What is a Job Offer Negotiation?

Offer negotiation is a process in which you and a representative of your current or prospective company discuss the terms and conditions of employment. This can include things including base salary, start date, vacation hours, relocation costs, and more.

Whether you are a long-time employee or a new hire, if you feel that your salary does not reflect your abilities, you can negotiate to ensure you are getting fair market value for your skills, experience, and knowledge.

Why should you negotiate rather than take the first offer?

  • Starting higher can be worth thousands over the term of the position, making it easier to pay your monthly bills.
  • Women ask for 30% less than men do and accept an average of $7000 less annually.
  • 80% of employers expect a negotiation. 57% of men negotiate, but only 7% of women do.
  • It’s easier to negotiate at the beginning than make up the money by asking for raises.
  • You’re worth it!

Understanding Your Offer

For those who are new to the job market and need to find information about what is included in your offer, it can be hard to determine what is most important to you and what you want to negotiate. To do this successfully, you need to first understand the different parts of your offer.

A job offer will describe the money you’ll earn in one of two ways: as an annual salary or as an hourly wage. While there might be slight differences in what these terms mean depending on the employer, the general definitions are as follows:

  • A salaried employee earns the same amount of money each pay period based on a fixed number of hours. An hourly employee may earn different amounts each pay period depending on hours worked.
  • Most salaried positions are classified as “exempt” and are not eligible for overtime pay, but certain “non-exempt” salaried positions are. Hourly positions are eligible for overtime pay.
  • Salaried positions are more likely to include benefits packages. Benefits packages for hourly employees will depend on hours worked and the structure of the company.
  • Salaried jobs are often more secure in the long term than hourly wage positions.

When inspecting your job offer, we encourage you to understand the compensation package so you can make an informed choice. You can read more about annual salary vs. hourly wage here.

Resources for Exploring Salary:

Health insurance pays (or helps pay) for your medical needs, which can often include doctor visits, prescription drugs, emergency care, and certain medical procedures. Here are some basic terms you should understand:

  • Premium: What has to be paid to the insurance agency in order to have the health insurance.
  • Deductible: The amount of money you have to pay before the insurance kicks in.
  • Flexible Spending Account (FSA): An account that allows you to set aside money before it is taxed, which can be used to cover out-of-pocket medical expenses.

To learn more about health insurance, you can look at this guide by United HealthCare.

Retirement plans are savings plans that help you prepare for retirement. Common retirement plans that can be sponsored by employers include:

  • 401(k)s are plans offered by private, for-profit companies.
  • 403(b)s are similar to 401ks, but are offered by tax-exempt and non-profit organizations.

To learn more about health insurance, you can look at this guide to Retirement Plans.

Paid Time Off is the time you can take off of work. Often, packages may vary in terms of how much is offered per year, how much notice you have to give, how it is accrued, and when the accrual starts (e.g. immediately after being hired or six months into employment).

Sick leave is paid time that you can take off of work when you are ill.

Life Insurance is a contract that pays a death benefit to a beneficiary when the insured person dies. The policyholder will pay a premium (or fee) for the policy. You can learn more about life insurance by reading this Investopedia article.

Other things to consider include:

  • Family and medical leave
  • Flex time
  • Professional development
  • Tuition reimbursement
  • Vacation time
  • Moving expenses
  • Stock options
  • Title change
  • Sick, personal, and parental leave

How to Negotiate: Tips, Tricks, & Best Practices

General Tips

Research the average pay for this position with your experience level. See “Researching Salary” for more information.

Articulate what you have to offer: how it meets or exceeds the job requirements and why you want an increase over what they are offering. There can be many reasons for asking for more: you have more experience, you have a strong track record of success, you know you will be able to exceed your goals, etc.  Be clear with details about what you have to offer and why it is worth it for the organization to meet your salary demands.

Get the offer in writing. Remember: when an offer is made, the power is turned over to you. It’s your move to ask for time, documents, and ultimately more money! Even if you’re offered a job in person after an interview, you can still ask for time to consider the offer.

It’s important to practice negotiating so you are comfortable in responding to questions and handling a situation with poise and in a professional manner. Practicing negotiations with a career coach is highly recommended.

If the employer is not willing to increase your starting wage, ask about how your work will be reviewed and if a formal review could happen in three to six months if you exceed expectations.

Identify your priorities. It’s important to know which benefits are most important to you when you are going into a negotiation or when you’re evaluating an offer. Try FSU’s Offer Evaluation worksheet to help figure out what you would like to prioritize.

