on when a candidate accepts the in negotiation, such as asking for Sometimes you get people to want
job, complicating attempts to compare what you deserve without seeming you by explaining that everybody
offers. With executive mobility on the greedy, pointing out deficiencies in wants you. But the more strongly
rise, people vying for similar positions the offer without seeming petty, and you play that hand, the more they
often have vastly different backgrounds, being persistent without being a may think that they're not going
strengths, and salary histories, making it nuisance. Negotiators can typically to get you anyway, so why bother
hard for employers to set benchmarks or avoid these pitfalls by evaluating jumping through hoops? If you're
create standard packages. (for example, in practice interviews planning to mention all the options
In some industries a weak labor market with friends) how others are likely to you have as leverage, you should
has also left candidates with fewer options perceive their approach. balance that by saying why—or
and less leverage, and employers better under what conditions—you would
positioned to dictate terms. Those who are be happy to forgo those options and
unemployed, or whose current job seems
Help tiiem under- accept an offer.
shaky, have seen their bargaining power stand wiiy you
further reduced. deserve witat
But job market complexity creates you're requesting.
opportunities for people who can skillfully it's not enough for them to like you.
person across
negotiate the terms and conditions of They also have to believe you're the table.
employment. After all, negotiation mat- worth the offer you want. Never let Companies don't negotiate; people
ters most when there is a broad range of your proposal speak for itself— do. And before you can influence
possible outcomes. always tell the story that goes with the person sitting opposite you, you
As a professor who studies and teaches it. Don't just state your desire (a have to understand her. What are
the subject, I frequently advise current 15% higher salary, say, or permis- her interests and individual con-
and former students on navigating this sion to work from home one day a cerns? For example, negotiating with
terrain. For several years I have been offer- week); explain precisely why it's a prospective boss is very different
ing a presentation on the topic to current justified (the reasons you deserve from negotiating with an HR repre-
students. (To see a video of this talk, go more money than others they may sentative. You can perhaps afford
to www.NegotiateYourOffer.com.) Every have hired, or that your children to pepper the latter with questions
situation is unique, but some strategies, come home from school early on regarding details of the offer, but
tactics, and principles can help you ad- Fridays), if you have no justification you don't want to annoy someone
dress many of the issues people face in for a demand, it may be unwise to who may become your manager
negotiating with employers. Here are 15 make it. Again, keep in mind the with seemingly petty demands. On
rules to guide you in these discussions. inherent tension between being lik- the flip side, HR may be responsible
able and explaining why you deserve for hiring i o people and there-
more: Suggesting that you're espe- fore reluctant to break precedent,
cially valuable can make you sound whereas the boss, who will benefit
arrogant if you haven't thought more directly from your joining the
through how best to communicate company, may go to bat for you with
the message. a special request.
where they're flexible and where tioner's intent, not may decide to chart a course that
pays less handsomely now but will
they're not. if, for example, you're on tiie question. put you in a stronger position later.
talking to a large company that's if, despite your preparation, some-
hiring 20 similar people at the same one comes at you from an angle you
time, it probably can't give you a didn't expect, remember this simple Negotiate multiple
higher salary than everyone else. rule: it's not the question that issues simultane-
But it may be flexible on start dates, matters but the questioner's intent. ously, not serially.
vacation time, and signing bonuses. Often the question is challenging If someone makes you an offer and
On the other hand, if you're negoti- but the questioner's intent is benign. you're legitimately concerned about
ating with a smaller company that An employer who asks whether you parts of it, you're usually better off
has never hired someone in your would immediately accept an offer proposing all your changes at once.
role, there may be room to adjust tomorrow may simply be interested Don't say, "The salary is a bit low.
the initial salary offer or job title in knowing if you are genuinely Could you do something about it?"
but not other things. The better you excited about the job, not trying to and then, once she's worked on it,
understand the constraints, the box you into a corner. A question come back with "Thanks. Now here
more likely it is that you'll be able about whether you have other of- are two other things I'd like..." If
to propose options that solve both fers may be designed not to expose you ask for only one thing initially,
sides' problems. your weak alternatives but simply she may assume that getting it will
to learn what type of job search make you ready to accept the offer
Be prepared for you're conducting and whether this (or at least to make a decision). If
company has a chance of getting
tougii questions. you. if you don't like the question,
you keep saying "and one more
thing...," she is unlikely to remain in
Many job candidates have been
don't assume the worst. Rather, a generous or understanding mood.
hit with difficult questions they
answer in a way that addresses Furthermore, if you have more than
were hoping not to face: Do you
what you think is the intent, or ask one request, don't simply mention
have any other offers? If we make
for a clarification ofthe problem all the things you want—A, B, C, and
you an offer tomorrow, will you
the interviewer is trying to solve. If D; also signal the relative impor-
say yes? Are we your top choice? if
you engage in a genuine conversa- tance of each to you. Otherwise,
you're unprepared, you might say
tion about what he's after, and show she may pick the two things you
something inelegantly evasive or,
a willingness to help him resolve value least, because they're pretty
worse, untrue. My advice is to never
whatever issue he has, both of you easy to give you, and feel she's met
lie in a negotiation, it frequently
will be better off. you halfway. Then you'll have an
comes back to harm you, but even
offer that's not much better and a
if it doesn't, it's unethical. The other
risk is that, faced with a tough Consider tiie negotiating partner who thinks her
question, you may try too hard to wiiole deal. job is done.
on negotiation are plagued by this off the wrong way. Your counterpart I see the world today." A month
problem: They go bargaining berserk may do the same. My personal later that same person may be able
the first chance they get, which is approach when at the receiving end to do something he couldn't do be-
with a prospective employer. My of an ultimatum is to simply ignore fore, whether it's extending an offer
advice: If something is important it, because at some point the per- deadline or increasing your salary.
to you, absolutely negotiate. But son who gave it might realize that Suppose a potential boss denies
don't haggle over every little thing. it could scuttle the deal and will your request to work from home on
Fighting to get just a bit more can want to take it back. He can do that Fridays. Maybe that's because he
rub people the wrong way—and can much more easily without losing has no flexibility on the issue. But
limit your ability to negotiate with face if it's never been discussed. If it's also possible that you haven't
the company later in your career, someone tells you, "We'll never do yet built up the trust required to
when it may matter more. this," don't dwell on it or make her make him feel comfortable with
repeat it. Instead you might say, "I that arrangement. Six months
tums of any icind. Stay at the table. where you want to go. 0