Sealing The Deal: The Salary Negotiation Endgame

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After slogging through the interview process, you’ve received an offer and reached the end of the end game. You’re ever so close.

A company has made you a great job offer and you really want to work there, but as you review the deal points a few things make you hesitant. Whether it be the pillars of a typical compensation package –  salary, vacation time, health benefits, and retirement funds  – or other types of perks such as bonuses, the devil is not only in the details but in the negotiation over them.

This is not the time for recklessness – negotiations over salary are where many job offers tend to fall apart, and sealing the deal can be tricky. Here are some recommendations that may help you navigate this crucial final step:

1.    Take a deep breath. Then take an objective and emotionless look at the deal points that are the cause of your consternation. How would you rewrite them so that you would sign on the spot? For example, let’s say the issue is salary. You may feel the offer is too low – is it a knee-jerk reaction that you should get more, or have you done your homework and know empirically that you should get more? Have you done your research? Have you gone to payscale.com to gather market data? If you want to get additional compensation, quantifiable data from reputable sources can help you demonstrate that you should be paid at a higher level. “I want more” is not quantifiable data.

2.    Stay on target. If you want the job, and believe the compensation is near or within range, your goal is getting to a situation where you and the employer both agree to “Yes.” The pitfall here, unwitting or not, is turning a valid negotiation over a valid offer into a confrontation that suddenly slips out of control. Taking an adversarial approach or tone may place you in jeopardy of losing the offer altogether. Keep the mindset that agreeing on the terms of your employment is a collaboration with a common goal – “Yes.”

3.    Remember – the company wants to close the deal, too. Recruiting candidates and hiring new employees requires an enormous amount of time and effort. The company wants to make a deal. Nobody in the chain wants to start over. If you come to the table with reasonable arguments and viable solutions, the company should be receptive to the conversation.

4.    Call the person who made the offer. Once you have your strategy mapped out and your corroborating information at the ready, pick up the phone and call the person who extended the offer. Do not email. Do not text. Things get misconstrued in emails and texts. Do not leave a message saying you have “problems with the offer,” or other negative-sounding language. You’re close. So close. Don’t play games. Stick to your script.

5.    Try to understand the company’s compensation philosophy. They don’t know you from Adam or Eve. When you receive a company’s initial offer, it’s often a standard contract that matches their idea of how they pay their staff – they often have specific salary ranges for levels of skills and experience. Ask the recruiter how they arrived at the figure, understand their thinking, and then present your perspective.

6.    Negotiate strategically. There are many ways to prepare for a negotiation and if you have a tried-and-true method that works for you by all means stick with it. If you don’t, one simple and easy way is to structure your conversation into three parts.

• Share your excitement for the opportunity to join the company and your gratitude for the offer. 

• As concisely as possible, detail places in the offer where you believe there are gaps. articulate the reasons for your positions and present quantifiable data to back up your assertions. And if you’re willing to trade certain aspects of the offer (such as being willing to forgo additional salary in exchange for more paid time off).

•  Reiterate how much you want the position, demonstrate gratitude for his or her help, and strive to leave him or her with the impression that you would be a great person with whom to work. And close with an incentive – if they can meet your request, share that you’re willing to sign on the dotted line.

7.    Know when the end of the endgame is over.  Once you’ve laid out the details of your position on sticking points, it’s the company’s turn to counter-offer. Be aware that if the counter-offer fully addresses your concerns and meets you all the way, you will be expected to accept (doing otherwise would demonstrate bad faith). Don’t overstay your welcome. If the counter-offer still has a deal-breaker or two, there is wriggle room for one more try. But once it’s over, it’s over, and you’ll have to decide whether to accept or walk away.

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Philip Roufail contributed to this article.

Scott Singer is the President and Founder of Insider Career Strategies Resume Writing & Career Coaching, a firm dedicated to guiding job seekers and companies through the job search and hiring process. Insider Career Strategies provides resume writing, LinkedIn profile development, career coaching services, and outplacement services. You can email Scott Singer at scott.singer@insidercs.com, or via the website, www.insidercs.com.

Can I Negotiate A Raise In A Bad Economy?

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During an economic downturn, business still goes on. Sure, the purse strings may be pulled in tighter, but employers that remain in operation continue to deliver products and services.

And if you’ve survived layoffs and are still employed, chances are that your workload has increased as you take on new and additional duties in addition to your prior tasks.

If you’re feeling underpaid or undervalued, is it an unthinkable crime to ask for a more money? Not necessarily.

When the economy goes south, workers believe compensation increases are out the window, and in many cases that is true; but even if there are furloughs, layoffs, or a catastrophic corporate restructuring, in some circumstances a salary increase may be both possible and justified.