Know what your bottom line is and when you will walk away. If it is a great job with an employer you really want to work for, sometimes a slightly lower salary to start can be okay. Salary is very important, but it is not always a deal breaker. You may want $60,000, but if the job is amazing, it pays $50,000 with great benefits, and you can live on the salary, saying “yes” can be a good choice. Also explore and weigh opportunities for higher salaries and promotions down the road when making your decision.

Once you’ve reviewed the salary offer and entire benefits package, you may wish to initiate a negotiation.

If you prefer to negotiate verbally, you may write to the hiring manager using the following template:

Thank you for the time to review this offer! I’m excited to discuss the opportunity to work at [X company], and I’d love to go over a couple of items in the offer package with you. Would you have time for a short phone call in [provide time frame]?

From here, you can use the other tips in this “How to Negotiate” section and the “Language to Use” section further down this page to navigate a verbal negotiation.

If you prefer to negotiate over email, you also have this option. When negotiating over email, it’s crucial to have an increased awareness about your tone and the clarity of your language. When negotiating over email, it’s important to preserve your rapport and good candor with the hiring manager, and lapses in professional tone or clarity can have a negative impact. 

When using the language presented in this “How to Negotiate” section and the “Language to Use” section further down this page, an email negotiation will be most successful if you utilize the following format:

Step One: Begin your email message with positivity. Refer to something specific from the hiring process that affirms your desire to work for the organization. This emphasizes to the employer that you are beginning the negotiation from a place of mutual alignment – that you want this arrangement to work out for the same reasons that they do.

Example beginning to a negotiation email:

Hello Taliah,

Thank you for the time to review this offer package! I’m really excited by the opportunity to work for Food Justice Nonprofit. Through my conversations with you and your team, I feel deeply aligned with the organization’s mission and the compassionate, social justice lens through which everyone approaches their work. 

Step Two: In the next paragraph, state your negotiation. Be clear about what you’re asking for and why. Remember that this is a request, not a demand or an ultimatum: you want to ask if they have the ability to consider your request.

    Example negotiation statement:

    Before I officially accept the offer for the Community Engagement Leader role, I want to discuss the base salary. Through my research, I’m looking for an offer closer to $50,000 – $52,000. Given my five years of public health communications and successful community organizing experience, which exceeds the minimum requirement of three years of experience for this role, would you have flexibility to move to this salary range?

    Step Three: End the email by thanking them for considering your request. Indicate that you’re open to further conversation, but be prepared that the hiring manager may have a preference to pivot the conversation to a phone call once you introduce your negotiation request.

      Keep this section brief, but aim for ensuring a similar positive tone that you achieved in the first paragraph of the email.

      Example ending to a negotiation email:

      I appreciate you taking the time to consider my request. I’d be more than happy to discuss this further with you!

      Sincerely,
      Maya Monseth

      Researching Salary

      Research the typical salary for the work you are seeking by checking online resources and by talking to people in the field. Ask them what a normal salary range is and about issues or protocols that may be important in negotiating a salary in that field.

      • Try several websites below to get salary ranges. Remember that level of experience and region of the country may impact the results.
      • Determine the keywords or similar titles associated with your position and search for them to get the broadest result.

      Language to Use

      Thank you for letting me know. I’m really excited! When will I receive the written offer and benefit package, and when do you need to know my decision by?

      I want to share that I just received an offer from another organization and need to let them know of my decision by [date]. I’m very interested in the [position name] at your organization. Could you provide an update on the hiring timeline and if I might be able to hear back before [first offer’s deadline]?

      I have received a competing offer. I’m wondering if you be able to increase the base pay to $$$$ / match the offer at [$$$$] ?

      I’m really excited about this opportunity. Before I officially accept the offer, I want to discuss the base salary. Through my research, I’m looking for an offer closer to [$$-$$ ]. Would you have flexibility to move to this range?

      Gratitude Sandwich Method, created by Tori Dunlap – HerFirst100K

      Wow! This offer is such great news — thank you. I’m so excited for this opportunity. I felt right at home during my interviews and am really looking forward to being part of the team. However based on my [Insert 1-2 skills] skills, experience, and the market salary rate, it would make sense for me to be in a higher range — of $[Insert a range that is based on market research]. If you could increase the offer by $[Choose 5,000 or 10,000 depending on market value range], I’d be eager to accept.

      “Thank you! I’m so pleased to be offered this position! Could you send it to me in writing so that I can take some time to look over the pay and benefits package? Once I receive this, when will you need my decision by?”

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