HOW TO NEGOTIATE - Hamline University School of Law

EVALUATING & NEGOTIATING OFFERS
By and large, most law clerk salaries involve little or no “perks” or benefits, and may not be very
negotiable (perhaps the employer will move a dollar or so per hour if you can convince them
that they are coming in too low). This section is instead intended to cover salary negotiations for
attorney job offers. The salary you negotiate to begin with will largely dictate where you end up
a few years from now.
STEP ONE: GET INFORMATION AND CONSIDER YOUR OPTIONS
1) Determine whether the salary/package is negotiable. Some big firms work on salary
schedules and will not deviate from them. Government/military jobs are often not
negotiable, but you can focus on whether you could change the classification based on your
experience and/or education. Try to find out if the employer has a history of negotiating.
You should also look at the economy overall and in the area of law in which you will be
working and the profitability or position in the business cycle of the firm/corporation
(whether it is a start-up or a well-established business). If the economy or business is
booming, negotiation may be an option. If there is a shortage of candidates with your skills,
you may have better luck. If you are currently employed (not appearing desperate), you may
be in a better position to market yourself. Be aware that an offer may be withdrawn if you
push the envelope too far, so know your audience and yourself.
2) Assess your skills and accomplishments so you can better sell yourself and so you are
realistic about your qualifications. If you have something to add to the position that other
candidates may not, or if the employer is particularly desperate, you are more likely to have
success negotiating upward in your favor. Consider your skill level, years of legal experience,
and degree of expertise. (When you get a job, keep a “kudos” file in preparation for salary
reviews/raises.) Remember, however, this is not about your personal sense of inherent
worth, it’s about what the employer (if a firm) can charge a client for your time, how much
you’ll work, and consequently, how much revenue you’ll generate as a result of these skills
and accomplishments.
3) Determine the market salary range for the job. Just remember that the more geographic and
firm/corporation-size/practice specific the data, the more accurate. To find this information
you may check with the Career Services Office, look at what related postings are offering,
ask your friends and networking contacts, call or visit web sites of employment agencies,
check with professional associations, talk to other job seekers, and/or utilize other web sites.
3) Determine your budget.
A. Look at what you currently need to make ends meet (factor in your loan
payments with help from your lender, financial aid, or the CSO). But
remember, this is not because the “what I need” argument is appealing or
recommended as a negotiation stance. It’s so you know whether you can
afford to take the job.
© 2006 Nancy Lochner Howard, Hamline University School of Law. No part of this publication may be reproduced or transmitted in any form or by
any means, electronic or mechanical, including photocopying, without permission in writing from the author.

B. Look at what job-related expenses you will incur such as parking (can be $100-
250+/month in downtown Minneapolis), eating out for lunch (lunches in
downtown Minneapolis can easily run $5-15/day), business attire, dry cleaning,
car worthy of driving clients, etc., and add that to your budget/needs.
Likewise, consider cost-of-living adjustments up or down if you are moving.
C. Determine what you want.
D. Determine what you’ll settle for. Do not make the mistake of accepting a
position you feel negative about, and do realize that your decision to take any
given job could/will affect your personal life/relationships. Realize that you
don’t get something for nothing. More money may come at the price of less
free time. Decide for yourself what your priority is. If you are dissatisfied with
the employer before you start, you are destined to be unhappy.
5) Evaluate the Benefits: Don’t underestimate the value of benefits! An extra week of
vacation may make up for a slightly lesser salary than you’d like (if you get to take
the vacation). A 401k match can count for many thousands of dollars over the
years. Paid parking (or working somewhere where parking is free) can also be
worth thousands of dollars per year vs. a job where you’d have to pay.
Attorney benefits often may include many (but not necessarily all) of the
following: Common: medical plan, dental plan, life insurance, short- and longterm
disability insurance, vacation (2-4 weeks is common), parental leave, 401k
(and possibly a potential match) and/or pension plan contribution, Bar
Association dues, CLE fees, and license fees. Other employers may offer a parttime
policy, flexible benefits plan, bar review fees, bar exam fees, stock options
(at a corporation), parking fee subsidies, moving expenses, client
entertainment/marketing budget, and/or cellular phone.
6) Evaluate and consider negotiating (if possible) other Job Factors:
Billable hours: Does your employment involve a billable-hour factor? Many
firms have a billable hour “requirement.” Others have “goals.” Know that many
“goals” are actually unspoken requirements. Look at what associates in the firm
actually billed over the last few years to see if you’re expected to bill more than is
stated to keep up/advance. (If your firm doesn’t have a requirement, find out
now what is expected of you in terms of hours/productivity; don’t risk a negative
review.)
As a rule of thumb, in order to bill one hour, you need to be at work 1.3 hours.
Check with your firm to see what their billable-hour policies are. Some firms
may let you bill all or a portion of the time you spend at CLEs or public
engagements or on administrative work or the like. More often, however, that
time will not be billable (even though it’s expected of you). Time spent writing
articles or promotional materials, marketing, and networking is often not billable.
© 2006 Nancy Lochner Howard, Hamline University School of Law. No part of this publication may be reproduced or transmitted in any form or by
any means, electronic or mechanical, including photocopying, without permission in writing from the author.

