When starting a new job, the negotiation process can seem daunting. You may wonder if human resources expects you to negotiate your salary and benefits or if you should just accept the initial offer. Understanding HR’s perspective on negotiations can help you approach the process strategically. In this article, we’ll explore what HR expects regarding negotiations, top negotiation tips, and when to negotiate.
Does HR Expect Negotiation?
Human resources professionals recognize that negotiation is a normal part of the hiring process. They expect that many candidates will want to negotiate offer details like salary, benefits, job title, start date, work schedule, vacation time, and more. HR aims to make offers that are fair and competitive to attract top talent. But they also budget for some back-and-forth discussion to reach an agreement both sides feel good about.
Some key points about HR’s expectations:
– HR assumes candidates will negotiate if they’re unhappy with the initial offer or think they can get better terms. Negotiation is seen as inevitable, not inappropriate.
– Skilled recruiters usually don’t take negotiations personally. They view it as a standard process and keep emotions out of it.
– HR expects negotiation more for experienced hires versus entry-level roles. The better a candidate’s qualifications, the more leverage they have to negotiate.
– Within reason, HR will negotiate to close top talent. But they won’t necessarily cave to extreme demands.
– HR has constraints around things like salary ranges and standard benefits packages. So while negotiation is expected, there are limits.
The bottom line? HR professionals will not be shocked or offended if you want to negotiate. They assume discussions will happen and are prepared for them. Negotiating is perfectly acceptable if done professionally.
Top Negotiation Tips
When negotiating with HR, keep these best practices in mind:
– Research typical pay and benefits for the role in your location to support your asks. Data gives you credibility.
– Address negotiable issues one by one instead of presenting a laundry list. Stick to 2-3 top priorities.
– Frame requests in terms of your value to the company, not personal needs. Show how you can fill skills gaps.
– Be flexible. Offer options like a signing bonus or extra vacation instead of just demanding more salary.
– Let HR speak first with a counteroffer to reveal more about pay caps or limitations.
– Stay positive. Don’t threaten to walk away if you don’t actually plan to.
– Express appreciation for the offer and company throughout discussions. Don’t seem ungrateful.
– If needed, ask for time to consider the offer rather than rejecting it outright.
With the right approach, you can effectively negotiate the terms you want without antagonizing HR. Now let’s look at when you should consider negotiations.
When to Negotiate
You have the most leverage to negotiate when:
– You have multiple job offers. Leverage competing offers for better terms. But avoid bluffing.
– You have rare skills. Specialized expertise prompts companies to negotiate to win you over.
– You’re exceeding expectations in your current role. Internal moves put you in a strong position.
– The hiring manager makes it known they want to hire you. Their enthusiasm means HR may bend more.
– The company has high turnover. Then they have incentive to negotiate to retain you.
– The role was hard to fill. If it took months to find someone, you’re a hot commodity.
On the other hand, you have less room to negotiate when:
– You’re a new grad or changing careers. You lack proven experience to support big requests.
– The job market is slow. Companies hold firm when talent pools are large.
– The role is junior level or temporary. More leeway is given for senior or long-term hires.
– You don’t yet have another offer. Lacking alternatives, you must gauge if they’ll withdraw the offer.
– Your skills aren’t scarce. With many qualified candidates, you’re more replaceable.
The best time to negotiate is after receiving an offer but before formally accepting. This gives you the most leverage. But realize when economic conditions or the role favors the company over you.
Key Points to Negotiate
These are typical components of a job offer you may negotiate:
Salary
The base pay is a central point of negotiation. Research field and location benchmarks to support your target. Increase your asking salary in increments of 5-10% rather than unrealistic leaps.
Signing Bonus
A signing bonus helps cover moving costs, student loans, or other expenses. These are usually $2,000 – $5,000 but can reach $10,000+ for executive hires.
Performance Bonus
Negotiate eligibility for annual bonuses, target payouts, and performance metrics to earn it.
Stock Options or Equity
Request stock options or equity stake for shared company ownership. This is common at startups.
Benefits
Health, dental, and vision insurance, 401(k) match, tuition reimbursement, and wellness perks can be negotiated.
Vacation & Sick Time
Negotiate for more paid vacation, sick days, personal days, or holidays than the initial policy.
Flex Scheduling
Request flexibility like remote work options, non-traditional hours, or compressed work weeks.
Professional Development
Negotiate training, seminars, conference budgets, and education stipends.
Commute Assistance
Telecommuting, public transit passes, parking stipends, and mileage reimbursement help with commute costs.
Relocation Package
For out-of-area candidates, coverage of moving expenses is common. Temporary housing stipends also help.
Weigh which offerings would improve your quality of life and economic stability. Increase deal sweeteners through a combination of enhanced compensation, benefits, and perks.
When is Negotiation Inappropriate?
While negotiation is expected and normal, some circumstances make it inappropriate to negotiate. It’s best to avoid trying to negotiate when:
– You’ve already formally accepted the offer. Reneging is unprofessional. Try to negotiate before accepting.
– The job posting states the pay rate is firm or non-negotiable. Respect stated policies.
– You lack any experience or formal qualifications related to the role. With no proven expertise, you have little leverage.
– The company has a formal compensation scale. Salaries are rigidly set by level so individual negotiation is impossible.
– You received multiple rejections for a role before finally getting an offer. With no BATNA (best alternative to a negotiated agreement), you must take or leave the existing offer.
– The company is experiencing financial hardship or hiring freezes. Budgets are inflexible.
– You will not actually reject the offer if negotiations fail. Don’t use empty threats without being fully willing to walk away.
Many hiring managers expect candidates to try negotiating. But avoid pushing too far in scenarios where you lack bargaining power or room for movement simply doesn’t exist.
What if HR Won’t Negotiate?
While negotiating with HR is common, sometimes they may decline to engage in back-and-forth talks. If HR won’t negotiate, consider these next steps:
Ask for clarification
Politely ask for insight into why they can’t adjust the offer. See if they will elaborate on constraints.
Request alternatives
If you can’t negotiate salary, inquire about signing bonus or additional vacation days instead.
Say you’ll think it over
Don’t reject it on the spot. Ask for time to consider the offer as is.
Send a follow up email
Reiterate your interest in the role, but share links to data showing higher pay benchmarks. See if this prompts reconsideration after they have time to reassess.
Accept if you still want the job
Take it as is if you truly want the position. You can still negotiate later after proving your value.
Walk away if it doesn’t meet needs
Decline the offer if it fails to align with your requirements and the company won’t negotiate at all. But avoid conveying negativity. Thank them for the opportunity and keep the door open down the road.
With the right approach, many HR departments will negotiate fairly within their policy limits. But if they refuse to budge, carefully assess your options and the potential trade-offs. Does the role align with your career goals even if the compensation isn’t perfect? Or should you pursue a better match elsewhere? Look beyond just the negotiation outcome.
Conclusion
In most cases, human resources departments expect job candidates to negotiate. As a standard part of the hiring process, they are prepared for discussions and have built room into budgets and policies to make concessions if needed to land top talent. Keep negotiations polite, professional, and backed by data. Time them strategically once an offer is on the table but before you formally accept. While negotiations won’t always guarantee improved terms, more often than not HR will work with you provided requests are reasonable. With the right approach, you can negotiate effectively without negatively impacting your job offer.