{"id":7489,"date":"2021-07-23T22:30:55","date_gmt":"2021-07-23T22:30:55","guid":{"rendered":"https:\/\/inside.rotman.utoronto.ca\/career-services\/?page_id=7489"},"modified":"2023-04-14T14:26:57","modified_gmt":"2023-04-14T14:26:57","slug":"salary-and-negotiation","status":"publish","type":"page","link":"https:\/\/inside.rotman.utoronto.ca\/career-services\/salary-and-negotiation\/","title":{"rendered":"Salary and negotiation"},"content":{"rendered":"<div class=\"wpb-content-wrapper\"><p>[vc_row content_width=&#8221;grid&#8221; css=&#8221;.vc_custom_1446198786982{padding-top: 65px !important;padding-bottom: 41px !important;background-color: #f4f4f4 !important;}&#8221;][vc_column][vc_column_text]<\/p>\n<div class=\"wpb_text_column wpb_content_element \">\n<div class=\"wpb_wrapper\">\n<h5>Responding to formal offers<\/h5>\n<\/div>\n<\/div>\n<div class=\"vc_row wpb_row vc_inner section\"><\/div>\n<p>[\/vc_column_text][vc_empty_space height=&#8221;25px&#8221;][vc_row_inner][vc_column_inner][vc_column_text]You\u2019ve received a job offer! Now what? Here\u2019s how to navigate the offer process and negotiate with confidence.[\/vc_column_text][vc_empty_space height=&#8221;30px&#8221;]\n<blockquote class=\"qodef-blockquote-shortcode\"  >\n\t<h4 class=\"qodef-blockquote-text\">\n\t<span>In this section<\/span>\n\t<\/h4>\n<\/blockquote>[vc_empty_space height=&#8221;30px&#8221;][vc_column_text]<\/p>\n<ul>\n<li><a href=\"#offer\">Responding to a job offer<\/a><\/li>\n<li><a href=\"#components\">Components of an offer<\/a><\/li>\n<li><a href=\"#salary\">Salary research<\/a><\/li>\n<li><a href=\"#decision\">Making your decision<\/a><\/li>\n<li><a href=\"#negotiate\">Negotiating an offer<\/a><\/li>\n<\/ul>\n<p>[\/vc_column_text][vc_raw_html]JTNDYSUyMGlkJTNEJTIyb2ZmZXIlMjIlM0UlM0MlMkZhJTNF[\/vc_raw_html][vc_empty_space height=&#8221;30px&#8221;]\n<blockquote class=\"qodef-blockquote-shortcode\"  >\n\t<h4 class=\"qodef-blockquote-text\">\n\t<span>Responding to a job offer<\/span>\n\t<\/h4>\n<\/blockquote>[vc_empty_space height=&#8221;30px&#8221;][vc_column_text]If a company wants to hire you, it will likely extend a\u00a0<strong>verbal offer<\/strong>. This usually includes the job title, starting salary, bonus structure, benefits, vacation time and start date.<\/p>\n<p>&nbsp;<\/p>\n<p>Respond with enthusiasm and gratitude, but don\u2019t accept right away. Committing yourself to a job too soon reduces your opportunity to negotiate your salary, bonuses and benefits. Instead, ask when you\u2019ll receive a formal <strong>written offer<\/strong> and how long you\u2019ll have to respond.<\/p>\n<p>&nbsp;<\/p>\n<p>If you get an <strong>early offer<\/strong> (one that comes in while you\u2019re still meeting with other companies) or an <strong>exploding offer<\/strong> (the company will withdraw it if you don\u2019t accept by a certain date, i.e. typically between 24 to 48 hours) and you\u2019re not ready to decide, respond enthusiastically and honestly: \u201cI\u2019m excited that [company] wants to make me an offer. There\u2019s so much I like about your firm but would appreciate more time to gather information I need to make the right decision. Would you be willing to give me an extension?\u201d<\/p>\n<p>&nbsp;<\/p>\n<p>Most companies will agree to wait for a reasonable amount of time. If a company is unwilling, you\u2019ll have to make an early decision.[\/vc_column_text][vc_empty_space height=&#8221;30px&#8221;]<div class=\"qodef-message  \" style=\"background-color: #e20778\">\n\t<div class=\"qodef-message-inner\">\n\t\t\t\t<a href=\"#\" class=\"qodef-close\">\n\t\t\t<i class=\"q_font_elegant_icon icon_close\"  style=\"color: #e20778\"><\/i>\n\t\t<\/a>\n\t\t<div class=\"qodef-message-text-holder\">\n\t\t\t<div class=\"qodef-message-text\">\n\t\t\t\t<div class=\"qodef-message-text-inner\">\n\t\t\t\t\tYour Rotman Career Coach can help you with the offer process!