5/22/25, 4:42 PM 15 Rules for Negotiating a Job Offer

Interpersonal Skills
15 Rules for Negotiating a Job Offer
by Deepak Malhotra
From the Magazine (April 2014)

bowie15/Getty Images

Summary. In some industries, a weak labor market has left candidates with fewer
options and less leverage, and employers better positioned to dictate terms. Those
who are unemployed, or whose current job seems shaky, have seen their bargaining
power further... more

Job-offer negotiations are rarely easy. Consider three typical

scenarios:

You’re in a third-round interview for a job at a company you like,

but a firm you admire even more just invited you in. Suddenly the
first hiring manager cuts to the chase: “As you know, we’re
considering many candidates. We like you, and we hope the
feeling is mutual. If we make you a competitive offer, will you
accept it?”

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You’ve received an offer for a job you’ll enjoy, but the salary is
lower than you think you deserve. You ask your potential boss
whether she has any flexibility. “We typically don’t hire people
with your background, and we have a different culture here,” she
responds. “This job isn’t just about the money. Are you saying you
won’t take it unless we increase the pay?”

You’ve been working happily at your company for three years, but
a recruiter has been calling, insisting that you could earn much
more elsewhere. You don’t want to quit, but you expect to be
compensated fairly, so you’d like to ask for a raise. Unfortunately,
budgets are tight, and your boss doesn’t react well when people
try to leverage outside offers. What do you do?

Each of these situations is difficult in its own way—and

emblematic of how complex job negotiations can be. At many
companies, compensation increasingly comes in the form of
stock, options, and bonuses linked to both personal and group
performance. In MBA recruitment, more companies are using
“exploding” offers or sliding-scale signing bonuses based on when
a candidate accepts the job, complicating attempts to compare
offers. With executive mobility on the rise, people vying for
similar positions often have vastly different backgrounds,
strengths, and salary histories, making it hard for employers to set
benchmarks or create standard packages.

Read more about negotiating job offers:

Negotiating a Job Offer? Here’s How to Get What You Want., How to
Evaluate, Accept, Reject, or Negotiate a Job Offer, Setting the Record
Straight on Negotiating Your Salary
In some industries a weak labor market has also left candidates
with fewer options and less leverage, and employers better
positioned to dictate terms. Those who are unemployed, or whose
current job seems shaky, have seen their bargaining power further
reduced.

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But job market complexity creates opportunities for people who

can skillfully negotiate the terms and conditions of employment.
After all, negotiation matters most when there is a broad range of
possible outcomes.

As a professor who studies and teaches the subject, I frequently

advise current and former students on navigating this terrain. For
several years I have been offering a presentation on the topic to
current students. (To see a video of this talk, go to
www.NegotiateYourOffer.com.) Every situation is unique, but
some strategies, tactics, and principles can help you address
many of the issues people face in negotiating with employers.
Here are 15 rules to guide you in these discussions.

[ 1]
Don’t underestimate the importance of
likability.

This sounds basic, but it’s crucial: People are going to fight for you
only if they like you. Anything you do in a negotiation that makes
you less likable reduces the chances that the other side will work
to get you a better offer. This is about more than being polite; it’s
about managing some inevitable tensions in negotiation, such as
asking for what you deserve without seeming greedy, pointing out
deficiencies in the offer without seeming petty, and being
persistent without being a nuisance. Negotiators can typically
avoid these pitfalls by evaluating (for example, in practice
interviews with friends) how others are likely to perceive their
approach.

[ 2]
Help them understand why you deserve what
you’re requesting.

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It’s not enough for them to like you. They also have to believe
you’re worth the offer you want. Never let your proposal speak for
itself—always tell the story that goes with it. Don’t just state your
desire (a 15% higher salary, say, or permission to work from home
one day a week); explain precisely why it’s justified (the reasons
you deserve more money than others they may have hired, or that
your children come home from school early on Fridays). If you
have no justification for a demand, it may be unwise to make it.
Again, keep in mind the inherent tension between being likable
and explaining why you deserve more: Suggesting that you’re
especially valuable can make you sound arrogant if you haven’t
thought through how best to communicate the message.

[ 3]
Make it clear they can get you.

People won’t want to expend political or social capital to get

approval for a strong or improved offer if they suspect that at the
end of the day, you’re still going to say, “No, thanks.” Who wants to
be the stalking horse for another company? If you intend to
negotiate for a better package, make it clear that you’re serious
about working for this employer. Sometimes you get people to
want you by explaining that everybody wants you. But the more
strongly you play that hand, the more they may think that they’re
not going to get you anyway, so why bother jumping through
hoops? If you’re planning to mention all the options you have as
leverage, you should balance that by saying why—or under what
conditions—you would be happy to forgo those options and
accept an offer.

