Negotiating with Multiple Offers
Let’s consider the following situation:
You apply to Company A and Company B. After rounds of interviews, you are very pleased and relieved when you receive offers from both companies. Through the interview process you determine Company A is where you want to end up - you love the team and find the projects much more interesting. Can your offer from Company B help increase your offer at Company A?
To best answer this question, let’s look at three possible scenarios:
Scenario 1: Company A offer > Company B offer
In this case, Company B’s lower offer provides little value when negotiating a higher salary at Company A. However, this doesn’t necessarily mean you don’t have a case to advocate for more - perhaps there are appealing aspects from Company’s B offer specific to the role or responsibilities that would be reasonable to explore with Company A. Or perhaps there are other factors from your market value assessment that are worth emphasizing.
Scenario 2: Company A offer = Company B offer
If you have similar offers, it can still be useful to present during the negotiation.
“I have an equivalent offer from another company1, but as we have discussed, it seems based on my interest and qualifications I would make a great fit here. Is there anything you can do to simplify the decision for me?”
If you don’t have other higher offers or compelling data points to leverage, you would be content with the outcome if Company A simply breaks the tie.
Scenario 3: Company A offer < Company B offer
If Company B is offering more, I recommend presenting this highly valuable piece of information during the negotiation:
“I’m excited for the offer but Company B is offering me $X more. I truly value the team and opportunity here and would really prefer to work for you. If you can match, I’ll happily accept.”
The above script conveys your sincere excitement for Company A’s offer as well as your positive intentions - you are not interested in getting both parties into a bidding war and are seeking a resolution quickly and professionally.
Closing
Regardless of the final outcome, it is important to ask for more to fully maximize the value of your offer and showcase the demand for your expertise.
If you ultimately decide to go with Company A, please remember to properly close the loop with Company B. No one likes to lose or feel used, so make sure to do the right thing and express gratitude for Company B’s offer and maintain respectful connections if possible. Be honest and upfront throughout the process - the world is small, and your reputation and integrity will follow you throughout your career.
“I truly appreciate the offer, but it seems that Company A is a better fit for me at this point. I sincerely appreciate the opportunity and hope we can stay in touch, and perhaps work together in the future.”
It’s certainly empowering when you receive multiple offers - it’s a compelling validation of your skills and experience. Although securing multiple offers puts you at an advantage, utilize your leverage appropriately and professionally and ultimately accept the offer that is best aligned with your values and goals.
In the next post, we will examine a slightly more delicate situation: how to leverage another offer in order to advance internally.
It’s up to you to if you want to reveal the name of Company B to Company A during the negotiation. It could be helpful to disclose especially if the companies are competitors or notable players in the same industry.