\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t<\/div>\n\t<\/div>\n<\/div>\n[vc_empty_space height=&#8221;30px&#8221;]<div class=\"qodef-message  \" style=\"background-color: #e20778\">\n\t<div class=\"qodef-message-inner\">\n\t\t\t\t<a href=\"#\" class=\"qodef-close\">\n\t\t\t<i class=\"q_font_elegant_icon icon_close\"  style=\"color: #e20778\"><\/i>\n\t\t<\/a>\n\t\t<div class=\"qodef-message-text-holder\">\n\t\t\t<div class=\"qodef-message-text\">\n\t\t\t\t<div class=\"qodef-message-text-inner\">\n\t\t\t\t\t<strong>If you are a working professional master\u2019s degree student, are you considering leaving your current job for another? If so, prepare for a counter-offer<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p>If you\u2019re resigning from your job, your employer may try to change your mind by offering more money, a promotion or added perks. Prepare yourself mentally for a counter-offer. This is especially important if you truly like your boss and the company. Understand clearly why you\u2019ve decided to leave, so you won\u2019t stay for the wrong reasons.\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t<\/div>\n\t<\/div>\n<\/div>\n[vc_raw_html]JTNDYSUyMGlkJTNEJTIyY29tcG9uZW50cyUyMiUzRSUzQyUyRmElM0U=[\/vc_raw_html][vc_empty_space height=&#8221;30px&#8221;]\n<blockquote class=\"qodef-blockquote-shortcode\"  >\n\t<h4 class=\"qodef-blockquote-text\">\n\t<span>Components of an offer<\/span>\n\t<\/h4>\n<\/blockquote>[vc_empty_space height=&#8221;30px&#8221;][vc_column_text]Here\u2019s what you\u2019ll likely find in a written offer. Many of these items are negotiable \u2014 not just the salary.<\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li>Job title<\/li>\n<li>Employment status (part-time, full-time) and work hours<\/li>\n<li>Location<\/li>\n<li>Start date<\/li>\n<li>Job description<\/li>\n<li>Compensation package (base salary, bonus structure, commissions)<\/li>\n<li>Benefits package (medical and dental, insurance, RRSP matching, stock options, equity, profit sharing, parental leave, professional development, tuition reimbursement, gym membership, expense account, company car, gas allowance, etc.)<\/li>\n<li>Paid vacation time<\/li>\n<\/ul>\n<p>[\/vc_column_text][vc_raw_html]JTNDYSUyMGlkJTNEJTIyc2FsYXJ5JTIyJTNFJTNDJTJGYSUzRQ==[\/vc_raw_html][vc_empty_space height=&#8221;30px&#8221;]\n<blockquote class=\"qodef-blockquote-shortcode\"  >\n\t<h4 class=\"qodef-blockquote-text\">\n\t<span>Salary research<\/span>\n\t<\/h4>\n<\/blockquote>[vc_empty_space height=&#8221;30px&#8221;][vc_column_text]To determine if a salary is fair, research the going rate for comparable positions at similarly sized companies in the same industry and city. Check job postings, ask your network, ask your Career Coach (some instances employers may disclose salary ranges) and use these free resources. Ideally, do your research when you start applying for jobs, so you\u2019ll be prepared for an offer.<\/p>\n<p>&nbsp;<\/p>\n<p><strong>Canadian sources<\/strong><strong>\u00a0<\/strong><\/p>\n<ul>\n<li style=\"list-style-type: none\">\n<ul>\n<li><a href=\"https:\/\/www.glassdoor.ca\/index.htm\" target=\"_blank\" rel=\"noopener\">Glassdoor<\/a><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><strong>American sources <\/strong><\/p>\n<ul>\n<li style=\"list-style-type: none\">\n<ul>\n<li><a href=\"https:\/\/www.payscale.com\/\" target=\"_blank\" rel=\"noopener\">Payscale<\/a><\/li>\n<li><a href=\"https:\/\/www.salaryexpert.com\/\" target=\"_blank\" rel=\"noopener\">Salary Expert<\/a><\/li>\n<li><a href=\"https:\/\/www.salary.com\/research\/salary\" target=\"_blank\" rel=\"noopener\">Salary.com<\/a><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p style=\"padding-left: 40px\"><strong>\u00a0<\/strong><\/p>\n<p><strong>International sources<\/strong><\/p>\n<ul>\n<li style=\"list-style-type: none\">\n<ul>\n<li><a href=\"https:\/\/online.goinglobal.com\/?accid=201302066020310200IIIIIIIIIIIIIIIIIIIIIIII2013020660203102wwwwwwRSM\" target=\"_blank\" rel=\"noopener\">GoinGlobal<\/a><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p>[\/vc_column_text][vc_raw_html]JTNDYSUyMGlkJTNEJTIyZGVjaXNpb24lMjIlM0UlM0MlMkZhJTNF[\/vc_raw_html][vc_empty_space height=&#8221;30px&#8221;]\n<blockquote class=\"qodef-blockquote-shortcode\"  >\n\t<h4 class=\"qodef-blockquote-text\">\n\t<span>Making your decision<\/span>\n\t<\/h4>\n<\/blockquote>[vc_empty_space height=&#8221;30px&#8221;][vc_column_text]When you get a job offer (or two, or three), ask yourself:<\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li>Do I like the job?