You've made it through all the job applications, interviews, and background checks and have received a job offer! Congratulations! Now comes the other, important part of the equation—making sure that your compensation package is fair and competitive. This chapter will cover the components that make up compensation, how to assess if an offer is a good one, and how to approach the negotiation process.

A Cautionary Tale (or, Don't Do This!)

My first professional job was as a receptionist for a start-up software-development consulting firm. I was so excited to have my first real office job with pay and benefits, and I finally felt like a grown-up!

I was offered the following:

• $35,255.39 (salary adjusted for inflation to 2019 dollars)
• Approximately 20 vacation and sick days
• Health insurance, paying roughly 20 percent of the monthly premium costs
• A share of the company's yearly profit, which they would determine based on my performance

The salary was low, but I rationalized the offer by remembering I had no other professional experience and everything else (people, location and other benefits) were good. I said yes to the offer almost immediately and started working shortly thereafter. Many years, and jobs, later, I realized that there were things I could've done differently.

First, I assumed that the employer was giving me a salary that was in line with what the job market said was fair. I incorrectly assumed that since these people really seemed to love me and wanted me to start, they would pay me what I was worth. I also didn't think I should or could ask for more—I was just grateful to have a job, so why rock the boat?

Second, I did not conduct any research on whether this was a fair job offer. Had I done some homework, I would have discovered that the median pay for a receptionist in the New York City area was approximately $48,897.69 in today's dollars. While not an ideal salary, especially for an expensive area like NYC, it was still nearly 39 percent better than what I was offered. I also would've figured out that since the company was open all year, holidays that I assumed were automatic time off (Christmas, New Year's Day, etc.) would be coming out of my total vacation time available. And while it was great to be included in a profit-sharing plan, this was not guaranteed money and was entirely dependent on how the manager felt I was contributing to the company's success and if the company made money that year. As it was a start-up, that was anyone's guess.

Third, and perhaps the worst part of it, I repeated this pattern for just about every job offer I received up until the last few years. In my head, I was just grateful to have a job and thought asking for more might make me seem greedy or have them take away my offer. Who was I to ask for more?

I didn't realize that not only was my approach and reasoning very faulty, but by not asking, I was hurting myself financially in the long run. By not negotiating (or asking for raises), I had less money overall —less money to pay bills, to invest in savings and my retirement, and to spend toward things that made me happy.

It's no secret that women—and specifically, women of color—are underpaid in about every industry, not just tech. While it is on companies to fix their approaches to compensation, it is our right and duty to demand fair compensation for our work.

I realize that there are some situations in life that dictate that you take the first job you can get. There are times when we do not have the luxury to wait for the right job to come along; we've got to take the job that's in front of us now. For entry-level jobs, there may not be much wiggle room for you to ask for more. All that said, I encourage you to negotiate your compensation as often as you can and early in your career.

Understanding Compensation and Salary

There are many reasons why negotiation should be considered when receiving a job offer. Before jumping in, we should define some key terms and concepts.

The Job Offer Process

Every organization has its own unique process for calculating what to offer potential candidates and onboarding new employees. Most, however, follow these steps:

1. The company reaches out to you to let you know they've picked you for the job. This can occur by email but usually is done over the phone by a recruiter, an HR representative, or the hiring manager.
2. During the call, they will do the following:
   1. Confirm the title and position you are being offered
   2. Tell you the salary that you will be paid, usually quoted per year
   3. Tell you who you will be reporting to
   4. Tell you the location you'll be working in
   5. Give you your start date
   6. Offer a time frame for you think about the offer and when you'll need to respond
   7. Let you know how you should respond to the offer (via email; phone call, etc.)
   8. Inform you of any critical pieces of information they believe you need to make an informed decision
   9. Tell you additional information they need from you to complete background and/or reference checks
3. After the call, they'll likely send you a formal offer letter, recapping what was discussed and outlining some additional details. This can include:
   1. The frequency in which you are paid (weekly, biweekly, etc.).
   2. Time frame when you'd be eligible for company benefits, like medical and dental.
   3. The amount of vacation or sick time you are eligible for.
   4. The conditions of your offer. This is a statement that says you are being offered this job because of the information you presented about yourself in your job application and interview process. If it's found out at any point—at the start of your job or during it—that the information you presented is false, they can either take away your offer or have you dismissed without notice.

Evaluating a Job Offer

You're super excited to have a job offer, but it is important to take a moment and step back to ensure that the offer is a good one. How do you know if one is? Let's look at some things to consider before saying yes.

Why Negotiate Your Job Offer?

As you can see, preparing to negotiate a job offer and negotiating the actual offer can take a fair bit of work. Is it really worth the effort? Absolutely. Let's discuss a few reasons why.

Preparing to Negotiate

Negotiation is the process in which two or more people or parties reach an agreement that is beneficial to everyone. Good negotiation practices are when all parties come away from the process feeling positive about what they'll receive from the agreement, rather than feeling like they've lost or received nothing.

