Getting your first job offer is exciting joining the full-time workforce can mean a salary, benefits, and a path to financial independence. But before jumping to accept an offer, it's important to assess what exactly the company is promising you and negotiate your salary.
Most people hate negotiating (who can blame them) and don't do it. More than half (56%) of workers don't negotiate when given a job offer, according to CareerBuilder.
But here's a news flash: Most employers will negotiate even for entry-level employees. More than half (53%) of employers said they would be willing to negotiate first-time salaries, according to CareerBuilder. It's actually built into their strategy: Most employers will offer a lower salary to start, leaving room for negotiations. So, by not negotiating, you could be leaving money on the table!
And the payoffs from those negotiations can be huge in some cases, 11-20% higher, according to Jobvite's Job Seeker Nation Study.
So, let's say you get offered a starting salary of $40,000 11% of that is $4,400! And that's PER YEAR. So, if you stay at that job for 2 years, you would've made an extra $8,800. Three years that's $13,200. Plus, if in a few years you go for a promotion, you're negotiating that salary from a higher rung on the salary ladder. And, as you move up, you'll keep earning more than you would have if you settled for the first offer each time. That means paying off student loans more quickly, having more money in your pocket, being able to afford a nicer apartment/house you get the idea.
When you think of it that way, why wouldn't you negotiate?
More fromCollege Voices:How do you land your first job out of college?Why Black and Latinx women are more likely to struggle with impostor syndromeand how to overcome itWomen in STEM: 3 Challenges we face and how to overcome them
More than half (51%) of workers who don't negotiate fail to do so because they don't feel comfortable asking for more money, according to CareerBuilder. Nearly half said it was because they were afraid the employer would withdraw the offer. More than one-third said it was because they didn't want to seem greedy.
I sat down with some negotiation experts and those with some negotiation experience to talk through tips on how to approach your first job offer.
How to get over asking for more money
"You always negotiate a job offer job offers are dynamic," said Liza Babin, a 23-year-old who works in entertainment and negotiated her salary for her first two jobs. "They chose you because you were the best person for this job, and you have a lot of value."
Liza Babin
Source: Henry Platt
She recommends never accepting an offer on the spot and, instead, take some time to research the marketplace for this position. Once you know what you want from the negotiation, ask to talk through the offer "very calm, collected, and well-researched."
Kate Dixon, a negotiation coach and author of "Pay Up: Unlocking Insider Secrets of Salary Negotiation," said she tells her clients to phrase a salary negotiation as collaborative. Phrasing a salary increase in such a manner, keeps both sides on the same team. She suggested saying something along the lines of, "According to my research, jobs like this are paid between X and Y in the marketplace and I'm targeting the higher end. How close can we get?"
This kind of phrasing helps show that you've done your research and gives them a range of options to solve this negotiation, while also empowering you to begin your relationship with the company confidently.
But there are other options than just asking for a higher salary.
Peter Cappelli, a professor and director of the Center for Human Resources at the Wharton School of Business, said another strategy is to ask for one-time payments, such as a signing bonus or larger coverage of moving expenses. That may lead to more success than asking for the long-term cost of a recurring higher salary.
"Look for things that you think might be easier for them to give to you and things that are valuable to you," Cappelli said. He said knowing what's on the table to negotiate besides salary such as moving your start date back, more time off or job title makes your negotiation stronger than making demands they can't meet like higher salaries or health-care packages outside of their standard offering.
How to prepare for a negotiation
An important part of the negotiation process is being prepared for whatever might come your way. Knowing what a reasonable demand is shows the company that you did your research to make an equitable ask. Cappelli stresses that it's important to have a reason why you're asking to negotiate. For example, if people in your area, people at other companies in a similar position, or candidates with your education level typically earn more.
"You need a reason why more pay is merited," Cappelli said. "Just saying, 'I want more' isn't going to get you it and you start to look foolish."
Leveraging her prior experience as a basis for a salary increase was especially key for Alba Disla when she negotiated her salary at her first full-time job with the Diversity, Equity, and Inclusion team at Comcast in 2019.
Alba Disla
Source: Debbie Rabinovich
"I was very nervous because I just wanted any job at all and I was so ecstatic I even got the offer," Disla said about what was her dream job at the time. "I didn't have any formal corporate experience, but I had a lot of prior experience in an academic setting, so I used that to buffer my counterargument."
