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Interviewing:
Negotiating Offers

 

Hear Diane Riemer's advice:
Negotiating Job Offers (mp3)

Q: When I am offered a job, how quickly must I respond with a decision?

A: When you have been extended an offer, do not feel like you have to give an answer immediately. Thank the employer and reiterate your interest in the position; it is perfectly appropriate to ask for a day or two to think it over. If you have other companies with whom you have been speaking, now is the time to prompt them to make a decision regarding your candidacy.

Seal The Deal

Evaluating and Negotiating a Job Offer

You have done your research, targeted your employer of choice, and impressed the interviewers. Those magic words have been spoken, "We would like to extend you an offer." Congratulations! But your work is not over yet. Evaluating job offers is an extremely important part of the job search process, and not one you should overlook in the excitement of receiving that first one.

Research

Where to begin? First, be sure to do your homework before you go to a first interview. Have an idea of what industry norms are for the type of position you are seeking. There are many websites that publish this type of information. In addition, many trade periodicals publish annual salary surveys; the Bureau of Labor Statistics is another popular source. Be sure to take location into account. If you are relocating, the cost of living in your new city may be much higher or lower than that to which you are accustomed. Several of the websites listed here include salary calculators that can help you determine how cost of living may effect what you should expect in terms of salary.

When you realize that an offer is imminent, come up with three numbers to have in the back of your mind to help you evaluate the starting offer. First, determine the minimum annual salary you will need to survive, taking into account items like your rent or mortgage, car payments, college loan repayment plan, etc. Your middle number should be based on the industry research mentioned above; that is, what you think a fair salary is for your position. The third number is a padded version of the industry norm — be realistic.

Discussing Salary Too Soon

Some companies will try to get a feel for what candidates are looking for early in the interview process to screen out candidates whose expectations don't match theirs. Carefully evade the question when you are asked to throw out the first number in a negotiation. If they insist on you offering the initial salary range make sure that you give a large range, with the smallest number still within shooting distance of your ideal salary.

Them: "What are you looking for in terms of salary?"
You: "I'm willing to negotiate; what is most important to me is whether or not the job is a good fit for me and the company. I would really rather wait and discuss salary until we determine whether or not I am the best person for this position."
Them: "Well, we're trying to get an idea of what candidates are expecting."
You: "May I ask what you have budgeted for the position?"
Them: "We're still working that out. In the meantime, it would help if you would give us your salary expectations."
You: "Based on the research I have done on the going market rate for this type of position within the industry, the salary could be anywhere from $70,000 to $90,000, depending on the specifics of the job, the location, and the total compensation package."

You Got the Offer!

Congratulations! Now ask yourself a very important question: Do you really, truly want the job? It is very easy to get caught up in the excitement of your first offer, and the temptation to end your job search right there and then is extremely tempting. But before you do, ask yourself the following questions:
  • Will this job give me the opportunity to learn new skills?
  • What is the potential for growth within the organization?
  • What is the potential for growth outside it? If the company went under tomorrow, what new skills and experiences would you bring to your next employer?
  • Will I have the opportunity to work with a diverse group of people, and expand my list of professional contacts?
  • Do I like my potential boss as a person? Do I respect him or her?
  • Do the people in the office seem like they are happy and satisfied by the work they do?
  • Does this job fit with my values and long-term career goals?

Looking at the Total Offer

You decide this job is the one you want, so you begin evaluating the offer. It is important to keep in mind not just the base salary, but also all the other benefits that may come with a job, such as:
  • Additional compensation: signing bonuses, stock options, profit sharing, relocation expenses
  • Medical and dental insurance, subsidized or on-site childcare.
  • Time off: vacation, sick/personal days, holidays
  • Flexible work schedule, working at home
  • Tuition reimbursement
  • Retirement and pension plans, disability insurance, 401k
  • Timing of performance reviews and what annual increases are based on
  • Cost of living
Seal The Deal
Keep in mind that while these are all items to be evaluated, everyone has different needs and priorities when it comes to benefits. Think carefully about what really matters to you and your lifestyle when evaluating a benefits package.