You may think this is the first time you've had to negotiate, but I'm certain that you have negotiated many times before during the course of your life. If you've ever had to figure out where to go for lunch or dinner with a group of friends, you have negotiated. If you've ever asked a parent or loved one for something for you, or permission to do something, in exchange for something that you will do for them, then you've negotiated. I remember asking my dad if I could have a sleepover at our house if I got a B or better on a science test in junior high school (and I did). This may be the first time you have had to negotiate something a bit more high stakes. In any case, you already possess the basic skills necessary to have successful negotiations.

There are many different approaches and strategies that you can use, but I think that these are the basic things you need and should do before walking into any negotiation situation:

• Do your research. Walking into a salary negotiation with unrealistic expectations, or no expectations, is almost guaranteed not to end well.
• Know your minimum requirements. Establish what is the lowest possible salary you will take for the position. Take care not to undercut yourself—if there is a minimum amount of money you need to keep your household functioning, then accepting a figure below this amount may hurt you. Additionally, you may grow to resent that employer as you'll feel that they took advantage of you. Stick with this figure.
• Establish a salary range. Use the lowest number you'll possibly accept; then from your research, establish what is the most that you can ask for. You can start from the top of the range, and if necessary, go further down your range to what will be a mutually acceptable number.
• Know what your “nice to haves” are. If the employer is unable to meet the salary range (and not your minimum requirement), they may have some additional options that can help sweeten the deal. Do you want to have more vacation time? Would you like to work from home or another location? Are you able to get equity (or partial ownership) in the company? Keep other benefits in mind; you might be surprised what you're able to negotiate.
• Practice, practice, practice. Go through a mock negotiation exercise with a trusted friend, mentor, coach, or colleague. Explain the situation and ask them to provide critical feedback on what went well and what could be improved.
• Understand compensation strategy, terminology, and concepts. Knowing how employers generally approach setting salary and overall compensation is beneficial. For example, many employers use what's called a compa-ratio when determining pay. A compa-ratio calculates where your salary for your position lands in relation to what the market typically pays. As Wilson explains, “If your job has a salary range of, say, $50,000–$80,000 [per year] and you have a salary of $65,000 [per year], you have a compa-ratio of 1.” Employers use this and several other metrics to evaluate how competitive salaries are. You don't need to be a compensation expert, but having this knowledge can be beneficial to you come negotiation time.

Negotiation Dos and Don'ts

It's the moment of truth—time to get down to business and negotiate your salary. Now that you've done your homework and have an offer in hand, here's what to do and what to avoid during the negotiations process.

Do:

• Be confident. If you've done your homework, asking for what you're worth shouldn't be too difficult, as you'll have the info to back up your request. You want to make good eye contact and exude confident body language. If the negotiation is being conducted over the phone, keep your tone positive; if you're conducting the negotiation by email, use positive and unambiguous language.
• Always maintain a positive and respectful attitude. While there are some who really enjoy the negotiation process, others might find this to be an anxiety-riddled, frustrating exercise. It can certainly play on your emotions and tax your nerves. But it is important to keep your cool, no matter what. Avoid yelling, threatening, or engaging in unprofessional behavior at any point during the negotiation process.
• Be flexible and open-minded about the offer. There are times when employers just can't offer you more at the time of the offer. If the offer doesn't contain any of your deal breakers, there may be other things that they can offer you. Also, consider asking if you can have a formal salary review a few months after your hire date.
• Take your time. You may not get a ton of time to decide, but you can usually take a few days to think about the offer before giving an answer. This is the perfect time to do more research, talk to others to get their advice, or compare this offer to others you're considering. Take all the time you're able to take so that you'll feel comfortable with the choice you've made.
• Re-emphasize the value you bring. As Wilson states, “Don't be afraid to highlight projects you did in bootcamps, list any relevant skills, make note of specific classes you took, provide links to an online portfolio or GitHub account. Even if you wrote only one program in Java, list it as a skill! The key is to not sell yourself short.”
• Document everything. If the terms of the offer change, make sure that these changes are noted somewhere in paper or electronic form, just in case.

Don't:

• Make it personal. You are wonderful and incredibly talented, and at the end of the day, the decision to offer you more will be based on your skills, what you bring to the table and, largely, what the employer has the capacity to offer you. It not a reflection of how they feel about you as a person, but more of a quantitative, business decision.
• Try to threaten or coerce the other side into giving you a higher salary. This includes saying you have another offer from another company or inflating your past salary history.

• Make unilateral concessions. A unilateral concession is where you agree to give up something without expectation of the employer giving you anything in return. This is what's called negotiating “against” yourself. Avoid being your own worst enemy.

  For example, if you say to an employer that your salary expectation is $90,000 per year but you'd be willing to accept $80,000, and they are not going to give you anything for the $10,000 you're sacrificing, you've given the employer a concession and got nothing else to show for the $10K you're now out of.

