It's been called an employer's market. And so it's natural to feel that accepting a job offer without negotiation is the safest bet. The thought might cross your mind: “I should just be grateful for what I’m offered, especially in this economy.”
However, settling for less can have lasting repercussions on your career and financial future.
Let's break down why negotiating is essential, even when the job market feels uncertain.
1. Most Employers Expect You to Negotiate
Did you know that 70% of employers expect candidates to negotiate their job offers? Despite this, only about 39% of workers actually do. That means the majority of people are leaving potential earnings on the table. Companies often budget with negotiation in mind, and failing to negotiate could result in a lower starting salary than what you might have secured with a simple conversation.
2. Accepting Less Now Affects Your Future Earnings
Let’s put it into perspective: If you start with a salary that’s $5,000 less than what you could have negotiated, that difference could compound over time. With typical annual raises of around 3%, you could be missing out on over $60,000 in earnings over the next 10 years. This doesn't even factor in bonuses or other compensation linked to your base salary.
Over a 30-year career, the difference can grow to nearly $200,000, all because of that initial hesitation to negotiate.
3. Negotiation Goes Beyond Salary
Negotiating isn’t just about the dollar amount on your base salary paycheck. Think of salary as compensation package. Some companies go above and beyond contribute higher than average to the 401K contribution, some offer leadership training programs with Ivy league schools, some even offer individual leadership training with a coach. All of that can be counted as part of your compensation package.
4. You’ve Earned the Right to Be Paid Fairly
It’s easy to think that in a competitive job market, you should take whatever is offered.
However, your skills, experience, and contributions are valuable. In a survey, 85% of professionals who negotiated their salary felt they were being paid what they were worth, compared to just 42% of those who didn’t negotiate.
This sense of fairness builds ongoing engagement in your mind for your long-term job satisfaction and motivation.
5. The Real Risk Is Not Negotiating
Many job seekers worry that pushing for more might lead to a rescinded offer, but the reality is that in my 20+ years of doing this work, a job offer was rescinded once. And it was not because the person asked for more money. It was the way he asked and he put his request in an email which then got circulated leading to misconstruction. If you accept an offer that doesn’t meet your needs, you might find yourself disengaged or even looking for a new job sooner than you’d like.
As a hiring manager, I have the mindset that if a person courageously negotiates for their value, they will have the courage to stand up for their team and what they believe in.
How to Approach Negotiation in a Tough Economy
Provide a rationale
One of the most effective ways to approach salary negotiation is to base your request on solid data. Research the typical salary range for your position. Once you have this information, align it with your own qualifications. For example, if you find that the standard salary range for your role is $80,000 to $100,000, and you bring additional years of experience or specialized skills that can help you hit the ground running, use this to your advantage.
Here’s how you could frame it: “The salary range for this position typically falls between $80,000 and $100,000. Given my 10 years of experience in this industry and my ability to contribute from day one, I am requesting a base salary of $95,000.”
Offer Flexibility
In some cases, the company may genuinely have limited flexibility when it comes to base salary. This doesn’t mean the negotiation has to end there. If the salary isn’t negotiable, consider other benefits that could add value to your overall compensation package.
For example, you could say: “I understand that the salary budget is fixed, but I’d like to explore the possibility of joining the company’s leadership training program or receiving support for professional certifications. Could we discuss options in those areas?"
Have a Problem-Solving Tone
Express your enthusiasm for the role and use inclusive language that shows you’re looking to find a solution that works for both you and the employer. Instead of framing the negotiation as a battle, think of it as a partnership where both parties are working towards a common goal.
For example, you might say: “I’m really excited about the opportunity to join your team and contribute to the company’s growth. Based on my experience and the industry standards, I was hoping to discuss adjusting the base salary to better align with my background. How can we work together to close this gap?”
By using phrases like “we” and focusing on how your request aligns with the company’s needs, you’re demonstrating that you’re invested in the company’s success, not just your own.
Conclusion
So, should you negotiate even when the job market is low? The answer is yes! Negotiating in a tough economy requires a thoughtful approach. But don’t let that deter you. The key to successful negotiation is preparation and clarity. When you have a clear "ask"—one that’s rooted in facts, data, and a solid understanding of your worth—you position yourself to negotiate with confidence. This means doing your homework, knowing the market rates, and understanding how your unique skills and experiences bring value to the table.
If you need help, reach out!
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