Copyright @ 2007. Jist Publishing. All rights reserved. May not be reproduced in any form without permission from the publisher, except fair uses permitted under U.S. or applicable copyright law. 18 Chapter 16.qxp 1/26/2007 10:43 AM Page 145 Chapter 16 “I Got an Offer! Now What?” W ow…all your hard work—the preparation, practice, performance, and follow-up—is paying off. You interviewed for a job, did fabulously well, and now the hiring manager has made you an offer! You’re so excited; you just want to scream, “Yes! I’ll take it!” But the logical part of you is saying, “Slow down there, buster. Is this what you really want? And if so, what do you need to negotiate to make it a win-win opportunity on both sides?” Well, hang onto your excitement as you learn some excellent tips for evaluating and negotiating an excellent job offer. Risk It or Run From It? • Risk Rating: Lower than you might expect. You know they already want you. You’re just hammering out the details. • Payoff Potential: Sizeable. Coming to an attractive agreement will pay off for you in many ways down the line. • Time to Complete: Could be a few minutes to a few hours over a period of a few days. • Bailout Strategy: Grab the first offer and run with it. (But chances are you’d be disappointed with yourself later.) (continued) 145 EBSCO : eBook Academic Collection (EBSCOhost) - printed on 2/13/2018 11:50 PM via POST UNIVERSITY (TRAURIG LIBRARY) AN: 176104 ; Piotrowski, Katy.; The Career Coward's Guide to Interviewing : Sensible Strategies for Overcoming Job Search Fears Account: ns017336.main.eds 18 Chapter 16.qxp 1/26/2007 10:43 AM Page 146 Copyright @ 2007. Jist Publishing. All rights reserved. May not be reproduced in any form without permission from the publisher, except fair uses permitted under U.S. or applicable copyright law. 146 The Career Coward’s Guide to Interviewing (continued) • The “20 Percent Extra” Edge: Most people are too chicken to negotiate. Those who do gain more rewards, and more respect, from themselves and others. • “Go For It!” Bonus Activity: Begin practicing your negotiation skills right away. Take some of what you learn in this chapter and attempt to negotiate a better deal with a service provider, in a store, or at a garage sale. The more you practice negotiation, the more comfortable—and successful—you’ll become. How to Evaluate and Negotiate a Great Job Offer Money-talk can make even the most level-headed job searchers lose their senses. Yet a poorly negotiated salary can haunt you for years. To achieve the best compensation package possible, master the basics of successful salary negotiation before you find yourself in a high-pressure money discussion. Learn When (and When Not) to Discuss Money One key to successful negotiating is timing. For instance, when it comes to talking about money, the person who reveals specific details first is in a weakened negotiating position. For example, let’s say that you’ve told the interviewer, “I need at least $40,000 to take this job,” early in the interviewing process. The hiring manager then knows exactly what you think you’re worth. He or she might perceive your figure as being too low (“Gee, I was thinking I’d have to pay at least $50,000 for someone good”), too high (“Yikes! There’s no way I could afford this guy!”), or just right (“Hooray! He’s right on the money!”). If at all possible, the topic of pay shouldn’t be discussed until after the hiring manager decides you’re the right person for the job. By then, you would have gained a thorough understanding of the requirements for the position, as well as insights into what the job is worth. EBSCO : eBook Academic Collection (EBSCOhost) - printed on 2/13/2018 11:50 PM via POST UNIVERSITY (TRAURIG LIBRARY) AN: 176104 ; Piotrowski, Katy.; The Career Coward's Guide to Interviewing : Sensible Strategies for Overcoming Job Search Fears Account: ns017336.main.eds 18 Chapter 16.qxp 1/26/2007 10:43 AM Page 147 Copyright @ 2007. Jist Publishing. All rights reserved. May not be reproduced in any form without permission from the publisher, except fair uses permitted under U.S. or applicable copyright law. Chapter 16: “I Got an Offer! Now What?” 147 On the employer’s side of the equation, he or she would have acquired enough knowledge about how you can benefit their organization to know your true value to them. Unfortunately, though, discussions about money frequently pop up before an offer is made—sometimes even during the call to schedule your first interview: “So, Ms. Candidate, before we can schedule your interview, we need to know how much money you want to make.” Keeping in mind that 1) you don’t want to tip your hand first, and 2) you’d rather wait until you’ve received a job offer, you’ll want to reply with something like this: “Ms. Interviewer, I would feel more comfortable discussing pay after we’ve determined that I’m the right person for the job. I hope you’re okay with that.” Usually this statement successfully puts off the money discussion for a while. But if you’re pressed for further details, as in, “I need to know whether we can even afford you before I can continue the interview process,” respond with: “Yes, that makes sense. It sounds as if you’re working within a certain pay range. Since you’re familiar with your company’s pay scale, how about if you tell me the range you’re thinking of, and I’ll let you know whether it sounds fair to me.” If the interviewer provides a range that seems too low to you, don’t squawk. It’s very likely that you’ll be able to negotiate more pay after they’ve interviewed you and decided that you’re the best person for the job. For now, regardless of the range, simply say, “I think we should keep talking.” If the interviewer still presses you for details on what you want for pay, as in, “No, Ms. Candidate, I need to know what you want,” provide pay information that you’ve researched from compensation sources such as www.salary.com, www.acinet.org, or your professional association’s annual salary survey: EBSCO : eBook Academic Collection (EBSCOhost) - printed on 2/13/2018 11:50 PM via POST UNIVERSITY (TRAURIG LIBRARY) AN: 176104 ; Piotrowski, Katy.; The Career Coward's Guide to Interviewing : Sensible Strategies for Overcoming Job Search Fears Account: ns017336.main.eds 18 Chapter 16.qxp 1/26/2007 10:43 AM Page 148 Copyright @ 2007. Jist Publishing. All rights reserved. May not be reproduced in any form without permission from the publisher, except fair uses permitted under U.S. or applicable copyright law. 148 The Career Coward’s Guide to Interviewing “That’s fine, Ms. Interviewer. A salary for this type of position, as researched in a variety of up-to-date sources, shows that a pay range between $X and $Y is competitive.” Use the word “range” rather than a specific figure. This gives you more flexibility to negotiate down the line. If at any point during the interview the hiring manager says, “Well, would you take the job for $X?” clarify whether you’re actually being offered the position: “Ms. Interviewer, are you offering me a job?” If not, again request that you postpone any specific talk about money until after they’ve decided that you’re the chosen candidate. In summary, follow this order of discussion for money talk before an offer is made: • First, postpone talk of money if possible. • Second, request information about their range. • Third, present your researched range. Create Your Wish List If you haven’t done so already, think through what you really want in a job offer. Compensation What pay range is competitive for your type of work? What are you worth? Remember the important difference between worth and need. Your worth is a measure of the benefit you can offer to an employer. For instance, let’s say that you’ve been involved in your career for five years. You’re definitely not an entry-level worker who would need to settle for beginner’s pay. However, you’re not as skilled as someone with 10+ years of experience, either. Your worth will most likely fall somewhere in the middle of the pay range. Your value to an employer might also be calculated based on the price of the business you can bring to the organization, in terms of new sales or cost savings. EBSCO : eBook Academic Collection (EBSCOhost) - printed on 2/13/2018 11:50 PM via POST UNIVERSITY (TRAURIG LIBRARY) AN: 176104 ; Piotrowski, Katy.; The Career Coward's Guide to Interviewing : Sensible Strategies for Overcoming Job Search Fears Account: ns017336.main.eds 18 Chapter 16.qxp 1/26/2007 10:43 AM Page 149 Copyright @ 2007. Jist Publishing. All rights reserved. May not be reproduced in any form without permission from the publisher, except fair uses permitted under U.S. or applicable copyright law. Chapter 16: “I Got an Offer! Now What?” 149 To determine your worth to an employer, research competitive pay ranges for your specialty and industry using information found on salary Web sites or through your professional organization. You can also approximate the value of your contributions to former employers by calculating how you’ve helped those organizations save and make money. Now, on to the topic of need. Need is an estimate of what you would require to maintain your lifestyle. If your house payment is $1,000 a month; your car is $400; and food, clothes, insurance, and other extras run you $600; you need an income of $2,000 a month. However, when it comes to negotiating, your needs shouldn’t enter into the discussion at all. Instead, you’ll want to focus on your worth. It gives you far better negotiating power. “I need $2,000 per month to survive” sounds weak and desperate. “I know I’m worth between $40,000 and $50,000 to your organization” is perceived as attractive and assertive. So calculate your worth to the organization and add it to your wish list, along with any other items you want: • Competitive pay range • Bonus for performance • Vacation time • Benefits (or extra compensation to cover the cost of benefits) • Professional association memberships • 401(k) or profit sharing • Sponsorship to attend at least one industry conference each year • Other The Nature of the Position In addition to the compensation portion of your package, think about the nature of the position. What tasks and responsibilities do EBSCO : eBook Academic Collection (EBSCOhost) - printed on 2/13/2018 11:50 PM via POST UNIVERSITY (TRAURIG LIBRARY) AN: 176104 ; Piotrowski, Katy.; The Career Coward's Guide to Interviewing : Sensible Strategies for Overcoming Job Search Fears Account: ns017336.main.eds 18 Chapter 16.qxp 1/26/2007 10:43 AM Page 150 Copyright @ 2007. Jist Publishing. All rights reserved. May not be reproduced in any form without permission from the publisher, except fair uses permitted under U.S. or applicable copyright law. 150 The Career Coward’s Guide to Interviewing you want? Any other considerations you need to discuss at offer time, such as how you prefer to work? It’s a good idea to actually write down your wishes. That way, when it comes time to negotiate your offer, you have a concrete list to which you can refer. Negotiate the Initial Terms of the Offer “We’d like to offer you the job.” These seven words can kick off an exciting chain of events, offering potential for new opportunities, challenging responsibilities, and motivating rewards. But negotiating an offer is a highly charged emotional experience, so it’s important to make use of sound negotiating strategies. Begin by learning how to negotiate the best initial terms possible. For great tips, consider this sample negotiation between Shane, the candidate, and Bridgett, the hiring manager: Bridgett: “Shane, we’d like to offer you the job. How much money will it take to bring you on board?” Shane: “Wow, Bridgett. This is very exciting. What pay range were you thinking of?” Bridgett: “Something between $35,000 and $40,000 per year.” Shane: (In a neutral tone—not excited, not disappointed) “Hmmm…. $40,000….” (Shane counts to 10, silently, in his mind.) Bridgett: (After a few seconds of tense silence…) “Well, I could maybe bump that up a little. How about $42,000?” Shane: “$42,000…. Hmmm…” (another 10 seconds of silence). Bridgett: “$43,000 is about all I can offer. Will you take it?” Shane: “Let’s set the pay part of the deal aside and talk about the other pieces of the offer.” Bridgett: “Well, we offer a full benefits