4 ways to ask for more money on a job offer
Asking for more money on a job offer doesn’t have to be complicated. If you follow the right steps, you can increase your chances of earning more, getting paid fairly, and creating a win-win situation for all involved.
Why is it important to ask for more money on a job offer?
Most companies create offers to potential new hires based on a salary band for the role type. Because of this, they build in a buffer of salary to allow for negotiation. Companies will always try to offer the low end of the salary band first to see if they can get new talent for less (this helps them save on their biggest budget line item—employees).
With this knowledge, it’s imperative that candidates realize the potential for earning more than what they are presented in the first offer. It’s important to ask for more money on a job offer because you could be leaving 10 - 15% of a higher offer on the table without asking. The best part? 75% of employers are willing to negotiate (leaving no excuse to skip negotiation).
When should you ask for more money on a job offer?
The right time to ask for more money on a job offer is after you’ve received the initial offer. Ask for time to review the total compensation package (typically no more than 24 - 48 hours) and then come back to the recruiter or hiring manager with a higher number. Check out this article for 9 tips on how to counteroffer in a salary negotiation.
What should you do before you ask for more money on a job offer?
Before you get to the negotiation conversation, you need to follow a few basic steps. First, do as much as you can to avoid asking for or saying a specific salary number. Recruiters and hiring managers will ask you this question. They want to understand your desired salary number to make sure you’re in alignment with what they have budgeted for the role (they don’t want to waste anyone’s time). But if you are the first to say a number, you miss out on the chance to negotiate a higher starting salary if they match that number with their offer.
Instead, do your best to follow these best practices:
- Don’t offer a desired salary number.
Let the recruiter or hiring manager know that you are negotiable on pay. - Find out what you can about the job level.
If you can understand how the role is categorized at the company, you can have a better idea of how to negotiate (and understand promotions once you get the job). - Ask about the company’s comp philosophy.
Does the company pay at a specific percentile? Find out what you can about where the company pays against a market standard so you know what to expect from the initial offer (and how far they will be willing to negotiate).
4 ways to ask for more money on a job offer
1. Ask for 10 - 20% more on the base salary.
Your initial job offer will likely be 10 - 20% lower than what the recruiter or hiring manager can offer based on the budget for the role. To get a higher starting salary, sometimes all you need to do is ask for more.
What to do: When you get the initial job offer, ask for time to review the total compensation. Come back within 24 hours and ask for 10 - 20% more than the initial base salary offer.
2. Ask for a sign-on bonus.
To increase your total comp offer, another good strategy to employ is to ask for a sign-on bonus. It’s possible that your base salary isn’t negotiable (perhaps you’re already getting an offer that’s at the high end of the band), but the hiring manager or recruiter can offer you a sign-on bonus to sweeten the deal.
What to do: If you’ve tried to negotiate a higher base pay and that hasn’t worked out, ask for a sign-on bonus. Make it beneficial for both you and the employer—consider offering to start the job sooner, reducing the time other team members have to cover your role before you start.
3. Ask for a higher annual bonus.
To get more money on your job offer, you can try the angle of asking for a higher annual bonus. This is another great strategy in situations where you may not be able to increase the base pay offer or ask for a sign-on bonus.
What to do: Negotiate a higher annual bonus. You can do this by asking for a higher percentage while also getting specific about goals or metrics you need to hit in order to receive that bonus. For the company, this type of negotiation means you’ll be working harder for the increase—it’s a good situation for all parties.
4. Ask for more equity or stock options.
Another area that’s open for negotiation in a job offer is equity or stock options. If the offer includes Restricted Stock Units (RSUs), it’s an easier, more straightforward conversation. Find out the current value of the shares you’ve been offered and ask for 10 - 20% more. If the offer includes Incentive Stock Options (ISOs), the conversation is a little more complicated. You’ll need to find out the strike price and the preferred price to value your shares. (A good example of a strike price is $0.50 with a $2.00 preferred price if you have 100,000 shares. This would allow you to exercise them for $50,000 and sell them for $200,000 when a liquidation event occurs.)
What to do: Ask for more equity or stock options as part of your total compensation package. Because these pieces of negotiation are often separate from the recruiting budget, you may have more luck getting a higher number here than you do with a base salary if you’re already at the top of the salary band.
Other tips to get more money on a job offer:
Lean on your qualifications and experience.
As you prepare to negotiate for more money on a job offer, don’t forget to reiterate your qualifications and related experience for the role. Restate these facts in your negotiation—both in your verbal conversation and in a follow up email. Sometimes recruiters or hiring managers just need to be reminded how qualified you are compared to the job description. A good example of a win? If the job description asks for 5 years of experience and you bring 10, your salary should reflect the difference.
Pick your negotiation style.
As you plan out your negotiation conversation after your initial offer, consider your negotiation style. We recommend these two options:
Anchor high
With an anchor high approach you come back to the recruiter or hiring manager with a number that is 10 - 20% higher than what you want to accept. Because you’ll likely get another counteroffer, this strategy can help you get closer to the number you want to hit. For example, if you want to accept a job at $100,000, but your original offer came in at $90,000, consider countering at $110,000 with an expectation that the recruiter will come back with a $100,000 offer.
Best and final
In a best and final negotiation approach you will come back to the recruiter with a specific number and a promise to sign a job offer immediately if they can hit that number within a specific timeframe. For example, if you want to sign at $100,000, but your original offer came in at $90,000, let the recruiter know that you will sign the job offer today if you can get an offer that meets your $100,000 requirement.
Need more help? Check out these other resources:
18 expert tips on salary negotiation
Are you being paid fairly? Let's find out.
Accurate, anonymized salary data. Get started to see how your salary compares to your peers.