Negotiating Compensation
Congratulations! You have researched opportunities, honed your resume, prepared for interviews and landed the job! Your next task - making the job offer decision - involves understanding and evaluating the entire job package, including financial benefits and fit with the organization. This process can be confusing and stressful, especially for new graduates negotiating for the first time. Knowing what to expect, and being prepared, is essential.
The Basics
- Delay talking about the offer for as long as possible. If asked during the interview process, indicate that you assume this will be based on education, experience and the industry standard - and that you would like to discuss salary when you have a better understanding of the job. Don't give a number—it might be too low!
- When the offer is extended, show appreciation and interest, but don't respond immediately. Let the employer know that you want to review the offer (ask for it in writing) and that you need time to make the best decision for you and the employer. Ask when a decision is expected—and, if needed, request more time to compare offers or do necessary research. The offer will not be withdrawn if you make this request!
- Remember that the person extending the offer might well be your colleague soon. Handle the negotiation process carefully. Advocate for yourself in a professional way that is not demanding. You want to start the job having managed your first task in a positive manner.
- Keep in mind that an offer is more than just your salary. Your full package includes medical and other benefits, such as relocation benefits, vacation and sick time, evaluation procedures, and terms of employment. Overall compensation, and components of compensation, can vary significantly.
- Continue to research the organization to assess personal fit with the culture. Determine what is essential to you, and where you can compromise. For example, if the location is not quite right, are there benefits that balance this such as telecommuting, flextime or covered commuting expenses?
- When in the negotiation process, you'll want to be sure you have done your research. Use some of the resources presented here, including salary surveys that compare geographical areas. Be able to support your case when you are negotiating