Negotiation: An Overview

This resource is part of the Career Essentials Series — find the full collection here!


 

Negotiation means asking for changes to the terms offered by a hiring organization, which may include any number of factors beyond the salary, including: hybrid schedule, start date, professional development funds, and other factors listed below. This can feel like one of the most intimidating parts of the job search for many people, and you may feel unsure whether you should try to negotiate, and if so, when and how to do it. Preparation, practice, and experience will all help you to negotiate with confidence. 

If you are planning to negotiate for the first time, or are interested in learning more about negotiation strategies, the video below is a helpful resource.

 

When to Negotiate

Most of the time it is a good idea to negotiate after receiving an employment offer, but before accepting it.  Many employers expect a candidate to negotiate at this point in the process. After investing the time and effort to receive a job or internship offer, you should also invest time and effort to negotiate the terms of your offer to fit your professional and personal needs as much as possible. 

You may receive some offers for which negotiation is not the best course of action, or is unnecessary. Evaluate these instances on a case-by-case basis, and ask an Advisor in Career Education if you are uncertain how to proceed. 

Some things to consider:

  • In some cases, you will be asked to list your salary requirements in your applications. Whenever possible, try to leave that question blank or include a range rather than stating a specific number.
  • In an interview, you may be asked about your salary expectations, or the interviewer may tell you what the salary or salary range is likely to be. Again, if possible, try to focus on discussing the role and your qualifications before discussing a compensation number.  You should also indicate that your salary expectations are flexible, leaving the door open for future negotiation.
  • For instance, you might respond, “I appreciate the opportunity to discuss compensation, but first I would like to learn a bit more about the role and to communicate my qualifications.”
  • If you accept an offer immediately, you are accepting it “as is.” It is more challenging (if not impossible) to go back to your contact at the organization later on to request changes. 
  • You may have opportunities to re-negotiate your salary or benefits during performance evaluations.

Sometimes it is not clear to a candidate who will be handling the negotiation process. Most likely you will negotiate with a member of the Human Resources department or with your hiring manager (possibly your interviewer or a recruiter). If you have received an offer or you are told that you will be receiving an offer, it is reasonable to ask, “With whom will I be discussing the details of the offer?” 

 

Preparing to Negotiate: Research & Planning

Before you begin your negotiation, it is important to have a firm understanding of your own expectations, limitations, and deal breakers. These elements should be informed by your research about the industry, the role, and your personal requirements. 
 

Salary Research
When negotiating your salary, you can learn about reasonable ranges for the role in a particular geographic area. It may be difficult to pinpoint an exact number, but you can develop an acceptable range for yourself by:

  • Researching cost of living
    How much are apartments and/or homes in the area near the office? Consider your personal budget needs (car insurance, groceries, childcare) when determining when and how much to negotiate.

  • Benchmarking through online resources
    There are many online resources that provide salary information. It is often best to search websites using various job titles, as some roles are titled differently at other companies. Some suggested resources include:

  • Utilizing professional association resources
    Review the resources provided by professional associations in your field to learn about job opportunities, industry trends, and salary ranges. You can also attend an event and ask someone who works for an organization or in a role you are interested in about salary expectations.

  • Talking to people in the field
    During informational interviews, you should never ask anyone how much money they earn, but it is acceptable to ask what a reasonable salary range expectation for a certain role would be. You may also ask fellow alums, mentors, or friends about their experiences negotiating and any advice or lessons learned.

Plan other negotiation requests
Remember that salary is not the only factor you can negotiate. In addition to your pay, you may also consider negotiating:

  • Signing bonus, moving expenses, stock options
  • Early reviews, performance bonuses
  • Start date, hybrid schedule, vacation time
  • Professional development, tuition reimbursement
  • Geographic location, parking, commuting travel discounts or reimbursements

Some areas that are usually non-negotiable are standardized benefits that apply to all employees, such as retirement plans and health insurance.

Consider how this opportunity fits into your own wants and needs, and what aspects of your compensation package are essential vs. flexible. For instance, an offered salary may be acceptable to you, but a different start date may be absolutely necessary. You may decide to forego negotiating the salary and focus on negotiating a new start date.

 

Preparing to Negotiate: Practice

Confidence (not arrogance) is the foundation of any negotiation process. Preparation can help you to feel more confident by ensuring you are well-informed and able to advocate for what you need or want from your benefits package. 

Negotiation is a part of life, so improving your skills can help in a job search and other realms.  Once you have read the advice and done your research, it’s time to practice. Practicing out loud is key!

  • Role play: It’s helpful to role-play with a friend, a partner, a career coach, or a mentor.  Have the person try different responses to your questions, so that you can experiment with different approaches. Try to do a 15- or 20-minute session of questions and answers to simulate an actual conversation, then think about what you would like to improve or change. 
  • Record: If you are practicing alone, record your responses so you can hear what works well and practice eliminating filler words.
  • Reflect: After a negotiation experience, reflect on what went well and where you would like to improve. Take a few notes so you know where to focus your practice for the next time.

