Navigate the First Negotiation/Job Offer
At
this point, you've assessed yourself, your interests, strengths and
abilities. You used Imagine,
Research and Ask to
develop an effective Core
Message.
You presented a coherent, targeted self-marketing strategy to a
specific group of companies and have succeeded in getting a job
offer. Congratulations. Way to Go! Be excited, be happy, be proud,
thump your chest and release a primal scream! ...Ummmm....slow down
a second, they're still on the telephone or staring at you from
across a conference table. To quote the first fictional robot to
have an anxiety disorder, “Danger, Will Robinson! Danger!”
To deal with this job offer situation the best thing you can do is to
remain calm (or at least calm-sounding). At the same time, you must
convey enthusiasm. Smile, even if it is a telephone offer-they'll
hear it in your voice. At this moment, you have three primary goals:
1. Get all of the details of their offer that you can. 2. Buy some
time to think. 3. Set up a follow up meeting/contact to close the
deal.
I recommend starting off by listening first. Get to a pen, crayon or
computer as quickly as possible. This will undoubtedly be the moment
that the pen is dry, the crayon needs peeled and the computer won't
start. Hopefully you have prepared in advance. At any rate, listen
carefully, get the details and then buy some time.
No immediate answers, ever. Immediate responses are how people wind
up in high pressure time-share condo deals and quickie marriages in
Las Vegas (Apologies to Time-Share Salespeople and Britney Spears).
If this company really has gone through a process and selected you,
they'll give you a day to “Sleep on it”, “Discuss it with my
family”, or “...review the match so that I can do the best job
possible”. You need to show (or at least feign) interest so they
don't simply check you off the list and proceed to Candidate B.
Requesting 24 hours to consider a major decision which will impact
your life, your family and your future is not unreasonable. If they
are less than understanding about that point, maybe you are better
off without them. You need a moment to think and they need to know
that you are seriously considering them as well. Setting up a
“hiring meeting” for the next day is one way to accomplish those
goals.
Are
there situations in which the company absolutely must
have your answer right
that minute?
I suppose an oil well drilling company that needs you to put out
their burning well might qualify. But, you'll know when you are in a
special situation and the cost of your services should go up
accordingly.
Regardless,
let's assume that you have moved on to the hiring meeting to
negotiate and finalize the details. Please
note
that some companies and positions do not
negotiate. The position may be predefined because of union
contracts, or it is an entry-level job and they do not need to
negotiate with a potential employee. The following tips are only for
clearly negotiable jobs.
The First One
to Mention a Number Loses.
In
a job involving negotiation, the work that you performed earlier
(Imagine,
Research, Ask) continues
to pay off. Your research has probably given you a salary range, a
reasonable guess at the benefits package, hours, duties and so forth.
In terms of the mechanics of this
negotiation, the first one to mention a number loses. This is a
critical point, because that establishes a baseline. If you have
honestly reported your previous salary history (discussed elsewhere
in this book), they have a concept of your baseline. This is now
problematical for you.
As an example, I once hired a highly
competent professional who did not negotiate well. She was fabulous
at her job and after going through the selection and hiring process,
she was clearly the top candidate. Entering the negotiation, my
concern was that I would not be able to afford her services. The
total budget was only $40,000 in salary.
At the hiring meeting (third
interview), we had a bit of thrust and parry. Initially, she
wouldn't mention a number and as noted, I know better. So we
stalled, until I asked “Candidly, what did you make at your last
job?” She should have dodged or avoided (some people would lie,
but that is not needed). But, she told me “$35,000.” In that
instant, I 'won'.
My job was to conserve resources for
the non-profit agency while attracting the best talent. When she
mentioned $35,000, I knew I could succeed and make her happy at the
same time. I told her the truth; “That's not the budgeted number
for this position at this time.” She assumed our original budget
was lower when it was really higher. So, I said “Let me talk to
the CEO about this.” I walked out of the Board room and into the
Boss' office. “I looked at him, and said “I am about to offer
the best candidate $3,000 less than budgeted and make her happy. Are
you in agreement?” Ten seconds later, I was back in the Board room
and related “I talked to the CEO and I have his approval to offer
you $37,000, based upon your previous salary history. Do you
accept?” She saw the job as giving her a raise, did a great job
for us for a long time and, up until now, never knew she could have
made more money.
