How to Negotiate a Salary Offer: Everything You Need to Know

No matter what industry you’re in, don’t sign on the dotted line before reading this.

By Jennifer Verta, Monster Contributor

You found a job listing that checks all your boxes, sent in your application, secured the interview, got grilled with all sorts of questions over multiple rounds, and then patiently waited. But it was all worth it because - it’s finally here, you’ve secured the coveted job offer. Congratulations! But, oh no, the salary figure is a little disappointing and you feel that you’ve been lowballed. Don’t worry, we’re here to show you how to negotiate your salary offer and be paid what you’re worth.

If you don’t work in sales, or you’re one of the many candidates that switch jobs every two to three years, negotiating skills might not come naturally to you. After all, it’s hard to master something you don’t have to do very often - even more so when you’re early on in your career. This is why many job seekers are often hesitant to negotiate a salary offer or avoid it altogether. Nevertheless, skipping this step will literally cost you.

Should You Always Negotiate Salary?

Negotiating a salary offer is, in fact, an essential part of accepting a new role that – thankfully - 89% of companies are open to dealing with. So, if you’re wondering “should I negotiate salary?”, the answer is almost always yes. However, there are some cases in which it might be wiser to think twice before entering such a tug of war with a prospective employer.

Part of understanding how to negotiate a salary offer means also knowing when it’s not worth proceeding to do so. Consider, for instance, the following three scenarios:

1. You Already Agreed to a Number

Maybe your enthusiasm took over, you felt pressured to give an answer quickly or you didn’t do your research properly and you made the wrong decision. Nevertheless, trying to negotiate an offer you’ve already accepted is never a good idea. It can jeopardize your reputation with the new company right off the bat. Instead, make sure you take time to evaluate your offer carefully to avoid feeling rushed.

2. It’s the Best the Company Can Offer

There are cases in which a firm identifies the top candidate for the job and proceeds to offer the highest figure in their budget to hopefully secure them before competitors do. If the company chooses the wording “our best offer” and your own research confirms that the wage is in the top of the current market range, you should be cautious when it comes to how to negotiate the salary offer. Instead, see if they are willing to bulge on your flexibility or other non-monetary benefits, or consider asking for equity if it’s a startup.

3. You Have No Grounds to Ask for More

To help you learn how to negotiate a salary offer like a pro, don’t forget to always check Monster’s salary calculator to make sure that the proposed compensation is in line with your sector, level, experience, and location. If that’s the case and you don’t have any added value to sell to the hiring manager, it’s unlikely that they’ll accept your requests. Make sure you have clear evidence for why you’re worth more money, otherwise aim to work on building this during your employment.

Plus, to answer “can you lose a job offer by negotiating salary?”, yes, it is possible. However, it’s rare and it usually happens only when candidates end up negotiating to the bitter end without reasonable justification. Being extremely inflexible is a huge red flag, hence why firms could decide to rescind your offer. However, in most cases, the firm by this point knows it wants you on their team so there’s usually no harm in asking politely for what you want.

Tips For Negotiating a Salary Offer

Negotiating salary offers can be tricky, but with the right approach, it’s much easier than you might think. Here are a few pieces of advice that can really help you shift your mindset for success:

It’s Not You vs Them

The first secret for knowing how to negotiate a salary offer like a pro is understanding that this conversation is not an argument. It’s not you versus the company, but rather both of you working together. Your end goal should always be to achieve a satisfactory agreement for both parties.

Asking is Always Going to Be Awkward, and That’s OK

Negotiating starts with nothing more than asking but we understand that doing this when you don’t know the person well can feel uncomfortable because you can’t predict its outcome. However, embrace the uncertainty and remember that there’s no harm in asking.

Know Yourself

Before jumping into the conversation, take a moment to identify what is really important to you and your current situation. Know what you’re willing to work around, as well as when to leave a negotiation if the outcome is not good enough for you.

Video Embed URL

How To Negotiate Salary: After a Job Offer Has Been Presented

When you think about how to negotiate salary offers, consider that once the offer is out, the company has decided you’re the best candidate for their needs. You only need to remind them why you’re worth what you’re asking for. Below are some winning strategies to successfully negotiate your offer.

