You have interviewed and have been waiting patiently, well, as patiently as possible, to hear about whether you will be offered that coveted financial modeling job or not. When you finally get the call you will be offered a starting salary. This is the time to negotiate, not after you accept the job. Whether this is your first financial modeling job or you have been in the profession for many years, it is imperative to have an idea of what you plan to ask for and how you will negotiate before the call come.
Salary negotiation can be tricky in financial modeling. But be sure to avoid some of the fatal mistakes that many financial modeling professionals make that can lead to a possible retraction of the job.
#1 – Keep Emotions at Bay. Salary can be an emotional subject; however, it is imperative that you keep yourself unemotional from the subject. Simply state your salary desires and wait for a reply. Decide where you are negotiable or flexible before the call even comes. Do your research prior to the job offer and know what the going rate for your experience and/or education level is in financial modeling. Make reasonable requests and do not be nasty, unreasonable, or emotional during your conversation.
#2 – Do Not Exaggerate or Lie About Previous Jobs. It is very likely that your potential new job will check with your previous job so be sure to be honest. If you have varying income, be sure to explain this in detail. You do not want any confusion between what you are stating and what your potential new boss finds out from your previous job. Lying about previous salary can lead to your offer being retracted, which no one wants to be a part of, especially just from a misunderstanding.
#3 – Keep Personal Finances Out of It. Do not discuss your personal finances. Regardless of your financial situation, your financial modeling salary offer is based on the job, your education and experience, and the company, not your financial situation, life choices, and future financial goals. The salary offer you will be presented represents what the company feels you provide in value to them. Be sure to remember this when you make a counteroffer.
Salary negotiations is a stressful time for most financial modeling job applicants. Most people are uncomfortable with this phase of the job search process. However, if you do your research and go into the negotiations with a clear plan and removed from emotion, you will find it will go much smoother and likely work out the way you are hoping.