Disla ended up getting her offer raised by $4,000.
"I was really happy that I successfully negotiated because it was something I was very scared about, but I know it's important as I start my career, especially as a woman of color," Disla said.
"It's really important to advocate for yourself early on."
Dixon said it's common for first-time negotiators to be nervous about the negotiation, but it's important to not take what amounts to a business transaction personally.
"If you can get a little bit of emotional distance, it enables you to be much more effective in salary negotiations," Dixon said. "What a company offers you says more about how they value that job than you're worth as a human being."
Negotiation risks
One of the biggest concerns people have when negotiating is often that the offer will be taken away. Negotiating a first job can feel particularly risky, since you're coming from a place of no employment and you feel like you don't have leverage.
But the experts I spoke to said that the biggest risk is only that the company will say "no."
"I have never seen an offer pulled for somebody negotiating in good faith," Dixon said. "The risk of getting your offer pulled for doing a negotiation is practically nil."
Disla said that was exactly what she was afraid of going into the negotiation.
"A really big psychological thing for me to get over was part of me didn't want to confront them or counter because what if they take the offer away?" Disla said. "But it just doesn't happen that way The worst case is you get the original offer back."
However, Dixon cautioned that trying to push someone beyond a "best and final offer" can lead to frustration from your potential employers. Asking for more once the line has been clearly drawn is the only negotiation that can be considered a "risky proposition."
She recommends approaching a negotiation with gratitude and excitement for the offer to set the negotiation up in positive way. Thinking about the negotiation as a collaboration rather than a competition will make for a productive conversation rather than an aggressive situation.
Recognizing your worth
"Even if you don't get anything monetarily, you're still showing who you are as an employee. You're showing them, 'Hey, I advocate for myself. I understand my worth,'" Dixon said.
Understanding her worth is something Babin reminds herself of before entering a negotiation.
"Coming from that place of insecurity when you are leaving college and you have nothing to fall back on, it's so important to know your worth and be able to stay strong during those negotiations," Babin said. "Make sure you remind yourself of your own worth throughout the process, because it can be very easy to get discouraged."
For women especially, negotiating a first job is an essential way to start at a fair financial point. Hired found that 63% of the time, men were offered higher salaries than women for the same job. However, only 7% of women even attempt to negotiate their first salary, while 57% of men do, according to a study done by Carnegie Mellon University professor Linda Babcock.
So, negotiating is essential to getting a fair offer especially for women.
Jordan Mathews said she negotiated her most recent job offer, despite knowing how difficult it is to negotiate a salary with the government, because she felt that as a woman, it was "a priority" to at least try. After three months of negotiations and undergoing a security clearance, Mathews started her job as a program analyst with the Community Relations Services team at the Department of Justice. Mathews said she doesn't regret the amount of time and effort she put into negotiating as she's "very happy with the final result."
Jordan Matthews
Source: Kamil Hamid
"I knew that I had a lot of skills and experiences that were valuable and deserve to be recognized in my salary," Mathews said. "Don't undercut or undersell any skill that you have that might be relevant. Everything is valuable You have the most power when they want you."
So, for anyone out there questioning whether or not to negotiate a job offer, you have very little to lose and possibly a lot to gain!
The experts I spoke to recommended LinkedIn videos, the NPR Life Kit podcast, or negotiation books to educate yourself. Once in negotiations, Glassdoor and PayScale are great resources to get a sense of the market wage for your position. For Mathews, Disla, and Babin, having a mentor who supported them through the process was essential in helping them direct negotiations with end results they were happy with. Ultimately, don't be afraid to negotiate for what you think you deserve.
"People feel like millennials can be entitled in that we don't want to come off a certain way, but I think we need to shift our perspective," Mathews said. "Having employees coming in who recognize their value and what they're going to add to a team is something hopefully [companies] want. It actually shows confidence."
CNBC's "College Voices is a series written by CNBC interns from universities across the country about getting their college education, managing their own money and launching their careers during these extraordinary times.Kelly Heinzerling received her undergraduate degree from the University of Pennsylvania and her master's degree from Northwestern University. She was an intern on CNBC's creative services team in the summer of 2021. The series is edited byCindy Perman.
Disclosure: Comcast is the parent company of CNBC.
