How to Negotiate a job offer

How to Negotiate a job offer by Tom Bunkham Ok, youve sent your CV, aced the interviews and youre finally at the point where youre discussing salary.So, do you just accept the salary on offer or do you take a gamble and hold out for more? From the basic pay to your benefits package, make sure you know the most effective way to negotiate an offer.Consider the salaryThe first step in salary negotiation is to do some research into the remuneration package you expect, as well as the current market rates for the type of role youve been offered.Consider the following three salaries:Minimum salaryWhilst seemingly obvious, ascertaining your minimum salary can be tricky. Does it equate to what youre currently earning? Or perhaps its just enough to pay your outgoing bills? Your minimum salary should basically equate to your minimum cash requirements for a role, based on your circumstances.So, if youre a first jobber, this may be enough to cover your costs and give you some extra spending money. Alternatively, if y oure currently working and youre moving jobs to earn more money, your minimum will probably be at least the same as youre earning now.Expected salaryYour expected salary will naturally sit in between your minimum and dream salaries. But how do you calculate this?Looking at equivalent salaries is usually the best place to start. You should also look for job specs with similar requirements to what youve been offered and check what other employers are currently offering. Of course, if youre particularly well qualified or experienced, you may well expect higher than average market rates.Check your salary Dream salaryHaving done some research into what the market rates are, youre now in a position to start considering your dream salary. But what is your dream salary?Most of us would like more money, so, naturally, were reluctant to put a cap on our dream salary. Its easy to get carried away, but you should try and remain realistic. Your dream earnings should be the most you can expect to be paid given the job youre applying for and your own level of experience.Looking at the higher-end salaries for jobs being advertised in your chosen field, as well as the level of experience they require, is a good place to start. If youre expecting a salary higher than any of the jobs youve seen, the chances are youre probably expecting too much.Check your salary What about the benefits package?Whilst take-home salary is clearly important, there are other elements to consider. Namely, the benefits package.For example, your prospective employer might offer one or more of the following benefits:health carepension schemestock optionsfree gym membershiptravel schemesflexible working options (e.g. flexi-time)The next step is to consider how much flexibility youre willing to offer for all of these benefits. This should take into account the monetary value of each benefit, but you should also consider some of the lifestyle and time-saving benefits. For instance, flexible working hours m ight allow you to spend more time with your family, whilst the provision of company pensions scheme will mean you dont have to organise your own pension scheme.How to negotiateYoure now at the stage where you know what you should be earning, and what room you have for negotiation. So its time to start negotiating your offer.Your prospective employer is likely to have a figure in mind for your salary, but dont simply accept or reject the first offer.Ask if there is any flexibility in the offer, as well as how regular salary reviews will take place taking a lower salary will be more acceptable if there will be regular salary reviewsIf the salary is below your minimum expectation, explain that the offer is below what you were expecting, backing it up with whyIf the package is around your expected salary, you should still attempt negotiation, explaining how your experience, knowledge and qualifications position you in the marketIn the event of being offered your dream salary, youll pro bably want to discuss room for future growth in earnings and career development; remember, although this is your dream salary, as you progress your expectations are likely to increaseFor any of these scenarios, you should never flat-out refuse the offer of a salary straight away. You should state that you need time to consider the package, giving you and the employer time more time to consider your options.Know when to back outThere are clearly a number of considerations when deciding whether to accept an offer from an employer.Dont solely consider salary: take into account other considerations, such as benefits, working hours, work culture, the job itself and room for career developmentIf the salary is not what you expected and is not compensated by additional benefits or career development, you should say so; if this is not then reviewed by the employer, youll probably need to accept that the job wasnt right for you and move onRemember, if youve done your homework, you should know what youre worth, so you should try your best to make sure thats what you earn in your next job. Whatever happens, dont sell yourself short.