package. It’s very good—vision, dental, the whole shebang.” EBSCO : eBook Academic Collection (EBSCOhost) - printed on 2/13/2018 11:50 PM via POST UNIVERSITY (TRAURIG LIBRARY) AN: 176104 ; Piotrowski, Katy.; The Career Coward's Guide to Interviewing : Sensible Strategies for Overcoming Job Search Fears Account: ns017336.main.eds 18 Chapter 16.qxp 1/26/2007 10:43 AM Page 151 Copyright @ 2007. Jist Publishing. All rights reserved. May not be reproduced in any form without permission from the publisher, except fair uses permitted under U.S. or applicable copyright law. Chapter 16: “I Got an Offer! Now What?” 151 Shane: “That’s great!” Bridgett: “And you’d qualify for two weeks of vacation the first year.” Shane: “In my current position, I’ve acquired close to four weeks each year. Could we get the vacation closer to four weeks?” Bridgett: “Probably. Let me check on that.” Shane: “Is that it?” Bridgett: (laughing) “We do offer a profit-sharing plan that our employees love. Most people on the team take home between 5 and 10 percent in additional pay from that plan each year.” Shane: “What about professional memberships?” Bridgett: “We’d cover those that are reasonable, as well as send you to at least one conference each year.” Shane: “Wow, this all sounds great!” Bridgett: “Good! So, will you take it?” Shane: “I am very excited, but of course I need time to think about it. When would you need to have an answer from me?” Bridgett: “How about by Monday?” Shane: “That’s fine. I’ll call you then. And Bridgett, thanks for this opportunity!” Shane used several powerful negotiating techniques in this example: • He let Bridgett go first with the specifics related to money. • He asked about a pay range, rather than a specific number, and began negotiating at the top of the range. • He used the “repeat-it-thoughtfully-then-wait technique” for bumping up the salary, as in, “Hmm…. $40,000….” EBSCO : eBook Academic Collection (EBSCOhost) - printed on 2/13/2018 11:50 PM via POST UNIVERSITY (TRAURIG LIBRARY) AN: 176104 ; Piotrowski, Katy.; The Career Coward's Guide to Interviewing : Sensible Strategies for Overcoming Job Search Fears Account: ns017336.main.eds 18 Chapter 16.qxp 1/26/2007 10:43 AM Page 152 Copyright @ 2007. Jist Publishing. All rights reserved. May not be reproduced in any form without permission from the publisher, except fair uses permitted under U.S. or applicable copyright law. 152 The Career Coward’s Guide to Interviewing • He repeated this technique until Bridgett seemed to reach her max. • He pushed back respectfully when one aspect of the offer was unacceptable (“Could we get the vacation closer to four weeks?”). • Rather than say “Yes!” at the end of their discussion, Shane said, “…I need time to think about it. When would you need to hear from me?” These strategies allow you, the potential new hire, to walk away from the initial negotiation with a pretty good offer—plus time to consider it carefully before accepting. Come Back with a Counter Offer After the early excitement of the offer has worn off, you’ll have a chance to think things through more carefully. Is this what you really want? Are there any changes you want to propose? More money? A special request regarding your schedule? Now is the time to ask. This was Shane’s counteroffer discussion: Shane: “Bridgett, I’ve thought about your offer, and I have a few things I want to review with you.” Bridgett: “Let’s hear them.” Shane: “First, I did a little research into competitive pay ranges for my specialty. According to our professional association’s salary survey for last year, competitive pay falls between $40,000 and $50,000. Your offer of $43,000 is definitely in the ballpark. However, I’d be bringing 10 years of very successful experience to your organization. I’d like to see the pay in the upper half of the competitive range. Do you think we could work something out?” Bridgett: “Well, our budget is tight, but how about this. I think I could bring you in at $45,000, and we could give you a pay review in 90 days. At that point—after you’ve had a chance to show us what you can do—I should be able to talk EBSCO : eBook Academic Collection (EBSCOhost) - printed on 2/13/2018 11:50 PM via POST UNIVERSITY (TRAURIG LIBRARY) AN: 176104 ; Piotrowski, Katy.; The Career Coward's Guide to Interviewing : Sensible Strategies for Overcoming Job Search Fears Account: ns017336.main.eds 18 Chapter 16.qxp 1/26/2007 10:43 AM Page 153 Copyright @ 2007. Jist Publishing. All rights reserved. May not be reproduced in any form without permission from the publisher, except fair uses permitted under U.S. or applicable copyright law. Chapter 16: “I Got an Offer! Now What?” 153 management into bumping your pay up to $47,000. I’ll need to check on the $45,000, but if I can get it, would that work?” Shane: “That part sounds good. Now, about the vacation. You said you would check on the four weeks. What did you find out?” Bridgett: “I got the okay on that.” Shane: “Excellent! Would you be alright with me starting at the beginning of next month? I’d like to take a break between my current job and this new one.” Bridgett: “No problem. Anything else?” Shane: “No, that all sounds good.” Bridgett: “Okay, let me confirm the new salary figure and I’ll get back to you by the end of today.” Again, Shane made use of several effective negotiating techniques: • He provided Bridgett with salary data that he’d researched from a credible source and requested that his pay reflect his experience. • He was open to alternative options (waiting 90 days for a pay review), so that ultimately both sides could get what they wanted (Shane could make more money, and Bridgett could get Shane on her team). • He confirmed that his request (for additional vacation) would be honored. Shane was almost through! He was down to the last step: waiting for the final answer. Wait… Then Celebrate! Waiting for an approval on your negotiation request is one of the most nerve-wracking experiences known to man. When I was negotiating the deal for this book—an opportunity that would help me EBSCO : eBook Academic Collection (EBSCOhost) - printed on 2/13/2018 11:50 PM via POST UNIVERSITY (TRAURIG LIBRARY) AN: 176104 ; Piotrowski, Katy.; The Career Coward's Guide to Interviewing : Sensible Strategies for Overcoming Job Search Fears Account: ns017336.main.eds 18 Chapter 16.qxp 1/26/2007 10:43 AM Page 154 Copyright @ 2007. Jist Publishing. All rights reserved. May not be reproduced in any form without permission from the publisher, except fair uses permitted under U.S. or applicable copyright law. 154 The Career Coward’s Guide to Interviewing realize one of my biggest life dreams—I thought the anxiety was going to do me in before I ever had a chance to write my first sentence! After several back-and-forth exchanges of information, requests, and offers, we were down to the final step. “I’ll get back to you,” my editor told me. And then I had to wait. To keep myself from going crazy, I used the following anxiety-management techniques: • Remind yourself that you have a lot to offer. I reread my book proposal and reminded myself that it was a great product for the right publisher. • Review your options. There were several (more than 100!) publishers to whom I could submit my proposal. Yes, I was very excited about this opportunity, but if we couldn’t decide on a deal that worked for both of us, I did have other possibilities I could pursue. • Remember the aim of negotiation. The purpose of negotiation is to allow both parties to arrive at a satisfactory agreement. What good would the deal be if both sides weren’t happy? Keeping this in mind allowed me to be patient while waiting for the final answer. • Take into account that most of the things you fret over never come to pass. I worried that the deal would dissolve, and I’d be left with nothing. But, as my grandmother used to say, “98 percent of what you worry about will never happen.” I don’t know if her figure is statistically correct, but I’ve learned that, most of the time, the things I agonize over never do become a reality. • Keep working toward your goal. If for some reason this opportunity doesn’t work out, you’ll be much less disappointed if you have other possibilities in the works. Continue pursuing other options as your negotiations for this one play out. EBSCO : eBook Academic Collection (EBSCOhost) - printed on 2/13/2018 11:50 PM via POST UNIVERSITY (TRAURIG LIBRARY) AN: 176104 ; Piotrowski, Katy.; The Career Coward's Guide to Interviewing : Sensible Strategies for Overcoming Job Search Fears Account: ns017336.main.eds 18 Chapter 16.qxp 1/26/2007 10:43 AM Page 155 Copyright @ 2007. Jist Publishing. All rights reserved. May not be reproduced in any form without permission from the publisher, except fair uses permitted under U.S. or applicable copyright law. Chapter 16: “I Got an Offer! Now What?” 155 When the deal does eventually come through, take time to celebrate. Mark the success with an event that recognizes all the work you put into the achievement. What was my celebration? I took my husband and some good friends out for margaritas! Why It’s Worth Doing Negotiating is scary. It requires the negotiator (you) to ask for what you want, while risking losing what you’ve already been offered. Most people (Career Cowards especially) don’t want to chance throwing away what they’ve already been presented. “It’s better than nothing,” they decide. “I’d better take it and run!” Yet fairly quickly this creates a “lose-lose” situation for both the new hire and the employer. A few hours, days, or weeks later, the new hire grasps the reality of what he or she has accepted. “I’m really worth more!” they realize. “I should have negotiated more vacation time!” But instead of accepting responsibility for their own mistake of not negotiating a competitive package when an offer was made, they start to resent the employer. “It’s not fair,” the new hire grumbles. “The hiring manager should have paid me more! She should have asked how much vacation I wanted.” Then the hiring manager has an unhappy employee on her hands. One disappointment leads to another, and another, and within a short period of time, the relationship between the new hire and the manager deteriorates and fails. Had the new hire thought through what he or she really wanted in the job offer, and requested it in a respectful way, the hiring manager would have had a chance to accommodate the new hire’s needs. Their relationship would have started more successfully, and the prospect for creating a productive, long-term partnership would have been much more promising. There’s another valuable benefit of negotiating: It allows you to interact with your new employer on a challenging and important project immediately. As you exchange information about what each EBSCO : eBook Academic Collection (EBSCOhost) - printed on 2/13/2018 11:50 PM via POST UNIVERSITY (TRAURIG LIBRARY) AN: 176104 ; Piotrowski, Katy.; The Career Coward's Guide to Interviewing : Sensible Strategies for Overcoming Job Search Fears Account: ns017336.main.eds 18 Chapter 16.qxp 1/26/2007 10:43 AM Page 156 Copyright @ 2007. Jist Publishing. All rights reserved. May not be reproduced in any form without permission from the publisher, except fair uses permitted under U.S. or applicable copyright law. 156 The Career Coward’s Guide to Interviewing of you needs to make the deal work, you build trust between you. It’s a bonding experience. By the time it’s over, you truly feel like a team! For several reasons, it’s in your best interest, and in the interest of the hiring manager, to decide on and ask for what you really want when a job offer is made. Career Champ Profile: Sylvia Sylvia was negotiating the final details of an offer to become medical practice manager for a group of physicians. The partners had accepted her requests for salary, a built-in annual increase based on performance, and part ownership in the organization. Yet she was still waiting to hear whether they would agree to her final request: reorganizing the structure of the practice so that Sylvia would report to just one partner rather than seven. Getting to this point in the negotiation had been challenging. After they’d made her an initial offer, Sylvia had created a list of 10 items she needed to negotiate. Then she met twice with the