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Career Advice -- Employment Offers and Salary Negotiation

NEGOTIATING SALARY AND BENEFITS

The discussion that follows applies to permanent job decisions. The very nature of the summer internship, as a short-term learning experience, generally precludes salary negotiation.

You've been offered a job you want with an organization you like. But did you got the best offer possible? Could you have negotiated a better salary and more generous benefits? This is a dilemma that many students face. You want a competitive salary, but you don't want to alienate your prospective employer. You can assume that your prospective employer, with few exceptions, has given a lot of thought to the salary amount offered. Many firms conduct sophisticated salary surveys, and they know what their competitors are paying. Before negotiating you should first examine issues over which you have some influence or those relevant to your individual situation:

  1. Other offers. (Chances are good that your prospective employer will be more open to negotiation if you indicate that you do have alternatives.)

  2. Your salary prior to graduate school.

  3. The size of the organization. (Size influences your potential for bargaining. The larger the organization, the less room you'll have to bargain on salary. When it comes to benefits, in large firms they are usually non-negotiable.)

  4. Salary averages of your classmates.

Negotiation is divided into three phases: analysis, planning, and discussion. Let's briefly examine each phase.

Analysis

First examine why you want to negotiate the offer. Employers don't respond well if you argue on the basis of your needs or wants. They do respond to what the market indicates someone with your qualifications is worth. Find out the "going rate" for graduates with your level of experience, in the geographic region, job function, and industry. You could start by consulting the Employment Profile. Next, talk with a placement professional for help with this task. Be advised that the prospective employer takes cost of living into account when making the offer. If you can clearly show that a counter offer, with cost of living factored in, makes their offer out of line, then cost of living becomes a useful tool. Decide exactly what you want to negotiate. Benefits are also part of remuneration, especially since benefits are not taxed as income is. Your start date may also be negotiable.

Planning

Think about the decisions you want your prospective employer to make. Clarify your objectives; know what end results you want and list them in order of priority. You may not end up with everything you ask for, but know what is most important to you. Remember that in the bargaining process, everyone wins with compromise. Before you even begin your bargaining, be sure you thoroughly understand the offer, including the benefits. Whenever possible, study a written offer. Once an offer has been made, firms will be open to your questions about salary and benefits. It is critical to evaluate what you will do if you and your prospective employer don't seem to agree. Give yourself room to bargain. If a “last and final offer” is put forth, it should come from the employer, not you.

Discussion

You've analyzed and planned carefully. You should discuss your needs in a firm, diplomatic manner. Don't forget to include in your negotiations the expenses involved in relocation such as house hunting, moving expenses, etc. Remember to negotiate from a position of strength, not greed. Establish your value, learn what the employer is willing to pay and negotiate in a professional manner. How you handle the salary negotiations will affect your future relations with the employer.

Accepting the Offer

Review the written offer. Write a letter of acceptance including, if appropriate, your understanding of any final details in the negotiations that were not documented in the offer letter.

Declining the Offer

Should you decide to decline an offer, do so immediately. Recruitment is costly and time consuming. These organizations deserve the courtesy of an immediate phone call followed by a written response. Remember that these companies and contacts may be future employers, networking contacts, or clients. If you sense that the company is interested in more applicants, ask that they call the Nicholas School Career Services Office, or advise the Office and we will call them.

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