If you will be expected to do a lot of this kind of work, add that time to the time
you should plan to be at work! In addition, as you’re deciding how many hours
per week you’ll be working, keep in mind that vacation time can’t be taken if you
don’t meet your hours.
Ex: A 1,800 requirement means you have to work 2,340 hours (1,800 x
1.3). There are 52 weeks in year, but if you have 3 weeks vacation and 7
holidays in the year (where the firm is closed and you hope to not be in-
you may still have to work), you must subtract that time from the 52
weeks, bringing you down to 47.5 weeks. 2,340 divided by 47.5 you need
to work 49.25 hours per week (about 10 hours per day) to meet your
minimum hours. For many employers, minimum is not enough.
Also know that some firms may state a certain number of billable hours as a
“minimum,” but they won’t pay you the listed salary unless you reach another
(much higher) rate. Some firms are more up-front about this, agreeing to pay
“a” amount if you bill “b” hours, and “x” amount as a “bonus” if you bill “y”
(higher) hours. Consider exploring whether it would be possible/preferable to
negotiate hours up or down with a commensurate salary increase or decrease. Be
aware that coworkers working more may not feel that you are part of the team if
you do that, depending on the culture of the firm.
A) Salary review. Do you know when you will get a review? Some employers may
be willing to pay more if/after you’ve proven yourself for six months, so you
may suggest an early salary and performance review in lieu of more up-front pay.
Just realize that a raise will most likely not be a large leap from where you
started.
B) Track. Some firms hire attorneys on partner or nonpartner tracks, with the
nonpartners not advancing to ownership interest in the firm and consequently
not working as many hours or receiving as much pay. Again, whether this is a
good idea will depend upon the culture of the firm and your goals and priorities.
C) Debt reimbursement. A concept introduced by one large local firm and some
federal agencies is to reward attorneys for loyalty by paying off portions of their
student loans over time. If you stay for “x” number of years, a certain amount of
your student loans are paid off by the employer. If you stay another “y” amount
of years, more is paid off and so on. The rub is that most attorney positions are
“at will” employment. There is no guarantee that you will not be let go or want
to move on before the employer has to live up to its end of this deal.
D) Signing Bonuses: Some firms will pay one-time signing bonuses to offset cost-ofliving
differences and other setbacks you may face in taking a new job. These are
more common in an employee’s market. When the market is tight, these are less
common.
E) Year-end bonuses. Some firms offer discretionary bonuses based on whether the
firm is profitable and/or your performance over the course of a year. Other
firms guarantee bonuses if you stay for “x” amount of time, to encourage loyalty.
© 2006 Nancy Lochner Howard, Hamline University School of Law. No part of this publication may be reproduced or transmitted in any form or by
any means, electronic or mechanical, including photocopying, without permission in writing from the author.

Just remember that bonuses are rarely, if ever guaranteed.
F) Step-up in pay after the Bar: Some firms will pay you one amount if you start
work before you are licensed and then a greater amount after you pass the Bar.
STEP TWO: DURING NEGOTIATION
Negotiations often involve walking a very thin line, and what appeals to one employer may not to
another. Use your best judgment and become as familiar with your array of options before the
negotiation, and be tactful! Negotiations are not risk free, and they should be approached with a focus
on mutual gain.
Know that employer approaches may vary. Don’t think that just because an offer is the first, you’re
cheating yourself if you take it. Some employers are up-to-date on the market and offer competitive
salaries immediately. Others approach offers expecting to negotiate. That’s why you need to be
informed about what would be reasonable to expect before the interview, so you are able to make a
judgment about your bottom line and anticipated offer before it’s made. If it’s on the mark, accept it
(although it is always a good idea to take a night to sleep on it before you take it)!
Timing: The best time to negotiate is after you have an offer and information and before you accept.
Try to deflect questions relating to compensation when they come up early in the process/before an
offer.
What if a posting asks for your salary requirements? Don’t close the door. Unless you are in the
position that you don’t want to waste anyone’s time (more likely down the road than for entry-level
jobs), say that your salary requirements are reasonable and the salary is negotiable.
Who should broach the salary subject? Allow the employer to disclose the salary range first, if
possible.
Understand the difference between salary discussions and salary negotiations. A discussion may
come up early on and deal with your salary history. This is okay. Employers may infer whether you
have realistic expectations from your salary history. If your expectation differs significantly (higher or
lower) from your history, be prepared to address these differences, perhaps pointing out how the
circumstances differ. Don’t short-change yourself regarding your past salary, either. Take the
opportunity to mention perks and bonuses. At the same time, if your past salary was much lower, point
out why you are “worth” more now. If it was much higher, understand you may not make as much in
this position (if that’s the case).
Stick to the facts and be prepared to rationalize/support your position. It comes down to hard facts
and support rather than your inherent sense of worth. Bring your homework and be able to back up
your arguments. Be subtle; you don’t need to hit the employer over the head with the information. Just
have it on hand to support your position, should you find the need. Facts and a business-person’s
approach to revenue you generate or worth you bring that can be translated into efficiency are appealing;
arguments about what it takes to make your loan payments or keep up your hefty mortgage or how
much you could make in another career are not.
© 2004 Nancy Lochner Howard, Hamline University School of Law. No part of this publication may be reproduced or transmitted in any form or by
any means, electronic or mechanical, including photocopying, without permission in writing from the author.

