How Do You Negotiate Salary After Offer Letter?

How Do You Negotiate Salary After Offer Letter?

Receiving a job offer is an exciting moment. After going through the lengthy interview process, you finally landed the position. However, don’t let the excitement cause you to accept the offer immediately without considering negotiation. Negotiating your salary after receiving an offer letter is possible if handled correctly. With the right preparation and approach, you can increase your starting pay and improve your position.

Should You Negotiate Salary After Offer Letter?

Should You Negotiate Salary After Offer Letter?

Before attempting to negotiate, determine if it’s the right move for you. Consider the following:

Evaluate the offer

Review all components of the offer, including salary, bonuses, benefits, stock options, and perks. Determine if it aligns with your market research on fair compensation for this role, company, and location. If it falls below typical ranges, you likely have room to ask for more. However, if it meets or exceeds market rates, negotiating may not work. Remember, it is acceptable to ask for more money job offer when the offer is below industry standards, but strategic negotiation is key to a successful outcome.

Weigh your preferences

Consider what matters most to you – higher starting pay to advance your career, or getting your foot in the door with a respected company. If salary is essential, negotiating makes sense. But if you prioritize the job itself, you may decide to accept the original offer.

Assess negotiating risks

Will negotiating strain your relationship with the hiring manager? Or is the company culture fairly flexible regarding compensation discussions? Understand any risks before moving forward.

Determine negotiation eligibility

Did the company say the offer is non-negotiable? If they presented it as firm, you likely cannot negotiate base pay. However, you may still discuss bonuses or benefits.

If the above factors indicate negotiating could be successful and worthwhile, proceed with a plan.

How to Determine Negotiation Number

To negotiate effectively, you must have a target number in mind for the new salary you want to achieve. Avoid vague negotiation requests by determining this number upfront using the following:

Research industry salary ranges

Search sites like Glassdoor, Indeed, Pay scale, and Salary.com to find typical pay for your role, experience level, location, and company size. This provides a benchmark to guide your target.

Consider your qualifications

If you exceed the required credentials for the role, leverage this in a higher counteroffer. For example, if you have a PhD for a job requiring a Bachelors degree, you can justify requesting above average pay.

Evaluate existing salary/job offers

Your current salary or competing offers influence reasonable negotiation numbers. If you already make well above the initial offer, or have a higher competing offer, aim high with your counter.

Account for cost of living

If the job requires moving to a higher cost of living area, factor this into your target number. Use a COL calculator to determine the pay needed in the new location to maintain your current standard of living.

Add a buffer

Pad your number above the market average, so you have room to negotiate down while still ending up at a satisfactory salary.

How to Negotiate Salary Over Email Professionally

Once ready to negotiate, follow these steps to do so professionally over email:

Thank them for the offer

Start the email by expressing your gratitude for the offer and excitement about the role. This gets things off on a positive note.

Highlight your interest

Indicate you are very enthusiastic about joining the team. This shows you are still committed, despite asking for a higher salary.

State your counter proposal

Politely provide your counteroffer number determined using the previous tips. For example, “After reviewing the offer, I was hoping we could consider a starting salary of $XX,XXX for this position.”

Share your reasoning

Explain your reasoning grounded in market research, credentials, and other factors that support your request. Provide this politely, not combatively.

Remain flexible

Note you are open to discussing the compensation issue further to find a mutually acceptable agreement. You want to continue the conversation, not shut it down.

Reinforce excitement

Reiterate your excitement and reaffirm your interest in the role, despite the negotiation request.

Thank them again

Close by thanking the employer again for the offer and consideration. Express you look forward to further discussing.

What to Say When Negotiating Salary Over Phone

If the employer wants to discuss your negotiation request over the phone, use these tips:

  • Mirror their tone – Match their congenial or formal tone. Don’t come across overly aggressive or emotional.
  • Listen first – Let them speak first to understand their perspective. Don’t interrupt.
  • Thank them – Express appreciation that they took the call to discuss your request.
  • Clearly restate – Calmly restate your counter proposal and rationale. Bring supporting documents if needed.
  • Remain flexible – When countering their counter, reiterate you are open to compromise to find an acceptable middle-ground.
  • Keep it professional – Avoid ultimatums or exposing emotions. Keep the discussion rational, not personal.
  • Clarify next steps – Before concluding the call, summarize what was discussed and define next actions.

