You’ve been interviewing for months, and it finally happened: You received a job offer. Unfortunately, the salary is lower than you were expecting. What now? You need to know how to negotiate a higher salary after a job offer and we’re here to help. Asking for a higher starting salary can feel intimidating, but when you are prepared and know what to do, salary negotiation is a manageable and worthwhile endeavor.
How to know if you should negotiate a higher salary after a job offer
When you receive the offer, evaluate it against your expectations. If the offer is in line with what you were expecting and the hiring manager has offered insight into the organization’s compensation strategy with full transparency around how compensation is calculated, negotiating for a higher salary at this point may not be a good idea.
But if the offer is much lower than you were expecting and, more importantly, lower than the market rate for the role with your experience level, negotiating a higher salary is in your best interest.
Why you should negotiate a higher salary after a job offer
Your starting salary at a job can impact your career significantly, especially in terms of your future earnings potential. Once you start your job, future pay raises are typically given as percentage increases. Let’s say you negotiate a 10 percent increase in your starting salary. That means all future pay increases will be at least 10 percent higher than if you had accepted the job offer straight away. In fact, experts have determined that not negotiating your salary could cost you $1 million in earnings over the course of your career.
If you don’t at least try to negotiate a higher salary after a job offer, you could be shortchanging yourself and leaving thousands of dollars on the table. Plus, when people change jobs or move to new companies, they typically receive a higher salary than at their previous job. The ripple effect of negotiating a higher salary after a job offer is far-reaching.
When you are deciding whether to negotiate a higher salary, it’s important to think of the long-term impacts. Do the math for yourself and see what negotiating even a five percent increase could mean over time.
4 questions to ask yourself before you negotiate a higher salary after a job offer
Before you attempt to negotiate a higher salary, there are a few questions you should ask yourself — both to prepare for salary negotiation and to help set your own expectations.
1. Why are you disappointed with the offer?
If you feel disappointed, that must mean you had a number in mind. Where did you get that number? If your specific salary goal was solely based on what you’d like to earn regardless of the value of the position, you could be hoping for an unrealistic outcome. This brings us to our next question.
2. How do you know what the job is worth?
To prepare for any salary negotiation — especially a salary negotiation after a job offer — you need to do your research. There are multiple factors to consider in order to determine the salary range for a job. Where you live, the number of years of experience you have, your industry, and any certifications or special skills you bring are just a few of these factors. To begin your research, start by evaluating the job offer with a personalized salary report. Start here and remember, the more specific you are in your answers, the more accurate your report will be.
3. Was a salary range shared for this job at any point during the interview process?
This is another question where research is key. If your prospective employer did not share a range, you could ask for one before you begin the negotiation process. To do this, you can email the person who extended the offer and say that you’re evaluating their offer and it would be helpful to know the salary range for the position. They may agree to share that information with you, or they may not.
If you receive the range and the midpoint is lower than the number your research has helped you determine, you may decide to politely decline their offer, or you could continue and try to negotiate a higher salary. Before you make this decision, you need to identify why you believe you should start at the higher end of the range. Keep in mind that employers typically default to the midpoint of the range when determining a starting salary, which is fair. One of the only exceptions is when a candidate is 100 percent proficient and has years of pay increases in that role already, like if you are being poached from one organization to another in the exact same role.
If they decline to share the range, you can still open negotiations based on your own research.
4. Why do you think you are worth more in this specific job at this specific company?
Your prospective employer offered you this job for a reason. You have skills and abilities you will bring to the role and that made you the most appealing candidate. Make a list of what those things are and how they will benefit the company. You will need this when you move forward to the actual negotiation.
Once you’ve answered the above questions and have done your research, you are ready to move on to the actual negotiation. Now, let’s talk about how to do it.
How to negotiate a higher salary after a job offer
It’s time to negotiate, and we’re going to guide you through the process. Take a deep breath, find your confidence, and let’s go.
Step 1: What to do when you receive the offer
This is one of the easiest steps of the process. When the hiring manager extends the offer, first thank them and express how excited you are at the prospect of joining the team. Tell them you’d like some time to evaluate the offer and be sure to ask them to email the offer in writing, including information about employee benefits and the total compensation package they are offering. Finally, set up a time to discuss the offer and finalize everything together.