I know that some people are going to
read the above vignette and think “Oh my. He is a Licensed Social
Worker and he took advantage of that poor woman”. In my defense,
this is a financial negotiation and can be a somewhat adversarial
interaction. I was obligated to find the best solution possible, and
I used that $3,000 toward helping people with disabilities to get
jobs.
My employee failed herself because she
did not do her research. This position was funded by a grant from
another non-profit, as she was told. She could have emailed the
organization that provided the funding and requested the budget forms
as awarded. They would have emailed the actual budget to her. Heck,
the project budget was listed on their website. Her failure to
research was not my responsibility. My job was to get the best
people available for the lowest price. I did that and used the
savings to extend the mission of the grant. The HR Professional or
Hiring Manager you will be negotiating with is in a similar position.
In my opinion, it is vaguely possible I
have not quite beaten the salary negotiating point to death. First
of all, be nice and be reasonable. I am not advocating
playing hardball here. But this is a financial negotiation
and it is important. Also, let the buyer beware. Companies might not
always tell the absolute truth. Your Research
can help you judge this as well. At any rate, here are some
phrases to help you avoid their attempts to nail you into a baseline.
When the employer asks something like
“What do you expect to make?”:
-”What did the previous employee
earn?” (The previous employee probably was there a while and got
some raises. Starting at THEIR baseline might be good for you).
-”What is the typical salary range
for the position?” (And if they give you a range, you are going to
make a sour face and start working from the top).
-”Where do you expect most people to
begin?” (Of course, you will be able to demonstrate that you are
better than most people because of your Research and Core
Message).
-”Given the lack of ______(tuition
reimbursement, free childcare, carpooling, etc), what do you normally
offer?” (Be careful not to sound too negative here).
-”When do you normally evaluate a new
employee and adjust salary?” (Vaguely on topic and sets a table for
an early employee evaluation and raise).
-”Is the commission structure cast in
stone?” (For some sales positions, perhaps you can get an
additional point or two).
-”Are there additional
responsibilities I can start with, to demonstrate my value?” (Only
vaguely on topic, but again setting the table for justifying a higher
starting point for you).
And the list can go on longer than 'The
Simpsons' on Fox. The point is to answer these questions with other
questions. The first one to mention a number loses.
Now the baseline is set. Benefits can
also become negotiating points. This applies to vacation time and
other things you value. I once turned down a job for which I was
desperate. I had spent 7 years getting the experience and education
needed; they offered. I declined, citing the pay and my
college tuition bill. They wanted me, honestly had no more cash and
offered an enhanced package of benefits (start health insurance 1st
day, gave me same vacation as 10th year seniority). I took the lower
salary and enhanced benefits. I loved the job, enjoyed 4 weeks
vacation each year busted my butt for them and my clients. As noted,
I loved the job, and the extra time off gave me the energy to excel.
I exceeded established goals regardless of the extra time away. And
we both felt that we “won”. Done properly, negotiations can
have a win/win outcome.
Your Job Offer,
Part II
Different industries and occupations
have their own way of dealing with a job offer. It is unlikely that
the Manager at a fast food restaurant is going to send a registered
letter on vellum parchment (Yes, the Author is aware of paper
making...he has chosen to annoy the Book Binders and Grammar Nazis on
purpose) for the person who changes the fryer grease. You did
get a job description and specific offer letter after accepting their
offer and before starting? I didn't think so. You got all excited
and forgot to take care of business properly. It is human nature to
get excited at these times and to forget to focus on the details.
Typical job offer elements often
include date of offer/start date, salary/bonuses/stock options/other
financial incentives, job title, benefits
package. For professional positions, this is often sent as a hard
copy letter from the personnel office.
Good luck and Best Wishes,
Chris
