Is It Good to Ask for More Money in a Job Offer?

16 Jan Is It Good to Ask for More Money in a Job Offer?

You did it. After weeks of interviewing, you finally landed the job offer you’ve been dreaming about. As you review the offer letter, you notice the salary seems a bit lower than you expected. You wonder – should I ask for more money? Negotiating salary can feel nerve-wracking. You don’t want to ruin the offer by appearing greedy. But you also don’t want to leave money on the table. According to one study, not negotiating could cost you over $1 million in lifetime earnings!

So how do you approach this sensitive topic? When is it appropriate to request a higher salary? And what’s the best way to ask for more money from a new employer?

In this comprehensive guide, I’ll walk you through everything you need to know about negotiating salary in a job offer. 

Why You Should Negotiate Your Salary

Before we dive into the nuts and bolts of how to negotiate, let’s first establish why it’s in your best interest to push for more money upfront. Here are the top reasons why negotiating a higher salary benefits you:

1. It sets the foundation for your earning potential

Your initial salary is the baseline from which all future raises and promotions will grow. Aim high from the start so you’re not permanently stuck playing catch-up. Negotiating just a few thousand more dollars now could compound into an extra $100k+ for your career.

2. It helps close the gender pay gap

Research shows that women are less likely than men to negotiate their salaries. This contributes to the gender wage gap. By negotiating as a woman, you’re taking a stand for equal pay and setting yourself up for higher lifetime earnings.

3. You have the most leverage before you accept

The recruiting process is a two-way street – you’re evaluating the company just as much as they’re assessing you. Once you accept the offer, you lose negotiating power. Use the leverage you have as a candidate to ask for a salary you’ll be happy with.

4. Employers expect it

These days, most hiring managers anticipate that you’ll want to discuss salary. Many are disappointed if you don’t try to negotiate because it signals you may not be a strong advocate for yourself down the road.

5. A higher salary means higher retirement contributions

The more you earn now, the more you can sock away into retirement accounts like your 401k. Boosting your starting pay lays the groundwork to build your nest egg faster.

6. Salary indicates how the company values you

A salary offer gives you a glimpse into how the employer views your worth. If they lowball you, it may be a red flag about their appreciation of employees. The less you accept upfront, the more likely you’ll deal with stingy raises later on.

Negotiating is a crucial skill in the professional world as it can significantly impact your financial standing. Not negotiating is akin to leaving money on the table. With preparation and finesse, you can craft a win-win conversation to land the salary you deserve. When faced with a job offer, it’s important to assertively express your value and contributions to the company. This involves showcasing your skills and achievements, while also addressing the market value for your role. By confidently discussing your worth, you can position yourself for a more favorable compensation package. So, don’t hesitate to ask for more money job offer. It’s a strategic move that can enhance your financial well-being and reinforce your professional worth.

When Should You Negotiate Salary in a Job Offer?

Now that you’re inspired to negotiate, let’s talk timing. When’s the best time in the recruitment process to have the salary discussion?

Here are your options:

During the initial phone screen – Mention your salary expectations upfront so the company doesn’t waste your time if it’s out of their budget.

After the first interview – Once you have a sense of the role’s responsibilities, share your desired salary based on the scope of the position.

After the job offer – Wait until the company extends an official offer, then negotiate for more money before accepting.

After you start working – Renegotiate for higher pay once you have proven your value by doing excellent work.

So when’s the BEST time to negotiate salary?

After you receive the job offer.

At this point, the company has signaled they want you and are ready to close the deal. You now have maximum leverage to have a conversation about earning more before saying yes.

Negotiating any earlier risks leaving money on the table or having the offer rescinded if you ask for too much too soon.

Moral of the story: Wait until the offer is on the table, then use that leverage to negotiate.

How to Determine a Fair Salary Range

Now comes the big question – how much should you ask for? You want to land on a number that’s fair without pricing yourself out.

Here’s a step-by-step process for setting a target salary range:

Step 1: Research The Market Rate

The first thing you need is data. What are people with similar titles and experience earning at other companies in your geographic area?

Some resources to find salary ranges:

• Job sites – Check the salary listed for comparable roles on sites like Glassdoor, Indeed, LinkedIn, and AngelList.
• Salary databases – Salary.com and Payscale both offer free reports with salary info.
• Professional associations – Many professional groups like the Society for Human Resource Management publish compensation surveys.
• Recruiters – External recruiters may have insider knowledge of pay rates at various companies.
• Your network – Connect with people who hold similar jobs and politely ask their salary range.

Create a spreadsheet to track the salaries you find. Take note of years of experience required for each range. This will help you establish what’s considered entry-level vs. mid-career vs. experienced pay.

