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How to Negotiate Salary after Job Offer | 5 Practical Tips - YouTube
Channel: Jeff Su
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- 61%, 61% of people fail at negotiating a higher salary
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after receiving a job offer.
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And you want to guess why?
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It's not because of the economy,
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it's not because the employer is being unreasonable
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and it's not because they have no other offers to leverage.
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Most of those people lost right then and there
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when they decided to not even try
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to negotiate for a higher salary.
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In this video, I'm gonna first help you understand
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the three practical consequences of not negotiating,
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because I have the best salary negotiation strategies
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in the world,
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but if you don't get over that mental barrier first,
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none of it matters.
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Then I'm going to share my five favorite tips
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when negotiating salary, after receiving a job offer.
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So that you can put it to practice right away.
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So let's get started.
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Hi friends, welcome back to the channel.
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If you're new here, my name is Jeff
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and we're all about practical career and interview tips.
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So if you're a current student or young professional
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consider subscribing for more actionable content.
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The most common reason
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candidates are hesitant to negotiate salary
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is because they believe they have no bargaining power.
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A fresh graduate might think, well, this is my first job,
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I have no experience, I have no bargaining power.
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Even experienced professionals might think,
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hey, if I have no other offers, I have no leverage,
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but here's what you have to understand.
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The hiring process is stressful and expensive
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for the other side as well.
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Employers screen hundreds, if not thousands of resumes,
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spend countless hours analyzing and choosing applicants
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before finally deciding on a few to hire.
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By this point, the employer is invested in those candidates.
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So even fresh graduates have some bargaining power.
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Diving into three very real consequences
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if you choose not to negotiate your salary
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after receiving a job offer.
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First and foremost,
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compounding means you lose out financially
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in a very big way.
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Jumping into this quick and dirty Google spreadsheet
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that I made,
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imagine two people with a 10% difference in starting salary,
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$50,000 a year and $55,000 a year.
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Now, let's assume that both receive a 6% salary increase
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every year for the next 30 years.
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By year 10, the difference in their cumulative pay
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will be around $75,000, by year 20, $200,000.
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And by year 30, a whopping $424,000,
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almost enough to buy that new iPhone.
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Now this oversimplified example
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doesn't even take into account future career moves.
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If you move to another company,
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that nice 20% pay bump that they're offering,
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that's anchored to what you're being paid currently.
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So often, this $424,000 gap is way larger.
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Number two, by choosing not to negotiate,
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you lose out on factors
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that the employer could have easily have said yes to.
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More vacation days, education reimbursement,
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a later start date.
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And number three, you lose out on an opportunity
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to make a strong first impression on your employer.
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Negotiation is a valuable life skill
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that benefits you both personally and professionally.
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Your employer knows this,
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and by even attempting to negotiate,
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that might make you even more attractive in their eyes.
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If you can relate to what I've talked about so far,
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drop a like and let me know down in the comments,
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if you've ever tried to negotiate salary before,
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Hopefully by now, you're more comfortable
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with the idea of negotiating salary
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after receiving a job offer, but what exactly do you do?
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Here are my top five techniques.
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Tip number one,
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imagine you're negotiating for a close friend
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or for a loved one.
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I found a subtle change in mindset
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instantly helps you become more confident and assertive.
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Think about it, your close friend,
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he or she worked hard for this offer,
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spent countless hours on interview prep,
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revamped their resume 20 times,
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give up Netflix, Netflix for a month.
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Doesn't he or she deserved to be paid their worth?
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You feel that?
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That feeling is called indignation,
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anger at being treated unfairly.
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Use that to overcome your fear of negotiation.
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Tip number two, give a specific salary figure
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as opposed to a nice round number.
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So what this means is that if you say $57,650
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instead of $57,000, you are much more likely
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to get to a final number closer to what you were expecting
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in the first place, it turns out
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according to a research done by Columbia Business School,
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your employer is more likely to assume
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you've done extensive research into your market value
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to reach that specific salary number.
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It makes anecdotal sense as well
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because if you have a friend
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working in a role that you're applying for
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with similar background and experience
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and he or she tells you exactly what they make,
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you can be fairly confident that this is a number
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you can successfully negotiate for as well.
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Tip number three, have a worst case scenario,
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a walkaway point.
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Yes, you should do research
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and come up with a target ideal number.
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You should check out salary ranges
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on the sites that I throw on-screen here
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on the link down below
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and choose a number at the 80 to 85% mark.
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The point of having a worst case scenario in mind
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is that you're mentally prepared to walk away
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if the final offer is so low that you have to turn it down.
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You don't want to accept something that's just not
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financially viable or make you regret it afterwards.
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If you're enjoying these strategies,
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actually I have a Facebook group
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where I share exclusive weekly tips.
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So consider joining, if you haven't already.
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I'll link it down below.
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Tip number four, come to the table with facts, not feeling.
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Your employer is much more likely
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to consider your salary negotiating proposal
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if you provide justifications.
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Because this helps them understand why you deserve
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what you're requesting.
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Saying that you deserve a 15% increase in salary
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because you have two more years of working experience
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than the average person on the team
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is a much stronger argument
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than just throwing out the 15% number.
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Of course, it's easy to come off as arrogant by mistake
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when providing justifications.
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So here's a sample answer for your reference.
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The industry average is $62,500 a year,
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not including benefits.
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And I found that Unilever
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actually pays a bit more than that at 64,000.
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The offer you gave is slightly below both these numbers
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and I'd like to understand a bit more about the reasoning
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behind that.
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With my four years of experience in consumer goods
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since graduation
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and based on my conversation with the hiring manager,
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I feel like I'm uniquely positioned to help with this issue
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she's facing.
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Is there any way we can get closer
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to the industry benchmark?
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Notice I use very neutral language,
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brought up what their competitor was paying
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and highlighted how my background was well positioned
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to help them with their challenges that they're facing
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right now.
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The combination of all these helps me come off as reasonable
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without being too pushy.
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Tip number five, negotiate your salary offer ethically.
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You should only negotiate with an employer,
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who's offered you plan to accept
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if the negotiation goes well.
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it is unethical to negotiate with an employer
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who's offer you have no intention of accepting
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even if your preferred terms are met.
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In other words, if you reach an acceptable compromise,
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it is assumed that you would accept the position.
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Once you have accepted an offer,
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you really shouldn't continue interviewing
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with other employers.
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If you are interviewing with other organizations,
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you should reach out directly and let them know
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that you've already accepted an offer
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and you are withdrawing from the application process.
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At this point, be sure not to burn any bridges.
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At a future date,
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you may have to work with some of these organizations
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professionally,
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or you may want to contact them again about employment.
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Last but not least, show how grateful you are
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to have received the job offer
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throughout the salary negotiation process.
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Not only will this help you come off as more likable,
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but will also help your counterpart
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assume you have good intent.
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For those of you who are hesitant
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about negotiating salary after a job offer,
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hopefully the three real consequences I mentioned,
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and the five practical tips that I shared
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had made you more comfortable with the idea of negotiation.
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Now that you're about to start a new job,
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check out my video on how to write professional emails,
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to hit the ground running
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and let me know down in the comments
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if you want more videos of professional etiquette.
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Subscribe, if you haven't already and as usual,
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have a great one.
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(upbeat music)
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