Practicing out loud increases your confidence and your ability to adjust your responses during a conversation. Remember that with every negotiation you add to your experience – each one helps you learn and grow.

 

Entering Into Negotiation

When you first receive an offer:  

  • First express your genuine appreciation for the offer as it stands, and underscore your strong interest in the organization.
  • Make sure you have a copy of the full offer letter in writing and a mutually agreeable response date.
  • Ask any questions you may have in order to understand all parts of the offer, along with any remaining questions about the role.

When you begin the negotiation conversation:

  • Express your thanks and enthusiasm again before making requests. 
  • Ensure that your requests are specific and actionable. Say, “I’d like to discuss the compensation and the possibility of increasing the starting salary to $XX,XXX,” instead of, “I’d like to make more money.” 
  • Use the research that you have done to inform your requests, and support them by emphasizing the value that you bring to the team and the organization. Prioritize what is most important to you.
  • Show consideration by giving the organization an appropriate amount of time to respond to your negotiation requests. If your answer to the offer had been requested by Friday, don’t call and begin the negotiation process on Thursday at 3 p.m. Give them enough time to listen to your requests and come up with a counter-offer. 
  • As a general rule, employers are expected to give candidates a reasonable amount of time to make a decision. An organization may give you an “exploding offer” that requires you to decide within a very short time frame, such as 48 hours, making reasonable decision-making a challenge. In this case, you can ask to have some time to think about the offer, and be sure to agree on a new response date.

During the negotiation conversation:

  • Listen: Every conversation you have gives you an opportunity to practice listening. It is critical to develop strong listening skills and use them in negotiations. You may pick up subtle hints, you may identify a miscommunication, and you may begin to build a strong long-term and collaborative relationship with a prospective colleague in the future.  
  • Pay attention: It is easy to stop listening and start thinking of your response in a conversation, but then you might miss a key point.
  • Ask follow-up questions: If there is something that is unclear or if you would like more details, asking a follow-up question can help. It also demonstrates that you are listening carefully.
  • Confirm your understanding: Despite the best of intentions, sometimes two people understand the same words differently.  It can help to restate or summarize to make sure both parties agree.

After the negotiation:

  • Reflect on the conversation: Remember that with every experience you have, you are improving. Learn from each conversation about salary and benefits. If you feel that a conversation did not go well, chalk it up to learning and know that the next time will be better. It is important not to get defeated by one bad experience.  
  • Evaluate the counter-offer: When the organization responds with the counter-offer, they will let you know which requests they can meet and which ones they cannot. You may decide to renegotiate, based on this response, or move forward with the new terms of the offer. You should ask for the new offer in writing before accepting, to ensure that both you and the organization have complete details of your compromise.

 

Declining an Offer

You may decide, after receiving an offer or after negotiating, that this is not the right opportunity for you. It is customary to have a phone call to provide your final answer, whether accepting or declining. Express appreciation for the offer and the opportunity to interview with the organization. State that you will have to decline the offer, and provide them with an appropriate reason, such as pursuing another opportunity. Wish the interview and the company well in the future.

It is poor practice and can harm your reputation to accept an offer, and then continue to apply and interview for other opportunities. If you are uncertain about the offer you have received, don’t just accept it as a safety net. Talk to your Career Community Advisor.

 

Negotiation & Identity

It is important to evaluate how your identities, values, interests, skills, and other aspects of your background intersect with the negotiation process. Being aware of one's own identities and those of others can improve understanding of different perspectives and help to avoid misunderstandings; however, unconscious biases can influence employer decision-making at any point in the process, often disadvantaging individuals from marginalized backgrounds. 

Below is a non-exhaustive list of ways that identity can impact the negotiation process. We encourage you to connect with Career Education for support in navigating the negotiation process with respect to your own identities.

  • Cultural differences: Cultural norms and values shape negotiation styles. For example, some cultures prioritize direct communication and assertiveness, while others value harmony and indirect communication.
  • Gender identity: Men and women might approach negotiations differently due to societal expectations and stereotypes. For example, women may be seen as less assertive or more cooperative, while men might be viewed as more competitive or dominant.
  • Racial identity: Racial stereotypes and biases can affect how negotiators perceive each other’s abilities, intentions, and trustworthiness. This can lead to unequal treatment and outcomes. 
  • Power dynamics: The perceived power balance between negotiators can affect their behavior. Identity factors such as job title, seniority, and expertise can contribute to perceived power. Keep in mind that the hiring process is a two-way street and you have the power to evaluate whether a job is the right fit for you and your needs.