Congratulations you just received a job offer!
But it’s below the salary you were expecting.
Like, way below.
Now what do you do?
Hi, I’m Jeri Walker and in this video I’m going to tell you what you should do if you
receive a lowball salary offer—and what it can cost you if you don’t do this.
This recent study by Robert Half has found that just a little more than half of candidates
negotiate their salaries.
And look at the column for women, and particularly women over the age of 55, it’s not even
half!
Why don’t more people negotiate their salaries?
Some don’t know that it’s an expected part of the job search process.
Others avoid negotiating a higher salary because they’re afraid they’ll get rejected,
or they don’t want to appear greedy, or they’re worried that they may damage the
relationship with the employer before they even start working there.
And most people just aren’t comfortable having these conversations.
But here’s the deal.
You should never accept the first offer.
It doesn’t matter that you’re not comfortable negotiating, you need to ask for more, especially
if you’ve received a low ball salary offer.
Keep in mind that most companies make an offer with the understanding that it’s a starting
point, not a final offer.
They expect that you won’t take that first offer and so they build in room to ultimately
increase their number.
The hiring process is a two way street, and you have more power than you think.
By the time a company has decided to extend you the offer, they’ve spent a lot of time
finding the right person.
They’ve made the decision that they like you and feel that you’re a good fit.
They want you.
At the moment you receive that offer, the power in the conversation has shifted to you.
Don’t squander it.
Now, let me show you a BIG reason why you should ALWAYS negotiate your salary in a job
offer.
So, Glassdoor reported a few years ago that the average American is underpaid by $7,500.00.
I think it’s safe to say that a good portion of this is due to a lack of salary negotiation
on the part of many employees.
Now, let’s assume that you don’t want to negotiate your salary, and plan to accept
the initial offer which is a salary that’s $7,500.00 below the bottom of your salary
range.
Now let’s assume you’ll receive just a MINIMAL annual cost of living raise of 3%
And keep in mind that each year’s raise is added to the base salary amount in computing
the raise for the next year.
Look how much money you’ll leave on the table each year.
And do you know what this’ll cost you over the course of a 30 year career?
There it is, $356,815.62.
All due to a $7,500.00 shortfall in your initial salary.
And this is a conservative estimate.
If you’re one who doesn’t like to negotiate or has never negotiated your salary, I want
you to not only be aware of this huge amount of money you may give up, but also give some
consideration to how the employer views the offer.
I’ve been a hiring manager, I know how they think.
So, while you may be thinking I should take the offer because “I really want to work
here”, they may be thinking “I really want to get this position filled.”
And while you’re thinking, “I need to just accept the offer because what if I don’t
get any other offers”, they could very well be thinking “I really want her for this
position, I hope she doesn’t have any other offers on the table.”
And finally, while you’re thinking “I hope we can make this work”, they most likely
are thinking “I hope we can make this work.”
Commit to yourself that you will negotiate the next time you are in this situation.
They’re counting on it and you owe it to yourself to maximize your salary!
Now what do you do when you receive a lowball salary offer, one that doesn’t even reach
the bottom of your salary range.
First of all, you should have done plenty of research and have a solid understanding
of what you’re worth, and what the market value of someone with your expertise is, and
you should be prepared to back this up before you even get to the offer stage.
I have a video that covers salary conversations in interviews and includes some salary research
resources so have a look at it right up there.
If you receive a lowball salary offer don’t take it personally because it’s not personal,
this is business.
You want to always keep your emotions out of it, so don’t get offended, no matter
how low the offer may be.
You want the negotiation process to be collaborative, not combative so don’t muddy your thoughts
with emotions.
Stay positive and be willing to compromise on some things in the end.
Also, don’t say too much.
In fact, you want to use a few uncomfortable silences to gain an edge.
For example, if you receive the offer in person or over the phone, repeat their offer and
then pause for a few moments before you speak again.
This is going to feel uncomfortable but you can use this to your advantage.
Because your silence sends the nonverbal message that you’re not excited about this offer
which primes the pump for what you’re about to say next.
Now once, say 5 or 6 seconds have passed, say something to the effect of “I appreciate
the offer but this is well below what I was expecting.
” And then you wait again.
They’ll ask you what amount you’re thinking and then you can give them your predetermined
salary range that I talk about in the other video I mentioned a minute ago.
This is also a good time to remind them of the value that you bring based on your experience
and skills.
If you feel more comfortable with a softer approach you can say something like, “Thanks
for the offer, I’m excited to work here but we’re not on the same page regarding
the starting salary.
Can we talk about how we can close that gap and make this work?”
Starting this conversation will probably be the hardest part of it for you.
But commit to yourself that you will at least start the conversation!
Be prepared for the conversation to continue over the course of a few days or even weeks
as each party considers the various offers of the other.
Be patient and flexible, but don’t forget your value!
If they don’t come up enough on the annual salary, ask them about a signing bonus as
an alternative.
Granted, this is just a one-time payment, but it’ll put more money in your pocket!
Also keep in mind that compensation isn’t limited to your paycheck.
You can always negotiate for more vacation time, more flexible working hours, remote
work opportunities, and cell phone or other expense reimbursements to close the gap.
Be creative and think of the things that are most valuable to you.
You ultimately may or may not get everything you want, but chances are in your favor that
you’ll get closer.
If they won’t budge, or you don’t get close enough, be prepared to walk away.
My goal is for you to not be one of the unfortunates who avoids the negotiating process, accepts
a lowball salary offer and pays a real price for it!
Don’t cheat yourself!
I hope this video was helpful.
If you liked it give it a thumbs up and share it with someone who needs to know about this.
And subscribe to my channel to get more career and job search help.
Thanks for watching, I’ll see you next time.