How to negotiate as an entry-level developer

Question

This May I will be graduating from university with a computer science degree, as many people are. I have been on the job hunt for awhile, and have now received two offers. My first offer (at the place I'd prefer to work for) was lower than expected. I asked if the salary was negotiable and the recruiter responded with "I don't think so". The second offer (less desirable place) has a much higher offer. According to Glassdoor, the offer I was presented at the first company is about 18% lower than what that position pays at that company.

Now that I have this second offer, am I able to go back and try to re-negotiate the offer with the first place? I would like to get paid the average salary for the position, but I also do not want the recruiter to be turned off. I'm not entirely sure the best way to approach this situation. The first company seems great to work for and has awesome benefits so I do not want to lose the offer, but at the same time I would like to be paid fairly.

Note, I do have written offers from both of these companies. The first company's offer came about 3 days before the second company's offer. Time has already been discussed and both companies are fine with my timeline (3 more business days).

Answer 1

First off, you shouldn't be expecting the "Average" salary as a fresh graduate. You are, by definition, entry-level. The average person in that role probably has between 3 and 7 years' experience, and you have none. They're going to put you at the bottom of the range for that position. You'll have to earn your way up to higher levels as you gain experience and prove yourself.

That being said, there's nothing wrong with comparing offers. If you feel company 1's offer is too low, and you feel company 2's offer is better, then by all means take the better offer. However, I would STRONGLY recommend that you don't decline company 1's offer until you have a SIGNED AGREEMENT with company 2 regarding salary and start date.

In the end, you have to manage your own choices.

Also - this question will likely get punted off of workplace, as "What job to take" is a specifically out-of-scope question. However, I thought you'd like an answer.

Answer 2

To be completely honest, when you are at entry-level (graduate level), unless you have done exceptional work that puts you 'above the rest' in your education or spare time, you have little to no bargaining power; which unfortunately makes a big difference when it comes to negotiation.

When you have been working somewhere for a few years and you have done some really awesome stuff, and then you look for another job - you have more bargaining power: firstly because you have some evidence to show how awesome you are, and secondly because you already have a job so you don't have to take the new job.

Unfortunately, you're unlikely to get anything for how great a job you will do in the future. You will have a much better chance of getting what you want when you have more of a track record and the knowledge and experience to back it up.

Yes, if you do end up being awesome, you can laugh at the previous companies who didn't take you onboard - but you're not there yet.

My advice: Get your foot in the door. Take the job which will give you the experience and the time to invest in your own mind (so not stressful, not an agency, not directly under a CEO whose only care is money and resource); somewhere where you can be nurtured to grow in along your path and then when you have been there for a year or so, you can go where you really want to (or stay).

Answer 3

The answer is Yes, but...:

Although the offer from the company B can be used to renegotiate the terms with company A, you have to be very careful when doing so.

As Wesley Long's answer explains, firstly you should not attempt this negotiation until you have both offers in hand, in writing and secondly, a fresh graduate should not expect to make the average of what a position pays. You are (by definition) at the entry-level for this position and thus should expect to make less than a more seasoned candidate would in the same position. The fact that entry-level workers make less and more seasoned workers make more is why the average exists in the first place. For this reason the chance of getting company A to make a better offer is lower.

At the same time, having a better offer in hand can be a valid but risky negotiation technique. You can contact company A to explain to them that you've received a better offer X with pay Y and benefits Z and ask if they'd like to change their offer based on this information. (Never mention where the better offer is, as that is highly unprofessional and may cost you both offers right there!). The risk here is that company A might retract their offer entirely and say "well then, good luck at the other company" instead of not changing their offer or choosing to match/exceed the other offer.

In short, first you need to weigh your preference for company A against the higher pay company B offers. If you feel your preference weighs heavier than the pay increase, ask yourself if you would be fine with taking company B's offer if company A retracts theirs. If the answer is no, you might not want to take the risk of losing the offer from company A.

Your status as a fresh graduate makes this negotiation harder. Normally, when you and a company have established that you want to work for them and they want to hire you to fill their position, negotiating the compensation you will receive is mostly a formality (for more on this, try reading this article: http://www.kalzumeus.com/2012/01/23/salary-negotiation/) but in your case you don't really have as much value yet as someone with more real-world experience would have.