Negotiating an Offer—Should I Negotiate? How Far Should I Push? Can I Avoid Negotiation Altogether?

There are many determinants that go into evaluating a new role and, frequently, some elements will be stronger than others. What do you do if you love the challenges and potential career trajectory offered by the position, but the package is lacking? Candidates should understand what a role is worth (and indeed what they are worth) and not be apprehensive to negotiate—but it is essential to think about what is appropriate, how far to push, and when negotiating might not be suitable.

When to negotiate

Generally speaking, companies won’t extend ‘take it or leave it’ offers. If compensation is underwhelming, there is little work flexibility, or vacation is not up to industry standards, there is frequently the potential for negotiation. The hiring team are likely expecting it. They may even secretly want you to negotiate —you’re a procurement professional after all!

Candidates should seek to understand their worth and have a firm idea of what they should be paid. This will be influenced by several factors such as the market, skill, experience level, and the location they are in. Take a look at what other companies are paying for similar roles, and at reputable salary surveys, to find out if what you want is reasonable. Or speak with your recruiter.

Furthermore, consider the whole package. While things like bonuses and equity are not guaranteed, they should also be carefully considered. For example, if you are on $150,000 plus a 10% bonus in your current job, and you’re being offered $100,000 plus a 150% upside, you cannot simply focus on the basic salary being lower and ignore the potential earnings of $250,000. Make sure it is clearly discussed, upfront, what is expected of you in order to trigger this upside though.

Some other things to consider as part of the offer that are negotiable include the job title, signing bonus, guaranteed first-year bonus, and education opportunities. There are also lifestyle factors like vacation, working hours, and work from home flexibility.

How to go about it

In theory, a tense negotiation at the end of an interview process likely means you didn’t lay out your salary expectations clearly enough upon first being contacted, or you were clear but the company just didn’t listen. Either way, it’s not ideal. If this is what it has come to though, I would advise negotiating only once you have the intial written offer in hand. There may be several similar candidates who will accept the role if you are asking too much. You must also make it clear you are 100% willing to take the job with the right package. If there is a chance you will negotiate and then walk away, the employer may not want to waste their time.

Respect is key to negotiating an offer. You should bear in mind the company’s structure and culture and whether what you are asking for is suitable. For example, the job title you are seeking should reflect your responsibilities and be on par with the rest of the industry. You must also show you understand the current job market, competition, and how specialized or in-demand your skills are.

Show a willingness to compromise and understand the constraints the company is under, such as salary caps. Take some time to understand what is flexible and what is not. Sometimes a salary may not be negotiable if you’re part of a large cohort that’s been hired—but vacation time and bonuses might be.

Negotiations should focus on the value a candidate brings. An employer will expect a return on their investment, and the conversation should center on your skills, qualities, and the benefits you will bring to the table.

When not to negotiate

Are there times when it’s best not to negotiate at all? More rarely perhaps, but yes. If the organization tells you this is their best offer—and there is evidence it is true—then continuing to push when they have stretched their resources is tone deaf. Similarly, if their initial offer meets all of the expectations you laid out up front, that’s a very positive sign—negotiating anyway, just for the sake of it, is going to come across as greedy. If you’re unsure, your recruiter should be able to help you figure out if you’re leaving anything on the table.

If you’ve already accepted the offer right away, then you’re not in a powerful position—that’s why it’s always best to ask for time to consider an offer before signing.

You should also never negotiate without justification. If the salary is reasonable in terms of your skills and the wider industry, then perhaps you shouldn’t push for more—you can always look to gain a raise when you’ve performed well in the role. Finally, consider your personal position. How much do you need or want this job?

Again, negotiation and uncertainty can be cut out altogether if you are well prepared from day one. Be proactive in coming up with a target and communicate this with the prospective employer as early as possible in the process.

It’s important to be purposeful and objective in your language. Rather than saying, “I want x,” you might say, “I’ve been interviewing for jobs with other companies that are paying x.” This way, you can be honest about your target without seeming like the number is personal or has come from nowhere. Taking these steps can mean you are delighted by the first offer you get and don’t feel the need to negotiate at all.