By Jackie Simmonds, NEJS Blog Editor
You have finally received a job offer. After being out of work for so long the temptation is to jump on it right away. Not so fast.
Just as you put in the time to understand the company that just offered you the position you should put in the time in to make sure the offer is what you want. Many people who have been job searching in the past year have had had their happiness at being offered a job shaken when they see the dollars they are being offered. An offer is not always just about the money but it is the place we first start.
Can you really negotiate salary during these tough economic times?
“This is no time to roll over and just take what they give you,” Ford Myers, author of Get the Job You Want, Even When No One’s Hiring and president of Career Potential, a job consulting and coaching firm based in Philadelphia told Forbes.com last year. You made it to the top of the resume pile; you succeeded in passing the other candidates in the interview process. You have already proven you are the one for the job. They don’t want to start the search all over.
“Companies expect you to negotiate,” says Myers,. “They’ll be disappointed if you don’t, since you’re hired to be smart and savvy when doing business dealings for their firm. They don’t want you to be a pushover.”How do you handle negotiations?
Know your own worth. This will require you to do some homework. You can talk to people you know who are in the same industry and get a feel for what other companies are paying for similar positions. There are web sites available that offer average salaries for thousands of positions (PayScale, Vault). Don’t forget that location can often play into the compensation. Use this research in the negotiation process to back up your request.
Salary.com points to Maryanne L. Wegerbauer, author of Job Offer! A How-to Negotiation Guide. Maryanne describes how each party in a negotiation can fulfill specific needs and wants of the other party, a concept called “relative power.”
Develop a clear understanding of relative power, which is a function of the following:
Business climate factors
- Overall state of the economy and the industry in which you compete
- Overall unemployment rate and the general employment picture
- Demand for industry- and profession-specific knowledge and skills
Company factors
- Profitability
- Position in the business cycle (startup, growing, stable, turnaround)
Hiring manager factors
- Urgency of the company’s need to fill the position
- Decision-making authority
- Staffing budget
Applicant factors
- Other opportunities in the job offer
- Technical expertise, unique knowledge/skill set
- Resources (financial depth, networks, etc.)
- Level of competition/availability of other candidates
- Career risk of the job offer
Some ways to counter objections when you hear “The salary for this position isn’t negotiable”.
- Request a signing bonus
- Ask to receive your evaluation and possible raise sooner than the typical one year
- Start at a higher grade. The top salary for a lower grade can be the lowest salary for the next grade up. That way you can get a raise without needing to also get a promotion.
- Don’t forget benefits are a bargaining chip, such as stock options and bonuses. If you don’t get them these can be perceived as items you have compromised on in the negotiations. You might also be able to trade them for a higher salary.
- Perks such as telecommuting options can be as valuable as money depending upon your personal needs and can help manage long commute situations or family obligations.
If you have multiple offers you should weigh each offer carefully; Salary.com has a job offer assessing tool, The Job Assessor, that might help you to compare multiple job offers. Never use multiple offers to try and jack up the salary; if another company is offering you more money think about why this is happening and develop a counter strategy that reemphasizes your value to the other company.
Negotiating is supposed to be a win-win for both parties. You might want to split up the negotiating session into two meetings: one that nails down the actual position and responsibilities and the second to go over compensation and benefits. This keeps the two aspects of the offer very distinct from each other.
Remember to be professional and respectful during this process; think of it as an extension of the interview. They get to see you perform in a situation that most people find difficult. Do your best to ace this situation to get what you want and leave the company happy they have you on board.
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