The simplest way to negotiate an offer letter
We've helped people negotiate millions of dollars in additional income over the past few years.
This article summarizes the simplest way to do this using a 7 step approach.
Note: This article assumes you've already received an offer from a company and they're waiting for you to accept / reject / negotiate it.
Step 1: Write a Strategy Document
The most effective negotiators I've met think clearly and 15 steps ahead.
The best way I've seen them do this is by writing in high granularity everything that needs to happen in order to achieve their goal.
I suggest you do the same by writing out a document which articulates the following:
What's your target compensation?
What do you realistically think your market value is?
What do Glassdoor, Levels.fyi, and other popular compensation aggregators say you can make?
If you're unsure, take the existing offer you've received and add 10%.What is the minimum amount of compensation you'd accept?
If you don't have any other offers and are unemployed, the answer should be pretty low.
Keep in mind that you can always accept an offer at a lower than ideal target, then continue to apply to other companies (or hire Relentless to do it for you if you're too busy to do it yourself).What is your end to end strategy for how to achieve your target compensation?
Try to clarify every step you're going to take in advance to achieve your goal of making your target compensation, including what you're going to say on the phone during interview time.
This is important because it means you don't need to come up with an answer on the spot. You've already pre-thought through what you're going to ask for.
Step 2: Pick Who You're Going To Negotiate Your Compensation With
The best person to negotiate compensation with is the person who has control over the budget for your role.
At smaller companies, this is usually one person.
At larger companies, there may be a few people involved.
Regardless, you should aim to get the most influential person on the phone with you.
If you're unsure who that is, you can either ask (if you have a good relationship with the people you interviewed with) or assume it's the hiring manager who interviewed you during the interview process.
Step 3: Book a Call With That Person
We advise against negotiating via email (without having a call scheduled) because emails lack context, tone, and nuance.
Our general recommendation is to first book a call before making any compensation change requests.
Example email:
"Hi [Name],
I'm super excited about the offer!
Thank you so much.
I really enjoyed the interview process and am thrilled about this opportunity.
I have a few questions and would love to set up some time on Friday to discuss them.
Can we schedule a call?"
Step 4: Confirm the Scheduled Call Time
Once you've heard back on a time, confirm it.
Step 5: Send an Email Asking for Your Target Compensation 24 Hours Before the Call
You've now got a call booked.
This when you send an email pre-framing what the call is going to be about: Your compensation.
This is the best time to make an ask because:
It allows you to pre-frame the call. If you get nervous when negotiating (like 90% of human beings do), you now have the ability to state in prose what you're looking for in a clear, concise, and controlled fashion.
It allows the decision-maker time to speak to people internally if they need to get approval from someone else to move forward with your ask.
It forces the decision maker to get you an answer before the call (instead of making it drag on) because there's an arbitrary deadline to work with.
It reduces your fear (which lets you ask for what you want). Many candidates are scared of negotiating because they're worried an offer will get rescinded. Having a call booked on the calendar with someone at the company means the 1% chance you'd have an offer rescinded has dropped to 0.1% because they've already pre-committed to speaking to you so are less likely to pull an offer from you.
Example email:
"Hi [Name],
I'm excited to chat tomorrow.
I've enjoyed getting to know everyone and I'm so excited to be working with you soon. As mentioned several times during the interview process, this role is perfect for me. Healthcare is where I've spent my whole career and the fact that I get to work on an innovative healthcare product with a team I get so along with makes this an absolutely perfect opportunity for me.
I can't emphasize just how excited I am.
With all that said, I wanted to ask if we can increase the compensation past the $150,000 currently being offered.
Here's why:
It's been my dream since I attended college to be able to send my kids to college without needing them to take on any debt. At the current compensation level, this is going to be very difficult. I plan on being at the company a long time and really want to start at a rate that makes my goal realistic.
As demonstrated during the interview process, I would be able to excel in this role, driving significant value to your organization, well above what the current compensation (or my target compensation) offers.
I'm currently interviewing with companies that are offering $200,000 in compensation which is my target. I understand the amount you budgeted for this role is $150,000 and that you can't meet me at $200,000. Because of the people I've met and the company's mission, I don't want compensation to be a blocker for us working together, so I'd be more than happy to go for a number below my target
My ask is that you meet me in the middle at $XXX + $25K.
That would allow me to be maximally productive in my role and even afford a housekeeper to take care of my youngest child, allowing me even more headspace to be effective.
Does this sound fair?
(I'm looking forward to speaking tomorrow!)”
Notice that the email:
Leads with something kind. All emails on sensitive topics should lead with something kind to prime the reader into a positive emotional state.
Breaks down the reason for asking for a compensation increase into a few reasons:
The first reason is an emotional / personal reason: This humanizes the ask and removes the "ick" from asking for more money. It gives the person on the other end the chance to see you as a human who is looking for money for a personal, socially respected reason.
The second reason is tied to a justification of the person's ability to drive value at the company. Additionally, it's framed as a reason why paying you more money will ultimately make the hiring company more money in the long run by letting the candidate pay for a housekeeper.
Step 6: Have the Call
During the call, re-emphasize the reasons you're asking for a compensation increase by using your email as a template script.
Your emotional state should be calm, kind, and present.
If you get anxious during negotiations (like 90% of people do), err on the side of speaking more slowly and that'll naturally calm you down and allow you to maintain composure during the negotiation.
Step 7: Follow up
Follow up to summarize your enthusiasm in the role and your reasons for asking for a compensation increase.
Want help landing your next role?
Head to our site: joinrelentless.com