<\/li>\n<li>Does it fulfill my immediate career goals?<\/li>\n<li>Will it challenge me and teach me new skills?<\/li>\n<li>Will it help me reach my future goals?<\/li>\n<li>Are the components of the offer fair and attractive?<\/li>\n<li>Does it fit my personal priorities?<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p>If you think the job is a good fit, your next decision is whether to negotiate the terms of the offer.<\/p>\n<p>&nbsp;<\/p>\n<p>Compensation is important, but it\u2019s not the only factor, even if you include bonuses and other financial perks. A job that pays less but offers great mentorship and advancement opportunities could be a much better career move than one that pays more but offers limited growth.<\/p>\n<p><strong>\u00a0<\/strong><\/p>\n<p>Quality of life is a key consideration. Many professionals value their family time as much as their work time, and they share household duties equally with their partners. Some ask potential employers for concessions that support their priorities, such as:<\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"list-style-type: none\">\n<ul>\n<li>Working from home<\/li>\n<li>Time off or flexible schedule<\/li>\n<li>Child\/elder care assistance<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p>[\/vc_column_text][vc_raw_html]JTNDYSUyMGlkJTNEJTIybmVnb3RpYXRlJTIyJTNFJTNDJTJGYSUzRQ==[\/vc_raw_html][vc_empty_space height=&#8221;30px&#8221;]\n<blockquote class=\"qodef-blockquote-shortcode\"  >\n\t<h4 class=\"qodef-blockquote-text\">\n\t<span>Negotiating an offer<\/span>\n\t<\/h4>\n<\/blockquote>[vc_empty_space height=&#8221;30px&#8221;][vc_column_text]It\u2019s perfectly fine to accept the first or second offer you get, if the job is a good fit and the compensation is fair, based on your research. If you\u2019re interested in a job but the offer seems low, you may have room to negotiate.<\/p>\n<p>&nbsp;<\/p>\n<p>An employer won\u2019t withdraw its offer if you ask professionally\u00a0if the salary is negotiable. Here is an example of how you might respond:<\/p>\n<p style=\"padding-left: 40px\">Thank you for this offer. I have reviewed all the terms and am hoping you would consider increasing the salary to $[amount] for these reasons&#8230;<\/p>\n<p>(Tip: Don&#8217;t list &#8220;student debt&#8221; among your reasons.)<\/p>\n<p>&nbsp;<\/p>\n<p>Whether the employer says yes, no or maybe, thank them for reconsidering or allowing you to present your points, and say that you will get back to them with a decision by the deadline date.<\/p>\n<p>&nbsp;<\/p>\n<p>Every situation is different, but keep these negotiation tips in mind:<\/p>\n<p>&nbsp;<\/p>\n<p><strong>Take a positive approach<\/strong><\/p>\n<ul>\n<li style=\"list-style-type: none\">\n<ul>\n<li>Attitude is the most important ingredient for negotiating. Plan with a positive, collaborative attitude and the desire for a win\/win outcome. A successful negotiation is one where both sides feel listened to and happy with the end result.<\/li>\n<li>Negotiate from a reasonable position, and have a rationale for the alternatives you propose.<\/li>\n<li>Be professional and courteous, and keep showing your enthusiasm and interest.<\/li>\n<li>Decide the limits of your flexibility in advance. Avoid making impromptu decisions during the negotiation.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><strong>What to negotiate <\/strong><\/p>\n<ul>\n<li style=\"list-style-type: none\">\n<ul>\n<li>If you\u2019re negotiating several points, make a list and provide it to your main contact at the company.