decision team to go over her wishes. But before discussing any of her items, Sylvia asked questions such as, “How did you decide to set things up this way?” and “What are you trying to accomplish with this method?” This allowed her to thoroughly understand their reasoning before requesting a change. And so far they’d been able to successfully work through every point on Sylvia’s list—except for the request to reorganize. The restructuring was Sylvia’s “make it or break it” stipulation. She knew from past positions that if they didn’t agree to change the reporting structure, it would create big problems for her down the line. Without it, it would just be better for Sylvia to pass on the offer. Sylvia had been waiting for three days for their answer. In that time she’d reviewed her list of potential employers and checked in with her network about other possible jobs. Although she really hoped EBSCO : eBook Academic Collection (EBSCOhost) - printed on 2/13/2018 11:50 PM via POST UNIVERSITY (TRAURIG LIBRARY) AN: 176104 ; Piotrowski, Katy.; The Career Coward's Guide to Interviewing : Sensible Strategies for Overcoming Job Search Fears Account: ns017336.main.eds 18 Chapter 16.qxp 1/26/2007 10:43 AM Page 157 Copyright @ 2007. Jist Publishing. All rights reserved. May not be reproduced in any form without permission from the publisher, except fair uses permitted under U.S. or applicable copyright law. Chapter 16: “I Got an Offer! Now What?” 157 she’d land this one position, she knew in her heart that other opportunities would come along if she wasn’t able to work things out with them. Finally, the call came. “We finally agreed to reorganize,” her contact told her. “We’ll put Brad in charge of the physicians, and you would report directly to him. So, will you take the job?” “Absolutely!” Sylvia said. Core Courage Concept Negotiating is one of the most nerve-wracking aspects of job searching. Yet Career Cowards who try it learn that negotiation builds their confidence and results in a more trusting, productive relationship with their new employer. The key is in defining what you want and communicating your requests respectfully to the hiring manager. Although it’s scary, the payoffs are definitely worth the risk. Confidence Checklist ■ Learn when (and when not) to discuss money. ■ Create your wish list. ■ Negotiate the initial terms of the offer. ■ Come back with a counter offer. ■ Wait…then celebrate! EBSCO : eBook Academic Collection (EBSCOhost) - printed on 2/13/2018 11:50 PM via POST UNIVERSITY (TRAURIG LIBRARY) AN: 176104 ; Piotrowski, Katy.; The Career Coward's Guide to Interviewing : Sensible Strategies for Overcoming Job Search Fears Account: ns017336.main.eds 1/26/2007 10:43 AM Page 158 Copyright @ 2007. Jist Publishing. All rights reserved. May not be reproduced in any form without permission from the publisher, except fair uses permitted under U.S. or applicable copyright law. 18 Chapter 16.qxp EBSCO : eBook Academic Collection (EBSCOhost) - printed on 2/13/2018 11:50 PM via POST UNIVERSITY (TRAURIG LIBRARY) AN: 176104 ; Piotrowski, Katy.; The Career Coward's Guide to Interviewing : Sensible Strategies for Overcoming Job Search Fears Account: ns017336.main.eds Welcome - Have you ever wondered if you could have negotiated a better job offer? What hiring managers are really thinking? Or even if coworkers are doing something different than you, something better? Today's job market is very different than 10 years ago or even three years ago, and negotiation strategies are changing along with it. Whether you're looking to advance your career, make an internal move, or even land that first job, it seems hard enough to find that right opportunity. But then you worry if you're being offered a good deal. That's what this course is all about, learning how to get what you want out of a new job offer. We'll talk about evaluating the offer, negotiation myths, strategies, as well as unexpected situations that might arise. I'm Christine, and I've dedicated my career to coaching professionals to successfully navigate their career path. After years in human resources helping organizations find and hire the best people out there, I have a unique insight into what goes on behind the scenes in the hiring process. And I'd like to share these insights with you. In this course, I'm going to show you how to effectively navigate today's job offer process so you can get the best compensation possible. With a little preparation and practice, the right job and right offer are out there waiting for you. Let's get started. 1. What happens before you get a job offer Research the position and salary range - As if searching for a job wasn't stressful enough, knowing which role and potential offer will actually be right for you can be even more confusing. The right role sets you up for a journey of opportunity and growth. The wrong role can take you down a detour that leaves you disappointed. Even if the price seems right, the role can end up being wrong if you don't do your homework. So, how do you know if you're on the right track? A great starting place is to take a closer look at the actual job you're considering and figure out what it is and what it isn't. This means taking a deep dive into five aspects of a new role. Let's start with the most straightforward one, key responsibilities. Yes, you'll have a job description to consider, but at the pace companies are moving, I've found they can be out of date. To get the most accurate picture, can you envision what a day in the life of this job looks like? What percentage of your time would be working alone, or in meetings, creating new things? Also, consider what kinds of decisions you'll be making. Does this align to the level of responsibility you're looking for, or are comfortable with? Next, consider the challenges that might come with this job. Ask the recruiter or hiring manager what challenges they expect someone in this role to encounter in their first 90 days. What about growth opportunities? Most professionals see their job as more than just a paycheck. We want careers that help us grow. So, ask yourself, will this role provide opportunities to work on the type of things that I find exciting? Will it allow me to make the type of impact that I want to make? Culture and team environment are other important factors. Do you have a good understanding of the company values? What about the reputation of the person you'll be reporting to? Do you know what kind of team members you'll work with? Lastly, is location and travel. Although the location of the job should be clear from the onset, you should have a good understanding of what percentage of this role's time requires travel and to where. Once you feel you've got a good handle on what this job is and isn't, it's time to figure out how much it pays. You may hear this referred to as market value for a position. I try to focus on three main aspects of determining a job's market value, their industry, job title, and location. Many people turn to online resources like Salary, PayScale, or Glassdoor.com. I've found these sites to offer some relevant information. Be careful though, sometimes the information you gather may be different than what the company has researched. I remember a candidate once presenting a salary benchmark that seemed out of place, and when I asked them where they came up with that number they said the internet. With that said, I like to start with The Bureau of Labor and Statistics, or BLS, and then compare that to the newer sites. The BLS website allows you to search over 800 occupations. This means that you can explore major occupation groups, as well as subcategories to find similar positions. All of these resources I've mentioned will give you some good data, but due to the unique and changing nature of many jobs and industries, especially in the tech space, this data doesn't always tell the full story, but should at least get you in the ballpark and avoid siting the internet as your benchmark source. Once you have this, you can also take it a step farther and try validating it with the people in your network. I've found it really valuable to tap into my LinkedIn network and find people with similar job titles. I then asked them questions about the data that I found, not how much they make. I found people to be fairly open to telling me if they think my range is too high or too low. This will get you as close to establishing market value as possible. You know you've done a thorough job researching if you can clearly articulate what the role is and might not be. I found that by doing this research up front, you put yourself in a powerful position when it's time to negotiate later in the process. Get clear on what you want - Have you ever stopped to think about what you really want in a career? What will truly make you happy? What makes a job the right fit for you? It's pretty natural for us to jump into a job search without pausing to think about what it is we truly want and need to make a new job opportunity a smart career move. Sometimes we're attracted to a company's brand, a prestigious job title, or even a salary amount, and don't think about what will support our longer term career goals. Taking the time to get clear on what you want and need in a new role will help you evaluate if the role meets those needs. You can do just that by using this simple three step formula. Take a moment to download the exercise file, getting clear on what you want, to record your answers. The first question to think about is what are my must haves? When you think about the next one to three years, what's most important to you? This question really comes down to values. Think about where you're at in your life right now and where you want to be in the near future. It's okay not to have a specific step by step map for the next 10 years. In fact with the pace of change in the world we live in, thinking about the next 12 to 36 months is sufficient and realistic. What core needs must this role meet? Is it how much you're making? The type of work you're doing? Is it job security or even excitement? Some people value freedom and flexibility, where others value working on a collaborative team. Sometimes the best way to answer this question is to think about why you left or are looking to leave your current role. It's also important to think about overall lifestyle and be honest with yourself about what motivates you and what types of environments are best suited for you. For example, many people I coach come to me saying they want to grow their career. They see the only way to do that is to take on a management role, so they start applying for roles with a management title. However, once we talk through this question a little more, I learn that they really don't enjoy developing others, or based on what's going on in their personal life, may not have the time to put in the extra work hours, which is often the case when leading a team. So to answer the question, what are my must haves, you can use the exercise file provided to identify what's most important to you. You can then keep this list on hand when you're evaluating a new role to see how closely they align. The next question is what are my walkaways? This is about getting clear on where you'll draw a line in the sand. What are the aspects of the job that are simply nonnegotiable to you? I remember a conversation with a former coworker, Michael, who shared with me that he wanted to leave his current job because he had a new baby, as well as a young child in school, and felt he was on the road too much. Based on this life change, he determined he wouldn't accept a new offer that asked him to travel a lot or far from home. To make sure Michael was clear on this as a walk away, I asked him what if the job offered you a big salary increase? This made him think. Money was high up on his must have list. However, after we talked it through, he came to the conclusion that based on his current life priorities, frequent travel was indeed a walk away, regardless of how high the salary was. Look at your life right now. What are your most important priorities when it comes to a career move? These will help you determine your walkaways. Lastly, and since no role is perfect, you should be prepared to answer the question, what are my trade offs? This