The rest is here:
How to negotiate the salary for your first job offer - CNBC
- FMO & IMO | Financial Independence Group, Inc [Last Updated On: December 25th, 2016] [Originally Added On: December 25th, 2016]
- financial independence - Good Financial Cents [Last Updated On: December 31st, 2016] [Originally Added On: December 31st, 2016]
- 8 Secrets to Achieving Financial Independence [Last Updated On: January 4th, 2017] [Originally Added On: January 4th, 2017]
- COLUMN-Millennial parents still like to tap the Bank of Mom & Dad - Thomson Reuters Foundation [Last Updated On: February 7th, 2017] [Originally Added On: February 7th, 2017]
- Republicans Move on Financial Deregulation; Fed Finalizes Stress Test Guidance - Lexology (registration) [Last Updated On: February 7th, 2017] [Originally Added On: February 7th, 2017]
- Millennial parents still like to tap the Bank of Mom & Dad - One ... - One America News Network (press release) [Last Updated On: February 7th, 2017] [Originally Added On: February 7th, 2017]
- Speaking of Women...Are We Really More Financially Independent Now? - Investopedia [Last Updated On: February 7th, 2017] [Originally Added On: February 7th, 2017]
- House Dems: Trump wants to put Wall Street first - The Hill [Last Updated On: February 7th, 2017] [Originally Added On: February 7th, 2017]
- 3 insider tips for achieving financial independence | The Motley Fool ... - Motley Fool UK [Last Updated On: February 7th, 2017] [Originally Added On: February 7th, 2017]
- The power of financial independence - KXAN.com [Last Updated On: February 7th, 2017] [Originally Added On: February 7th, 2017]
- Find out if you qualify for free tax preparation and financial advice - wtvr.com [Last Updated On: February 7th, 2017] [Originally Added On: February 7th, 2017]
- My Turn: Program provides a path out of homelessness - AZCentral.com [Last Updated On: February 7th, 2017] [Originally Added On: February 7th, 2017]
- Getting To Know You Tuesday: Elliot Dole - Forbes [Last Updated On: February 7th, 2017] [Originally Added On: February 7th, 2017]
- Millennial Parents Still Like to Tap the Bank of Mom & Dad - WealthManagement.com [Last Updated On: February 8th, 2017] [Originally Added On: February 8th, 2017]
- How to Prioritize Financial Goals When You Can't Do It All - Inside Higher Ed (blog) [Last Updated On: February 8th, 2017] [Originally Added On: February 8th, 2017]
- How to Modify Money Management After the Presidential Election - Yahoo Finance [Last Updated On: February 10th, 2017] [Originally Added On: February 10th, 2017]
- Congress could limit the Fed's independence and hurt the US economy - Washington Post [Last Updated On: February 13th, 2017] [Originally Added On: February 13th, 2017]
- Court Rejects Order Forcing Parents to Pay Tuition - Inside Higher Ed [Last Updated On: February 13th, 2017] [Originally Added On: February 13th, 2017]
- Syrian refugee families achieve financial independence in Alliston - Simcoe.com [Last Updated On: February 14th, 2017] [Originally Added On: February 14th, 2017]
- Sheroes Founder Sairee Chahal ventures for Women's Financial Independence in India's sometimes Suffocating ... - Plunge Daily [Last Updated On: February 16th, 2017] [Originally Added On: February 16th, 2017]
- Advocates say more women need financial independence: 'We really do need that extra leg up' - Globalnews.ca [Last Updated On: February 16th, 2017] [Originally Added On: February 16th, 2017]
- Surviving widowhood: Five tips to avoid financial hardship - Cincinnati.com [Last Updated On: February 16th, 2017] [Originally Added On: February 16th, 2017]
- Q & A with Sr. Maureen Gallagher, setting up financial independence paths for women in Mexico - Global Sisters Report (blog) [Last Updated On: February 16th, 2017] [Originally Added On: February 16th, 2017]
- The road to financial freedom - ABS-CBN News [Last Updated On: February 18th, 2017] [Originally Added On: February 18th, 2017]
- Byron Moore: Position, Pace and Power perform like a pro - Monroe News Star [Last Updated On: February 18th, 2017] [Originally Added On: February 18th, 2017]