Be Grateful and Take Your Time

Whether you received the offer in writing or on a call, the first thing to do is to thank the recruiter or hiring manager and express your excitement for the opportunity. Then, establish a timeline by which you’ll give them an answer, 48 to 72 hours is usually acceptable. No one expects you to decide on the spot, it’s quite normal to ask for a little time to think about it.

Do Your Homework

During this buffer time, research the average earnings for professionals with similar experience in your industry and area. Don’t be afraid to engage with your network to help you find that information as well. Then, define your desired salary range. However, as many experts on how to negotiate a salary offer suggest, make sure that even the lowest end of your range is something you’d be happy to accept.

Build Up Your Case

When preparing your counteroffer, consider your experience and skills. What added value do you bring? What kind of problems would you help the prospective company solve? The more specific you can be, the more persuasive your argument is.

Evaluate the Entire Compensation Package

If the company is not able to meet your desired salary, decide if you’re willing to compromise for different types of benefits such as more PTO, flexible hours, paid maternity leave, or a signing bonus.

Be Reasonable

Keep in mind that even when companies are able to stretch their salary ranges, they ultimately have to always adhere to a budget. This means that asking for 10 to 20% more could be acceptable but demanding a 50% increase is definitely not.

How To Negotiate Salary Offer Via Email: Sample

Many communication experts will tell you that the best way to hold a negotiation is in person or at least over the phone as it allows you to be more personal and leverage your charisma. However, the best medium for your conversation is the one you feel the most comfortable with.

So, if writing is your thing don’t be afraid to move it to an email. You’ll feel more empowered, hence you’ll likely handle it better. At the very least, an email can be the best way to set up a further discussion about your salary. Below is a template to help you craft a reply to a job offer to get the negotiations going:

Dear (hiring manager's name),

Thank you so much for offering me the (Job Title) position at (Company Name). I am very excited about the opportunity to work with your company and firmly believe that my skill set and past experiences will bring tremendous value to your team.

However, before accepting this exciting new role, I would like to discuss the total compensation package (Company Name) has offered.

[Add the following if you prefer to keep the negotiation on the email medium, otherwise propose a time for a phone conversation.]

In my nine years of (your industry) experience, I have achieved X, Y, and Z. Looking at the industry salary rate and the responsibilities I would hold in this position, I feel that a higher salary would better suit my expertise. My ideal range is (your counteroffer), plus (eventual additional benefits). I am confident I can achieve your company’s X, Y, and Z objectives.

Please let me know if this is a possibility. I look forward to joining your team.

Thank you,

(Your Name)

Just like you would in a phone conversation, be polite, grateful for the opportunity, and clearly reiterate what you can bring to the table.

How to Negotiate Your Salary with Your Current Employer

The worst that can happen when you make a counteroffer to your salary job offer is that your new employer simply says no. If that’s the case and you’re still happy to accept, remember that you will have the chance to renegotiate your salary later on.

Knowing and practicing how to negotiate salary offers shouldn’t be left exclusively to new job positions anyway. Ideally, you should ask for a raise once a year during your annual review, or if you’re offered a promotion. So, always consider your salary negotiable and take your annual review as an opportunity to discuss the conditions of your contract with your employer.

Just like with any new position, you must ask professionally and be able to back up your requests with hard evidence of your value. It’s also a good idea to keep track of your progress and achievements in your role in preparation.

An easy way to do this is to create a special folder in your inbox in which you store all the emails regarding your most successful projects, as well as those in which your work is praised. Before your review, go through the folder to build your case for a salary bump.

Negotiate Your Salary Offer Like a Pro When You Find Your Next Job on Monster

Find a new position and put into practice your newfound knowledge about how to negotiate a salary offer. Set up a free Monster account today to enjoy all our member perks. Remember to turn on notifications to get all the latest job postings that match your preferences right to your inbox. Plus, we’ll put your profile in front of thousands of recruiters to gain you maximum exposure.