Jump Start - Negotiation

Jump Start:  Job Offer Negotiation

When and What to Negotiate

Negotiating

The process of negotiation begins with the very first step of your application for the job. At each point of contact, you have an opportunity to establish your credibility and to demonstrate the value you add to the organization. Successful negotiation depends on your preparation … knowing what the job is worth in the job market and how aligned your skills, experience and values are with the new organization.

Traditionally, it has been acceptable practice to not discuss salary until you have been offered the job. For most positions, this practice holds true in today’s marketplace. However; in some cases, recruiters may screen candidates early on and require that they provide salary requirements or salary history in order to move forward in the application process. Here, you can ask for the salary range although it may not be revealed. At this point you should consider the extent to which you may want to negotiate.

If you are working with a recruiter, it is important that you talk to your recruiter about what you are willing to accept in a job offer. Since your recruiter is acting as your agent in the placement process, they will be working with their client on your behalf regarding the terms and conditions of your employment. As such, your negotiations will channel through your recruiter and they will act as an advisor to you in the negotiation process.

If you are not working with a recruiter, you’ll need to calculate what you’re willing to accept in terms of a salary range and total compensation package. Total compensation package is the sum total of all benefits, monetary and otherwise, an employee receives from a company.

Keep in mind, employers respond to what the market indicates someone with your qualifications is worth, not based on your needs as a candidate.

Deciding Whether to Negotiate

The first step will be to decide if it makes sense to negotiate. If so, you’ll need to plan your strategy. Some questions that you’ll need to ask yourself are: 1) Is negotiation appropriate under the circumstances? 2) If so, what do I negotiate?

Be sure you understand the complete offer before you consider negotiating. Start by focusing on the relative value of the total compensation package, not its individual components. You also need to consider factors that relate to overall working conditions. Things that contribute to your overall quality of work life, such as commute distance, flexible work hours, a nice work environment, your perception of the job itself, and even job title all have merit when considering a job offer.

Generally, the higher the level of the position, the more likely that negotiation is an accepted practice. There are no hard and fast rules, however. As such, you need to be realistic in your approach and try to read the reaction of the hiring person to any counter-offers you might present.

In some cases, the human resources representative or hiring manager may not have the authority to negotiate. Some employers have a policy not to vary from standard offers. On the other hand, if the offer is simply not acceptable to you, you can always decline the job offer.

Let’s elaborate on the issue of whether negotiation is appropriate. Here are some of the things you need to ponder when answering this question.

1. How far off is the offer from what you had expected? If it is very close, you need to judge whether it makes sense to pursue it further, and if so, how aggressively.

2. To what extent is the job opportunity in alignment with your job objective, interests, and values? If it is very closely aligned, then you might consider compromising on the compensation. However, if it strays far from your target job, and you feel that you should take it for practical reasons, then you might be more inclined to negotiate.

3. Is the compensation package a combination of base pay, plus bonuses, commissions, profit sharing, stock options, etc? Are other options (sometimes referred to as perquisites or perks) available, such as a car or car allowance, laptop computer, or expense account? If so, these may be subject to negotiation.

4. Decide what exactly you’d want to negotiate. What non-salary and non-benefit issues are important to you? For example, would the start date, work hours, travel requirements, a previously planned vacation, occasional telecommuting, or other issues be worthy of negotiation?

5. Is the employer likely to have flexibility regarding the issue you want to negotiate? For example, most large employers have standard and fairly inflexible benefit packages for their various employee classifications. In these cases, it would be useless to negotiate this point with the hiring manager.

If you have several job offers pending, you might feel somewhat emboldened in your negotiation strategy. On the other hand, if you have been unemployed with few opportunities coming your way, you will tend to be much more accepting of the initial offer. Knowledge of standard practices and compensation packages for the type of job you are applying for can help you decide if negotiation makes sense in a particular situation.

Planning Your Strategy

If you decide to negotiate, take the following steps:

1. Prepare in Advance

Prior to being called in for the interview, you should take some time to research going rates for compensation and benefits in your field. In this regard, you must factor in such issues as how packages offered by larger organizations may differ from those offered by smaller organizations, what impact a strong vs. weak economy might have on the employer's flexibility, and how well the employer’s business is doing financially. Much of this information is readily available on the Internet.

2. Be Confident in Your Abilities and Negotiation Approach

If you don’t ask you don’t get! Don’t make the mistake of being shy or appearing weak during the negotiation process. You must be able to demonstrate your professional value to the organization. If the employer can readily see your value as a potential employee, you will have much greater impact in your negotiations. Be persuasive, but not demanding.

3. Negotiate a “Win/Win” Agreement

Be enthusiastic about the process. Your goal is to reach agreement on a job package that satisfies the interests of both parties (you and the employer). To do this, you must be sensitive to the response you get to a counter-offer. Look for clues about the employer’s reaction and adjust your position in an appropriate manner. Keep a relaxed atmosphere and do not become confrontational. Stay focused on the job and how you meet the qualifications; not your personal needs.

Key Points

•    Recognize that negotiation may not be an option for some jobs or employers.
•    Your needs, wants, and expectations will dictate if a job offer should be accepted or negotiated.
•    Understand the complete offer before deciding if negotiation is warranted.
•    Prepare in advance so you know your market and negotiation potential.
•    Be sure you can demonstrate your personal value to the organization.
•    Make any negotiation a win/win situation.