- Cash Course - Binghamton University Pipe Dream [Last Updated On: February 20th, 2017] [Originally Added On: February 20th, 2017]
- Independence Financial Partners - SPECIALIZING IN [Last Updated On: February 20th, 2017] [Originally Added On: February 20th, 2017]
- 'Financial you' hits all bases, aligns with priorities, values - Lehigh Valley Business [Last Updated On: February 20th, 2017] [Originally Added On: February 20th, 2017]
- International Financial Reporting Standards - Wikipedia [Last Updated On: February 21st, 2017] [Originally Added On: February 21st, 2017]
- Opinion: Young adults need an easier path to financial independence - LSU Now [Last Updated On: February 23rd, 2017] [Originally Added On: February 23rd, 2017]
- Retiring in their 30s. Yep, they're doing it. - Crain's Chicago Business [Last Updated On: February 24th, 2017] [Originally Added On: February 24th, 2017]
- Successful Boomer Women Offer Financial Advice to Younger ... - Fox Business [Last Updated On: February 24th, 2017] [Originally Added On: February 24th, 2017]
- 'Thousands' of cancer sufferers forced to borrow money from parents because of financial difficulties caused by illness - The Independent [Last Updated On: February 27th, 2017] [Originally Added On: February 27th, 2017]
- Independence Contract Drilling, Inc. Reports Financial Results For The Fourth Quarter And Year Ended December 31 ... - PR Newswire (press release) [Last Updated On: February 28th, 2017] [Originally Added On: February 28th, 2017]
- Another way to measure retirement readiness: Your 'Power Percentage' - USA TODAY [Last Updated On: March 1st, 2017] [Originally Added On: March 1st, 2017]
- Oran Hall | Young cop seeks financial independence | Business ... - Jamaica Gleaner [Last Updated On: March 6th, 2017] [Originally Added On: March 6th, 2017]
- International Women's Day - Investing for financial independence - Simple Landlords Insurance (press release) (blog) [Last Updated On: March 8th, 2017] [Originally Added On: March 8th, 2017]
- Game of Thrones gave financial independence to actor Conleth Hill - Bollywood Life [Last Updated On: March 8th, 2017] [Originally Added On: March 8th, 2017]
- How to Leverage Your Small Business for Financial Success - Kiplinger Personal Finance [Last Updated On: March 9th, 2017] [Originally Added On: March 9th, 2017]
- A Struggle Back to Financial Independence After a Brain Injury - The Good Men Project [Last Updated On: March 9th, 2017] [Originally Added On: March 9th, 2017]
- Ten favorite personal-finance books - Christian Science Monitor [Last Updated On: March 11th, 2017] [Originally Added On: March 11th, 2017]
- Five facts about financial independence - finder.com.au [Last Updated On: April 8th, 2017] [Originally Added On: April 8th, 2017]
- Regulatory reform leads to financial independence - Argus Leader - Sioux Falls Argus Leader [Last Updated On: April 8th, 2017] [Originally Added On: April 8th, 2017]
- Mayor Berke's Council For Women Takes On Predatory Lending - The Chattanoogan [Last Updated On: June 6th, 2017] [Originally Added On: June 6th, 2017]
- Mayor's Council For Women Invites Public To Financial Independence Hearing On Monday - The Chattanoogan [Last Updated On: June 6th, 2017] [Originally Added On: June 6th, 2017]
- How I Reached Financial Independence By Age 40 - The Dough Roller [Last Updated On: June 6th, 2017] [Originally Added On: June 6th, 2017]
- Berz: High-interest loans can hamper financial independence - Chattanooga Times Free Press [Last Updated On: June 6th, 2017] [Originally Added On: June 6th, 2017]
- Financial tips, resources for college grads - WTOP [Last Updated On: June 6th, 2017] [Originally Added On: June 6th, 2017]
- Public invited to hearing on financial independence, high-interest lending - Nooga.com [Last Updated On: June 6th, 2017] [Originally Added On: June 6th, 2017]
- Financial Independence | Tardus | Retire Early | Wealth [Last Updated On: June 6th, 2017] [Originally Added On: June 6th, 2017]
- How to become financially independent in 5 years - Jun. 6, 2017 - CNNMoney [Last Updated On: June 7th, 2017] [Originally Added On: June 7th, 2017]
- House Republicans Vote to Strip Away Post-Financial Crisis Safeguards - Roll Call [Last Updated On: June 8th, 2017] [Originally Added On: June 8th, 2017]