<\/li>\n<li>Link all negotiable items to the job itself and what you can offer the company. When negotiating salary, for example, if you have more years of experience than the job requires, point this out.<\/li>\n<li>Discuss major issues (salary, bonuses) before perks. Mentioning perks too early puts issues on the table that can be negotiated away.<\/li>\n<li>When negotiating the base salary, mention the going rate for comparable positions in similarly sized companies in the same industry and city.<\/li>\n<li>Mention your prior work experience and compensation history, if they\u2019re relevant.<\/li>\n<li>If the job pays bonuses, ask how they\u2019ll be determined and what range of magnitude is likely, based on history and current profit trends. If bonuses are based on personal performance, ask what opportunities, resources and limitations you\u2019ll have, and what measurement criteria apply.<\/li>\n<li>If the company is near the end of its bonus or review cycle, you may be able to negotiate a pro-rated bonus or six-month salary review.<\/li>\n<li>Negotiate benefits such as vacation time, signing bonuses, flexible working arrangements, etc.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><strong>What are your deal-breakers?<\/strong><\/p>\n<ul>\n<li style=\"list-style-type: none\">\n<ul>\n<li>Ask yourself if you\u2019re willing to decline a certain offer because the compensation is lower than that of other offers, or because you think your value proposition is higher. Your desire to work at the company might outweigh the difference.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p>[\/vc_column_text][vc_empty_space height=&#8221;30px&#8221;]<div class=\"qodef-message  \" style=\"background-color: #e20778\">\n\t<div class=\"qodef-message-inner\">\n\t\t\t\t<a href=\"#\" class=\"qodef-close\">\n\t\t\t<i class=\"q_font_elegant_icon icon_close\"  style=\"color: #e20778\"><\/i>\n\t\t<\/a>\n\t\t<div class=\"qodef-message-text-holder\">\n\t\t\t<div class=\"qodef-message-text\">\n\t\t\t\t<div class=\"qodef-message-text-inner\">\n\t\t\t\t\t<strong>If you\u2019re a working professional master\u2019s degree student leaving one job for another\u2026 <\/strong><\/p>\n<p>&nbsp;<\/p>\n<p>You can use your existing compensation package as a starting point for discussion: \u201cMy base salary is $X, my bonus target is $Y and I have additional perks of A, B and C.\u201d You can incorporate industry research if you feel your existing compensation package is below current market value.<\/p>\n<p>&nbsp;<\/p>\n<p>Companies sometimes realize they need to offer higher compensation to entice someone to leave their job and risk joining a new organization. They may increase the base salary and\/or enhance the perks, like vacation time.\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t<\/div>\n\t<\/div>\n<\/div>\n[vc_empty_space height=&#8221;30px&#8221;][vc_column_text]<strong>Do companies reveal base salary ranges?<\/strong><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li>Salary ranges are not typically disclosed during the campus recruitment cycle until offers are made.<\/li>\n<li>Once you have completed your master\u2019s program, companies will sometimes disclose a target salary range in the job posting, during the initial interview or through a search firm recruiting on its behalf.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><strong>When do we discuss compensation expectations? <\/strong><\/p>\n<p>&nbsp;<\/p>\n<p>Let the employer initiate this discussion, because it has all the information regarding the job\u2019s target salary range and what employees in similar roles are making.<\/p>\n<p>&nbsp;<\/p>\n<p>At some point during the recruitment process, sometimes very early on, employers ask candidates about their compensation expectations to ensure that neither party wastes time with interviews, etc., if the figures are wildly out of line.