Evaluating and Negotiating Job Offers

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1 OFFICE OF CAREER SERVICES GSAS: Evaluating & Negtiating Jb Offers Harvard University Harvard Cllege and Graduate Schl f Arts and Sciences 54 Dunster Street Cambridge, MA Telephne: (617) GSAS: Graduate Student Infrmatin Evaluating and Negtiating Jb Offers

2 2016 Harvard University All rights reserved. N part f this publicatin may be reprduced in any way withut the express written permissin f the Harvard University Faculty f Arts & Sciences Office f Career Services. 8/16 Office f Career Services Harvard University Faculty f Arts & Sciences Cambridge, MA Phne: (617)

3 Evaluating and Negtiating Jb Offers When mst peple undertake a jb search, they understandably see the end gal as receiving a jb ffer. Yet fr many, actually reaching this pint is the mst stressful part f the search prcess. Hw d yu priritize ffers received, and thse yu still hpe t? When is it apprpriate t negtiate cmpensatin packages, and hw des ne g abut ding that? This guide is meant t address sme f the mst cmmnly asked questins regarding this prcess. Belw are sme resurces t help yu research ging rates fr base salaries in different fields, as well as sme t help yu think abut strategies fr evaluating and negtiating ffers. Websites Many websites ffer a cmbinatin f salary data by jb title, industry, and/r field, as well as salary calculatrs t help determine hw salaries may be affected by cst f living in different gegraphic regins. Here are a few examples: Glassdr.cm Salary.cm Payscale.cm Vault.cm/salary Jbsmart.rg The Bureau f Labr Statistics ( In additin, seek ut trade jurnals and assciatins in yur field f chice and see if they publish results f salary surveys r ther infrmatin pertinent t recruiting. Fr instance, the Chrnicle f Higher Educatin publishes an annual salary survey f university faculty and administratrs ( Cmputer Wrld magazine ( has an annual 100 Best Places t Wrk in IT issue. There are als resurces with helpful infrmatin regarding special interests, such as the best cmpanies fr wrking mthers ( and emplyers that are LGBTQ friendly ( See the OCS website ( fr additinal resurces.

4 Cmmnly Asked Questins Hw can I best prepare fr negtiating a jb ffer? It is imprtant t start thinking abut this prcess befre yu even begin interviewing with cmpanies. Part f yur research int a field r industry shuld be t explre what the ging rates are fr salaries in yur chsen area. Keep in mind that base salary is typically based n the ging rate fr cmpensatin fr that particular jb, and mitigated smewhat by size and prestige f the rganizatin, as well as cst f living in the regin. First, d yur research. While websites that prvide salary survey infrmatin based n different jb titles are a helpful starting pint, they are n substitute fr asking peple in the field what they cnsider t be the ging rate fr entry level psitins. This is a gd subject t bring up early n in yur research when cnducting infrmatinal interviews with peple in the field. While it is never apprpriate t ask smene hw much mney he r she makes, many prfessinals are happy t share what they wuld cnsider t be acceptable ranges fr entry level cmpensatin in their fields. Next, think abut what yu want, and what yu can reasnably expect. Once yu have dne sme research, yu will next need t think abut yur wn needs regarding cmpensatin. First, figure ut what yu wuld need simply t survive in the area in which yu are planning n living, taking int accunt expenses like student lan payments, transprtatin csts, and the like. Next, take the salary range yu believe yu can reasnably anticipate based n yur research. Cnsidering the lw end f that range, what is the minimum yu wuld accept fr yur dream jb? What is the highest salary yu culd reasnably expect? Keep in mind that if yu are lking at mre than ne type f jb, yu may be lking at different sets f numbers. One cannt cmpare, fr instance, an entry-level jb in publishing with ne in investment banking. The ging rates fr these types f jbs are simply t different. Once yu have sme numbers clear in yur head, yu are ready t start interviewing.

