Overview
Congrats on landing that offer! Take a second to celebrate and enjoy it - you've earned it. In addition to the opportunity to get experience at a company, they will also be paying you and offering a few perks in exchange for the work you'll be doing for them.
As an intern, you will likely have a significant set of financial obligations you have to meet (ex: housing, food, school fees, etc.), and taking the opportunity to negotiate with a company for more pay or additional benefits can help you meet those obligations easier. I'll share a few tactics I've used in my job search that helped me negotiate a higher intern salary and additional benefits that have helped me remain debt-free since my first internship. But first, a few key questions to answer beforehand...
But wait, won't it come across as greedy to negotiate? Shouldn't you be happy with just receiving an offer?
While you should certainly be happy about receiving an offer, respectfully negotiating an offer will not come across as greedy, provided you can explain why (more on this later). It's important to note that a change in the power dynamic occurs when a company issues you an offer - they are now trying to recruit you to work there rather than you chasing the position. Acknowledging this, it's essential to know that not trying to negotiate only hurts you.
What's stopping a company from pulling my offer entirely when I try to negotiate?
Respect - it's a 2-way street. If a company pulls your offer after you attempt to (respectfully) negotiate, it's a poor sign on their part as it shows they are not willing to respect your obligations. Respectfully negotiating is part of the offer process, and in turn, the company respects your obligations and desire to put yourself in the best position possible.
You'll notice how I mention respect in this process a fair amount because I have seen offers get pulled while negotiating. Still, these instances are usually limited to the candidate being unprofessional and curt in their communication with their recruiters. You may be told no (and that's ok!), but it's another thing entirely for a company to rescind an offer after they've put in the effort to interview and select you.
When to negotiate
Going back to this comment: "It's important to note that a change in the power dynamic occurs when a company issues you an offer" - this dynamic changes again once you've signed the offer letter as you've indicated that you are committed to joining the company. Thus, the best time to negotiate is after you've received an offer but before you sign it. I prefer to have a call with my recruiter after they've extended me a verbal proposition in which I discuss details about the job and my pay expectations. I find it's a lot more organic than email and gives them a chance to express that they are in my corner (after all, they want you to sign) and can get a vibe on how the process will generally go.
For those who go through rank-match on WaterlooWorks, the timeline is squeezed from a normal week to a measly day. Therefore, getting in touch with a recruiter/engineer is paramount when you know you have the offer.
What can I negotiate?
Inspired by a question I was asked fairly recently, there are many things you can tune about your offer (aside from base pay). These include:
Signing bonus
Housing Stipend
Flights
Dates of employment (it's possible defer to another term)
Transit card/stipend
Vacation/PTO
Hourly/Salaried
Visa type
It is worth asking about the above, even if they claim that the base pay is non-negotiable. A company may be willing to pay for your flights or give you a housing stipend if you ask, but typically they will not bring up these options. Doing so has allowed me to net more money during an internship, despite being occasionally told that the base pay is fixed.
How do I negotiate?
Collect information beforehand
Coming into a negotiation, you want to be armed with as much information as possible about the prospective offer. Former interns at the company are an excellent source of information for this and can also offer you candid advice on what to say and other things you can ask for. Determining how much they pay beforehand, how much the market provides for your position in the area, expected rent costs, and other perks that other interns have been offered are all valuable pieces of information to have in your mind as you figure out what an ideal rate might look like for you. It is also a good idea to ask employers what the pay is in the interview.
Determine an ideal ask
Once you have gathered the relevant information, come up with a list of requests you'd like to ask the company for. Having the targets written down is a good way to figure out whether you're asking for too much or just right. It is good to ask for slightly above your target.
Here's a negotiation example to show the ideal ask and research combined:
For this company, I was told by a trusted individual who interned there that they offered them $41 with a 5k signing bonus ($49/hr all in) but negotiated up to $47 ($55/hr all in). When I got the offer from this company, I mentioned my competing offer, and I was looking for an ideal range of $60/hr all in. They mentioned they were planning on offering me $41 + 5k, and instead gave me a 10k signing bonus which brought me to $56.6/hr all in.
Come up with a compelling "why."
Approach the conversation from the recruiter's POV: a candidate is asking for more money, and you now have to pitch to your manager why this candidate should be offered more. Giving the recruiter the pitch they need to convince others at the company is the key to successfully negotiating and is the hardest part of the process. There are several rationales you can use depending on your situation:
Competing offer for XYZ - this is my preferred method as it's the most direct and needs little rationalization or justification while directly giving you what you'd like. 4th year provides a buff to this as recruiters may be willing to bump you up if you signal interest in going there full time.
Significant moving costs associated - mentioning how much housing will be in the area and that a higher salary would help alleviate this and make the offer more favourable.
Previously getting paid ABC - this method is a little weaker since you're arguing a return offer to a new offer, but it has some success.
Asking for wiggle room - this method is the weakest since you don't justify why, but it doesn't hurt to ask. They'll give you a dollar bump or two if they're nice.
Note that throughout all of this, your interviewers and hiring managers will be looped into the conversation - your interview performance can make a significant difference regarding whether the employer is willing to negotiate.
Closing remarks
Using these strategies, you can get a little pay bump for your internships to help cover living expenses, school, and a bit of disposable income. However, it's okay to be told "no" - it isn't necessarily a reflection of your negotiation skills, sometimes, there are business realities they have to consider, or they don't have the budget. Most companies will be willing to negotiate (especially those in the Bay Area), but others, particularly smaller Canadian employers might not. Regardless, shoot your shot. Whatever the case, it's always worth trying since the worst that'll happen (provided you do so respectfully) is told, "no, sorry.".
It's important to note that negotiating job offers is a complex and nuanced process, and the strategies and tactics that work for one person may not work for another. While the advice and strategies presented in this article are based on my personal experience and have been successful for me, it is always a good idea to do your research and seek additional guidance as needed. Remember to approach negotiations respectfully and professionally, and always aim for a mutually beneficial agreement that meets your needs and the company's needs.