last question makes you think about what you're willing to give up for something else in return, so for example, you get a job offer that includes frequent travel, which is on your walkaway list, like Michael, but in this offer, you're getting the promotion that was on your must have list, and the salary's at the top of your range, so that's a trade off you might be willing to make. Let's go back to our original question. What are you looking for in a career move? By getting really clear on your must haves, walkaways, and trade offs, you should be able to confidently have this discussion with a potential employer. Most importantly, it will help you evaluate a potential offer, and when the time comes, also help the company in constructing an offer that will be attractive to you and make the negotiation process that much easier for both parties. Establish a salary range with the employer - Have you ever been asked by a recruiter, what's your current salary, or what are you looking to make? It's as if time stops and your brain plays out different scenarios. If I answer too low, could I be leaving dollars on the table? If I answer too high, could I get passed over for an interview? It's inevitable that you'll be asked these awkward questions in the job offer negotiation process, and you want to be prepared to answer with what I call your salary story. Let's start with the question, what's your current salary? Recruiters continuously tell me they wished candidates would answer this question more directly. Consequently, I have found that the answer to this question doesn't determine the offer you'll receive, it just helps recruiters ask follow up questions to determine if they can afford you. If they can't, most will let you know up front. If that happens, and you're still interested in the position, you can always respond by saying that you're willing to negotiate for the right opportunity. So, when asked this question, it's best to answer with your current salary, or salary history if requested. However, if the recruiter doesn't ask about other forms of compensation you may be receiving, clarify so they can get the whole picture. For example, if you have bonus opportunity or a car allowance, make sure the recruiter knows. This will help them understand your total compensation rather than just salary. On the flip side, some candidates find themself asking the recruiter, what's the salary range for this position? If you ask this question, don't be surprised if you don't get a direct answer. Recruiters prefer for you to do your homework and let them figure out if you're a fit. The second question that can cause stress is when the recruiter asks, what are you looking to make? The worst answer you can give is no answer. Although you may have a number in mind, most people do, the total compensation package, which includes other benefits like medical or retirement is more important than just salary, and until you know the details of the job and the offer, you'll want to avoid just throwing out a salary number. This is where I find a lot of people get into trouble. Instead, you can share where you're at in your career, and what kind of move you're looking to make. If they still push for you to reveal a salary amount, then you should be prepared to share your salary research in the form of range. Let's look at what this conversation might look like. So, Holly, we're interested in learning more about your background as a candidate for this position. However, before I schedule an interview with our hiring manager, I would like to know what you're looking to make. - Thanks Christine, I'm interested in learning more about this position as well. In regards to salary, I'm looking for an opportunity for a promotion. - Okay, so what does that look like to you in terms of a salary amount? - Well, based on my research, I would imagine that would include a salary somewhere in the range between $75-$90,000, but I'd like to consider all aspects of an offer, not just salary. Does this align to your budget? - In this scenario, the candidate ended with a direct question, which should yield a quick response. If the recruiter says yes, then you know you're in the ballpark. If they say no, then you can ask where you're misaligned. If the recruiter tells you you're far off of their budget, this probably isn't the right fit for you anyways. If only slightly off, then it's up to you on whether you want to move forward. If you do, then you have to do so with the understanding that the base pay may be lower than expected. In this case, you should ask what else the company offers as part of its compensation package, maybe stock or flexible work arrangements, great medical benefits. As an HR professional, there's one fact about the job offer process that I think most people would be surprised to learn. Once a recruiter understands your current compensation and salary story, and assuming they think you're a good fit, they expect to make an offer that includes a five to 10% increase from what you stated as your current salary. Essentially, the recruiter's your advocate, so it's best to be honest with them up front. They're motivate to fill jobs as quickly as possible with the best candidates. Saving money isn't actually a goal for them. If they think you're a great fit, they'll mediate as much as they can to align your expectations with the budget they've been given. They don't want to lose you. Although, being asked about your current and desired compensation can seem like an awkward conversation at first, if you've practice how you'll respond you'll feel much more confident, and therefore sound more confident. You'll also be making the recruiter's job easier by being clear, transparent, and direct. This translates into them wanting you even more. 2. Receiving and Evaluating an Offer What to do when you receive an offer - Congratulations on receiving an offer for a new role. I know it can be very tempting to say yes right away, especially if you've been searching for a while. But, do you really understand all of the terms of the offer? It's important to give yourself enough time to review the offer carefully. Keep in mind that once you accept an offer and start a new job, most of the terms will never change, and it can take up to a year or so to revisit your base salary. So, looking at the offer in more detail is something you want to allow time for, even if at first glance it looks promising. Before you get into the terms of the offer, always start by showing excitement. This sets a positive tone for the rest of the conversation. You can say something like, thank you for an offer to work for your company, I'm excited about the opportunity. Let's go through step-bystep how the rest of the process might unfold. It's not uncommon for your first offer to be given verbally. Sometimes, a recruiter will run the salary portion of the offer by you first before presenting a formal offer letter. They do this to try to avoid a lot of extra paperwork with the candidate and the hiring manager they're supporting. Now's the time though to ask for it in writing. This can be an email or letter. For example, you can ask, would it be possible to get this in writing so I can review it in more detail? If the company refuses, I would be leery of the legitimacy of the offer, or perhaps who's making it. The next step is to clarify how long you have to review the offer. I might say, when do you need to hear back from me? Or, when is a good time to discuss the offer? Most recruiters are comfortable with the candidate asking for 48 hours to consider and respond. However, it's always good to ask for the timeline just to be sure. So, what happens if you want more time than the recruiter asked for? Let's say you want a week and the recruiter gives you 48 hours. In this situation, it's most important to be able to explain why you need this time. Is it to review with family, or maybe even to compare it with an offer from a different company? If it's just a few more days that you need, I would keep it simple and say something like, I'd like to review the offer with my partner and we won't be able to discuss it until Wednesday. Would it be okay if I took an extra three days to do so? When the candidate asks for too much more time than what was offered, it's often interpreted as the candidate using their offer to negotiate another offer without actually saying that. This can put a bad taste in the employers' mouth which can hurt you at this very critical juncture in the negotiation process. But let's be realistic here, it may actually be what's going on for you, so you need to be able to carefully navigate this. If this is the case, it's best to be transparent. Tell the recruiter that you're also interviewing with another company and want to honor their process. Explain that you want to be fair to both organizations, and make sure you give the other company time to submit an offer. This should typically take no more than one week, or you can put yourself at risk of losing your offer. If your timeline is reasonable in the eyes of the company, they'll most likely grant you the time you need. However, if it's more than a week, don't be surprised if you're told they need a response sooner. Put yourself in their shoes, it's likely they've been searching for the right fit for their role for a good amount of time. This means, that while the role is vacant there's work not getting done. This will make them eager for someone to get started. If you received an offer, they see you as just the person to do so. They'll also be offended if you're just using them to get an offer so you can leverage it to negotiate a better deal somewhere else. By getting the offer in writing and asking for a clear timeline to respond, you've given yourself some breathing room for the next step, reviewing the details of the offer. You should feel good that you've been selected for the job, so carefully navigating this small step in the process is important for the next stage of your negotiation. Common terms and factors in an offer - Sometimes it seems as if you need to be a lawyer to understand an offer for employment. With an increase in small companies and start-ups, job offers today are more diverse than ever. Along with common terms like salary and bonus, it's becoming more common to be offered things like equity and unique benefits. Since each company develops their own set of perks and incentive based on their unique culture, it can be challenging to understand what you're really being offered. There are typically six key compensation factors to consider. Keep in mind that not all companies will offer you all six, but usually some combination of them. We'll review each one and discuss the types of questions you can ask if you don't fully understand its value. Let's start with the most familiar one, base pay. This is the one most of us already understand. Base pay is the total salary as well as when you will receive paychecks. For example, your base pay will be $75,000 annually paid monthly. Two, there could also be bonus pay. This can be a guaranteed amount with a specified time line for payout, like you will receive $2500 at year end. This can also be a discretionary bonus that says you can earn a certain amount dependent on company or team performance. A common example of this is when companies give you a target percentage of your base pay, say 10%. If the company hits their revenue targets and you also achieve certain goals, then you receive a payout equal to a certain percentage of your base pay. Number three, paid time off, often referred to as PTO, is also a very common benefit you might see in an offer. PTO refers to the amount of time off you can take fully paid. Make sure you understand if this time is earned over time or if you're given this upon starting with the company. For example, some companies will provide 10 days paid time off, but you accrue that time after your employment begins; therefore, you need to be with the company for a year before you've accrued all 10 days. Number four, companies will also offer some mix of fringe benefits. This is represented in elements like health insurance, retirement savings, long and short term disability, or life insurance. Since most offer letters don't provide details on these benefits, it's okay to