5 When shuld yu expect t start discussing cmpensatin with emplyers? Ideally, yu shuld nt have any kind f cnversatin with emplyers abut salary r benefits until yu have received an ffer, r at least reasnably anticipate receiving ne. Yu will be in the best psitin t negtiate nce the rganizatin is cnvinced that yu are the right persn fr the jb. Hwever, sme emplyers will bring up the tpic far earlier in the prcess, even as sn as the first interview. There are several reasns why this may ccur. Fr example, in the case f nnprfits, gvernment entities r educatinal institutins, they may have a very restricted budget fr hiring and will want t make sure that yu are willing t cnsider the salary that they are ffering befre wasting yur time and theirs by cntinuing with the interview prcess. Even in the private sectr, the issue f salary may cme up early n, particularly if the rganizatin knws that they pay belw market rate fr the jb in questin. Yu may als find that sme emplyers will wrry that as a Harvard graduate, yur salary expectatins may be abve what they are willing t pay. What shuld I say if I m asked abut my salary requirements prir t receiving an ffer? Yu shuld initially address this questin by indicating that yur requirements are negtiable, and that yu are certain that the rganizatin pays a fair market rate fr the psitin in questin. Yu can als indicate that fr nw, yur primary cncern is with the psitin itself and yur fit fr it, and that yu wuld be happy t discuss cmpensatin nce yu have bth decided that yu are the right persn fr the jb. If the interviewer cntinues t push the issue, yu culd then ask her the range that she has budgeted fr the psitin. Ideally, yu want the interviewer t name a number first. If she will nt d s and cntinues t insist that yu state yur requirements, name a very brad range. Based n the industry research I have dne, it appears that market rate fr this type f jb culd be anywhere frm $60,000 t $80,000, depending n the specific jb requirements, size f the rganizatin, and the ttal cmpensatin package ffered. But right nw, I m mst cncerned with learning as much as I can abut the psitin. The danger in naming a range frm the start is that almst invariably if yu get the jb, yu will be ffered a number in the lw end f the range yu indicated. Fr this reasn, it is imprtant t qualify that yur range was based n ttal cmpensatin, nt simply base salary. This strategy will prvide yu with a bit f rm t negtiate later if necessary. I ve received an ffer frm a cmpany that is nt my first chice. What shuld I d? Applying fr jbs is nt like applying t cllege r graduate prgrams: in all likelihd, yu will nt be able t evaluate all yur ptins tgether. That being said, yu shuld never feel like yu must give an answer immediately. Thank the emplyer, reiterate yur interest in the psitin, and ask if yu may have sme time t think it ver tw weeks is standard, thugh yu may be able t negtiate mre time. Ask them t put the ffer and the details f the cmpensatin package in writing.

6 If yu are actively pursuing mre than ne pprtunity, and yu happen t get an ffer frm a secnd r third chice ptin, immediately get in tuch with the ther rganizatins in which yu are interested. Let them knw that yu have an ffer n the table, and that yu need t knw the status f yur candidacy. Often if anther firm is interested in yu they will speed up the interview and ffer prcess t keep frm ptentially lsing yu t anther emplyer. The questin is a bit trickier if yu d nt have ther active applicatins ging at the time yu received the ffer. In that case, it is up t yu t determine whether yu wish t accept the ffer, r cntinue yur jb search. Yu may at this pint wish t seek advice frm peple with whm yu have dne infrmatinal interviews, as well as an OCS adviser, t help yu make yur decisin. Des the Office f Career Services have plicies regarding the timing f ffers that cmpanies interviewing n campus must fllw? Yes. Fr the mst current Campus Interview Prgram dates, deadlines, and plicies, visit: Keep in mind, hwever, that the OCS ffer plicies nly apply t emplyers wh participate in the Campus Interview Prgram. If yu have any questins regarding whether r nt an emplyer falls under this categry, r any questins regarding OCS ffer plicies, cntact the Campus Interview Prgram ffice at Is it OK t accept a psitin with ne emplyer, then cntinue interviewing in the hpe f receiving a better ffer? In shrt, NO. This strategy is cnsidered an egregius breach f ethics, and can seriusly harm yur reputatin in yur chsen field. Emplyers in cmpetitive fields wrry abut this practice t the extent that it is nt unheard f fr a firm t rescind an ffer if they find ut that yu have already accepted ne frm anther rganizatin. Keep in mind that recruiters within fields usually knw ne anther and have been knwn t cmpare ntes. I have received mre that ne ffer. Can I negtiate them against ne anther? Yes, but be careful. This strategy wrks best when the ffers received cme frm cmpetitrs within the same industry. In ther wrds, if the market rate fr the jbs shuld, in thery, be similar, then telling ne emplyer that yu have received a higher ffer frm anther may encurage them t match it. It is advisable t seek guidance frm a mentr in the field r an OCS adviser befre attempting this tactic. And never lie t a cmpany and tell them yu have received a higher ffer when yu haven t assume that they will call yur bluff and ask fr a cpy f the ffer letter.

