The Truth About Negotiating Job Offers

If you’ve ever received a job offer, you’ve probably asked yourself this very question: “Should I negotiate?”

More often than not, job seekers worry about negotiating an offer, fearing that it might lead to the offer being rescinded. But a new study finds that these fears are largely unfounded; candidates often overestimate the risk of losing a job through negotiation, with the reality being that offers are rarely withdrawn as a result.

In fact, according to the study, candidates rated the risk of losing an offer 33% higher than managers did. In reality, only 6% of job offers were withdrawn according to managers. 46% of candidates chose to not even negotiate at all due to fear of losing an offer.

“Candidates think they are much more likely to jeopardize a deal than managers report candidates are likely to jeopardize a deal when they negotiate,” the authors say.

STRATEGIES FOR CANDIDATES

If you’re anxious about negotiating an offer, there are a few helpful strategies you can employ. For one, the authors say, it’s important to remember that very few managers actually withdraw an offer due to negotiation.

Another strategy is to reframe what the authors call a “zero-sum mindset.” This means identifying potential win-win solutions in the negotiation.

“For example, maybe you care more about working remotely than about the small signing bonus,” the authors say. “Your boss might really appreciate the savings and be flexible about where you work. Considering such solutions should help deflate an exaggerated concern about jeopardizing a deal.”

It can also help to research the norms around negotiation within your industry. Connect with colleagues or mentors and ask about standard practices. And remember—negotiation benefits both parties.

“Managers are often unwilling (sometimes even unable) to withdraw a deal, and having satisfied employees also helps organizations,” the authors say.

METHODOLOGY

The research involved seven separate studies with a total of 3,338 participants. The authors investigated job candidates’ perceived likelihood of jeopardizing a deal, as compared to hiring managers’ reports.

The research included surveys of academic job candidates and members of academic hiring committees, managers and hiring professionals, and experimental studies with interactive, incentivized negotiations conducted both in person and online.

Sources: Harvard Business Review, ScienceDirect

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