ask the employer for additional documentation. The next two, stock and equity, are probably the most confusing to understand, but are also becoming more and more common with the increase of start-ups. Stock is partial ownership in the company. It can be a grant given to you or a stock option where you have the right to buy a share of the company's stock at some point in the future at the exercise price. This can be tricky to evaluate. If stock is a significant part of my total compensation, I would wanna understand three things. First, what percentage of the company do the options offered represent? This is more important than the total number of shares. Second, what's the vesting schedule? For example, how long do I need to be an employee before I'm fully vested, meaning I own the full value of the shares I was offered. And third, does anything happen to my vested shares if I leave before my entire vesting schedule has been completed? This question will help you evaluate how long you need to be at work for this company before you can realize this benefit. The final element you might be offered is equity. If considering joining a start-up, you may be offered a certain percentage of equity in the company as part of your offer. Since the company may or may not have a liquidity event, like being acquired, in the duration of your employment, there's no guarantee here, but may be a great opportunity if many of your other needs are met. Equity can be a complicated aspect of an offer to understand. Let's start with what equity is. Equity is non-cash compensation in the form of ownership interest in the company. If the company is a corporation, the equity may be in stock, stock options, or other kinds of ownership interests. Or equity may be in the form of membership units in the case of a limited liability company. Regardless of the form it's offered to you in, it's intended to motivate and retain employees. From the employer perspective the thought is if you stay with us for a period of time not only will you get salary and benefits, but you'll also become an owner of the company. If we sell or go public, you'll make a lot of money. You need to not only understand the current value of the equity, but also consider what the equity could be worth one day. If you find yourself in a situation where equity is part of your offer, I recommend a few online resources to get more information. Investopedia.com is a good resource for understanding the financial terms. You can also use Angel List's salary feature for salary comparables that also include equity. That way you can compare apples to apples. I advise candidates to make a list of all of their questions in one place after reviewing their offer. This may be the only time to get clarification on the details to fully understand the total compensation picture. Now, when you respond to the company you'll be organized and can genuinely evaluate if this is the right fit for you. Evaluate total compensation - You've just received an offer and had time to review the details, but how do you know if this is the right job for you? Starting a new job at a new company or department is a big decision. At first an offer might look good. You may be excited about the pay, the title, or even the company itself. But at this stage in the process, it's time to ask yourself, is this job the right fit for me? If I take it, what am I gaining and what might I be losing? Do these things align to my must-haves or the things I believe are the driving factors for me to make a job change? If it doesn't a hundred percent, what am I willing to trade off or give up? For example, if you value stability and security, a good offer for you would have a competitive base pay, strong fringe benefits, and a potential bonus opportunity. An offer weighted heavily on equity or stock options may not meet this need if you're taking a reduction in base pay. I'm going to share with you the questions that I ask people I'm coaching through the job offer process As you answer each question, think about what's most important to you and what you're willing to sacrifice for something else in return. If you use the exercise file, Getting Clear on What You Want from earlier in this course, you can compare your answers to your list of must-haves and trade-offs. First question is am I being offered fair market value in my base pay? Are the variable compensation opportunities like bonus, stock, or equity or commission aligned to my need for stability or growth? Do I believe in the products and services this company offers? What's the companies reputation? How do they treat their employees? Do they share my values? Can I successfully manage the hours, travel, and commute needed to meet the job requirements? Will this job help me meet my long-term career goals or personal goals? Do I like the people I'll be working with, my boss, my co-workers? Will I be to add the level of value and impact I desire to feel fulfilled? Another way to determine if this is the right fit for you, is to make a list of pros and cons of accepting the job. For example, by accepting this new position, what are you gaining? Is it more money? An opportunity to work with innovative people? Or even a prestigious brand that will be a great addition to you resume? On the other hand, what might you be losing? More time commuting? More travel meaning less time for family? Could you be losing stability and increasing risk? There are no right or wrong answers to these questions. Each of has different needs and goals that can shift throughout our life. Just because the job sounds great to others doesn't mean it's right for you. Think about what's most important to you in the next one to three years, and make a decision based on your values, needs, and career goals. If you do that, you can't go wrong. What's most negotiable in a job offer? - Are you happy with your offer? Are you ready to say yes? Or do you still have questions? Are there some things you feel you should negotiate? By the time an employer makes a formal offer, in most cases, they have already considered the value they believe you'll bring to their organization and weighed that against their budget and how your peers are compensated. This gives them a formula to make you an offer for what they call total compensation, and one they most likely believe you'll accept. This doesn't mean, however, that there's no room for negotiation. Before you can negotiate, though, it's important to know what's typically negotiable and what may not be. This will give you the best possible chance of getting what you ask for. What's commonly negotiable continues to change. Most companies today have established paid time off policies and bonus structures, which has made those items increasingly difficult to negotiate. So if you aren't happy with the amount of vacation days you'll be allotted or want a higher bonus percentage, you may be wasting your time trying to negotiate them. If the company has structures and policies in place where all employees at specific levels in the organization receive the same level of benefit in these areas, it's unlikely they'll make an exception. Instead, focus on elements that are typically more flexible. For example, base salary can be negotiable along with equity and long-term incentives, like stock options. Sometimes the most powerful negotiation points aren't in the offer letter. They're benefits that often don't cost the company any money, but can make a big difference on your end. This takes some inside knowledge and a bit of creativity. Have you ever asked for a sign-on bonus? This typically isn't something the recruiter is going to freely offer up. So it's up to you to bring this to the table as a potential negotiation point. The key is having a good case for it. Let's say that by accepting this new offer for employment, you'll leave your current role in the middle of a bonus cycle. You estimate that by resigning before you are eligible for your bonus payout, you'll be walking away from approximately $7500. You can leverage this potential loss with the new offer and ask if the organization can make you (mumbles) by granting you a sign-on bonus in the same amount. Sign-on bonuses are one-time payouts. Therefore, they're not repeated every year, which means they don't affect salary. Since it doesn't increase the salary line in their budget, it might be something the hiring manager can approve without disrupting any kind of internal equity concerns. Meaning, the fear of paying employees in similar jobs with similar experience differently. Other things that you may be able to negotiate are also not in the offer letter. For example, maybe by accepting this job you're doubling your commute or maybe the job requires a lot of travel. These are good reasons to explore flexible work arrangements. Let's say that you've learned that their salary offer is the best they can do. Would it make a difference if you could work from home one day a week? That could mean less transportation cost and less time spent commuting, which means money in your pocket. In this case, you would be gaining something and it would cost the company little to nothing. Many companies have relocation programs. They're usually reserved for people who are moving a great distance. But there may be situations where these funds can be applied for partial moves. Let's say that you live far from the office and have been asked to be present every workday, is there an option to be compensated for moving closer? Or maybe have a company-subsidized apartment or a hotel room for a period of time. As we discussed earlier, vacation programs are becoming more challenging to negotiate. However, there may be an opportunity to ask for a one-time exception. As with other options, you should have a strong business case for asking. An experience I've had as a recruiter is when we were eager to fill a vacant position, we asked the candidate to start sooner than the date they requested. The candidate responded that they could make that happen, but they had a prescheduled vacation shortly thereafter. In this situation, they might ask or we may offer to take the prescheduled vacation, but before the company's standard vacation program would normally allow. In this case, you'd be asking to take the vacation and not have it recorded against your paid time off. Essentially, you'd be getting extra paid vacation time. Knowing what elements of your offer are more negotiable than others is an important part of the negotiation process. This is experience true when it comes to negotiation points that most people never think about. The goal is to not only feel comfortable saying yes to the offer but being excited to do so. 3. How to Negotiable Salary Prepare questions and counter points - Are you excited about your job offer, but hoping there's a little wiggle room on the salary? Or maybe after looking at the details you're confused with some of the terms. It's time to prepare to negotiate. Since it's likely that you'll only get one shot at negotiating the terms of your offer, I've found it to be most effective to ask all of my questions at once. This means before you respond to the company, you should be prepared with one list containing all of your questions and counterpoints. In some cases practicing actual counter negotiation points can be especially helpful. Let's start with the most common questions asked at this stage in the process. Can the base salary or bonus be increased? What's the value of the medical or retirement benefits? Is there any opportunity for flexible work arrangements? What happens if I already have a vacation planned that exceeds the amount of paid time off offered? Let's take a look at each question and talk through what you might say when it comes time to negotiate. The first question is can the base salary or bonus be increased? Do you believe you should be paid at a higher rate? If your market research indicates there's room to negotiate here, a good counter negotiation strategy is a yes or no question. For example, you can say, "I'm really excited to work here "and I know I'll bring a lot of value. "I appreciate the offer at $60,000, "but was really expecting to be in the $68,000 range "based on my experience and past achievements. "Can we look at a salary of $68,000 for this