[ 4]
Understand the person across the table.

Companies don’t negotiate; people do. And before you can

influence the person sitting opposite you, you have to understand
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her. What are her interests and individual concerns? For example,
negotiating with a prospective boss is very different from
negotiating with an HR representative. You can perhaps afford to
pepper the latter with questions regarding details of the offer, but
you don’t want to annoy someone who may become your manager
with seemingly petty demands. On the flip side, HR may be
responsible for hiring 10 people and therefore reluctant to break
precedent, whereas the boss, who will benefit more directly from
your joining the company, may go to bat for you with a special
request.

[ 5]
Understand their constraints.

They may like you. They may think you deserve everything you
want. But they still may not give it to you. Why? Because they may
have certain ironclad constraints, such as salary caps, that no
amount of negotiation can loosen. Your job is to figure out where
they’re flexible and where they’re not. If, for example, you’re
talking to a large company that’s hiring 20 similar people at the
same time, it probably can’t give you a higher salary than
everyone else. But it may be flexible on start dates, vacation time,
and signing bonuses. On the other hand, if you’re negotiating with
a smaller company that has never hired someone in your role,
there may be room to adjust the initial salary offer or job title but
not other things. The better you understand the constraints, the
more likely it is that you’ll be able to propose options that solve
both sides’ problems.

[ 6]
Be prepared for tough questions.

Many job candidates have been hit with difficult questions they
were hoping not to face: Do you have any other offers? If we make
you an offer tomorrow, will you say yes? Are we your top choice? If
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you’re unprepared, you might say something inelegantly evasive

or, worse, untrue. My advice is to never lie in a negotiation. It
frequently comes back to harm you, but even if it doesn’t, it’s
unethical. The other risk is that, faced with a tough question, you
may try too hard to please and end up losing leverage. The point is
this: You need to prepare for questions and issues that would put
you on the defensive, make you feel uncomfortable, or expose
your weaknesses. Your goal is to answer honestly without looking
like an unattractive candidate—and without giving up too much
bargaining power. If you have thought in advance about how to
answer difficult questions, you probably won’t forfeit one of those
objectives.

[ 7]
Focus on the questioner’s intent, not on the
question.

If, despite your preparation, someone comes at you from an angle

you didn’t expect, remember this simple rule: It’s not the question
that matters but the questioner’s intent. Often the question is
challenging but the questioner’s intent is benign. An employer
who asks whether you would immediately accept an offer
tomorrow may simply be interested in knowing if you are
genuinely excited about the job, not trying to box you into a
corner. A question about whether you have other offers may be
designed not to expose your weak alternatives but simply to learn
what type of job search you’re conducting and whether this
company has a chance of getting you. If you don’t like the
question, don’t assume the worst. Rather, answer in a way that
addresses what you think is the intent, or ask for a clarification of
the problem the interviewer is trying to solve. If you engage in a
genuine conversation about what he’s after, and show a
willingness to help him resolve whatever issue he has, both of you
will be better off.

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[ 8]
Consider the whole deal.

Sadly, to many people, “negotiating a job offer” and “negotiating a

salary” are synonymous. But much of your satisfaction from the
job will come from other factors you can negotiate—perhaps even
more easily than salary. Don’t get fixated on money. Focus on the
value of the entire deal: responsibilities, location, travel,
flexibility in work hours, opportunities for growth and promotion,
perks, support for continued education, and so forth. Think not
just about how you’re willing to be rewarded but also when. You
may decide to chart a course that pays less handsomely now but
will put you in a stronger position later.

[ 9]
Negotiate multiple issues simultaneously, not
serially.

If someone makes you an offer and you’re legitimately concerned

about parts of it, you’re usually better off proposing all your
changes at once. Don’t say, “The salary is a bit low. Could you do
something about it?” and then, once she’s worked on it, come
back with “Thanks. Now here are two other things I’d like…” If you
ask for only one thing initially, she may assume that getting it will
make you ready to accept the offer (or at least to make a decision).
If you keep saying “and one more thing…,” she is unlikely to
remain in a generous or understanding mood. Furthermore, if you
have more than one request, don’t simply mention all the things
you want—A, B, C, and D; also signal the relative importance of
each to you. Otherwise, she may pick the two things you value
least, because they’re pretty easy to give you, and feel she’s met
you halfway. Then you’ll have an offer that’s not much better and
a negotiating partner who thinks her job is done.

