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How to respond to a job offer and negotiate terms

If you have recently received a job offer by phone, email, or letter, you will need to respond in a timely manner. How you do that is crucial; most of all, you want to be respectful. But what if you want to negotiate terms?

In this mselect career services guide, we'll show you how to respond positively to a job offer, even if you no longer want the job. We will also show you how to negotiate terms if that is appropriate.

The first thing to do when you receive a job offer

Congratulations on getting a job offer! It is an exciting time and one you should be proud of. Before you respond to the employer, take a moment and think. Are you sure this is the job for you?

Take a day to consider everything: work, pay, travel, opportunity and everything in between. When you are ready, it is time to respond.

Responding to a job offer if you want the job

Here are some tips on how to respond and accept the job offer:

  1. Always follow up in writing - Writing a professional email or letter to your new employer gives both of you a paper trail in your correspondence and shows professionalism.

  2. Always thank the employer - Express your appreciation for the time the employer put into considering you for the position.

  3. Confirm employment details - Use one paragraph to reconfirm the position, salary and benefits the job offers. Doing this ensures no misunderstandings before your start date or negotiations.

  4. State your starting date - Your current employer will need you to work until the end of your contract terms. For some, this may be a week; for others, a month, and occasionally, a few months. Reminding your new employer of these terms will allow them to prepare for your arrival.

Here's an example of a basic job acceptance email

[Insert a mselect template here]

Responding to a job offer if you no longer want the job

If you no longer want the job or have accepted a job offer elsewhere, you must also let the employer know. The professional thing to do is to write an email or a letter and politely decline the offer. While you do not need to go into great detail, it is always worth letting them know your reasons for declining the job whilst thanking them for their time and consideration.

Here's an example of a basic email to decline the job

[Insert a mselect template here]

Should you negotiate the terms of your job offer before you accept it?

There's no hard rule about negotiating terms before you accept a job offer, but there are some considerations.

Occasionally, negotiating for a better salary or benefits is a wise decision.

●       If you have unique skills or experience that make you a valuable asset to the company, you may want to negotiate for a higher salary or additional benefits. For instance, if you have a specialised certification or a track record of exceeding sales targets, you could use these as leverage in your negotiation.

●       If you have received multiple job offers, negotiating can help you compare them to see which match your career goals and priorities.

●       If you are relocating for the job, consider negotiating for relocation expenses or additional time off to help you settle in.

There are also times when negotiating is not a great idea:

●       You may not need to negotiate further if the offer meets all your requirements and exceeds your expectations.

●       If you are starting your career or transitioning to a new field, you may need more leverage or experience to negotiate effectively.

●       If the company has a strict policy or budget for compensation and benefits, negotiation may not be possible.

Ultimately, the choice to negotiate is yours. Consider this before responding to the employer, and ensure that you are confident that they will be receptive to your job negotiation, even if they cannot meet your terms.

How employers generally view job offer negotiations

Many job seekers wonder if employers expect them to negotiate when it comes to job offer negotiations. In reality, most employers do anticipate some level of negotiation. Negotiating can be a positive way to demonstrate your value and commitment to your career. Still, it's also critical to consider the pros and cons before jumping into the negotiation process.

On the positive side, negotiating a job offer can lead to higher compensation, better benefits, and improved job satisfaction. It's an opportunity to demonstrate your value, assertiveness, and communication ability. However, it's essential to consider potential risks and approach the negotiation process cautiously.

If you decide to negotiate, it's essential to approach the situation in a way that benefits both you and the employer. One crucial tip is to do your research and come prepared with data and examples to support your request. This includes researching industry and company standards and preparing a list of qualifications and achievements that justify your request. It's also important to be respectful, professional, and collaborative throughout the negotiation process. Let's look at that in more detail.

How to negotiate job offer terms

There are four things to consider when negotiating your new job.

  1. Salary negotiation - One of the most important aspects of a job offer is the salary. It's crucial to remember that the salary you're offered is not necessarily the final offer. Negotiating your salary may seem daunting, but it's essential to getting the compensation you deserve. Before entering salary negotiations, research your industry standards and the company's compensation package to determine a reasonable salary range. Remain professional, calm, and confident during the talks and be prepared to explain why you deserve the higher salary you are asking for. Ensure that your explanation includes a conversation about your skills, experience, and industry standards.

  2. Benefits, vacation time, health insurance and other perks - Again, research the industry and company standards to understand what a valid range looks like. Clearly outline which benefits are essential to you and why as you negotiate your job contract.

  3. Always show your interest in the position - Throughout any negotiation, your employer will want to see a clear interest in the position over your pay or benefit requests. Always make it clear that you want the job and how excited you are to start.

  4. What not to say - There will naturally be things that you should avoid saying during your negotiation. Demands and ultimatums are an obvious no-no, as they appear greedy. Remember that these negotiations are the beginning of a possible employer-employee relationship. They should not be the end of that prospect.

If you receive a renegotiated job offer, should you counter offer?

Counter offering on a renegotiated job offer can be tricky but not impossible. The most important things to consider are:

●       Is the new offer fair?

●       Does it offer a reasonable compromise?

If the answer to these questions is yes, then you should accept the offer. If the answer is no, then you should ask if the employer or job is right for you.

Remember, negotiations should be quick and benefit both parties. If they cross this line, the offer is likely to be rescinded just as quickly as you are to reject it. So, if you are to counteroffer, be clear about why you need what you are asking for and why you believe you are worth that investment.

Now it is over to you. Good Luck in your job offer negotiation!

If you need more help, revisit our Career Services Guides here.