If you’ve just been offered a new job, you might be wondering how to start your new career with the best employment contract. Negotiation of your job contract not only sets the tone for your professional relationship with your employer, but it also determines your career trajectory.
Negotiation is a subtle game — you must be prepared and do your research, so you’re confident and minimize stumbles during your interview. If you prepare and practice your answers to questions your employer is likely to ask, you won’t be caught off guard. You don’t want to feel like you left too much on the table.
Your negotiations will likely determine your salary, so make the investment in your preparation — it could be the most valuable time you spend for your job success.
Salary isn’t the only thing that’s negotiable. Based on your interview and contract negotiation with your employer, you may also improve benefits like:
It’s best to negotiate these benefits ahead of time so that when these situations arise in your new career, there won’t be any conflict between your expectations and your employer’s. Also, knowing your limitations before you get into your new job can help you allot your time and resources more efficiently. Figure out a reasonable offer for all negotiable areas that are important to you.
While it may be intimidating to negotiate your salary and benefits for a new job offer, negotiation with the right tactics can set you up for the rest of your career with a company. If the manager believes you are a confident person who knows what you want, they will be more likely to respect you and pay you for your full worth.
Employers typically want to pay you as little as possible — it’s nothing personal, it simply makes sense from a business perspective. If you don’t ask for more, then they assume the original letter of employment offer works for you, and there’s no reason for them to pay you anything more.
Not negotiating an offer means you could lose out on extra salary and other benefits. And while it may be scary, overcoming this small hurdle can have a tremendous effect on your career and the value of your time.
In a survey published by Salary.com, only about one of every three people even negotiate their original salary and one out of five never do. Even more surprising — almost half of the people surveyed admit to never addressing a raise during one of their performance reviews.
The fear of discussing a higher starting salary has many people leaving money on the table.
In a study about the cost of avoiding wage negotiations, only seven percent of women attempted to negotiate their salary while 57 percent of men did. Negotiation led to an average increased salary of over seven percent.
A seven percent increase in salary may not sound like a lot, but this translates into eight additional years of work to retire with the same wealth as someone who got the higher initial salary.
Throughout the rest of this article, we’ll give you some pointers on how to be well-prepared and negotiate a new job with confidence.
Your research starts before you ever get to your job negotiations — it starts in the interview. The more information you can get from your employer, the better prepared you’ll be for your negotiations.
Listen carefully and ask questions during the interview to learn more about the job.
The interview is the best time to ask questions about your salary and other benefits. Getting the information straight from your employer eliminates guesswork in other research and allows you to digest the information before you sign a contract. You can decide if their offer sounds good to you and you’ll have a better idea of what you can ask for in a counter offer.
Ask questions where appropriate to the context of the conversation. Try not to force anything into the conversation where it doesn’t belong, have your questions in mind, but wait for the right moment to ask your interviewer.
Confidence in your job interview comes from thorough research and being prepared.
A good place to start your research is on the company’s website or third-party review websites. Once you know what a typical employee’s salary and benefits are like, you’ll have a better idea of what is negotiable.
Look up:
Know what to expect and practice for your negotiations. Be prepared for any tough questions that could come up:
Try to prepare for these types of questions by practicing your honest answers beforehand. The goal is to give genuine answers without giving up too much. The more you think about these types of questions before you sit down for negotiations, the more confident and well-prepared you will be.
A few things to keep in mind as you prepare:
As we’ve said before, the interview and job negotiation process is a delicate game. Only dig into the details of salary and benefits when you’ve been offered the job. Bringing it up before could make you look greedy or presumptuous.
It’s a good idea to ask about potential salary and benefits in the interview, just be sure to not counter or suggest any additional benefits before they offer you the job.
There’s more to a job than just the salary — first and foremost you have to be happy.
When you’re deciding whether or not to accept a job offer agreement, it shouldn’t be based on salary alone. Consider the whole scope of the job — compensation, benefits and perks.
If the company has other benefits that are very valuable to you, it may be worth giving up some salary. For example, if they are flexible with their vacation days or allow working from home, this could be well worth taking a cut in pay for the added convenience and quality of life — not to mention saving gas money and time commuting in the mornings.
It’s a good idea to prioritize the items that are important to you — both in the negotiation and your job interview.
Do you have any must-have benefits like healthcare and vacation time?
Is there a salary figure you have to reach?
Once you know what you absolutely need, place these items at the top of your list and address them first in the negotiation process. You may not be able to get to all of the questions you have about lesser benefits in your interview, so address the most important issues first.