Step 2: Consider The Total Compensation Package

Salary is just one piece of the puzzle. The total compensation package also includes things like:

• Health, dental, and vision insurance
• Retirement contributions
• Stock options or equity
• Bonuses
• Paid time off and parental leave
• Tuition reimbursement
• Commuter benefits
• Wellness perks like gym reimbursement

These benefits all have monetary value, so factor them in when deciding what salary to ask for.

For instance, a $75k salary with amazing benefits may be equivalent to a $90k salary with fewer perks.

Step 3: Weigh Your Experience Level

Now consider: Where do you fall on the experience spectrum for this role and industry?

• Entry-level – Just starting out. May accept lower pay for the chance to get your foot in the door.
• Mid-level – 3-5 years of directly relevant experience. Can expect average market rate.
• Experienced – 5+ years managing similar responsibilities. Well-positioned to negotiate for the higher end of the range.

If you have more experience than the job requires, emphasize why that makes you a premium candidate worth paying more for.

Step 4: Factor in COL Differences

The cost of living varies enormously across regions. $100k goes a lot further in small-town Iowa than in the heart of San Francisco.

When evaluating salary ranges, pay close attention to the geographic region they represent. Use a COL calculator to adjust ranges for where you’ll be located.

Step 5: Set Your Target Range

With all that data, you should be able to zero in on a reasonable salary request.

I recommend establishing a range rather than picking a single number. For example: “I’m targeting between $85k-$92k.”

This gives you and the employer some wiggle room to find middle ground. A few thousand dollars may not be a huge difference to their bottom line but could have an enormous impact on your finances.

How to Have a Successful Negotiation Conversation

You’ve done your research and prepared your target range. Now it’s go time – how do you actually bring up wanting more money?

When it comes to the art of negotiation, here are some best practices to bear in mind:

Time it strategically

Don’t negotiate when emotions or tensions are running high. Instead, wait for a neutral time when both parties are calm and centered.

Aim to discuss the day after receiving the offer or later. This gives you time to get your thoughts in order and practice what to say.

Adopt a friendly tone

You attract more flies with honey than vinegar. Broach the conversation in a positive spirit of finding a solution rather than demanding more.

“I’m thrilled you want me on your team! I have a couple questions about the offer I’d love to discuss.”

Start with something positive

Open by expressing your excitement about and interest in the role. Thank them for the offer. Praise elements of it that you find appealing.

This warm up helps buffer the ask for higher pay by first making them feel good.

Explain why you want more

Now that you’ve softened them up, politely share the salary range you’re targeting based on your research and experience.

Explain your rationale in a factual rather than emotional manner. Provide specific data points that support why you deserve more.

Make your case convincingly

Confidence and preparation are key. Have concrete examples ready that demonstrate why you’re worth a premium salary.

Talk through why your skills and contributions would be a strategic investment rather than a cost.

Aim higher than your minimum

Psychology says you’ll likely end up somewhere between their offer and your ask. So go into the negotiation expecting compromise on both sides.

For example, if you’ll accept no less than $85k, ask for $92k. That leaves room to land around $90k.

Listen to their perspective

After you state your case, stop talking and listen closely. Let the employer explain from their perspective why they reached the number they did.

Hear them out so you understand their rationale before responding. They may have new information that sways you.

Find creative solutions

If they can’t meet your number, probe for alternative ways to bridge the gap:

• Request a earlier salary review to reassess your pay after 3-6 months once you’ve proven your value.
• Negotiate for a sign-on bonus to boost your initial income.
• Ask for extra vacation days.
• See if there’s flexibility to work from home more to cut your commute costs.

Know when to fold

If the number they offer still falls short after exhausting all options, you have two choices:

1. Accept it if the overall opportunity is worth it. You can make up the difference over time through raises and bonuses.
2. Decline the offer only if the pay makes the role truly not viable for you. Be absolutely certain before walking away – a bird in the hand is worth two in the bush.

The goal is win-win, but know when to hold ‘em and know when to fold ‘em.

What to Avoid When Negotiating

You want the salary discussion to leave both sides feeling good about doing business together. Steer clear of these missteps:

• Making unreasonable demands
• Focusing solely on money rather than the value you’ll bring
• Making it personal rather than professional
• Accepting too quickly without asking thoughtful questions
• Stonewalling on your number refusing to bend at all
• Considering only your own interests, not the company’s constraints
• Being dishonest or exaggerating your abilities
• Issuing an ultimatum or strong-arming
• Raising your voice, getting emotional, or threatening to walk away
• Waiting until after you’ve started working to bring up compensation

The right approach is confident but not cocky, assertive but not aggressive. With the right finesse, negotiating salary can be a collaborative conversation, not a combative confrontation.