Approaching the phone conversation professionally and collaboratively gives your request the best chance for success.

How to Negotiate Start Date Along With Salary

When negotiating salary, you may also want to discuss adjusting your start date. This involves:

  • Requesting to delay your start date to allow more time to wrap up obligations in your current job.
  • Asking for an earlier start date if you are eager to begin or have already left your prior role.
  • Linking the start date to when bonuses are paid at your current company, so you don’t miss out.

When negotiating both salary and start date:

  • Make salary your priority in the discussion
  • Present start date as a secondary flexible consideration
  • Provide reasoning tied to professional responsibilities, not personal convenience
  • Offer to handle duties remotely in interim if the company needs you sooner
  • If delaying, reassure them of your commitment and express eagerness to join once settled

With the right approach, you can negotiate both aspects successfully. Just be sure not to appear unreasonable with too many demands.

At What Point in Job Offer Process Should You Negotiate Salary?

Timing your negotiation appropriately ensures the best odds for success:

After verbal offer

Wait until after you’ve received a verbal offer indicating they want to hire you. This is the right time to start salary discussions. Negotiating before an offer can jeopardize your candidacy.

Before accepting in writing

Negotiate after the verbal offer, but before accepting the official written offer. Once you sign the offer letter, the base pay is set.

Within 1-3 days of offer

Don’t let too much time pass after receiving the offer before responding with your counter. Wait no more than 1-3 days to negotiate, while everything is fresh.

After, if stated non-negotiable

If the offer is presented as non-negotiable, wait until after accepting before trying to negotiate. Handle sensitively, since you already agreed to terms.

Perfect timing for negotiations involves promptly responding to a verbal offer by requesting higher pay before formally accepting in writing.

What to Do If Employer Won’t Negotiate Salary After Offer Letter

If your attempts to negotiate are declined, assess the situation before deciding your response:

  • Get their reasoning – Understand why they can’t adjust the salary. Perhaps policies prohibit negotiations.
  • Request reconsideration – Ask if they would reconsider if you meet certain milestones in your first 6 months. Or after a planned salary benchmarking exercise.
  • Accept as-is – If the offer is reasonable despite being firm, accept as-offered and make the most of other perks and benefits.
  • Use as leverage – If you have other offers, communicate you have a higher competing option to encourage their negotiation.
  • Walk away – Only reject the offer altogether if you have better alternatives or cannot accept the low salary.

With flexibility and professionalism, you can often still negotiate successfully even if your initial request is denied.

How to Negotiate Benefits Along With Salary in Job Offer

How to Negotiate Benefits Along With Salary in Job Offer

Beyond just negotiating salary, also consider asking for better benefits. Some options include:

  • More vacation time – Request additional paid vacation beyond the standard policy.
  • Flexible work arrangements – Negotiate the ability to work remotely, adjust hours, or compress schedule.
  • Tuition assistance – Ask them to cover the cost of you taking courses relevant to your role.
  • Signing bonus – Seek a lump sum cash bonus paid out when you join to offset lower base pay.
  • Performance bonus – Negotiate performance pay, such as an annual bonus upon meeting goals.
  • Relocation assistance – If you have to move for the role, request help with housing costs.

When negotiating benefits:

  • Prioritize salary negotiation first
  • Present enhanced benefits as secondary requests
  • Choose benefits reflecting your needs and priorities
  • Frame requests in terms of how they will make you more successful in your role

With the right approach, you can often negotiate benefits successfully, even if salary negotiation is declined.

Mistakes to Avoid When Negotiating Job Offer Salary

Refrain from these common missteps when negotiating:

  • Not having a number in mind – Asking vaguely for “more” will not be effective. Know your target.
  • Not specifying a counteroffer – Simply stating dissatisfaction with the offer won’t get you more money. Provide a defined request.
  • Making emotional pleas – Don’t beg for more or refuse firmly without calm discussion. Take an objective, professional approach.
  • Insulting the offer – Even if you feel insulted or offended by a low offer, do not express this directly.
  • Issuing ultimatums – Threatening to reject the offer outright if they don’t meet your request could backfire.
  • Lying about competing offers – While tempting, don’t inflate your worth by falsifying other options. Negotiate based on facts.
  • Being inflexible – If you shut down compromise or refuse to deviate from your number, agreement becomes impossible.