[ 10 ]
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Don’t negotiate just to negotiate.

Resist the temptation to prove that you are a great negotiator.
MBA students who have just taken a class on negotiation are
plagued by this problem: They go bargaining berserk the first
chance they get, which is with a prospective employer. My advice:
If something is important to you, absolutely negotiate. But don’t
haggle over every little thing. Fighting to get just a bit more can
rub people the wrong way—and can limit your ability to negotiate
with the company later in your career, when it may matter more.

[ 11 ]
Think through the timing of offers.

At the beginning of a job hunt, you often want to get at least one
offer in order to feel secure. This is especially true for people
finishing a degree program, when everyone is interviewing and
some are celebrating early victories. Ironically, getting an early
offer can be problematic: Once a company has made an offer, it
will expect an answer reasonably soon. If you want to consider
multiple jobs, it’s useful to have all your offers arrive close
together. So don’t be afraid to slow down the process with one
potential employer or to speed it up with another, in order to have
all your options laid out at one time. This, too, is a balancing act:
If you pull back too much—or push too hard—a company may
lose interest and hire someone else. But there are subtle ways to
solve such problems. For example, if you want to delay an offer,
you might ask for a later second- or third-round interview.

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[ 12 ]
Avoid, ignore, or downplay ultimatums of any
kind.

People don’t like being told “Do this or else.” So avoid giving
ultimatums. Sometimes we do so inadvertently—we’re just trying
to show strength, or we’re frustrated, and it comes off the wrong
way. Your counterpart may do the same. My personal approach
when at the receiving end of an ultimatum is to simply ignore it,
because at some point the person who gave it might realize that it
could scuttle the deal and will want to take it back. He can do that
much more easily without losing face if it’s never been discussed.
If someone tells you, “We’ll never do this,” don’t dwell on it or
make her repeat it. Instead you might say, “I can see how that
might be difficult, given where we are today. Perhaps we can talk
about X, Y, and Z.” Pretend the ultimatum was never given and
keep her from becoming wedded to it. If it’s real, she’ll make that
clear over time.

[ 13 ]
Remember, they’re not out to get you.

Tough salary negotiations or long delays in the confirmation of a

formal offer can make it seem that potential employers have it in
for you. But if you’re far enough along in the process, these people
like you and want to continue liking you. Unwillingness to move
on a particular issue may simply reflect constraints that you don’t
fully appreciate. A delay in getting an offer letter may just mean
that you’re not the only concern the hiring manager has in life.
Stay in touch, but be patient. And if you can’t be patient, don’t call
up in frustration or anger; better to start by asking for a
clarification on timing and whether there’s anything you can do
to help move things along.

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Stay at the table.

Remember: What’s not negotiable today may be negotiable
tomorrow. Over time, interests and constraints change. When
someone says no, what he’s saying is “No—given how I see the
world today.” A month later that same person may be able to do
something he couldn’t do before, whether it’s extending an offer
deadline or increasing your salary. Suppose a potential boss
denies your request to work from home on Fridays. Maybe that’s
because he has no flexibility on the issue. But it’s also possible
that you haven’t yet built up the trust required to make him feel
comfortable with that arrangement. Six months in, you’ll
probably be in a better position to persuade him that you’ll work
conscientiously away from the office. Be willing to continue the
conversation and to encourage others to revisit issues that were
left unaddressed or unresolved.

[ 15 ]
Maintain a sense of perspective.

This is the final and most important point. You can negotiate like
a pro and still lose out if the negotiation you’re in is the wrong
one. Ultimately, your satisfaction hinges less on getting the
negotiation right and more on getting the job right. Experience
and research demonstrate that the industry and function in
which you choose to work, your career trajectory, and the day-to-
day influences on you (such as bosses and coworkers) can be
vastly more important to satisfaction than the particulars of an
offer. These guidelines should help you negotiate effectively and
get the offer you deserve, but they should come into play only
after a thoughtful, holistic job hunt designed to ensure that the
path you’re choosing will lead you where you want to go.

A version of this article appeared in the April 2014 issue of Harvard Business
Review.

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Deepak Malhotra is the Eli Goldston Professor

of Business Administration at Harvard
Business School and the author of Negotiating
the Impossible.

@Prof_Malhotra

Read more on Interpersonal skills or related topics Job interviews,

Negotiating skills and Personal strategy and style

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