position?" Another strategy is to inquire about future opportunities to increase it. You can ask, "When will I be eligible to be reviewed "after I start?" For example, if the salary isn't negotiable now, but the review process is in six months, then you'll be eligible for a raise at that time. Then you may decide you're okay with the salary offer as it is. If a bonus is being offered, are you unsure how predictable it will be? You can ask some clarifying questions to gauge the likelihood of what you'll receive. I like to ask what the bonus program has paid out in the last two years for this role. Also, if by accepting this offer you're walking away from a bonus payout with your current employer, you can ask if the company is willing to add a sign-on bonus in good faith to make up for your potential loss. The second question was what's the value of the medical or retirement benefits? Are you confused about the real value of the benefits like medical, retirement matching, or life insurance? Since every company has a unique set of benefits, it can be confusing to understand if they'll cost you more or less than what you currently have, or what another employer might offer. I advise people to ask to speak to someone who administers the company benefits program to better understand what these programs look like in real financial terms. For example, if you're planning on your medical benefits to cover family members, then you would want to calculate what this coverage costs and what the benefits are. Or if you're receiving a 401K match from the company, is it less, more, or the same than what you're currently receiving? The third question is is there any opportunity for flexible work arrangements? Are you concerned about your commute or amount of time you may spend in the office? In this case, you can ask if the company allows for flexible work arrangements. For example, if by taking this position your commute is longer than it currently is, you can ask if you can work one day a week from home to save on gas and time. The fourth question is what happens if I already have a vacation planned that exceeds the amount of paid time off I was offered? Let's say you already have a vacation planned, but by accepting this new offer won't have earned enough time to be paid under the policy. You should ask if you'll be taking the time unpaid, or if the company can waive it as a part of your acceptance, or even allow you to carry a negative paid time off balance. This is your final chance to get clear on what you want to accept an offer and what would make you walk away. Once you've had a chance to evaluate each element of the offer, you should have a list of questions and counterpoints. Once of the biggest mistakes I see people do at this stage of the process is contact the employer with a series of calls and emails as they think of questions and counterpoints. This can not only confuse the other party, but confuse you as well. By being prepared and clear with what you truly need to accept the offer and what's simply a nice to have, you can greatly reduce the stress you may feel and make it easier for the company to find ways to make you happy so you can say yes. What to avoid in a negotiation conversation - Most of us don't like talking about money, and despite the fact that most of us prefer to avoid it altogether, or even get it over with as fast as possible, it's important not to fall into common negotiation traps. A misstep during the negotiation process, or worse, your failure to negotiate at all, could end up costing you thousands of dollars, or even the job altogether. Let's talk about some of the most common traps people fall into. As we review each one, pay special attention to the ones that might be tempting for you. The first one is being unprepared. You can avoid this by doing your research upfront, so by the time you get to negotiating, you are not only prepared, but can speak intelligently about the offer. The next is focusing only on salary. Remember to look at the total compensation package. If you don't, you may be missing out on the important parts that will actually boost your income. Another trap people fall into is making it personal. Keep in mind that this is a business conversation. Even though accepting a new job, and the terms that come along with it are very personal to you, it's a professional conversation, so when negotiating, never make it about your personal situation. I've had several recent graduates tell me, I have huge student loan debt, so I will need another $20,000 in salary to make ends meet. I know it's tough, but the employer doesn't need to know this. If you want to negotiate salary, speak to what makes you special as a candidate, and why your contributions to the role are worth more. During the negotiation process, some people can come across as entitled, or inflexible. When an employer makes you an offer, it's important to always start by showing gratitude for being selected. Be careful to avoid appearing argumentative at any given point, or making the recruiter feel like they're your personal assistant. They are the voice of the company, and can help your cause, if they like you. Other people come back with too many rounds of counterpoints. If you've asked for specific terms, and the company puts them in the offer, or comes back with them after negotiating, it's frustrating when you counter yet again. For example, if you've provided a desired salary sometime in the interview process, you are essentially saying that you'll be happy with that salary. The final trap I see people fall into is being unrealistic. Just because you want it, doesn't mean it makes good business sense for your potential employer. Keep in mind that, for a company to make an offer, they have a system of benchmarking, and policies to follow. Even though many terms can be negotiated within reason, if you appear unrealistic, you could lose the offer altogether. If you make a solid business case using facts and data to support your claims, you will come across as knowledgeable and trustworthy. Those are the types of qualities employers look for in a new hire. Don't worry if you've identified a trap or two that you've fallen into before. We all have a one point or another. The important thing to take away from this discussion is to learn from your mistakes, and the mistakes of others. Awareness can be the difference between not getting what you want, and setting yourself up for a smooth, and hopefully painless negotiation. Salary negotiation myths - Have you ever received negotiation advice that the person who talks first will lose, or the first offer you receive is intentionally low because it's expected you'll ask for more? These are just a couple of the rules you may have prescribed to in the past. Today's organizations are more diverse than ever, and transparency is increasing, especially in the job offer process. Where it can get tricky is navigating which rules still ring true, and which are nothing more than myths. Could you be falling prey to any of these myths? Myth number one, the company is out to get the best deal possible. It's true that companies have budgets and are held accountable for their spending. However, when it comes to pay scales, most do a lot of research to establish ranges for each position. Their goal is to attract the best people they can afford and retain them as long as possible. Companies also look at internal equity, which means they try and make sure that employees in similar roles, or at similar levels of experience, are compensated within the same range. So, when you receive an offer, it's not about the company spending as little as possible, but rather them wanting to make you the best offer to get you to accept and stay long enough to add value. Myth number two, if you disclose your current salary you'll be offered a lower salary. Let's say your salary history is not what you'd like it to be. You can still make a business case for a higher value. Highlight how you've developed your skills, taken on extra assignments, and showcase talents by showing examples of your work achievements. Myth number three, companies will be offended if you negotiate. Unlike the last myth, there are many people that believe that if they negotiate any part of the deal they could turn off the employer. This belief became especially real for people who received job offers during our last recession, and there were far more candidates than there were jobs. The thought was, if I don't take the first offer it will be given to someone else. Keep in mind that the employer may have a second or even third choice if competition is high for a given role. However, if the employer selected you, it's because they believe you're the best fit for the role regardless of the competition. They want to pay you enough to make you want to accept their offer. If they've missed the mark, they want to know, and expect a counter offer. Myth number four, everyone knows how to negotiate but you. Let's face it, most of us aren't good at negotiating in general, let alone on behalf of ourselves relating to money. We often perceive that everyone else must be good at it and we're the only ones feeling uncomfortable and awkward. Several employee surveys have revealed that upward of 90% of respondents report not feeling skilled in negotiating, many of whom admit to just avoiding negotiating altogether in their last job offer scenario. The message here, you're not alone. The good news is that if you're not one of the few people born with the negotiation gene, it's a skill you can learn. By applying just a few tips here and there, you can make sure you negotiate a better agreement than if you did nothing at all. Myth number five, you can lie about your current salary to get a higher salary offer. This is one of the most dangerous myths I've seen in action. We've all heard stories where someone bluffed their past salary and believed that helped them get a higher offer. I'm not saying that this has never worked in anyone's favor, but there's a risk that may outweigh the possibility. The danger is that many employers verify salary history, either by checking with your previous employer or directly asking to see a recent W2. The catch is that this verification often happens after you've accepted the offer and is part of your new hire paperwork. This means that you're at risk at being caught in a lie after you've resigned from your current job. So, did any of these myths sound familiar? The tricky thing about them is that you may be operating under them and not even know it. My hope is that you have a new awareness about some of your beliefs about negotiating a job offer. A new awareness can bring new behavior, hopefully inspiring actions that will help you negotiate the best deal possible and have no regrets after the fact. Respond to unexpected situations - So you successfully made it through the job offer negotiation process. Or so you thought. Although most negotiations result in you starting your new job, there are a few instances that may catch you off guard. I'm going to present a few potential unexpected situations that I've seen put a wrench in negotiations or even damage someone's reputation. Let's start with the most common one. What if the hiring manager says no to your salary counteroffer? Making a counteroffer can seem awkward enough, but to then receive a no to what you've asked for can feel not only disappointing, but also discouraging. However, it's not necessarily the end of the road. I advise people to listen carefully to what's behind the no. Some employers will be very direct and explain exactly why they're unable to increase the salary offer. It could be budget restrictions or even timing, while others may just come back with something more vague, offering little to no explanation. Let's look at the first scenario, where an explanation is offered. - We're all very excited about the possibility of having you join our team. I'm sorry to say, though, I wasn't able to get the higher salary amount that you asked for. It was simply over our maximum budget for this role. - Well, thanks for letting me know. I'm really excited about joining the team and I understand about the budget. I believe my skills are a perfect fit for this role, and I wanna find a way to accept the offer. - Well