How to Negotiate for More Salary on a Job Offer

Or: How to make thousands of dollars more each year in just 5 minutes.

It pains me to know that very day, millions of people around the world are cheating themselves out of a free raise.

Here's a secret most people don't know: Other than for entry-level jobs, every job offer can go 5-10% higher just by asking.

Here's why: First, professional recruiters expect seasoned candidates to negotiate, so they just set the initial offer a bit lower to give room for it.

Some candidates also need extra expenses, such as for relocation, or a cost-of-living adjustment (COLA) for folks who live in more expensive cities. The fact that there's an acronym for it should clue you in.

So, why don't most people ask for this?

The main reason is fear. They are afraid that the company might “take away" the offer if they ask, or they might somehow insult the hiring manager, or be seen as “pushy”.

That's completely unfounded.

Remember, unless this is a mom-and-pop store, the recruiter and the hiring manager just work there. It's not their money. They are just following the hiring procedure in the company handbook. Most companies keep salaries secret, so it's almost certain that no one else at the company knows or cares either.

Ok, so how do you ask for more money?

The easiest, and best way is to have another offer. You did apply to multiple companies didn't you?

A simple message like this can work like magic:

“Thank you for the offer. I really enjoyed meeting everyone, and this just reinforces why <your company> is my top choice.

Everything looks great and I'm ready to sign on, except that I've received a better offer from <your competitor>. Their package is better, but I much prefer to work for <you>. Can we adjust the starting salary up by $X? I'm prepared to forego the other offers and accept today if we can do that.”

Once a company extends you an offer in writing, the recruiter has only one objective: To get you to accept it. Remember, she is a busy person. The faster she can get you to sign and accept, the better it is for her.

When you make a counter-offer, you must always say that you are ready to accept and move ahead if they agree to it. Basically, “do this and your job is done.”

When you make a counter-offer, you must ask for everything you want, and be prepared for them to accept it! Once they do, that's it. Don't go back and forth after that.

Again, the trick is to make it simple for them to say yes.

There is absolutely no good reason not to ask for more with an email like that. The worst that can happen is they will say no, and the more likely possibility is you will make a few thousand dollars extra every year.

Not bad for one email!

What if I don't have other good offers?

Remember, it's possible that the recruiter has the authority to increase the offer by 5-10% without having to check with anyone else. However, any professional recruiter won't give that away for no reason. But the reasons don't have to be that great.

The simplest thing to do is start by just asking for more:

Everything looks great and I'm ready to sign today, except that the salary is a little lower than I expected. Can we adjust the starting salary up by $X? I'm prepared to stop my interview process and accept today if we can do that.”

At this point, they may just agree and you're done. More savvy recruiters may ask you what other companies you are applying to. Part of their job is to know what the salary ranges are in your industry.

You might then say you are in the recruiting process with <competitor A> and <competitor B>, even if all you've done is submit your resume (ideally you would be further along at this point).

Another approach is to say that the starting offer is lower than what you would expect to earn if you stay at your current job, given the annual bonuses and raise.

Finally, you can simply say that you need more to cover your family expenses. The advantage of this is the recruiter can't argue with it.

Other Things you can Negotiate

What if they tell you that they simply can't pay more? Don't give up just yet! There are a lot of other equally valuable things you can negotiate for.

Extra vacation: Most companies have an annual vacation plan. It usually goes something like: “10 days a year, which may increase by 1 day for each year of employment”. If you have 5 years of working experience, you can simply ask for 5 extra days of vacation to start with. Some companies even pay you for unused vacation each year.

Review cycles: Most companies have an annual performance review, where everyone gets their bonus and raises. There's a chance that the next one is 6 months or less away, and new employees may not be eligible for it. You can simply ask to be eligible for that next review. Doing so will save you several months before your next raise, and the bonus itself could be worth several thousand dollars.

Your title: Finally, the cheapest thing an employer can give you is a better title. Bigger companies typically have a harder time with this, but it's pretty easy to do at a smaller company. If you're joining a startup or company with less than 20 employers, you can probably call yourself whatever you want.

Even though it's free to the company, a better title can be worth a huge amount to you in the long run, especially when you apply for your next job. After all, everyone expects a Sr. Specialist to be paid more than a Specialist right?

Good Things Come to Those Who Ask

I hope you've found these tips helpful. Please drop me a line to let me know how things worked out for you.

I hope I've convinced you that it's not that hard to get a better offer, and that there's no good reason not to ask.

All the best in your new career!

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