Stay calm and professional. As with interviews in general, stay calm, don’t talk too much or without
thinking, maintain eye contact, and hold your ground and act confidently. Never let down your guard,
but don’t make the process adversarial. Remember that you are working toward a mutual goal.
Be Flexible. You may not get $10,000 more, but you may get paid parking. Give some, take some.
Remember this could be a long-term relationship. If you’re successful in closing the deal, you’ll be
working with the person you negotiate with so, as always, don’t play games or lie. Also remember that
chances are you will have to negotiate on behalf of your clients (or with your clients) in practice. Show
the employer that you’re confident and savvy but not inflexible or unrealistic in your approach to
negotiation.
Never, never, move backward. You cannot go backwards. If you say you want one amount today,
you can’t come back and ask for a greater amount tomorrow. That’s just bad business and negotiating
practice.
How to handle questions about your salary expectations (vs. requirements): Try to focus on nonsalary
aspects of the job first. If this question comes early on, you may shift the focus by saying
something such as, “Money is important to me, but it is not the most important thing. I’m confident
that if we both agree the job’s a good fit for me, we can reach an agreement.” You may also try to shift
the focus back to the job and ask the employer what they pay. If that doesn’t work or isn’t comfortable,
you may indicate that you understand a typical range is from _ to _. Again, stick to the facts rather than
your own notions of self worth or your personal financial situation in terms of debt obligations, etc. It
may be helpful to bring your research to the table so the employer sees your source.
How to handle the question “What are your salary requirements?” Summarize the job
requirements and then ask for the normal salary range at this firm/company for this position. Never say
that you “need ___” or speak in absolutes unless you truly will take nothing less and are willing to walk
away and never look back if you don’t get it. Such an approach is not a negotiation! If you are pressed
to take the first step even after trying to get the employer to make an offer, give a range with the low
end reflecting something around your lowest acceptable salary (assuming this is consistent with the
research you’ve done).
How to respond if you’re given a range and asked if that’s what you were expecting: Tell the
employer that it’s near what you were expecting if true. If not, set forth the range you had in mind, with
support.
One way to handle a disappointing offer: Career City on the Web suggests that you say the following
if an initial offer is off the mark and unacceptable: “I really feel that this is an excellent opportunity. I
know that the chemistry between us is terrific and that the fit is perfect. I want you to know that I want
to come to work for you for these reasons, as well as the fact that my skills are indeed readily
transferable. But in all honesty, I am really disappointed in your offer.” Hopefully the employer will be
able to move.
Know when to stop. Focus on your goals, not winning, and know when to quit. Don’t make the
company/firm think they made a mistake by offering you the job in the first place!
What if you need time to mull over an offer? Express enthusiasm and ask for time to consider the
job offer “in light of the importance of the decision” (or something similar).
© 2004 Nancy Lochner Howard, Hamline University School of Law. No part of this publication may be reproduced or transmitted in any form or by
any means, electronic or mechanical, including photocopying, without permission in writing from the author.

Considering an offer for a day or two is a good idea, even if you’re happy with the offer. This
way you can run it by a friend, colleague, or advisor to make sure you haven’t forgotten anything. You
can express enthusiasm to the employer and still ask for a day or two to think it over.
Get your offer/agreement in writing. After you’ve reached an agreement, ask for a letter outlining
the salary and benefits to make sure that both parties agree on the same terms and those terms are
memorialized. Make sure you accept this offer in writing.
What if you have another offer/interview pending? You can ask for time. You may be able to use
this offer to accelerate other interviews/offers if you are more interested in them. Tactfully call the
other contacts, let them know you have an offer, and see if there’s any way they can accelerate their
interview/decision because you are facing a deadline.
© 2004 Nancy Lochner Howard, Hamline University School of Law. No part of this publication may be reproduced or transmitted in any form or by
any means, electronic or mechanical, including photocopying, without permission in writing from the author.