How to Negotiate a Job Offer

Following a successful interview, the employer will make a job offer. But, what do you do when the job offer is not exactly what you expected?

Firstly, congratulations on getting to this stage.

You can now decide to accept the offer as it stands, or you can enter into a negotiation. Of course, negotiations sometimes break down, but it makes sense to enter into some negotiations, unless you’re absolutely desperate for the role.

Tips on how to negotiate a job offer

Establishing the best contract of employment requires a proactive approach from the very start of the hiring process. Let’s look at how to handle each stage effectively.

1. Pre-interview research

Negotiations begin when you first interact with a company, not when you receive an offer letter. Generally, information about the proposed salary package is included in the initial job advertisement or the job package provided to intending job applicants. However, often that information is a bit light on for detail and it can be subject to negotiation. Clearly you don’t want to accept the offer and then find yourself disappointed.

2. Interview salary talks

The matter of your salary should be discussed during the interview, and that’s also where negotiating the job offer may have begun.  Sometimes, the discussion around salary and conditions of employment may have been fairly limited. The letter of offer will document those agreed conditions, including salary.

Before accepting the job offer, it’s extremely important that you review it carefully and negotiate where you consider the offer does not meet expectations. Even if you want the job, make sure you take into account the entire compensation/remuneration package, not just the salary.

3. Receiving the job offer

It’s easy to get caught up in the excitement and just accept the job on the spot; however, it’s important to let your prospective employer know that you need some time to consider the offer before accepting.

4. Evaluating the job offer 

Even if you’re keen to take the job, it makes good sense to read any employment agreement very carefully. Make sure you consider the entire compensation package.  It’s not just the salary, it’s the remuneration package as a whole. The actual wage is important, yes, but there may be certain benefits and incentives which outweigh what otherwise may be considered a lower-than-expected salary.

For example:

• Is there a company vehicle which comes with the package?
• Perhaps there’s a generous bonus scheme or a higher than usual superannuation contribution.
• Check if there is provision for study leave or generous family leave.
• Consider how the change of jobs will impact on your daily life including the travel time involved, changed or increased work hours.
• Will you incur additional expenses for childcare?
• Check what unspoken expectations the organisation might have of its employees?  For example, is there an expectation you will work long hours, over and above those that are formally documented in the employment agreement?  You may need to ask around to determine that.

5. How to go about negotiations

After a thorough evaluation, you may decide that you’d like to negotiate a better offer. Before asking for higher pay or more benefits, be sure to politely thank your prospective employer for the offer and reiterate your interest in the position.

When you start to negotiate a better offer, be aware that your expectations may not be fulfilled. Remember, negotiations are two-way. Leave some room for compromise. Before you commence negotiation, decide on the minimum you’re prepared to accept.

6. Accepting the job offer

If you have received your job offer in writing and are happy with the arrangement, it’s generally a matter of signing an acceptance and returning it to the employer. On the other hand, if the job offer has been made verbally, it’s a smart idea to take the initiative and confirm your acceptance in writing.  Your email or letter should be addressed to the person who offered you the position and include:

• An expression of appreciation for the opportunity
• Your written acceptance of the job offer
• An outline of any terms and conditions which you have successfully negotiated (particularly if reference to them was included in the job package that was provided to you.)
• Basic terms of employment, based on your phone discussion (salary, benefits)
• The starting date of employment.

7. Declining the job offer  

When declining a job offer, it’s polite to do so in writing. Your email or letter should thank the employer for the offer and politely decline.  There is no specific need to reiterate the reasons particularly if you have been unsuccessful in negotiating the terms of employment.

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Want help preparing for a job interview and learning how to negotiate a job offer?

Enrol in our course Job Seeking Skills – Part 2: Putting Your Best Foot Forward at Your Job Interview. We combine online learning with private, one-to-one coaching to make sure you’re completely interview-ready.

For in-house training information, download our PDF course outline for the Putting Your Best Self Forward at Job Interviews workshop.

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Liz Paine
Learning Insight Founder & Lead Instructor
Phone: 0400 778807
Email: Contact form