Stay clear of these common mistakes, and you will strengthen your chances of successful negotiations.

Negotiation Email Templates and Samples

Review these email templates and use them as examples when crafting your own negotiation messages:

Thanking for offer and expressing interest

*Dear [name],

Thank you for the job offer to join [company] as a [role]. I am thrilled to have the opportunity to bring my skills and experience to your team. [Company] is doing innovative work that I strongly believe in, and I have long admired the culture you’ve built. I am very enthusiastic about the prospect of joining you.

Restating offer details

As we discussed, the offer includes an annual salary of [$X], along with [other compensation like bonuses, equity, relocation stipend].

Making counterproposal

While I am certainly interested in accepting the position, I was hoping we could consider increasing the starting salary to [$Y] given my [X] years in this field and [relevant credentials like education level or specialized expertise that supports your request]. I believe this would reflect the value I can bring to the role based on my background.

Expressing flexibility

I completely understand you likely have established compensation ranges and protocols. I simply wanted to respectfully provide my perspective, and I’m happy to discuss the salary issue further to find a middle ground we are both comfortable with. My priority is joining your organization, even if we remain at the original proposed amount. I look forward to your thoughts on the matter.

Reiterating enthusiasm

Again, I sincerely appreciate you extending this offer. I am very excited at the prospect of joining your team and contributing to the important work [company] is doing. Please let me know your thoughts on compensation, and I look forward to further discussing.

Best regards,

[Your name]

Responding to counterproposal

Dear [name],

Thank you for taking the time to speak with me over the phone today regarding my compensation request. I appreciate you considering my feedback and providing a counter proposal of [$X].

While this is below the [$Y] I had hoped for, it does represent a step in the right direction, and I recognize you have policies to work within. Given my enthusiasm to join [company], I am comfortable accepting your revised salary offer of [$X].

I truly appreciate your willingness to have an open dialogue on this and find mutually agreeable terms. I cannot wait to officially accept and join your amazing team. My start date of [date] works well, and I’ll mark it in my calendar.

Thank you again for working with me on this – it means a great deal, and I look forward to contributing wholeheartedly to [company]’s future success.

Best, [Your name]

FAQs

Should I negotiate salary after accepting offer verbally?

Yes, the ideal time to negotiate is after a verbal offer but before formally accepting in writing. This allows you to request higher compensation before legally committing to set terms.

Can I still negotiate after signing job offer contract?

It becomes much harder, but not necessarily impossible, to negotiate after signing the formal offer letter. You would need to politely make a case for why the salary should be revisited. Be prepared for them potentially saying no since you agreed to a set amount.

Is it OK to ask for more time to consider job offer to negotiate?

Yes, it’s perfectly acceptable to ask for a few additional days to consider the offer, allowing you time to prepare your negotiation strategy. Just be reasonable – no more than 3-5 extra days.

Can I negotiate a sign-on bonus if salary is non-negotiable?

Yes, while they may not budge on base pay, you may still be able to negotiate a sign-on bonus, performance pay, or other compensation like vacation time rather than salary.

Should I provide proof of higher salary at another job when negotiating?

Only provide verification of your current salary, like a past pay stub, if absolutely necessary. Otherwise, negotiate based on the value you bring, not unsubstantiated claims about pay history.

Conclusion

Negotiating your salary after receiving a job offer can feel daunting but is very doable. With the right preparation and approach, carefully timed and professionally executed, you can counteroffer successfully without jeopardizing your candidacy. Conduct market research to set reasonable target numbers. Frame your request politely around your qualifications and skills. Be flexible to compromise. When exploring the landscape of consumer services jobs and considering their pay, it’s essential to approach negotiations with patience and persistence, leveraging these qualities to secure enhanced compensation for a role that excites you, while steering clear of common pitfalls such as emotional pleas or rigid inflexibility. Enter those negotiations informed and confident, and you’ll maximize your earning potential.