7 Is it always apprpriate t try t negtiate a higher salary? First, keep in mind that the bject f negtiating an ffer is nt necessarily t receive mre in the way f mney r benefits, but t make sure that yu are nt leaving anything n the table. That is, sme rganizatins, particularly in the business wrld, anticipate that candidates will try t negtiate their cmpensatin packages, and s will cme in a bit lw n their initial ffer with the expectatin that yu will cunter it. Hwever, this is nt always the case. If yu are lking at a cmpetitive rganizatin that hires many new graduates at nce fr entry level psitins, such as cnsulting firms and investment banks, yu might be ffered a set package that is identical t thse ffered t the rest f yur entering class. Unless yu ffer smething significant in terms f additinal relevant educatin r experience ver and abve the thers receiving an ffer, it is unlikely that yu will be able t negtiate additinal mnetary cmpensatin. Fr thse accepting psitins in areas like educatin r the gvernment, yu may find that the salary ranges and starting salary rate are set by internal plicy and will nt be negtiable. But if yu truly believe that the ffer is lw relative t similar psitins in the same sectr, r yu have mre t ffer in the way f educatin r experience than is indicated in their fficial jb descriptin, then it may be wrth attempting t negtiate. Again, it wuld be wrth yur while in this case t seek the help f a prfessinal in that sectr r an OCS adviser. Is salary the nly thing t cnsider? N, there are many ther aspects f cmpensatin t cnsider and evaluate when deciding if the base salary is sufficient and if the ttal package is acceptable. Be sure yu have adequate infrmatin n the fllwing: Mnetary cmpensatin What is the base starting salary? Is there a signing bnus? Is there an annual bnus? Is it guaranteed? If perfrmance based, is it based n yur individual perfrmance, that f yur team, r that f yur rganizatin? Will yu have access t any kind f prfit sharing r stck ptins? D they ffer a retirement plan? When will yu be eligible fr a salary review? What have the increases in salary been histrically fr the psitin, and have they been based n cst f living r perfrmance? When will yu be eligible fr a prmtin? What has the timeline been fr thers hlding this jb in the past? Will the rganizatin ffer reimbursement fr mving csts? D they ffer tuitin assistance fr cntinuing educatin?

8 Benefits Des the cmpany ffer health insurance? Is it adequate fr yur needs? Hw much mney, if any, will yu be expected t pay per mnth twards yur health plan? Des the rganizatin ffer disability insurance? Life insurance? Des the rganizatin ffer any help in finding a place t live? D they prvide mrtgage assistance? Hw many days f vacatin d emplyees get per year? Sick days? Persnal days? What are their plicies regarding unpaid leave? Are there mney-saving amenities ffered n site, such as child care r athletic facilities? If the jb requires lng r unusual hurs, d they have any kind f mnetary allwance fr meals r travel? Aside frm cmpensatin, what ther things shuld I cnsider when evaluating an ffer? The decisin t accept a jb is a very persnal ne, and ften invlves bth fllwing yur instincts and taking a leap f faith. But there are still a number f things t think abut, including: The ptential career paths that culd fllw after accepting the psitin. What will yu learn frm this jb? Where culd thse skills and experiences take yu in the future? D yu like and respect the peple with whm yu will be wrking? D yu feel cmfrtable with the culture f the rganizatin? D peple seem happy wrking there? Will yu have the pprtunity t meet new peple in the field and expand yur netwrk f prfessinal cnnectins? Are yu happy with the gegraphic regin in which the jb is lcated, in terms f cst f living, climate, prximity t family, and pprtunities fr a scial life r cultural activities? In the end, nly yu can decide whether r nt a jb is right fr yu. But we at OCS are here t help, and we strngly encurage students t schedule an appintment with an adviser when struggling with whether r nt t accept an ffer r trying t negtiate cmpensatin.

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