Although prioritization is important, don’t address every term one after the next. If you ask your interviewer for one thing and then another and another, it begins to feel tedious very quickly. Instead, try to get all your terms in the open sooner rather than later, without forcing the issue. Don’t simply list everything you want, let them know what’s most important to you and where you can be flexible.
Once you and an employer can reach an agreement on the foundation of your job offer, you can be more lenient about the less-important details. Try not to haggle over every little thing and be willing to let some things go.
People can sometimes get caught up in the process of negotiations and feel like they have to win every little battle. You don’t want to look greedy or selfish in front of your future employer, and haggling over little items could upset them if they feel that they’ve already done you a favor in other areas.
Being more flexible in the negotiation of your contract also allows for easier change later on in your career. If you’re lenient on some things in the beginning, it’ll be easier to ask your employer for improvements later — instead of them feeling like you got everything you wanted and shouldn’t be asking for more.
It’s best to start your negotiations with salary to make sure your work relationship is viable on an essential level. If your employer can’t offer the salary you absolutely need, further negotiation may not be necessary. Once you know that your relationship will work for the both of you, you can begin to discuss the other benefits and perks you’re looking for.
It depends on the employer and your position, but research shows that requesting a higher — and even ridiculous — salary early in your negotiations often leads to a better deal. This phenomenon is called a psychological anchor. It sets a reference point in your employer’s mind that they will tend to gravitate towards.
Even if you jokingly suggest an insane salary like one million dollars, it still anchors your employer’s expectations in the upper range of the salary bracket. Fortune Magazine published findings from a study by the University of Idaho, in which they found that candidates potentially could receive a higher salary offer from using similar tactics.
If you can’t first tactfully suggest a high salary, the next best move is to allow the employer to suggest the first viable figure.
When asked how much you’re expecting for compensation, it’s best to politely avoid giving a set figure if you can. When asked, tell them that you will “consider any reasonable offer” and let them make the first move. And if you were able the successfully insert your psychological anchor earlier in negotiations, you’ll be in a great position.
Letting them make the first move also protects you from asking for too much. If it looks like you think you’re worth much more than what the company can give you, they might be reluctant to hire you. Managers know that if you feel undervalued, then you’ll probably be looking for another job that gives you proper compensation.
Once they give you the first offer, you’ll have a better idea of how to negotiate from there — as opposed to taking a stab in the dark and hoping that you didn’t undersell yourself.
The first person to bring up money in any relationship is more likely to look selfish. And to protect themselves from offending you, managers will actually increase their salary offers.
One more useful tip — try not to be impressed with their first offer. The more you can stay neutral, the better your bargaining position will be. Even if you are really excited about how much they’re offering you, accepting the terms too quickly can make them feel they’re giving you too much and they may be less likely to give you a raise in the near future.
Your employer doesn’t have to know that this is the most money you’ve ever made, and you should do your best not to get too excited — it sets the tone for the rest of your business relationship.
Gauge your employer’s reaction to your salary negotiations — it’ll indicate their willingness to bargain in other areas. If you’re very satisfied with the agreed salary, you may be willing to compromise on other items. If the salary negotiation isn’t successful, you may have the leverage to push for other items — politely, of course!
The success of your salary negotiations can determine the rest of the job negotiation. And as negotiations continue, it’s best to have a backup plan if things don’t go as you expect.
Prepare a “Best Alternative to a Negotiated Agreement,” or BATNA — it’ll help you remain confident and relaxed if Plan A doesn’t work out. Consider other job offers in your BATNA — is what this company is offering as good as your other job offer? If you know where you stand before negotiations, you can use it to your bargaining advantage.
Establish a lower limit for the salary — an amount where the job is still worth it to you and better than your best alternative solution. This is called your “reservation price.” Having this limit ensures you avoid agreeing to a job contract and then realize another offer was better.
You might have more bargaining power than you think — use the salary negotiation as an indicator. The company may need you as much or more than you need them, especially if you have specialized skills or any unique advantages.
Remember, time is on your side. Never be too quick to accept any terms of a negotiation without time and consideration, especially if you have multiple offers. If an employer thinks you’ll be happy with whatever they offer you, they’ll give you the bare minimum.
While it’s important to negotiate the best terms for your new job, you have to remember that the hiring manager doesn’t have unlimited resources to offer you. They‘re probably constrained by a budget, and this means they can only give you so much. Being politely aware of this takes pressure off of your employer.
