Evaluating an Offer and Salary Negotiation

Know your value

Before even getting to the dollars and cents, you’ll need to think about the value you bring to the position. What will you contribute to the organization? Consider professional and academic accomplishments as well as measurable, positive results and contributions to significant projects or outcomes. You’ll need to be able to articulate these attributes when negotiating your salary and benefits. Need help articulating your skills and accomplishments? Use the Career Readiness worksheet to organize your thoughts.

Create a realistic budget

In order to evaluate your offer, you’ll need to consider the salary you need to cover your expenses (rent, food, utilities, student loans, etc.). Start by developing a realistic budget. A good way to do this is to track your expenses for about 3 months (it’s sometimes helpful to look at the past three months). You can use a budgeting app like BudgetTracker or Mint to track your expenses OR simply fill out a budget worksheet like this one to get a sense for what you spend.

Pay attention to the cost of living in the city in which you plan to work. Rent, groceries, and other basic living expenses might be more expensive in one city than in another. You can use this online calculator to research cost of living. Looking for some financial coaching? Check out Boston College’s Money Mentors program! The program will match you with a mentor who can help you budget, manage your income, and even invest. 

Research the salary range

Once you have determined your budget, research the salary that others in your field and/or position are making to make sure your earnings expectations are realistic for the market. You can use resources like Salary.com and glassdoor.com to research what someone with your experience and skill set is typically paid in a similar role. Make sure you’re adjusting for location, as salaries for similar roles may differ by city or region.

Calculate your target salary

Now that you can estimate what other professionals are making in your field and know your own budget, identify your salary range. Use your target salary as the bottom of the range, and do not stretch more than 20 percent.

• If you’ve determined that you will need to make about $50,000 to cover all of your expenses, and your salary research indicates that others in your field (with your skill set, in your city) are making a median $55,000, your target salary might be $55,000. And, your range might be $55,000-$66,000. 
• Note that you should be mindful of your take-home pay. You can calculate your take-home pay using paycheckcity.com. Make sure your target salary will be enough to cover your expenses after taxes.

Evaluate your offer

Now that you know your budget and your target salary range, you can evaluate the employment package being offered to you. If you’ve been given a verbal offer, request it in writing so that you have all the relevant details. Does the offer match your target salary range? Make sure you also pay attention to the benefits offered in addition to salary. (Wondering what other benefits you might expect? Check out this page.) Other benefits besides salary might include:

• Insurance
• 401k or 403b plans (retirement)
• Stock options 
• Flexible scheduling
• Gym membership
• Parental leave
• Paid parking and/or subsidized commuter plans
• Education credits
• Signing bonus
• Commission or other incentives

Negotiate

You may want to consider negotiating the salary if you feel that the salary offered is not sufficient for you to live on or not in line with the local market (the salary range you researched). Be aware that salary negotiation is not always possible. Some compensation packages are standard for all new employees at a certain level. Once you’ve evaluated your offer and done your research, ask whether the offer is negotiable. 

Before a salary negotiation conversation with your potential employer, make sure to gather your salary research and your skills sheet. You can start by articulating your value (remember Step One). Explicitly state the skills and unique value you bring to the position and/or to the organization. If applicable, you can also mention the research on comparable roles. You might say something like: 

• “Do you have any flexibility on the salary number?”*
• “Thank you for the offer. Based on my research with comparable roles in this area, I was thinking of something in the range of [your target salary range].”
• “Based on my prior experience and familiarity with this role, I believe that an additional $___would be fair.” 

If salary is not negotiable, find the “wiggle room.” The starting salary for an entry-level position may not be negotiable, but find out other aspects that may be —e.g. start date, vacation time, or flex time.

Remember: No offer is really final until you have received it in writing. Be sure to request written documentation of the terms of the offer, especially if you have negotiated anything out of the ordinary. Finalize the agreement when you feel the offer is fair and is within the range that you can accept. Finally, accept or decline the offer both verbally and in writing.