You’ve successfully navigated the interview process, wowed them with your abilities, and an offer is on the way! Congrats, you go Glenn Coco! The hard part is over.. or is it? If your offer isn’t exactly what you were hoping for, here are a few things to consider during the negotiation process.
Who will I be negotiating with?
You will likely be negotiating with your recruiter or manager. Be realistic and have an honest conversation about your asks. You’ve received other offers at this compensation, you are expecting to make this amount in your current company, this is the market average for a role like this, are all good reasons. “Because I am worth it”, not so much.
What should I consider when evaluating my offer?
The salary, while important, is only part of the job offer. I would look at your offer holistically, rather than just narrowing in on the salary.
Things to consider other than salary:
1. Benefits – Some companies’ benefits packages can be equal to about $15,000! That is money right back into your pocket.
Does your company offer to cover the cost for health insurance? Do you receive extra perks like tuition reimbursement, parental leave, 401k (bonus if they have a match), commuter benefits? Also a big one.. do they cover parking (you’d be surprised how many companies charge you to come to work)? You’d be surprised how many companies charge you to come to work!
2. Perks – See what perks may not have been mentioned during your interview. Does this company offer Friday lunches or unlimited snacks? Do they have a gym? Some companies these days offer massages, meditation, and pet friendly offices.
3. Stock – The first company I worked for offered me 1,000 stock options (the standard offering for an entry level position) when I started. I had no idea what that meant at the time. Flash forward 5 years later after the company went public and the value of my options was about $50,000! Stock is huge and in some cases more valuable than salary.
4. Vacation and Flexible Schedules – Your vacation days are money in your pocket (literally). If your previous company offered 2 weeks and your new company offers 1 week, see if they would be willing to come up. I would also ask if there are flexible work opportunities available. Working from home on rainy days so I don’t have to brave traffic, seriously makes all the difference to me sometimes.
5. Bonus – Questions to ask: How do bonuses work at your future company? When are they paid? How many people receive a full bonus? Is this based on personal performance or company performance? Bonuses are great, but can be deceiving. Make sure you really understand how your company manages bonuses.
6. Position Classification – Is this an exempt (salary) or non-exempt position (hourly)? It should say so in your offer. Do you get overtime? Is there a cap? Most OT is paid at 1.5x your rate. For example – You make $20/hr. Without any overtime (40 hrs per week or 2080 hrs per year) you would make $41,600.00. Say you work an 5 extra hours every week (260 hours per year), your rate for these hours would be $30/hr. In a year your overall pay, would be $41,600 + ($30*260 hrs) = $7,800) = $49,400. There is big difference between $41,600 and $49,400, so be sure to fully understand your exemption status before accepting an offer.
Check out here to see if you position should be an exempt or non-exempt position. Are you a coordinator or an assistant? Chances are you should be non-exempt.
8. Development – For someone looking for career growth or even to stay relevant in your current field, building experience and skills should be top of the list when considering a new role. Does your company offer trainings, career development, a great manager who is willing to have open feedback and 1-1’s with you. How does this company and position help your overall career goals?
My salary is lower than what I was hoping for. Anything I should know before asking for more?
Here are some things I would consider first, before asking for more money.
a. What is the market rate for this position? Check Payscale or google “salary for marketing manager in LA.”
b. What do you bring to the table that another candidate could not?
c. Could you realistically make this salary somewhere else?
Don’t ever be afraid to ask for more but also know going in what you would be willing to settle for. Consider the whole package and if you aren’t able to get an offer you feel is fair, this company may not be for you.
Any additional tips?
Know your worth! I would share any expectations before getting to the offer stage, so there are no surprises. If you receive an offer and it is less than what you were hoping for, say “Thank you for the opportunity! I’d like to read this over tonight. Can, I get back to you tomorrow?” This will give you time to gather your thoughts and put together your asks.
Danielle Melendy is the founder of Upside HR, where she helps growing businesses invest in their greatest asset – their people. Based out of Los Angeles, she’s worked in HR and recruiting at start-ups for past 10 years and is passionate about helping people accomplish their career goals. In her free time (and sometimes during work time), Danielle she can be found hanging out with her chubby german shepherd mix, Gus. She also loves bake, go for runs, and watch bad reality tv with her husband.