If you’re one of several new employees being hired for the same type of position, your employer may not be able to pay you too much more than anyone else — it would cause workplace turmoil and everyone would want a raise. However, you may still be able to negotiate things like starting dates, bonuses or vacations. If you’re being hired into a smaller company, there may be more wiggle room and flexibility in salary, job title and other benefits.
Because of employer restraints, you may reach a dead end in some areas of negotiation. Avoid giving the employer an ultimatum of any kind. Usually, they can’t get around their constraints, and it could lose you the job. Also, it’s hard to back out of any ultimatum once you’ve said you need something.
People sometimes resort to an ultimatum if they aren’t getting what they want or out of frustration. Stay calm and try to avoid this type of pitfall. If the interviewer gives you an ultimatum, try not to address it right away with a yes or no answer — this can lead to tension or even break a deal. Instead, acknowledge their point and how you understand their constraint. Then move on to other issues — you can always consider the ultimatum later on your own time.
Negotiate by framing things positively and politely, but also firmly enough where your desires are well understood. Remember, a manager’s negotiations are often constrained by what their company allows — it’s usually not personal when they say they can’t offer you something. Don’t get upset and don’t feel guilty when asking for what you want.
A few more tips to stay likable:
Maintaining likeability is critical for your negotiations and sets the tone for your future working relationship. A manager won’t try to give you anything extra if they don’t like you.
Having a job proposal in writing is essential. Employers will usually offer a written contract but if not, politely ask for one before agreeing to their offer. It’s important to get everything down on paper so that if there are any disagreements about benefits or what your employer expects of you, you have an iron-clad reference to resolve the issues.
Even if you know your employer, having a written contract is a wise legal move. If your work relationship unfortunately turns sour and you have to seek legal help, having an explicit work agreement may be vital to the success of your case.
A written agreement is especially important for any position with opportunity for extra compensation, such as a commission-based salary or sales position.
Be sure that the details of your duties and your benefits are thoroughly laid out in your contract. This ensures you can avoid conflicting ideas about the work you should have to handle and the perks you should receive.
Review any written contracts to ensure what you verbally agreed to is accurately expressed in your work agreement.
If something isn’t in your contract that you agreed upon, it’s probably an honest mistake — contact your employer to have it resolved. Always remember to stay polite and assume positive intent.
You don’t want to get caught in a “but you said” argument later in your career without a written agreement, not to mention if there are any legal employment disputes. By thoroughly reviewing the written contract for your work agreement, you make sure that everyone is on the same page.
If you have any concerns or issues, Weisberg Cummings, P.C Employment Law Attorneys can help you review contracts and noncompete agreements.
Contracts are designed to protect both employers and employees. However, contract disputes can arise for multiple reasons — employee classification, overtime, independent contractor issues and more. It’s critical to seek legal help to ensure you receive rightful compensation and protect your rights as an employee.
At Weisberg Cummings, P.C., we’re committed to being the professionals you can turn to for any legal employment need. We take personal responsibility for all of our clients, and our lawyers have over 40 years of combined experience in a broad range of legal matters.
Whether you’re an independent contractor or an employee, you can protect your rights. At Weisberg Cummings, P.C, we handle multiple kinds of contract issues and disputes, including:
We use our real-world experience to find practical legal solutions at affordable rates.
If you just landed a job, it’s understandable if you are nervous about negotiating your salary and benefits. It can sometimes feel like you’re begging for employment and that once you get an offer, you shouldn’t negotiate because of all the other qualified candidates. You might feel like the hiring manager will be offended if you even ask — but they won’t be and you should.
If you prepare yourself with solid arguments about why you deserve the benefits you’re asking for, then your interviewer will have no reason to be offended. They may tell you why they can’t do something for you, and then you can make a more well-informed decision from there. Asking in the right way lets you rest easy knowing that you are asking for fair compensation, while your prospective employer will see you’re the kind of person who has ambition and can calmly and politely function in a high-pressure situation.
Your takeaways:
Not only does negotiation determine the salary trajectory of your career within that company, but it also lets management know what kind of professional you are. You stand up for yourself and understand what you’re worth. When an employer respects you from the beginning, you’ll often have a better career experience in other ways than just money.
We know how to help you through the stresses of the first stages of job negotiation because we’ve been through it too. If you have any questions or need advice, we’re more than happy to help.
Weisberg Cummings, P.C Employment Law attorneys are here to help you review job offer contracts and agreements. We handle all of our cases in our offices in Harrisburg, Penn., and we’re proud to serve our local employees and businesses. Through technology, we are are also able to assist clients throughout Pennsylvania or those looking to relocate to Pennsylvania. Contact us today for a free initial consultation.
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