If there’s one thing I love, it’s negotiating. I know it can be intimidating and scary, but I tend to see it as a game to be played. I’ve negotiated every single job offer I’ve received (some successfully, and others less so!) as well as various car/house purchases and so on. I am by no means an expert, but I’ve learned a few things, and have helped both friends and clients with the process.
WHY should you negotiate?
I’m not going to get into reasons for the gender disparity here, but suffice it to say women are less likely than men to negotiate. Women are also more likely to face blowback when they do negotiate. That said, if you don’t negotiate, you’re facing a long term reduction in salary and benefits that can compound significantly over the course of a 30+ year career.
Given the potential for a negotiation to go sideways, a lot of people simply accept the offer as given. A couple reasons to consider asking for more include:
- More money (or other benefits, such as more PTO)! Of course, an increase in pay is the most likely ask. The vast majority of offers presented are in a range. The company giving the offer to a prospective employee rarely presents an offer at the top of the range to start. If the salary range is $100,000 – $120,000 they might offer $105,000 (for example). The company generally expects you to negotiate. It’s built into the process and their initial offer.
- Depending on the type of role, your negotiating skills can be seen as a tremendous asset. Showing your ability to have the conversation and successfully bargain can be a huge benefit. When my sister, an attorney, was offered a job recently, I coached her through the process and her prospective employer was incredibly impressed with her bargaining skills. Not only did she get more money, but they were even more pleased about their hiring decision.
How to go about the process
The absolute most important thing you can do is PREPARE. I definitely do not recommend just categorically asking for additional salary with no basis for the request.
- Do as much research as you can. Use sites like Salary, Glassdoor and Indeed to find out what typical ranges are for the role. For tech roles, I especially like Levels.fyi as a reference. Also, feel free to share some of the things you have successfully achieved in the past and how you might bring your skills to the new role. For instance, “I can bring value to this organization by implementing XYZ.”
- Do not demand more money or threaten the hiring manager. I view this as part of the process and the ultimate best outcome for both sides is a mutually satisfactory job offer. The goal is for you to be compensated appropriately, not to extract as much money as you can from the company such that there are unrealistic expectations or any financial burden on the employer’s part.
- I prefer to have this conversation a bit later in the process. It’s helpful to know what their range is, as early as possible. If you’re expecting $120,000 and find out after 3 interviews that their range is $90,000-$100,000, then you’ve wasted a lot of everyone’s time. But if the range is in line with your expectations, I wouldn’t throw out a number too early. That said, if there’s something else you’re very attached to, I think it’s fair to signal that to the employer on the early side. Don’t wait until you’ve been offered a role to mention that you only want to work part-time or need to work from home 50% of the time.
- PRACTICE!!!! If you’re at all nervous, practice with a friend or family member by role playing. Have a very good idea what you’re going to say and how you’ll respond to the possible answers. You should know ahead of time if there’s a number you just won’t go below. Also, be prepared for them to essentially say, “No, this is the best we can do.” Again, I know this part can be scary but it doesn’t have to mean you’ve botched the whole process and ruined your prospects. This has happened to me and I have typically responded with something like, “Well, I’m disappointed but I’m still very excited about the opportunity and I look forward to working together.”
What exactly should you negotiate FOR?
Salary is the most typical thing to negotiate for but there are plenty of other things to consider. Not everyone cares all that much about a few extra thousand dollars. You might prefer extra PTO, flexibility in your work schedule or even a different title. What are the options? Again, it depends what your priorities are, but you could considering negotiating for:
- A higher starting salary
- Equity in the business (or a path to equity)
- A signing bonus
- An extra week or two of PTO per year
- The ability to work from home
- Flexible work hours
- Travel expectations (how often, what level of travel)
- Professional development/continuing education budget
- Frequency and timing of reviews
- Bonus terms and target (i.e. X percentage of salary)
- A different title or other modification to the job duties
Some final thoughts
I recently had a conversation with some other financial planners on this topic and there were some great gems from our discussion.
- Consider interviewing for a job you do NOT actually want. It’s great practice and can give you more confidence negotiating as there’s not a big risk.
- Remember that there is a LOT more to your success in a role than the money.
- The skills used in negotiating are transferable to so many other areas of our lives, both professional and personal. Take the opportunity to work at advocating for yourself in as many settings as possible. Again, not just for the sake of it, but because it’s great practice to be able to voice what you need and why.
I will always make myself available to women who are struggling with this. If you ever want to role play or ask me a question, please email me: danika at xenafp.com