Step 2: Evaluate the offer.
This step is where the research you did earlier will come in handy. Gather your data and evaluate the offer. Is the salary within the expected range for your skills and experience level? Or, given your previous salary, your demonstrated proficiency, and/or the industry and company size, is it truly too low? Now is the time to decide what exactly you will ask for when you begin the negotiation, with the confidence that your request for a higher salary is based on data.
This is also the time to consider what else you might want to negotiate. Remember how you asked to see the full compensation package and employee benefits? Salary isn’t the only thing you can ask to change. Are they offering a signing bonus, generous PTO, unique benefits, or a relocation allowance that may sweeten the deal? If not, this is the time to ask.
Step 3: Begin negotiating. Name the salary you want.
This is the step that makes most people feel nervous. We get it. It’s scary to advocate for yourself and what you’re worth. That’s why we want to make this process as easy as possible for you. And remember, salary negotiation is standard practice after a job offer. The hiring manager is not going to be caught off guard that you would like a conversation about the starting salary. They won’t rescind the offer just because you want to discuss it. And, unless your counter salary is totally off base and unresearched, they shouldn’t be insulted.
When it’s time for the meeting to discuss the offer, be confident and friendly. Open the conversation by saying something like this:
“Thanks for meeting with me! I’m excited about the idea of joining the team and I can’t wait to get started. I’d love to discuss the offer with you. My research shows my experience and skills are in line with a starting salary of X. What can we do to increase this offer?”
How effective this is will depend on what the organization has shared with you to date. If they have already given you data points that explain the current offer and are not willing to budge based on your independent research, you may be in a good position with this company. An organization that provides transparency in how they determine pay is more likely to treat your compensation as important going forward. If you are still not satisfied, you can ask about processes for pay increases. You can also decline the offer if it’s just not what you are looking for.
Step 4: Listen and respond accordingly.
Remember that negotiation is a conversation. The hiring manager will respond to your request and it’s your job to listen with an open mind. Their response will help you determine what to do next. They may tell you their research shows a range that’s different from what your research showed. Compare notes and explain how you each got to your number. Keep in mind that the free data sources you are likely to use are less exact than what your employer is using to determine your pay. However, it is fair to ask about the data the company is using to be sure that your prospective employer is pulling from sources that are trustworthy.
There may also be wiggle room to increase your salary offer if your skills or experience exceed the salary you’re presented with. Emphasize what you bring to the table and the impact you’ll be able to make in the role if applicable, especially if you are offered a salary below the midpoint when you have many years of experience in that role already. When you can tie your qualifications to the bottom line, you can better show why you merit a higher salary.
So, how does this look in practice? Here is how it might go:
Hiring manager: “Hm. That salary seems a little high. We are offering a salary based on the midpoint of our benchmarked range for this position, which is X.”
You: “Thank you for clarifying. I came to this number based on my X years of experience, which I think warrants a higher position along the salary range. I am not new to this work and the market rate for this position at other companies in our city/industry is between $X-X. The specific skills I’ll bring to the role should warrant a higher base salary because they are competitive.”
Hiring manager: “Can you talk more about that? What salary are you looking for?”
You: “Absolutely! When we discussed the team’s goals for the quarter, I know we said my experience in X could help us meet those objectives. And my skill with Y means I’ll be able to hit the ground running when it comes to [insert goal here]. Plus, I’ve been in this industry for X years, so I’m prepared when it comes to the typical challenges I might face in this role. And, in my time at [previous company], I helped increase revenue by X percent because of my experience with X. I’m looking forward to making a similar impact here. In order to accept the position, I need to be offered at least X.”
Ideally, the hiring manager will have an answer for you in the meeting, though sometimes they must get approval from HR. You’ve done the hard part and now it’s in their hands.
Step 5a: What to do if the hiring manager says a higher salary isn’t possible
Sometimes you can be prepared with all the data in the world, but it still won’t make a difference. The company might not have the budget for an increase, or they may pay below market across the board, or they may be unable to extend you a higher offer because it would be unfair to other employees in the organization who are making less than what you are requesting.
