- 61%, 61% of people fail at negotiating a higher salary
after receiving a job offer.
And you want to guess why?
It's not because of the economy,
it's not because the employer is being unreasonable
and it's not because they have no other offers to leverage.
Most of those people lost right then and there
when they decided to not even try
to negotiate for a higher salary.
In this video, I'm gonna first help you understand
the three practical consequences of not negotiating,
because I have the best salary negotiation strategies
in the world,
but if you don't get over that mental barrier first,
none of it matters.
Then I'm going to share my five favorite tips
when negotiating salary, after receiving a job offer.
So that you can put it to practice right away.
So let's get started.
Hi friends, welcome back to the channel.
If you're new here, my name is Jeff
and we're all about practical career and interview tips.
So if you're a current student or young professional
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The most common reason
candidates are hesitant to negotiate salary
is because they believe they have no bargaining power.
A fresh graduate might think, well, this is my first job,
I have no experience, I have no bargaining power.
Even experienced professionals might think,
hey, if I have no other offers, I have no leverage,
but here's what you have to understand.
The hiring process is stressful and expensive
for the other side as well.
Employers screen hundreds, if not thousands of resumes,
spend countless hours analyzing and choosing applicants
before finally deciding on a few to hire.
By this point, the employer is invested in those candidates.
So even fresh graduates have some bargaining power.
Diving into three very real consequences
if you choose not to negotiate your salary
after receiving a job offer.
First and foremost,
compounding means you lose out financially
in a very big way.
Jumping into this quick and dirty Google spreadsheet
that I made,
imagine two people with a 10% difference in starting salary,
$50,000 a year and $55,000 a year.
Now, let's assume that both receive a 6% salary increase
every year for the next 30 years.
By year 10, the difference in their cumulative pay
will be around $75,000, by year 20, $200,000.
And by year 30, a whopping $424,000,
almost enough to buy that new iPhone.
Now this oversimplified example
doesn't even take into account future career moves.
If you move to another company,
that nice 20% pay bump that they're offering,
that's anchored to what you're being paid currently.
So often, this $424,000 gap is way larger.
Number two, by choosing not to negotiate,
you lose out on factors
that the employer could have easily have said yes to.
More vacation days, education reimbursement,
a later start date.
And number three, you lose out on an opportunity
to make a strong first impression on your employer.
Negotiation is a valuable life skill
that benefits you both personally and professionally.
Your employer knows this,
and by even attempting to negotiate,
that might make you even more attractive in their eyes.
If you can relate to what I've talked about so far,
drop a like and let me know down in the comments,
if you've ever tried to negotiate salary before,
Hopefully by now, you're more comfortable
with the idea of negotiating salary
after receiving a job offer, but what exactly do you do?
Here are my top five techniques.
Tip number one,
imagine you're negotiating for a close friend
or for a loved one.
I found a subtle change in mindset
instantly helps you become more confident and assertive.
Think about it, your close friend,
he or she worked hard for this offer,
spent countless hours on interview prep,
revamped their resume 20 times,
give up Netflix, Netflix for a month.
Doesn't he or she deserved to be paid their worth?
You feel that?
That feeling is called indignation,
anger at being treated unfairly.
Use that to overcome your fear of negotiation.
Tip number two, give a specific salary figure
as opposed to a nice round number.
So what this means is that if you say $57,650
instead of $57,000, you are much more likely
to get to a final number closer to what you were expecting
in the first place, it turns out
according to a research done by Columbia Business School,
your employer is more likely to assume
you've done extensive research into your market value
to reach that specific salary number.
It makes anecdotal sense as well
because if you have a friend
working in a role that you're applying for
with similar background and experience
and he or she tells you exactly what they make,
you can be fairly confident that this is a number
you can successfully negotiate for as well.
Tip number three, have a worst case scenario,
a walkaway point.
Yes, you should do research
and come up with a target ideal number.
You should check out salary ranges
on the sites that I throw on-screen here
on the link down below
and choose a number at the 80 to 85% mark.
The point of having a worst case scenario in mind
is that you're mentally prepared to walk away
if the final offer is so low that you have to turn it down.
You don't want to accept something that's just not
financially viable or make you regret it afterwards.
If you're enjoying these strategies,
actually I have a Facebook group
where I share exclusive weekly tips.
So consider joining, if you haven't already.
I'll link it down below.
Tip number four, come to the table with facts, not feeling.
Your employer is much more likely
to consider your salary negotiating proposal
if you provide justifications.
Because this helps them understand why you deserve
what you're requesting.
Saying that you deserve a 15% increase in salary
because you have two more years of working experience
than the average person on the team
is a much stronger argument
than just throwing out the 15% number.
Of course, it's easy to come off as arrogant by mistake
when providing justifications.
So here's a sample answer for your reference.
The industry average is $62,500 a year,
not including benefits.
And I found that Unilever
actually pays a bit more than that at 64,000.
The offer you gave is slightly below both these numbers
and I'd like to understand a bit more about the reasoning
behind that.
With my four years of experience in consumer goods
since graduation
and based on my conversation with the hiring manager,
I feel like I'm uniquely positioned to help with this issue
she's facing.
Is there any way we can get closer
to the industry benchmark?
Notice I use very neutral language,
brought up what their competitor was paying
and highlighted how my background was well positioned
to help them with their challenges that they're facing
right now.
The combination of all these helps me come off as reasonable
without being too pushy.
Tip number five, negotiate your salary offer ethically.
You should only negotiate with an employer,
who's offered you plan to accept
if the negotiation goes well.
it is unethical to negotiate with an employer
who's offer you have no intention of accepting
even if your preferred terms are met.
In other words, if you reach an acceptable compromise,
it is assumed that you would accept the position.
Once you have accepted an offer,
you really shouldn't continue interviewing
with other employers.
If you are interviewing with other organizations,
you should reach out directly and let them know
that you've already accepted an offer
and you are withdrawing from the application process.
At this point, be sure not to burn any bridges.
At a future date,
you may have to work with some of these organizations
professionally,
or you may want to contact them again about employment.
Last but not least, show how grateful you are
to have received the job offer
throughout the salary negotiation process.
Not only will this help you come off as more likable,
but will also help your counterpart
assume you have good intent.
For those of you who are hesitant
about negotiating salary after a job offer,
hopefully the three real consequences I mentioned,
and the five practical tips that I shared
had made you more comfortable with the idea of negotiation.
Now that you're about to start a new job,
check out my video on how to write professional emails,
to hit the ground running
and let me know down in the comments
if you want more videos of professional etiquette.
Subscribe, if you haven't already and as usual,
have a great one.
(upbeat music)