The Smart Way to Negotiate a Counteroffer

26 Mar 2019, 10:00 AM By Mel Sim

Want the job but not the salary? Get to work and make smarter counteroffers with these five tips.

Almost there – you went for the interview, impressed the recruiting manager, got the job offer... but the salary isn’t quite what you’re looking for.

Money is not everything but sometimes, you gotta fight for what you deserve, especially when you know that you are worth more than what is on the table (you are after all top of the class... and even have a few years of experience).

Now you’re in a tricky situation – take the job with the salary it comes with and hope that maybe after your probation period is up, that too will increase (but what if it doesn’t!)... or say no because the money’s too low but completely miss out on an opportunity to work in the company you’ve always wanted to.

What to do? Counter offer! Companies half expect you’re going to negotiate your salary anyway, so why not give it a go? Plus, it’s part of HR’s tactics to offer the lowest pay they think you’ll accept – not because they want to shortchange you but because it is their KPI to stay within the budget while also hiring good candidates.

Before you think of negotiating, make sure you’ve done the following:

  • Research the salary ranges for your desired position. Ask around to get the estimate figure
  • Consider other opportunities and the current job market. If you have other opportunities and don’t need to jump into the first offer, then you’re in a good place to negotiate. If the market’s great for someone with your degree, then you’re in the home run for this.
  • Put all emotions aside – do you think you deserve that much for an entry-level position? Be realistic and don’t negotiate for the sake of it! The recruiting manager will see right through your bluff and decide you’re not worth negotiating anyway.
  • Instead of more money, is there a way for you to negotiate for better benefits and work flexibility? Something to think about!

How do you work that counteroffer? Check out these five tips:
#1 Think through it first
We’ve said this before – do your research ahead of time. You need to know whether what you’re receiving is really on the low range and if it is, what should your average be? In fact, you should know all this before you go for the job interview so that you can offer your salary range when the topic comes up instead of just leaving it up to chance.

So speak to former colleagues, friends and acquaintances. Do your research online. If you have a networking circle, ask as these are actual professionals in the industry.

When you’re better informed, you’re better equipped to work that counteroffer to go your way.

#2 Consider HR’s side too
It’s not just about your take-home salary. What about the full benefits package – maybe there’s a good allowance, work flexibility? How does that look compared to what most of your peers are getting? Don’t forget you might get a slightly higher salary but with blah benefits.

Why is this important? Just in case HR says no to your counteroffer, are you still willing to accept the role if they throw in additional benefits? That’s something to think about. Also, know what your take-it-or-leave-it mark is. What if HR asks to settle for something a little less than what you are asking for but more than what was offered previously? What’s the cut-off salary to which you’ll say thanks, but no thanks? You need to know the answers to these if you’re considering a counteroffer; otherwise you’re just wasting everyone’s time if you’re going to walk away from any offer anyway.

#3 Be specific!
Don’t give a range – tell HR the exact figure you’re asking for. Be ready to explain why this figure is justified – whether it is your experience, degree, expertise, anything to fight for your case. If you don’t have any justification for a higher salary, it might be hard to seal the deal.

#4 Be firm
You want to be taken seriously? Then you gotta act it. Set an appointment to either call or meet up with HR again to talk about your package and go in prepared to present the reasons why you should be given a higher salary. It is also important you make it clear you’re serious about the job and with the right salary (that’s considerate of both parties), you’re definitely the person for it.

#5 But don’t be too forceful
Don’t say things like “Company XYZ is offering me better, I therefore think you should be able to meet their salary,” or “That’s my final offer, sorry.” You want to show that you are serious about getting what you deserve, and not bulldoze your way until you get it. Remember – if you’re forceful about your salary, the other party may either tell you to either accept what they put on the table or forget it. What then?

Good luck!


Did you know...
According to a survey, over half of workers (56 percent) don’t negotiate for more money when they are offered a new job because of the following reasons: They aren’t comfortable asking for more money, they are afraid the employer won’t hire them if they ask, and they don’t want to appear greedy. What’s interesting is that many organisations do expect you to make a counteroffer so set those worries aside and ask for what you think you should be getting instead!

Photo by Andrew Neel on Unsplash

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