You need to be prepared to hear the word “no.” If a higher salary isn’t possible, do you still want to accept the job? If the answer is yes, now is the time to bring up the other parts of the compensation package you want to discuss and reiterate that you are excited about the company and the work. Salary isn’t everything, and if you focus solely on compensation, the organization might feel that you are not a good fit for their values.
“I understand a higher starting salary isn’t possible currently. I also understand the explanation you have given about why the offer you have made is fair. Are benefits flexible? If so, I’d like to discuss increasing my PTO from X to X and adding one WFH day per week.”
“I understand a higher starting salary isn’t possible. Can we discuss what might be available for a signing bonus?”
Step 5b: What to do if the hiring manager says yes
Congratulations; you did it! You negotiated a higher salary after receiving a job offer or were granted some other perks that were important to you. Now you get to accept graciously. Don’t forget to ask them to send the new offer in writing.
“Thank you so much! I’m very excited to accept this role and I can’t wait to get started. Please send me the new offer and I’ll be happy to sign and send it back right away.”
Remember, the most important part of successfully negotiating a higher salary after you receive a job offer is knowing what you should be paid. Take the Payscale Salary Survey and go into every negotiation feeling confident that you know your worth.
As an expert in career development and salary negotiation, I've spent years delving into the intricacies of job offers, compensation strategies, and the art of successfully negotiating a higher salary. My experience includes advising individuals on navigating the delicate process of salary negotiation and understanding the long-term impact it can have on one's career trajectory.
Now, let's break down the key concepts discussed in the provided article on how to negotiate a higher salary after receiving a job offer:
1. Evaluating the Offer:
- Contextual Assessment: Evaluate the job offer in comparison to your expectations. If the offer aligns with your expectations and the company has been transparent about their compensation strategy, negotiating may not be necessary.
- Market Rate Consideration: If the offer is significantly lower than both your expectations and the market rate for your experience level, it becomes crucial to consider negotiation.
2. Importance of Salary Negotiation:
- Career Impact: Emphasizes the substantial impact of starting salary on future earnings, as subsequent raises are often percentage-based. A successful negotiation can result in higher earnings throughout your career.
- Financial Consequences: Highlights that failing to negotiate could potentially cost you up to $1 million in earnings over your career.
3. Preparation for Negotiation:
- Self-Reflection: Before negotiating, consider why the initial offer disappointed you. Was your salary goal realistic and tied to the position's value?
- Research: Stress on the importance of researching salary ranges based on factors such as location, experience, industry, certifications, and skills.
4. Questions Before Negotiation:
- Understanding Disappointment: Reflect on why you feel disappointed with the offer and whether your expectations are realistic.
- Researching Job Worth: Highlight the need to research the job's market value and inquire about a salary range if not provided during the interview process.
- Determining Worth: Evaluate your qualifications and understand why you believe you should be positioned at a higher end of the salary range.
5. Negotiation Process:
- Expressing Gratitude: When receiving the offer, express gratitude, request time to evaluate, and ask for a written offer with details on employee benefits.
- Evaluation and Decision: Evaluate the offer against your research and decide what aspects to negotiate, such as salary, benefits, signing bonuses, or PTO.
- Initiating Negotiation: Open the negotiation confidently, citing research and expressing enthusiasm about joining the team.
- Effective Communication: Provide reasoning for your desired salary based on experience, skills, and industry benchmarks.
- Flexibility: Be open to discussions, compare notes on salary data, and explore potential compromises or adjustments.
6. Responses to Negotiation:
- Possibility of "No": Acknowledge the possibility of a refusal due to budget constraints and be prepared to consider other aspects of the compensation package.
- Acceptance of Higher Offer: If successful, graciously accept the revised offer and request it in writing.
7. Finalizing Negotiation:
- Expressing Gratitude: Regardless of the outcome, express gratitude for the opportunity and handle the negotiation process professionally.
In essence, successful salary negotiation involves thorough research, clear communication, and a strategic approach to showcasing your value to the organization. By understanding the dynamics of the negotiation process, individuals can navigate job offers with confidence and maximize their earning potential throughout their careers.