we want the same thing. - Do you think that maybe you can make up the difference in the form of a sign-on bonus? And I'd also be interested in learning more about when I'll be up for review and eligible for a salary increase. - In this scenario, there's probably no point in continuing to negotiate base pay. However, if you're really not happy with the total offer, this is the time to ask about other negotiation points, whether it be a sign-on bonus or even a promise to be reviewed at a later date. Let's take a look at the second scenario, where no explanation is offered. - Holly, I'm sorry, but we were unable to increase our original salary offer. - Thanks for letting me know. I'm excited about joining the team, but I think my skills are perfectly suited for this position, and based on my research, are worth 90,000. - In this scenario, the candidate makes a statement that will prompt the person making the offer to respond. The worst thing they can say is another no. In many cases, however, I've seen the company come back with something closer to what the candidate asked for. If they can't do that, I've also seen them initiate an alternative way to make up the difference, whether that be a sign-on bonus or even consideration for a raise in the nearfuture. Another unexpected situation is when the company rescinds their offer even if you've already accepted it. If you read the fine print in your offer letter, you'll notice statements like "at-will employment" and "depended upon mandatory conditions for the position" like a credit check, a reference check, or drug test. Although a job offer often looks like a legal contract, it isn't. That means that the employer can change the terms or rescind it altogether in the negotiation process. So why would an employer do this? The most common reason is if after accepting the position, you don't pass their background check. Another reason that's less common but does happen has to do with how you respond and how you communicate. I remember a candidate who, after going through our lengthy interview process, was presented with a strong offer for exactly what he asked for. I then gave him 48 hours to review and respond. Even after following up with him when the 48 hours had expired, he hadn't responded. After another day, he called me and asked for more money. When I asked him why he was no longer happy with the amount he originally asked for, he told me he did some networking, and now believed he was worth more. These were red flags for me, which I had shared with the hiring manager. Even though we may have been able to go a little higher on salary for the right candidate, we agreed that this candidate was either not reliable or not being forthright with us. Therefore, we rescinded the offer altogether. Finally, and maybe the most uncomfortable scenario, what if you want to decline an offer after you've already accepted it. So let's start with why you'd wanna do this. Chances are you received a better offer from another company, your current employer counteroffered after you resigned, or you just simply changed your mind. You're typically under no legal obligation and can decline at any time. However, it's regarded as highly unprofessional, and can damage your reputation if not handled well. To avoid this, I recommend immediately contacting the employer, preferably by phone, and explain why you've changed your mind. Let's take a look at what this conversation might look like. - Hi, Holly, how can I help you? - Hi, Christine. I wanna talk to you about the position I recently accepted. After a little more consideration, I've decided to turn down the offer. - I'm really disappointed to hear that. Last we spoke, you said you were really excited to join the team. We've already started making plans for your start date. - I understand your disappointment. You offered me a great opportunity, so it was a difficult decision to make. Do you mind sharing with me why you changed your mind? - After giving it more thought, I decided to accept another position that I believe is the better fit for my skillset, but I wanted to personally thank you and apologize for any inconvenience this may cause. I'd like to stay connected if you're open to it. - Most job offer negotiations go as planned, but sometimes situations arise that put you in the middle of an unexpected and possibly uncomfortable situation. What's most important is that you're aware of what could happen, and are prepared to handle the situation, even if it happens to you. 4. Special situations How to negotiate your salary when it's your first job - Many people have probably told you how hard it can be to find a great job but what about negotiating for a good salary when you don't have a lot of experience? Young professionals and recent college grads are up against a unique set of challenges that require a unique set of solutions. The nature of being a first time job seeker means you have little to no formal job experience to negotiate with. You face high unemployment and underemployment rates where people are more qualified than the jobs they have. You're also entering into the negotiation process with an unprecedented amount of student loan debt. Many early career professionals have shared with me that these factors have created a lot of fear and anxiety when it comes to negotiating their fist job offer. So what can you do about this? The most common question I receive from first time job seekers is how to respond to the question, what are you looking to make? As with all job seekers, research is extremely important but it's even more important as a first time job seeker. Considering the average annual salary increase is around 3%, getting even five thousand dollars more during your first negotiation can mean a world of difference over the course of your career. I advise all job seekers to take advantage of online resources like Salary, Pay Scale and glassdoor.com. However, as a first time job seeker, you can also tap into your alumni or professional networks. Try and connect with people in your desired industry or career field that will sit down with you for informational interviews. If they agree, you can not only learn more about their personal career path but ask, what does a job like this typically pay? People are more apt to share salary information with early career professionals. This is an advantage for you. The next strategy is to understand how to show a potential employer what kind of value you can bring even if you have limited professional experience. Think about internships, significant school projects and community involvement as potential to demonstrate your value. Recruiters understand the role of an intern and won't expect for example that you directly increased sales but if you can clearly articulate how your work aligned to larger objectives like a project getting done on time or a process becoming more efficient, they'll see you in the most professional light possible. Given that you don't have a lot of experience, one of the best tools you have to negotiate with is yourself. Employers will be meeting with a lot of entry level candidates. Most of whom won't have 100% of the qualifications they're looking for. What will make any one candidate stand out is how well they communicate, how clearly you speak. Avoiding slang and giving examples of follow through will signal those evaluating you that you're a good cultural fit and a valuable resource. This translates into higher salary offers and more room to negotiate. Lastly, salary can sometimes feel like the only important factor in a job offer especially if you have high student loan debt. Although salary is of course important, as a first time job seeker, opportunity for growth and learning can sometimes be equally, if not more important. Consider Malcolm and Janine. Two college friends who graduated together and just accepted their first job offers. Malcolm was able to negotiate a salary that was five thousand dollars more than Janine for his first role. Janine who was excited about the company and role she was hired into started to second guess how she negotiated. Maybe she should have been more assertive. Maybe she was taken advantage of. Had she made a mistake? Fast forward one year. Malcolm shares with Janine that he feels stuck. He received only a 2% increase in his recent review. He received no formal training and isn't enjoying the projects he's working on. Janine shares that she's being considered for a promotion due to her contributions on a big project. She also attended a leadership development program that has enabled her to improve her influence skills. Even though Malcolm made more money initially, Janine may actually be on a stronger career path that will ultimately yield more. So how do you know if a company will have strong opportunities for you? One of the best ways is to ask questions related to growth potential in the negotiation process. You can ask what kind of formal and informal training is available? What opportunities might there be for mentorships? What does the performance review process look like? Are employees reviewed once a year, quarterly? Negotiating your first job offer can seem scary and exciting all at the same time and of course you want to negotiate the highest possible salary to set the tone for future increases. However, taking time to look at your total compensation as well as what kind of opportunities might exist are just as important. When negotiating your offer, think about Malcolm and Janine. What will you be telling your friends one year from now about the offer you negotiated today? Negotiate a new role at your company - An internal move can be the ideal option when you want to take the next step in your career without feeling like you're starting over. You get to preserve your relationships, benefits, and credibility without the stress of a full-blown job hunt. While many companies encourage their employees to explore in-house options, the actual process can seem awkward at times. The biggest difference when negotiating a new position within your current organization as opposed to one from outside is that you're a known entity. The people you'll be negotiating with know your salary history, performance ratings, and reputation. This, of course, takes away some of your power in negotiating a salary amount. Therefore, internal etiquette can differ slightly than if you're being offered a job outside of the company. To best negotiate in this unique situation, you should first define the type of move you're considering making. Each type of move prompts different standards and negotiation strategies. Ask yourself what type of career move this new position will be. Is this a move up, sideways, or even down? Let's start with a lateral move. This is where the new position is at the same or similar level as your current role. For example, if you're a Senior Manager of Marketing and the new position is a Senior Manager of Sales, then you might conclude that this is a lateral move. Even though the content of the position is different, the company is likely to benchmark the position similarly. You can, of course, ask about a salary increase. However, if the company responds that this is a lateral move and doesn't have room to increase your salary, you can ask about bonus opportunity. Sometimes different roles and departments have different bonus programs or perks based on the work being done. You may find that although your salary doesn't change, or changes very little, you may actually earn more or less depending on the performance of the new department you're going to. What about a move down? In this case, the position may be at a level below your current role. It's not uncommon for someone to make this kind of move if they feel their current career path isn't right for them and they're making a choice to switch paths. To do so, sometimes you have to take a step backward first. Depending on how different the new position is from your current one, some companies will keep you at your current pay regardless while others may expect you to reduce your salary to be in alignment with peers in the new group. This is something you'll want to clarify up front. What if it's a promotion? This would be the case if the new position is at a higher level. For example, if you're currently