<\/p>\n<p>&nbsp;<\/p>\n<p>Candidates may be asked about salary at different points during the process:<\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li><strong><u>When applying with a paper application form (very rare these days)<\/u><\/strong><strong>:<\/strong> Don\u2019t share your compensation expectations. Write in the space provided that it is negotiable. If asked to provide a current salary, write that you\u2019ll cover it during the interview.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li><strong><u>When applying with an online form:<\/u><\/strong> You usually have to fill out compensation information or your application won\u2019t be accepted. Pick the amount or range that matches the average of what you\u2019ve seen in your job research.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li><strong><u>When asked for compensation expectations during an interview:<\/u><\/strong> Communicate first that you expect to be paid a salary in line with what others who have a similar role and background are being paid. Don\u2019t give a specific number (e.g., $75,000); instead, give a range (e.g., \u201csomewhere in the $70,000 to $90,000 range\u201d).<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li><strong><u>When asked about your current or previous compensation during an interview:<\/u><\/strong> Share the information honestly and include all aspects of your total compensation package (base salary, bonus potential, perks, etc.). If you made a lot less than what the new role would pay, or if you made more but would accept a lower salary in the new role, you can provide a rationale.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p>Always emphasize that you\u2019re most interested in getting a sense of your fit with the position and the company before discussing finances in detail.[\/vc_column_text][vc_empty_space height=&#8221;30px&#8221;]\n<blockquote class=\"qodef-blockquote-shortcode\"  >\n\t<h4 class=\"qodef-blockquote-text\">\n\t<span>Next steps<\/span>\n\t<\/h4>\n<\/blockquote>[vc_empty_space height=&#8221;30px&#8221;][vc_column_text]<\/p>\n<ul>\n<li>Get support from your Rotman Career Coach during the offer process.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><em>Next: <a href=\"https:\/\/inside.rotman.utoronto.ca\/career-services\/thank-you-notes\/\">Thank you notes<\/a><\/em>[\/vc_column_text][vc_empty_space height=&#8221;40px&#8221;][\/vc_column_inner][\/vc_row_inner][\/vc_column][\/vc_row]<\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>[vc_row content_width=&#8221;grid&#8221; css=&#8221;.vc_custom_1446198786982{padding-top: 65px !important;padding-bottom: 41px !important;background-color: #f4f4f4 !important;}&#8221;][vc_column][vc_column_text] Responding to formal offers [\/vc_column_text][vc_empty_space height=&#8221;25px&#8221;][vc_row_inner][vc_column_inner][vc_column_text]You\u2019ve received a job offer! Now what?&#8230;<\/p>\n","protected":false},"author":746,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"full-width.php","meta":{"footnotes":""},"class_list":["post-7489","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/inside.rotman.utoronto.ca\/career-services\/wp-json\/wp\/v2\/pages\/7489","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/inside.rotman.utoronto.ca\/career-services\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/inside.rotman.utoronto.ca\/career-services\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/inside.rotman.utoronto.ca\/career-services\/wp-json\/wp\/v2\/users\/746"}],"replies":[{"embeddable":true,"href":"https:\/\/inside.rotman.utoronto.ca\/career-services\/wp-json\/wp\/v2\/comments?post=7489"}],"version-history":[{"count":16,"href":"https:\/\/inside.rotman.utoronto.ca\/career-services\/wp-json\/wp\/v2\/pages\/7489\/revisions"}],"predecessor-version":[{"id":9345,"href":"https:\/\/inside.rotman.utoronto.ca\/career-services\/wp-json\/wp\/v2\/pages\/7489\/revisions\/9345"}],"wp:attachment":[{"href":"https:\/\/inside.rotman.utoronto.ca\/career-services\/wp-json\/wp\/v2\/media?parent=7489"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}