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How to Decline an Offer

If you've determined that you do not plan to accept a job offer there are some things you should keep in mind.
  • Make sure that you can't change something small that would make the job attractive to you. Many things are negotiable.
  • Don't burn any bridges: Decline the offer with grace and you may turn the recruiter into a professional ally.
  • Use the phone: Resist the temptation to decline an offer through email. Calling the recruiter conveys confidence, respect, and professionalism. This is true even if you have to leave a voice message. Always follow up your phone call with a letter.
  • Be positive: Try to stay away from highlighting negative reasons why you're deciding to decline the offer. Instead, thank the recruiter for the offer and indicate how a competing offer seems more appropriate now for your career goals, location, etc.
  • Keep in touch: Even if your interest in the company is minimal, it's a good idea to stay in contact with the recruiter. Recruiters are always looking to identify good people, and as things develop down the road, who knows where your career might take you, or where the recruiter may end up!

A Word on Internships

One of the most commonly asked questions we get at Feld Career Center is, "What is the going rate for interns?" The answer is that there isn't one. While some companies pay the same rate that they would to a full-time employee doing the same job (prorated for the length of the internship), other employers pay nothing at all. Others will pay something in between, depending on what they have paid interns in the past, whether or not they've ever had interns, the type of work the intern does...the list goes on. The bottom line is that it is often very difficult to determine "market rate" for an intern, which means that it can also be difficult to negotiate your base pay.

What should you do if they ask you how much you want? You may well get asked this question, particularly if the organization does not typically hire interns or interns at your level. "I would expect to be paid at the same rate that you would pay a full-time employee working on the same projects" is a good place to start.

However, if the company has not budgeted for this position, prepare to negotiate down or work for the experience. What if you are willing to work for free? If you are at the point of accepting an internship to gain experience (or in the hopes of a full-time offer at its conclusion), then this may be an attractive option. While this tactic can sometimes be a great way to get your foot in the door – particularly if you are at entry level, or are changing careers – it can also be difficult to swing financially. Perhaps you can negotiate fewer hours and work another part-time job to help out financially.

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What to Do if the Employer is Not Timely

Unfortunately, there may be organizations that do not handle the negotiation process to your liking. They may take a long time to get back to you regarding your requests, or act annoyed and accuse you of being unprofessional for daring to question the fairness of their offer. Others may say they will overnight you an offer in writing, yet wait two weeks to send it out. The bottom line here is that it is vital that you maintain your professionalism, even if the company (or its representatives) does not. While handling this process poorly can—and should—make you question whether you even wish to work for such an organization, keep in mind that some human resources offices are overworked, understaffed, inexperienced, or some combination of the above. In any case, do not officially accept an offer or cancel any interviews with other companies until you have seen your offer—including any negotiated terms—in writing.

Things to Keep in Mind

  • It is NEVER appropriate to accept an offer with an organization and then continue interviewing to see if you can get a better offer. Not only is this behavior unethical, it can hurt both your professional reputation and that of your school. Companies can—and have—rescinded offers to candidates after finding out that they had already accepted an offer elsewhere.
  • Some offers may not be negotiable. This is particularly true of certain types of training programs where large numbers of students are hired right out of school. But it never hurts to try, as long as you are diplomatic and professional in the attempt.
  • Always be honest. Saying you have received a higher offer from another company when you really haven't in an attempt to prompt a counteroffer is a dangerous game. Hiring managers often know what other companies are offering and may well call your bluff.
  • If you don't ask for it, you won't get it. Though the level of flexibility a hiring professional has to negotiate a compensation package varies, you will not know what they are willing to compromise on if you do not ask.
  • Keep in mind that you have to work with these people, so do not get on their bad side before you even start work! Be diplomatic and professional at all times. Know when to stop negotiating.

For Additional Information...

To discuss your own personal situation, make an appointment to meet with a counselor at the Feld Career Center. Each person's individual circumstances are different and it helps to receive advice tailored to your own unique situation.
Good luck!

Researching Salaries

Web Resources

Other Resources

  • Boston University School of Management's Placement Reports (updated annually)
  • Trade magazines (see The Reader's Guide to Periodical Literature)
  • Human resources offices and company websites

Additional Resources

Web Resources

Publications

  • Negotiating Your Salary: How to Make $1000 a Minute by Jack Chapman
  • Get Paid What You're Worth: The Expert Negotiators' Guide to Salary and Compensation by Robin L. Pinkley, Gregory B. Northcraft
  • 101 Salary Secrets: How to Negotiate Like a Pro by Daniel Porot

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