a Senior Manager of Marketing and you're being offered a Director of Sales position, you have the most potential to negotiate a higher salary. In all three cases, I recommend to do your homework first. As with all job offers, research industry norms to establish a range. Although the person vacating the role, or peers of that role, may have the information you're looking for, under no circumstances should you ask them how much they're being paid. This could put someone in an uncomfortable position and in many cases, will get back to your new boss, which could create an embarrassing situation. If you aren't sure, but only want to make a move that's a promotion, then you can say something like, I'm excited about this new position as I'm looking to grow my career. However, based on our initial conversation, I'm not sure if this role provides an opportunity for salary growth. If they say no immediately, then you know this isn't really a promotion. And you'll have to evaluate if the opportunity is worth it. If you've established that the new position is indeed a promotion, then you can expect the company to start with an offer for a certain percentage increase from your current salary. If you're not happy with the number you've been offered, you can say something like, I really appreciate the opportunity and I'm excited to move into the new position. My research tells me that the role has the potential to be paid at a base salary of $90,000. Therefore, is it possible to get the base salary closer to that? When it comes to negotiating an internal move, you want to avoid putting anyone in an uncomfortable position. Remember, if things don't go well, you still have to work there so professionalism is extremely important. If you do your research and ask the right questions up front, you can give yourself the best possible chance to make a great career move without having to leave your current company. How women can negotiate with strength - Women earn about 90% of what men earn until their mid-30's. After that, the gap grows, in some cases, upward of 76% of what men are paid. Although there are thought to be several factors contributing to this gap, how women approach salary negotiations is believed to be a big contributor. Let's start by exploring why women may not be negotiating to their fullest potential. There are numerous studies out there that help explain possible theories. Some of their conclusions are it's expected that men will negotiate, but not the case for women. Women who negotiate can be perceived as pushy, greedy, or demanding. Women can negotiate for others better than on their own behalf. Women aren't sure what's negotiable and when to negotiate. Some women report they just don't negotiate at all. Some women believe that negotiating can cause confrontation, which would not be beneficial for a salary negotiation. Do any of these seem familiar to you? Regardless of the reasons that resonate most or least with you personally, there are some techniques and strategies that can help. The first is to recognize the job offer negotiation process as an opportunity to demonstrate your skills and confidence. The actual skill of negotiation is seen in great leaders. Of course, what you negotiate now will stay with you a long time. Every performance increase you get will be based on what you are currently making, so the more you get now, the higher your increases will be in the future. Think of the negotiation as an opportunity to set the pace for future negotiations. Second, do your homework. With knowledge comes power and confidence. If you feel secure in your information, it's more likely you'll demonstrate that in a negotiation and focus on a business conversation versus a personal one. Lastly, and perhaps most importantly, practice until you feel confident. Along with being armed with the right data, practicing answering potential questions and overcoming potential roadblocks can make the actual negotiation less stressful. When we're calm, we come across as more powerful. So, what should you focus your practice on? I recommend practicing making your business case. Practice statements about your worth, such as my research indicates that this position has a potential salary range of 75 to 90 thousand dollars. Given my 10 years of experience in this field, as well as proven results, I see myself at the top of this range. Also, practice answering tough questions or statements that might arise from whom you're negotiating with. For example, what would you do or say if the hiring manager makes you a lower than expected offer. Write down exactly what you would say and practice saying it out loud until it feels natural. You can also make a list of questions you can use to keep control of the conversation without feeling like you're coming across as confrontational or demanding. Some of those powerful questions are... Is this negotiable? When would you like an answer by? If there's no further room for negotiation on base salary, what can you do in terms of a sign-on bonus or stock options? Remember to negotiate a total compensation package versus just salary. If you focus only on the salary, you may be missing the bigger picture and miss an opportunity to negotiate other important elements. Negotiation is all about influencing another party to embrace a mutually agreeable solution. It's not about winning or losing. As women who may or may not feel comfortable negotiating, in the end, a successful negotiator is nothing more than a great communicator. They're master listeners who understand what's important to the other party and can then skillfully connect their needs to solve the other party's problem, skills that many women naturally bring to the table. Regardless of your personal beliefs or challenges in negotiating a job offer, being prepared will only increase your confidence and show the other party your leadership potential in action, making your value go up. 5. Transitioning to Your New Job How to give notice respectfully - You've negotiated and accepted a great new offer. So, what do you do about your current job? Well, many of us spend a lot of energy trying to land a new opportunity. Once the dust settles, we then realize we have to give notice to our current employer. Depending on your situation, the thought of this can be met with mixed emotions. Maybe you've been unhappy with your current boss and have fantasized how you would make a dramatic exit. Or maybe how you would silently disappear without a trace. Regardless of your feelings about giving notice, the biggest challenge for most, is sorting through those emotions and seeing the resignation process as a professional activity. When preparing to give notice, people often ask me, do I have to give a two-week notice? Do I have to put it in writing? Do I have to tell my boss in person? Do I have to tell everyone where I'm going or why I'm leaving? These are all important questions that need to be thought through before you take action. A great starting place is to remember the golden rule of giving notice. Never leave on bad terms. First, give plenty of notice. You're probably familiar with the two week standard. My advice is to not give less than this. However, it is not atypical to give more. For example, if you have a specialized skill set and leaving within two weeks leaves your current employer in a bind, you can offer to stay longer to train someone else. If possible, give notice in person as well as in writing. I once received a post-it on my desk from an employee indicating that she was giving her two week notice. As her manager, I had invested a lot of time and energy in training her and receiving this information on a postit, left a bad taste in my mouth. You don't have to provide every detail of your resignation, or even get too personal, if you're not comfortable, but should provide some basic courtesy. So, let's take a look at what this meeting might look like. - Thanks for meeting with me, Dennis. I wanted to let you know that I've decided to leave the company to pursue another opportunity. - I'm really sad to hear that you're leaving. You're an important part of the team, and we're in the middle of that big project. - It was a difficult decision. I'd like to give a two-week notice, but since things are so hectic right now, I'm available to stay an extra week, if you need me to. - You know that would really help. That would give me the chance to get somebody else up to speed, to keep the project moving. Thank you. - Okay, then, I'll just plan on staying three weeks instead of two and I'll follow up with a letter of resignation after our meeting. - You should also know that you're under no obligation to give additional details about why you're leaving. So, answer questions with as little, or as much detail as you feel comfortable. So how do you respond if your manager does ask you for more information? I coach people to be honest and professional. If you have a good relationship with your boss, you can offer constructive feedback, but remember not to make it personal. Ask yourself, how will this feedback be received? And how will I be perceived offering it? If you think there's any chance of backlash down the road, my advice is to not offer it up. In response to this question, I once had an employee whip out a laundry list of complaints, ranging from lazy coworkers to poor food choices in the cafeteria. I wondered why this employee waited until he resigned to share his feedback. It left me thinking that if he had put as much energy working on solutions before he resigned, as he did in typing out the long list for his exit interview, I might have been left with a better impression. The last tip is to show gratitude for the opportunities and relationships during your time with the company. You can send emails to those you want to show appreciation. Think about coworkers and senior leaders you've interacted with. Of course, don't forget to connect with them on LinkedIn. As you're giving notice, remember that this is a professional activity, and not your last chance to tell everyone what you really think of them. I realize there are cases when that might feel so good, but I promise you, it won't help you in the long run. If you remember the golden rule we started with, never leave on bad terms, giving notice can be a quick and painless process. Now, you can start your new opportunity with a clear conscience and the type of reputation that might bring about your next opportunity. Next steps - Each of us on average will have upward of 15 different jobs in our lifetime and that number is growing. Yet, negotiating job offers has become more confusing than ever. As companies continuously adapt to stay competitive, the job offers they make continue to reflect the same diversity. What we've covered in this course will give you the insights and tools you need to not only increase your awareness of what job offers look like today, but also help you be as prepared as possible and successfully navigate what can sometimes be a complex process. Whether it be thinking through your personal needs to preparing answers to tough questions or even learning from others' mistakes, this course is all about preparation and practice. I've also included a negotiation checklist in the exercise files, so you can get prepared and stay on track. The current state of negotiating job offers challenges us to be more transparent and more effectively utilize new resources to do our research. Just because you can find it online doesn't mean it's accurate. I recommend reputable online resources like Salary.com and Glassdoor.com, as well as LinkedIn, to help you research or validate compensation information. We've learned that by dispelling data negotiation myths, tapping into new resources, and getting more comfortable asking for what you want, you can increase your confidence and therefore take more control of your next career move. Negotiating the best job offer possible is all about knowing what you want and having the skills to ask for it. I hope this course helps increase your confidence and decrease your stress to make your next job offer negotiation smooth and successful. Connect with me on LinkedIn. I'd love to have you in my network and continue to share experiences.
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