• Try to negotiate after you've accepted the offer. If you realize later that your salary requirements are higher than you thought after you already said yes or you forgot to negotiate at all, that's unfortunately on you, not them. Again, and I can't stress this enough, do your homework.
• Present irrelevant facts and information when presenting your case for more money. When presenting your case for more money, you should focus on compelling reasons why you are worth the added expense to the employer. It's not enough to say that you were top of your class or are a hard worker. These are great accolades and traits, but employers want skills and achievements that have the potential to translate into real value for them.
• Press employers further if that's their “best” or “final” offer. Despite best efforts, employers may not be able to offer you any more than what they've given. At this point, you need to decide if you are okay with the offer or if you want to hold out and evaluate other ones.
• Beat yourself up if things don't go well. “If you stumble in your first few attempts when starting, don't beat yourself up” says Wilson. “It definitely takes practice, just like building confidence takes practice.”

You Didn't Negotiate! Is It Too Late?

For a variety of reasons, you may not have been able to negotiate your salary when you got the offer. Perhaps the employer said that the offer you got was the best they could do, or you just couldn't negotiate at that time. You may have to wait to have this conversation, but asking for more isn't a one-and-done event.

Perhaps as part of your annual performance evaluation process, there may be an opportunity for you to receive a raise. During this time, you'll want to highlight your accomplishments for the year and how they translated into value for the organization.

Of course, you can always ask your manager for time to discuss a raise at any time. You may want to wait, at least three to six months, before asking; this way, you give your organization time to see the value you bring. Volunteer and get involved in “stretch” projects—projects that are just a little beyond your current skill set but won't completely overwhelm you and are critical to business functions. Make suggestions of where the company can improve their performance and then volunteer to take them on. The point is, show your boss and others that you are committed and vested in helping the company be successful.

When the time comes, again, be prepared. Wilson advises, “Come in prepared with your contributions to the company. Make a list throughout the year if that works best for you. Check those salary surveys. And don't be afraid to ask your peers if they're willing to share their salaries with you.”

Additional Resources

Here are some additional resources:

• American Association of University Women: AAUW is a professional organization that seeks to advance women in academics and the workplace through education, training, and economic support. In partnership with LUNA Bars (the nutritional bar aimed at women), it hosts a free salary negotiation workshop for women of color, which can be taken online or in person at a city near you.
• Online salary negotiation workshop: salary.aauw.org
• In-person salary negotiation workshops: salary.aauw.org/attend
• Ladies Get Paid: Perhaps one of the most comprehensive women's career development organizations I've seen, Ladies Get Paid offers a wealth of classes, webinars, and events dedicated to getting you the salary you des.erve. It also hosts a Slack channel, where you can find job opportunities and connect with other professionals for practical advice.

  www.ladiesgetpaid.com

• Getting to Yes: Negotiating Agreement Without Giving In (Penguin Books, 2011): I had to read this book three times—twice for two classes at Northwestern and once for work—and I understand why. This great book by Roger Fisher and William Ury provides an easy-to-understand framework to approach negotiations, whether it's at work, school, or other areas of your life.

  www.williamury.com/books/getting-to-yes

Final Thoughts—It's Okay to Want (and Ask for) Money

Despite many strides in women's pay equity and parity, it still feels as if women from all walks of life and backgrounds are hesitant to express their want for more money. Emotions and rationalizations for not asking can go from “I'm just grateful to have a job” to “I care only about the work, not the money.”

“It's like we have this dose of being overly realistic when it comes to jobs and money,” Wilson says. “We know we need to get our foot in the door, so we'll put up with less than we deserve. White women make on average $0.80 for every $1.00 men make, [for] Black women it's $0.61, and [for] Latina women it's even less at $0.53. If you're offered the equivalent of, say, $0.85 for every $1.00, are you being greedy to ask for $0.15 more when you're so fortunate to be above the average?”¹

I love working in tech. It is my hope and desire to build a legacy as a respected technical professional. I love helping others succeed, and I love being able to work with the latest and greatest in technology. These are all incredibly important things to me. But I also love—and need—to provide for myself and my family. I love being able to donate to causes that I believe in. I love being able to indulge in my hobbies when I can, and ideally, fingers crossed, take a vacation soon! In order to do all of that, I need money.

It is not wrong to want money. It is not wrong to ask for money. There is nothing wrong with talking about your salary and compensation expectations to employers and receiving what you are worth. It becomes a problem only when the pursuit of money is your only focus and you lose sight of other things that are important to you.

Approach these conversations with confidence, knowing that it is your right to be paid what you are worth. Do not worry about the opinions of others; their opinions aren't going to pay your bills and put a roof over your head.

Summary

• Compensation includes the total amount of cash you receive from an employer (salary), as well as any benefits that an employer provides to you.
• Negotiation is where two or more people or parties reach an agreement that is beneficial to everyone.
• A good negotiation is where all parties in the process come away feeling like they've won.
• You can, and should, negotiate job offers as early and often in your career. Prepare for negotiations early in the interviewing process.
• Although you can negotiate your salary during annual reviews or other points of time with an employer, you are likelier to receive more money during the job offer process.
• When considering a job offer, think about whether the job/company helps you to fulfill your career goals, if your “must haves” are being met, and if the salary you are being offered is fair.
• You deserve to be paid what you are worth, and it is okay to want and ask for more money from prospective employers.