The Young Money Club

Many new college grads are hungry to jump on the first job offer that comes their way. If you’re happy with the offer there’s nothing really wrong with that, but its likely you’re leaving some money on the table. Studies show that more than half (55%) of all job seekers choose not to negotiate their salary, that number jumps to almost 65% for new graduates.

Trust me, I get it, you spend weeks or months looking for a job and finally land an offer. It’s tempting to take the first number/package they throw out. You may be scared to make a bad impression on your future employer or maybe you’re just intimidated by the idea of negotiating. My goal with this article is to put those fears to bed and give you some tips on how to make the negotiation process as smooth as possible.

Know It’s Okay To Negotiate

The first thing you need to understand is that it’s completely okay to negotiate. Roughly 84% of employers expect job applicants to negotiate during the interview stage. The side effect of that is that more than likely, those 84% of employers are going to offer you a lower amount than what they can actually pay you.

If you take the first, lower offer, your employer will be more than happy to give it to you. Why would they pay you more than you would willingly accept? They have no incentive to do so and some hiring managers and recruiters are even given bonuses based on how low of an offer they can get you to accept. You should have a range in mind of what you’re willing to accept and stick to it, the best way to do that is by knowing your worth.

Know Your Worth

Knowing your worth isn’t about deserving better than that toxic relationship you’re in, it’s about specifically knowing your worth within the job market. Many new grads get out of school and expect to make $65k-$75/year with no experience at all, but for most places in the US that’s just not realistic.

Do your research on what’s reasonable for your specific set of circumstances. Research salaries for your major, industry, region, school, and level of experience. Most colleges have a career center that can provide data on past graduates salaries and help you with every step of your job search.

Know What’s Negotiable

Once you know your worth in the job market, you need to find out what is negotiable. After you have an offer in hand, it’s not out of line to ask about what aspects of the offer are negotiable. Some places will negotiate on every aspect, while others aren’t able to change the structure of the offer at all. There is no point asking for something that the hiring manager has no ability to change. It’s important to narrow in on the few most important aspects of the offer that you would like changed so you can focus your energy on those.

Have a List

Now this doesn’t mean you need to have a physical list of demands or some sort of job offer manifesto. Only that you should have a combination of items to ask for instead of just one. This gives the hiring manager options in accommodating your requests.

For example, instead of going in and asking for a $5,000 bump in pay, ask for a $5,000 bump in pay, a $1,000 signing bonus, and 10 hours of PTO to start with. Assuming they can’t raise your salary more than $3,000. Instead of you asking for $5,000 and them countering at $3,000, maybe now they offer you a $3,000 bump in pay a $2,000 signing bonus, and the 10 hours of PTO. Offering up alternatives is a very valuable tactic that can help get you closer to what you want. At the end of the day a negotiation should be collaborative with the goal of everyone walking away happy.

Know Your Audience

When doing my own research I didn’t see this tip anywhere, but personally find it crucial to negotiation success. That is to know who you are negotiating with. Attempt to first establish rapport, try to gauge what type of person they are, learn as much as you can about them. Are they a pushover who wants you on their team at all costs? Or are they a hardass who has a line of people waiting to fill the position you are being offered?

The person you negotiate with can either be a partner to you or a hostile gate keeper trying to get you for as little as possible. Depending on the person, you should adjust your tone, body language, and negotiation style accordingly. Whoever you negotiate with, you should mirror their behavior (respectfully) not like some weird robot, but just in a general sense. For more specific information on that you can read here.

Know When To Quit

When you feel like you’ve reached a final package you are happy with, take your win and accept. Don’t try to milk your new employer for every last dollar and perk. Not only will you leave a bad taste in their mouth, possibly hurting you further down the line, it may result in your offer getting pulled.

For example, if you ask for a $5,000 raise and they give it to you, don’t then go back and ask for additional money or a signing bonus. If you have a few items on your “wishlist” always address them all up front, not sequentially. Like I mentioned previously, it’s important to remember that negotiations should be collaborative, you may not get everything you want and that’s okay, as long as you and your employer are both reasonably happy with the outcome. Best of luck and happy (job) hunting.

If you want to learn more about personal finance check out The Beginner’s Guide to Credit.