What If They Won’t Budge?

You made your pitch persuasively but the employer won’t raise their offer. Don’t fret – you still have options:

1. Request a salary increase timeline

If they can’t adjust the starting pay, ask when you’d be eligible for your first pay review and raise. One upside of a lower salary is it makes it easier to show big percentage gains at review time.

2. Negotiate a signing bonus

Perhaps they can’t go higher on base pay but can offer a one-time lump signing bonus. This extra influx of cash can fund things like moving costs, student loan payments, or travel.

3. Seek adjustments to non-salary benefits

Look for other areas where they can sweeten the deal, like more PTO, work from home options, or better insurance coverage for your family.

4. Ask for future salary reviews off-cycle

Rather than waiting a full year for a pay bump, request a salary reassessment at 6 months once you’ve gotten a few big wins under your belt.

5. Accept the offer as a foot in the door

Sometimes choosing potential over immediate extra money makes sense long term. Then blow their socks off with your performance to pave the way for faster advancement.

The employer may genuinely be unable to pay more right now. But that doesn’t mean you can’t earn bigger paychecks in the future.

Alternative Options Beyond Salary to Negotiate

Money isn’t everything. Beyond the dollar amount, consider negotiating these other aspects of the offer:

Title
If they can’t swing a higher salary, ask for a higher-level title to boost your resume. “Senior” or “Lead” better conveys your value.

Flex hours Negotiate working non-traditional hours or a condensed schedule. Having control over your time is huge for work-life balance.

Remote work Request to work remotely full or part-time. Eliminating a commute saves money on gas, parking, vehicle wear and tear, and more.

Professional development Push for more continuing education benefits like paid tuition, seminars, conferences, and certifications. Growing your skills leads to higher incomes down the road.

Paid time off Aim for more than their initial vacation and sick day offer. Everyone needs time to recharge.

Relocation package If you’re moving for the job, ask for help covering costs like housing tours, moving expenses, temporary housing, and meals.

Commuter benefits Seek compensation for commute costs if your work and home locations have a large distance between them. Mileage reimbursement, MetroCard’s, parking stipends all help subsidize travel to the office.

Early pay raise If they won’t raise the starting salary, request a compensation review in 3 or 6 months rather than waiting the full year.

Tit for tat One technique is to concede something they want in exchange for what you want. For example, offer to start in 2 weeks rather than 4 if they can increase the base pay.

Frequently Asked Questions

Should you negotiate an entry-level salary with no experience?

Yes! Don’t assume entry-level means they’ll lowball you. Do your market research and politely make a case for what you’re worth. The worst they can do is say no.

Can you negotiate a salary after starting a job?

It’s possible but challenging. Ideally try to land the pay you want upfront. Once you’ve accepted an offer, you have less negotiation power. But after a few months of kicking butt in the role, it’s fair to broach wanting an adjustment.

Do all companies allow salary negotiation?

Most do. The exception would be government entities or union jobs where pay is locked into fixed tiers. But at most traditional companies, even if HR claims salaries aren’t negotiable, it never hurts to make your case.

Should you negotiate salary in email or over the phone?

Over the phone if possible. Email negotiations take longer and lose the human touch. But if the recruiter insists on keeping it to email, follow their lead.

When should you divulge your current salary?

As late in the process as possible. Your current pay isn’t an accurate measure of your next job’s worth. Give your target range based on the market rate for this new role only.

Is it risky to negotiate multiple parts of an offer like salary, bonus, vacation days, etc?

It’s fine to negotiate a combination of factors, just don’t get overly nitpicky or demanding. Know your must-haves versus nice-to-haves and focus the conversation on areas that matter most to your financial bottom line.

The Bottom Line

In the realm of business, key relationships encompass various facets, and negotiating job offers is a pivotal example where establishing a positive rapport can significantly impact your earning ability over time; with the right approach, you not only secure the salary you deserve but also initiate the work relationship on an honest and positive footing, laying the foundation for long-term success.

Remember these key points:

• Research salaries to determine a fair market rate based on the role, your experience, and geographic location.
• Wait to bring up salary until after you get the offer, when you have maximum leverage.
• Be positive, professional, and armed with facts and figures to justify the number you want.
• Aim a little high to leave room for compromise.
• If they won’t budge on base pay, look for creative alternatives like signing bonuses.
• Focus on collaborating, not strong-arming, so the discussion leaves everyone feeling like a winner.

Now you’re ready to tackle that tricky salary talk with confidence. You got this! Happy negotiating!