Negotiating is an activity that can strike fear into the most stalwart job seekers. Did I ask for too much and price myself out of the opportunity?" Or, "did I ask for too little and now they've got me for less than they would have paid?" Where to begin? What to ask for? When to begin asking? Read on.
Q. When do I start negotiating?
A. Not until someone actually makes you an offer. You should have a range of salary in mind
before you even go into an interview, but you don't bring it up until the interviewer does. Many job seekers are frustrated by the process of talking about compensation, because they don't understand the ritual of discussing money in the interview process. Both the interviewer and interviewee engage in the game of "You tell me what you want to make first." "No - you tell me what you'll pay first." With skilled players, this can go on for a while.
It's important to remember that the subject of compensation shouldn't really be discussed seriously until the decision to offer employment is made. As a job seeker, you want to slow the process down while you're in the discovery phase of interviewing. The interviewer wants to know if your compensation requirements are in his/her ballpark, but you want to know if the potential opportunity is what you're looking for before you talk about money.
If the subject comes up early, you should deflect the interviewer by saying, "I'm more interested now in knowing what this job entails than in talking about what it might pay. Let's hold off the money discussion until we're farther along in the process."
If the interviewer really pushes you for a dollar figure, reply with a $10 - 20,000 range between the high and low of your target numbers, but state that you're flexible about compensation, depending on the opportunity.
Q. How much more than my current salary should I ask for when I'm negotiating for a new job?
A. There's no hard and fast rule or standard percentage of increase. It really depends on your situation. You have to do your homework before starting to negotiate. Check the salary information JobCircle publishes in its Career Information section or go to InfoWorld for recent comparables. (See my November column, Job Seeker, Know Thyself for more suggestions on judging your worth.) If you've been recruited hard or have gotten a lot of valuable skills/experience on your present job that your current employer doesn't seem to value enough, you could jump up significantly. But if the new opportunity provides access to training you've wanted or offers a challenge you don't get now, the proportion of increase may be something you should compromise.
Q. I've determined that my skills realistically merit a significant increase over what I'm getting now. What do I say when an interviewer asks for my current salary level?
A. Answer the question by supplying a total compensation value for your current situation rather than a salary figure. Add up your salary, bonus (es), and the value of your benefit package, including insurance, training, employer IRA contributions, etc. This figure should be anywhere from 20 - 30% more than your salary alone. After you state the figure, you can indicate what kind of increase you are seeking. Remember to describe the figure as your compensation value, not as your salary figure. It's very easy for your prospective employer to check salary levels with your current employer.
Q. What do I say when an interviewer asks what I would expect to be paid if I were to be
offered the job in question?
A. You should answer the question with a question of your own: "What do you typically pay
employees in this category?" "Is there a differential for more than (fill in a number) years of
previous experience in the job?" "My research has shown that the salary for this job ranges
from $X to $X in this area, where does your company fit in that profile?"
Q. What else should I expect in the offer besides the salary I name? How big should my signing bonus be?
A. What you should expect is a benefits package, unless you are signing on as an independent
contractor. As an full-time employee (many part-time employees do not receive benefits),
you will generally receive some type of health insurance, paid holidays, vacation and paid sick and/or personal time. You may receive other types of benefits as well, such as stock options, employer contributions to 401(K) plans, pre-tax benefit plans (permitting you to fund IRAs, child care, dependent care, etc. with pre-tax dollars), life insurance, tuition support and many other possibilities.
People often think that common fringe benefits are required by law. They aren't. Businesses are required to pay their portion of taxes, such as unemployment insurance. Workers don't tend to view these payments as benefits, but they are included in the calculation of the benefit package by most employers. Holidays, vacation, and sick time are not required by law either.
The benefits package is a measure of the company's profitability, mediated by the competitiveness of the industry. The law of supply and demand operates here and signing bonuses are a response. They may not always be around for IT professionals, but they are nice while they last. Signing bonuses typically range from $500 to $2,500 in this region and are most common in technology firms. Hope you get one.
Q. I've had interviews with several companies and have gotten an offer from
one. I think I'd really rather work for one of the other companies, but I haven't heard
from them yet. What should I do?
A. Timing is everything. First, find out how long the first company's offer will be open without letting them know about the other possibilities. Try to prolong the offer period as long as possible while you follow up with the other companies. Second, call the interviewer(s) at the other company (ies) to ask about their timeframe for the interview process and when they think they may be making a decision. It is perfectly all right to tell the interviewers that you have received other offers. Sometimes, knowing that other firms are interested in you may increase your desirability to the firm that hasn't yet made up its mind. But not always.
Don't get panicky, though this is an intensely uncomfortable situation. You may tell the firm that you're interested in that you have a defined time frame for making a decision and politely request that they let you know within that time, if they can. It does happen (more often than anyone would wish) that a decision will not be coming from the desired company before the original offer expires.
Then, you have two choices: accept the sure thing or decline the offer and gamble on your preference. If you choose to accept the first offer, do the right thing and inform the other companies of your decision. It's wrong to accept an offer and then back out before you are scheduled to report because a better opportunity came along. If you choose to wait, decline the offer without disclosing that you're hoping for an offer from another company. Thank them for the opportunity, but say that it doesn't appear to be the right fit for you at this time. This is a non-judgmental way of walking away from the situation and marks you as a professional.
If you'd had any thought of saying that you don't want the job now, but if something else doesn't come along soon, you'd like to resurrect the offer … forget it. No one ever wants to feel second-best.
Q. The interviewer made an offer that sounds just perfect. Should I accept on the spot?
A. Never give an answer in the interview. The offer may seem to be all you ever wanted and then some, but you need a little time and distance to review what's on the table. In the moment, it's normal to focus only on the positive aspects of the situation. It's easy to forget about something that is hugely important, like the percentage of time you'll have to spend on the road, when a major salary figure is distracting you.
Thank the interviewer for the offer and tell her/him that you need to think it over. Ask for a week to consider the offer and request that it be made to you in writing with all elements of the offer included. At this point, you may wish to review the package with the interviewer, so that you consider everything in your decision. The interviewer may counter with a shorter time period. Never accept fewer than three days as a decision period. That's the amount of time you get to decide whether to back out of the purchase of a major appliance on credit.
This is a little more important and deserves at least the same consideration.
More
This just begins to scratch the surface of negotiating tips and tricks. If you have specific questions, feel free to send them along to me at jamie@jobcircle.com. We're also still soliciting recruits for the Career Checkup later this spring. Send me your resume and job target(s) for consideration. Next month: "Is Consulting for You?" We'll explore the benefits and drawbacks of consulting as a job or a career.
Enjoy this article? Read more of JobCircle.com's Career Coach articles.
Jamie Fabian spent more than 15 years as a human resources executive before changing careers to become a senior project manager for a growing IT consulting company. Now in management consulting for a large Pharma company, Jamie would like to be seen as a hybrid of Tom Peters, Tom Jackson, and Tom Wolfe, but spends too much time working, driving carpool and watching mindless TV to write more than this column. You can contact Jamie with questions and comments at jamie@jobcircle.com.
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