How to negotiate salary after a Job offer (in 7 steps)

Congratulations on getting an offer! You have to know your worth and the market so you can confidentially negotiate the best offer possible.

Quick key takeaways:

• Research what others in similar roles are paid in your area using sites like Indeed and LinkedIn.
• Look into how stable the company is and whether the industry is growing or declining.
• Consider the whole package including benefits, work-life balance, and career growth opportunities
• Focus on negotiating salary and bonuses first, then discuss other perks.
• Use all the information to decide how much more you need to accept the job comfortably.
• Counteroffer based on your research and ask for agreements in writing.
• If the offer isn't ideal, negotiate for a performance review for a raise later or ask for a sign-on bonus.

About the Author

Tony Moore

Before stepping into his role as the head of Marketing at Timpl, Tony spent over 20 years as a headhunter and corporate talent acquisition expert. His career focused on finding and developing top talent across different industries, offering valuable insights into negotiation strategies and market trends that empower professionals to advance their careers effectively.

Follow these 7 steps to negotiate a job offer:

Step one – Research the current market rate for the “job title”. Search the job title in your state or region on Indeed and LinkedIn.

• Exclude California or New York unless you live there because those cities pay 30% higher.
• Pay close attention to the size of the company. Are larger employers advertising less than mid-size employers? Larger companies may pay less because they have great benefits and offer an attractive long-term career. Smaller companies may pay more to compete with well-known brands and offset weaker benefits. All of this data will help you settle on an annual salary or hourly rate that is “fair and reasonable.”

Step two – Research to make an educated guess about the financial health of the company and strength of the industry

Is the company growing? Have they been on a hiring spree? Have they had layoffs in the last 12 months? If so, hiring you might be the start of a comeback. Is it a stable company growing slowly? Know the industry. Is it growing into the future like EV batteries or declining? Do you see risk? Do you see a huge opportunity?

Step three - Determine your worth by understanding the supply and demand in your field.

Step Four – Evaluate the whole offer, not just the compensation

This can be subjective, but it is important to consider the overall value of the offer.

• Does this job, company and industry make for a “great career move?” Or is it average?
• Consider the work / life balance, remote, hybrid or commute factors.
• What other compensation is available, like cell phone, gym membership, vacation time, 401k, education reimbursement, company car, relocation package and so on. Add it up.
• Understand the bonus system. Is it structured or discretionary? What are historical payouts?
• Company culture is important.
• How likely will you be promoted?
• Now prioritize these

Step Five – Trust your gut and make a decision using all the data to decide how much more money you have to accept the job, bonus, perks, or some combination of these.

The Key point is to negotiate salary and bonus before starting in on the lesser perks. After the salary/bonus negotiation is over, go after the lesser perks. Ask for more vacation, cell phone allowance, and so on. For example, “In my previous role, I had 3 weeks of vacation. Can you at least match that?” Or “Next year I was eligible for another week of vacation, will you honor that?” Or “Given my years of work experience, it is customary to have ‘X’ weeks of vacation. Once we settle these last few details, I’ll sign the offer letter. I am looking forward to getting started.”

Step Six – Countering the base and bonus – example options to use. Whatever the final result, be sure everything is put in writing.

1. “After evaluating the entire offer, the (base or bonus) is low compared to the market and my (experience/expertise/knowledge) so for that reason, I propose “$$” Once we finalize these details I will officially resign from my current role. I am looking forward to joining the team.”
2. Another approach is “Thank you for the offer. I am interested in working with you, but weighing my current opportunity within (current company name) compared to your offer is not sufficient to offset the risk of changing jobs. Is this your best offer?”
   Put the ball back in their court. They may counter higher than what you expected. The danger in this approach is they might pull the offer away from you. If the original offer is too low and you are not going to accept it, use this approach.
3. “Thank you for the offer. We are really close. Based on my current earnings and my upcoming raise and review, I propose “$$.”
4. “Thank you for the offer. I am seriously considering it. Based on (site-specific research about the company, industry, travel requirements etc.) I would need “$$” to accept this role. I know I would be an excellent addition to the team and with my experience (in this), we will (reach the goal they mentioned in your interview).
5. “Thanks for the offer. As you know I am interviewing with other companies, but (the company you are negotiating with right now) is my top choice. But this offer is not competitive with the others. Do you have any flexibility? Is this your best offer? I look forward to hearing back from you soon.”

Step Seven – You tried your best to sweeten the deal, job but the total compensation package is still low or undermarket. Here are your final two options.

1. “Thank you for adjusting the offer. Although it is still a bit under-market, I am confident in my skills and abilities and know that I can (help you reach that goal or milestone or achievement) in the next 6 months. After 6 months, in (state the month) can you make me eligible for a performance review and raise?”
2. If this fails, the absolute last tactic is to ask for a sign-on bonus to cover the shortfall.

Good luck!