How to Know When You Should and Should Not Negotiate Your Job Offer

Negotiating a job offer's pay, benefits, and other associated perks can be stressful. For job seekers, it's exciting for an employer to even make an official offer—particularly if it's your top-choice position. Pushing back on an offer feels like putting a spoke in the wheel.

In general, employment experts say you should never accept the first offer. Most employers don't expect a prospective candidate to simply settle for the initial figure. But negotiating for more money or benefits doesn't feel particularly comfortable, even if you know you deserve it. Moreover, negotiating isn't necessarily appropriate in certain situations.

When to Negotiate

Research the Industry Standard

To improve transparency, many organizations share their salary information. At the very least, you can employ online job boards to find out what others in your area who work in a similar position as you are making. If you have a professional network or mentor, you might consult those resources as well.

Get a sense of what others in your industry are making. You can even ask your hiring manager directly what others in the company typically make. This information will give you a baseline. If your potential employer's initial offer comes in below this threshold, it's time to negotiate.

Understand Your Worth

Perform a self-inventory of what you think you're worth to the company. Factor in your education, years of professional experience, special expertise, and any hard or soft skills that you bring to a team. Also, consider the hiring climate—what is the job competition like in your industry and your area? How in-demand are your specific strengths?

If you have a well-informed number in mind, don't settle for less. You should present your argument to your hiring manager, outlining why you can't accept the first offer. You'll feel more confident negotiating, having completed an honest evaluation of what assets you bring to an organization.

When NOT to Negotiate

Understand Limitations

In some industries, there are hard-and-fast salary limits, and it wouldn't be professional to push beyond these caps. Unless you're truly ready to walk away from a position, trying to negotiate a salary limitation won't serve anyone.

Be Reasonable

Don't negotiate for more money if you don't have the experience and skills to back it up. Take the time to learn what your colleagues in similar positions make and reflect on whether you can truly deliver the same professional background and education to the position. It's always nice to make more money, but negotiating for pay that you probably don't deserve will only make you seem unreasonable.

Be Patient

Wait until your prospective employer makes a real offer before you start negotiating salary. If you start negotiating too early and name too high a salary expectation, your employer could decide to move in another direction rather than invest in you as a potential candidate.

How to Negotiate Well

Be Informed

This point really can't be stressed enough. Do not enter into a discussion about your salary until you have done your own research. Speak with your professional network, check online job boards, or ask your employer directly what others at the company typically earn. Whatever your strategy, you will feel much more confident accepting an offer if you are prepared. If your employer makes an opening offer before you've had a chance to do some research, let them know that you will need a few days to consider.

Don't Make the First Move

Most employers leave a little wiggle room in the budget when they make an initial offer. Let your hiring manager be the one who puts the first number on the table. This puts more of the cards in your hand.

By the time you receive an official offer, your employer has already invested significant time and resources into your candidacy, so don't worry about them rescinding an offer simply because you don't settle for the opening bid. Be patient and make an informed counteroffer.

Be Flexible

Negotiating a job offer isn't only about salary. Say your employer has a firm limit on what pay they can offer you. What other benefits might sweeten the deal? Ask your hiring manager if vacation days, healthcare benefits, parking spaces, or work-from-home arrangements could enter the negotiations.

Don't Apologize

There is no reason to feel bad for pushing back against an initial offer. If you negotiate well, your employer will only respect you more. If you are informed and professional, it's completely within your rights as a potential employee to ask for higher pay.

Avoid Ultimatums

Negotiating is about compromise, so you can't set ultimatums. You should enter the discussion with an open mind. If your employer is transparent about their limitations to your salary package, you can either accept or decline. It's okay to decline the position if your employer just can't make the numbers work, but don't waste everyone's time by being rigid.

It's Part of the Process

Negotiating a job offer can be awkward. It forces us to evaluate our worth and advocate as such. If you're especially excited about a job offer, you may feel resistant to creating any barriers to the hiring process. Try to think about negotiating as part of the hiring process rather than a roadblock.