So many people simply take the first offer and accept.
And for those who are out of work for some time, you feel grateful to have an offer on the table so it doesn’t feel right to negotiate.
But let’s flip that perspective for a second and compare it to buying a home.
When you buy a home or car,
✅you work out how much of a deposit you can pay,
✅how much you need to borrow,
✅how much stamp duty/car tax will cost,
✅what are the insurance costs,
✅the bills/fuel consumption etc etc
and then,
💷you make an offer to buy having fully considered what the total cost will be. .
A job offer is the same but in the opposite direction.
Your reward package determines what house/car/lifestyle you can afford and is a reward for your time and investment into that company.
So before you accept,
take a moment and consider all of these factors and go back with a counter-offer.
Here’s a process you can follow to help you get there.
1 : Smile 😁 You’ve Got An Offer!
Before you go straight into negotiation mode, take a second to pat yourself on the back.
Competition is fierce,
recruitment processes are lengthy and time consuming and
you put a lot of effort into that CV and each step of the interview process.
Well bloody done!
🫵You are sensational!
2 : Get Details of the Total Reward Package
You need to leave with a clear understanding of
✅the salary,
✅the pension,
✅holiday entitlement,
✅bonus structure and
✅benefits like private healthcare etc.
This will help you calculate the counter-offer later.
3 : Take One Working Day to Consider the Offer
Thank them for the offer, let them know you’re happy to have gotten to this stage and that you’re excited about the prospect of joining the team.
Then advise them that you want to sleep on it to consider the offer and come back to them the next working day.
Some of you will know that this is the norm, but to some it’s an alien concept.
Recruiters expect this response, and it’s why more offers tend to happen on Friday’s as they know most people will want to think about it over the weekend and come back to them on Monday.
Be clear that it’s one working day though as you don’t want to leave them waiting unnecessarily.
4 : Consider what new information you’ve learned about the role during the process.
Job descriptions are often written with limited thought or consideration into the everyday elements of the role, so during the process, you might have learned that
🛑you’ll be managing a bigger team than you thought,
🛑the travel/office days are higher than expected or
🛑the size of the portfolio you manage is greater.
Carefully consider all of these factors as it becomes your leverage to make the counter-offer.
5 : Calculate the true costs of this role.
Based on what you have now learned about the role, you need to measure up the true costs of accepting the offer, from both a monetary perspective and a lifestyle perspective.
Here’s some key questions to consider.
Monetary
Consider these points so your disposable income doesn’t turn out to be lower as a result of the offer.
🛑Is the cost to commute to work higher than before?
🛑Is the bonus structure lower than you’ve previously had?
🛑Is the pension lower meaning you’ll have to increase your contributions?
🛑Is the holiday allowance lower meaning you’ll have to buy holidays? (if they’ve got this scheme?).
🛑Is there a benefit, like private health care which you no longer receive that you’ll have to pay for?
Don’t balance one benefit for the other. So for example, if the holiday allowance is lower but your pension is higher, you should still push for the monetary value of that lower holiday allowance despite the better pension.
Lifestyle
If this job feels like it’s going to be more responsibility and creep into your boundaries with work/life balance, then you need to factor in financial reward to ensure that you get the benefits of that balance. For example,
✅Do you need a personal trainer to balance the increased calories from all those extra work trips you’ll be taking?
✅To ensure you have more quality time with loved ones, would you like to hire a cleaner so this job is taken off your to-do list?
✅Is it likely to be more stressful therefore you need to add a winter sun/ski holiday into your annual routine?
✅Do you need to invest in coaching to support you in this role? People often work with leadership coaches and mentors to enhance their performance and guide them through challenging career moments.
You might look at these and think it’s extreme, however, these are the things that reduce stress and enable you to perform better in work and in life so they absolutely should be considered.
6 : Calculate Your Counter-Offer
Add up all of your expenses and consider everything from Step 5 to determine what your reward package should look like. Then take the following approach.
🤔Does the offer you received match or exceed your counter-offer?
For example, you calculate your counter-offer as £75,000 and you’ve been offered £80,000.
If so, respond asking for an approximate* 5% uplift in salary.
🤔Does the offer you received equal less than your counter-offer?
For example, you calculate your counter-offer as £85,000 and you’ve been offered £80,000.
If so, respond and ask for your counter offer with an additional approximate* 2% extra.
*If the offer is £85,000 and you ask for 5% more, round it up and ask for £90,000 instead of £89,250.
The % buffer is for them to consider their “meet in the middle” offer. This ensures you are still winning when they respond to say that they can’t match your offer but they can meet in the middle.
7 : Benchmark the offer against industry standards and market research
Use sites like Glassdoor or Fishbowl to determine what the company is paying for roles at your level in your region. You can use AI to help also as long as you clearly prompt it with the job description, location and company you work for so that it can give you a more accurate range.
If your new counter offer exceeds the maximum range, reduce it down to the top of the recommended range. You do not want to be seen as unrealistic or unreasonable with your request.
8 : Make the counter-offer
Get in touch with the recruiter, thank them for the offer and make your counter-offer backed up with rationale for why you feel this is a fairer salary.
Do’s
✅Talk about the additional responsibilities you’ve learned about the role since your made your application
✅Advise how from your perspective your experience warrants a reward package of this nature.
✅Mention how missing benefits from your previous role compared to this role requires an additional base salary to cover those costs.
Dont’s
🛑Tell them about how your commute costs are higher.
🛑Advise them that you need to make adjustments to cover the cost of a better work/life balance
🛑Inform them how a change in your life circumstances means you need more money (eg. baby on the way).
The negotiation has got to be based on your experience and how it’s worth the extra money for them to invest in, not because of your change in lifestyle circumstances.
Remember, they have made you an offer.
They want you on their team.
This is the time throughout the entire application process where you have the power.
Take your shot and if they say no, then congratulations. You still have your offer! 🎉
If you’re reading this and feeling jealous that you’re not at the offer stage yet, Book a free, no-obligation 30-minute consultation with me and tell me your story. Let’s see if I can help you shift the dial and secure your new career.