- Auditor Independence Definition from Financial Times Lexicon [Last Updated On: June 8th, 2017] [Originally Added On: June 8th, 2017]
- Top 5 tips to achieve financial independence | Mpumalanga News - Mpumalanga News [Last Updated On: June 11th, 2017] [Originally Added On: June 11th, 2017]
- Two 6% dividends to help you achieve financial independence ... - AOL UK [Last Updated On: June 11th, 2017] [Originally Added On: June 11th, 2017]
- Sun Life kicks off Financial Independence Month with beautifully crafted short films - ABS-CBN News [Last Updated On: June 13th, 2017] [Originally Added On: June 13th, 2017]
- How to become financially independent in 5 years - CNNMoney [Last Updated On: June 13th, 2017] [Originally Added On: June 13th, 2017]
- Achieve financial independence with stocks by following this one ... - AOL UK [Last Updated On: June 17th, 2017] [Originally Added On: June 17th, 2017]
- I'll pursue financial independence for judiciary - Akuffo - GhanaWeb [Last Updated On: June 20th, 2017] [Originally Added On: June 20th, 2017]
- Baker awarded Helping Hands grant - Columbia Daily Tribune [Last Updated On: June 22nd, 2017] [Originally Added On: June 22nd, 2017]
- Baker awarded Helping Hands grant - Devil's Lake Daily Journal [Last Updated On: June 23rd, 2017] [Originally Added On: June 23rd, 2017]
- Porter's Five Forces can help you achieve financial independence ... - AOL UK [Last Updated On: June 24th, 2017] [Originally Added On: June 24th, 2017]
- You can achieve financial independence easily by using buckets ... - AOL UK [Last Updated On: June 24th, 2017] [Originally Added On: June 24th, 2017]
- You can achieve financial independence easily by using buckets ... - Motley Fool UK [Last Updated On: June 26th, 2017] [Originally Added On: June 26th, 2017]
- Greater savings options for feds draw praise, while move to cut their retirement looms - Washington Post [Last Updated On: June 26th, 2017] [Originally Added On: June 26th, 2017]
- Alabama one of the least financially independent states in the country - Birmingham Business Journal [Last Updated On: June 26th, 2017] [Originally Added On: June 26th, 2017]
- JL Collins' Tips for Achieving Financial Independence - The Dough Roller [Last Updated On: June 26th, 2017] [Originally Added On: June 26th, 2017]
- 3 steps to become wealthier and more successful - Ladders [Last Updated On: June 27th, 2017] [Originally Added On: June 27th, 2017]
- These 5% dividend yields could help you win financial independence - AOL UK [Last Updated On: June 30th, 2017] [Originally Added On: June 30th, 2017]
- Celebrating Independence - Jewish Link of New Jersey [Last Updated On: June 30th, 2017] [Originally Added On: June 30th, 2017]
- The easy way to financial independence - AOL UK Money - AOL.co.uk - AOL UK [Last Updated On: July 2nd, 2017] [Originally Added On: July 2nd, 2017]
- 5 powerful steps towards financial independence and retiring early ... - AOL UK [Last Updated On: July 3rd, 2017] [Originally Added On: July 3rd, 2017]
- Independence Financial Group [Last Updated On: July 3rd, 2017] [Originally Added On: July 3rd, 2017]
- Gain Financial Independence Attend a FREE Educational Event - FOX31 Denver [Last Updated On: July 14th, 2017] [Originally Added On: July 14th, 2017]
- CNNMoney readers react: She retired at 28 with $2.25 million - Aug ... - CNNMoney [Last Updated On: August 6th, 2017] [Originally Added On: August 6th, 2017]
- How to retire early with financial independence in 3 steps - NBC2 News [Last Updated On: August 6th, 2017] [Originally Added On: August 6th, 2017]
- Could this miner help you secure financial independence faster than ... - AOL UK [Last Updated On: August 24th, 2017] [Originally Added On: August 24th, 2017]
- Solutions 4 Financial Independence: 8/22/17 - WDTV [Last Updated On: August 24th, 2017] [Originally Added On: August 24th, 2017]
- The 7 Stages of Financial Independence | Radical Personal ... [Last Updated On: July 30th, 2018] [Originally Added On: July 30th, 2018]
- Financial Independence [Last Updated On: August 3rd, 2018] [Originally Added On: August 3rd, 2018]