Congratulations on receiving an offer – now what? Be sure it’s the right opportunity for you. Below are some tips on how to evaluate and negotiate an offer.
Receiving the Offer
Offers are usually extended verbally – either by the line manager, the HR professional, or a recruiter. When receiving an offer, keep in mind:
1. Be enthusiastic and professional. Express your thanks and your interest.
2. Ask for some time to consider the offer. Even if you know you’ll accept it, don’t make a decision on the spot (and no employer will expect you to do so).
3. Ask for the details, and preferably, in writing (it’s not always possible, so use your judgment). Details include:
- Title and responsibilities,
- Base salary, bonus (if any),
- Sign-on bonus (if any),
- Relocation allowance (if applicable),
- Benefits package (health care, dental and eye care plans, retirement plans, 401K plans, day care, vacation policy, maternity/paternity leave, professional association dues, health club membership, etc.).
Evaluating the Offer
When deciding on an offer, it’s often helpful to draw a line down the center of the piece of paper and list the Pros of the offer on one side and the Cons on the other. In addition to the financial package, consider the cultural fit between you and the organization, the growth opportunities, amount of travel, quality of life, professional mentorship and training. After completing this exercise, you’ll probably have a strong sense of which direction you’re heading in. BUT – don’t act yet. Next comes the “gut” test. Wait several hours, and then imagine the phone call you would make turning DOWN the job offer, and how you would feel afterwards. If you’re envisioning a sense of relief, then don’t take the job; if you’re envisioning a sense of disappointment, and then accept it. Trust your instincts!!
Negotiating the Offer
Should you negotiate your offer? It depends. Do your research after you receive the offer, and try to find out salaries at similar organizations in the same job function. Helpful sites to check out are:
- JobStar: Job Search Guide - more than 300 industry-specific and general salary surveys.
- Salary.com: The “Salary Wizard” options provides a benchmark for salaries by industry and zip code.
- HomeFair.com: A relocation guide which includes a salary calculator, letting you know what a salary in City X is worth in City Y.
- CareerBliss.com: Quench your compensation curiosity with millions of salaries for all types of industries and jobs.
- MoneyGeek: A step-by-step guide to negotiating for the pay you deserve.
- Job Seekers Salary Calculator: A salary calculator by region, job and years of experience.
If your research shows that the offer is below industry standards, you probably want to negotiate. The window of opportunity for negotiating terms is after you have had time to consider the offer and before you accept the position.
Tip: Effective Offer Negotiation
- First, decide on your bottom line (in terms of salary, benefits, etc.) in advance.
- Speak in a professional tone, staying calm throughout the conversation. Use a non-adversarial, collaborative tone (i.e. “Might there be another way of approaching this issue that could bring us closer together . . . “). Remember-- it’s HOW you ask as much as what you ask for.
- Express your enthusiasm for the position and the organization. Reinforce your desire to be part of their team.
- Negotiate the base salary first, and save the most difficult issues for last.
- Avoid getting into a conversation of specific salaries at competitor organizations.
- Always continue to sell yourself.
Accepting an Offer
After you have made your decision, the Office of Career Strategy recommends notifying the employer by telephone and following up with an acceptance letter. Please keep in mind that when you accept an offer, you have a professional obligation to join that employer. Reneging on an offer (i.e., accepting an offer, changing your mind and then rejecting it) is extremely unprofessional; doing so damages your professional reputation, the reputation of Yale alumni employed by that organization and the reputation of Yale.
First years, sophomores, and juniors who accept an offer and then renege on their acceptance may lose access to Office of Career Strategy services, including the on-campus interview program in future years. Seniors who accept an offer and then renege on their acceptance may lose access to on-campus recruiting and alumni career services.