October 8, 2020
By Rahul Iyer
You’re offered a job and couldn’t be more excited, but don’t let it get the best of you, making you jump at an offer. Accepting the offer an employer gives you upfront may be leaving money on the table. Employers expect you to negotiate and just about 41% of candidates do just that.
If you don’t, you may start the job unhappy or even perform at less than optimal capacity because you know you’re worth more but were too afraid to ask for it. When you negotiate job offers, you show the employer that you know what you’re worth and you start the relationship on the same page.
Besides your worth, there are a few other reasons you should negotiate your job offers.
You don’t know when you’ll be able to negotiate your salary again. Most employers conduct annual performance reviews but a raise depends on company performance and a variety of other financial factors.
Even if you do get a raise in a year, it may not be enough to cover the amount you hoped for when you started. It’s easier to start at the higher number if you think you’re worth more because it could take a long time to get to where you want even if you do get a raise.
Most employers start low when bidding your compensation. They know that many people will negotiate, so they leave room to be able to agree to it. If all employers turned down every negotiation, they’d never have new employees, so they leave that room to give you what you want and not go over their budget. You could leave money on the table if you don’t negotiate.
There’s something to be said about starting a new job knowing you’re worth. If you accept a salary that’s less than what you hoped, you may start the job less satisfied. Over time, it may eat away at you too. You’re more likely to feel resentful knowing that you were worth more and you’ll wonder if another job would have paid you more.
Your benefits are a big part of your compensation too. If you don’t think the employer will budget on the salary itself, talk about the other compensation. See how it fits into your compensation, and if it can improve your bottom line even if it’s not on your paycheck.
If nothing else, you should negotiate job offers for your own peace of mind. You’ll know that you did everything you could to get the most compensation or the compensation you think you deserve. You’ll be a happier employee and be able to settle in at your job, making the most of it and focusing on how you’ll set yourself up for retirement using your 401K and any other retirement investment vehicles at your disposal.