But a serious word of warning – if you do decide to ask for an increase outside the normal compensation cycle (i.e., end of year performance appraisals), you need to proceed with extreme caution. Asking a company to part with its money during a recession or any hard times comes with inherent risk. Here are eight factors to consider:

Factor 1 – Know The Risk. Asking for a raise at any time is gutsy; asking for a raise during a downturn might come across as insensitive (at least) to the current economic situation. If you don’t play your cards right, it could backfire. Not only might your request be refused, but there could be long term consequences in terms of your perceived value to the company or in terms of being viewed as a malcontent.

Factor 2 – Read The Tea Leaves. Perform an objective assessment of the economic landscape and your company’s position in it. If your company is having serious business challenges, use discretion in your approach. For example, if the company is undergoing salary freezes, payroll cuts, or furloughs, it may not be the best time to ask for more. However, if those same changes force you into a position where you are working much longer hours to keep the company afloat, the company may be amenable to your message. Consider the subtle nuances of your situation.

Factor 3 – Know Your Market Value. Do a compensation assessment; this should include current market salary research for your specific position, field, region, and experience level. If your compensation package is at or above market, a request for an increase is not going to be well received. If you’re below, you may have a case. Use validated sources like PayScale that provide an accurate reflection of actual market trends. Prepare to share this data with your boss as part of your pitch.

Factor 4 – Consider Your Benefits Package In Your Request. Remember, your compensation is much more than the raw base salary figure, your total compensation package includes additional benefits such as insurance, bonuses, profit sharing, and other perks. Delve into the fine print and make sure you understand how you stack up. Your $80,000 a year may already be better than the $100,000 market average if your total package includes lots of extra goodies, such as a health insurance plan that is 100% company-paid.

Factor 5 – Be Honest About Your Value To The Company In The Moment. If you’re a top performer whose expertise has been historically beneficial to your employer, you may have a bit more room to negotiate, even during challenging times. However, if your business is in cost-cutting mode, one day your role is essential and the next day it might not be viewed as such.. Think about how the change in situation impacts your immediate value and be prepared to defend your assertions that you’re essential.

Factor 6 – Timing, Timing, Timing! If you are absorbing the work of departing employees, or your duties have rapidly changed, you are in a more advantageous position to ask for an increase. If it seems you’re attempting to take advantage of a bad situation, your request will be denied and you may put yourself on shaky ground.

Factor 7 – Take A Collaborative Tone In Negotiations. Have an evidence-based conversation with your supervisor and/or human resources, and arrive armed with a well-researched pile of metrics that demonstrate market value and that show how the company will come out ahead by investing in you. Don’t threaten to quit (explicitly or implicitly) if you don’t get a raise – you could be an easy mark for the next of layoffs.

Factor 8 – Keep It Confidential. It’s common sense not to talk about delicate contract negotiations with your co-workers. If your employer ends up giving you an increase, and your coworkers hear that you received a raise, there’s a chance that they’ll ask for the same and put both your boss and you in a very uncomfortable position, while breaking trust. Don’t breathe a word.

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Philip Roufail contributed to this article.

Scott Singer is the President and Founder of Insider Career Strategies Resume Writing & Career Coaching, a firm dedicated to guiding job seekers and companies through the job search and hiring process. Insider Career Strategies provides resume writing, LinkedIn profile development, career coaching services, and outplacement services. You can email Scott Singer at scott.singer@insidercs.com, or via the website, www.insidercs.com.

How Do I Choose Between Two Job Offers?

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You’ve slogged through a competitive interview process at multiple companies and you’re ready for the job offers to start rolling in. Even better, you’ve been told you’re a finalist with two employers. Company A (we’ll call them Beam Me Up, Inc.) is a start-up developing the first teleportation machine, while Company B (We Make Flying Cars, Inc.) makes the most popular flying cars in the world. Great choices, right? It’s a great situation to have – how should you handle the multiple companies vying for your talents, and how do you decide which is the right for you? 

Consider the following scenarios: 

Scenario 1 – You receive an offer from the Beam Me Up, Inc., which is clearly your first choice. Many people use a situation like this to see if they can wrangle a better deal by pitting the two offers against each other. Think carefully before engaging this approach – the outcome of such negotiations can be unpredictable and might even work against you if it feeds a perception that you’re trying to incite a bidding war. If the offer comes up short of your expectations, you’re certainly well within your rights to try to sweeten the deal, and taking a collaborative approach with the person who extended the offer (something like, “I’d love to see if we can get to yes, I’d love to work with you!”) can help. If, on the other hand, the offer fell squarely within your expectations, it could very well be in your best interest to accept the offer outright and end your interviews with We Make Flying Cars, Inc. Start off on a positive note.

Scenario 2 – You receive an offer from We Make Flying Cars, Inc. (your second choice). But you really, REALLY want an offer from Beam Me Up, Inc. (your clear first choice). This is a delicate dance. You don’t want to settle too early on a company that, while perhaps great in its own right, is still your runner-up. Here are some steps you can take to move the process along.

Step 1: Align your expectations with We Make Flying Cars, Inc. who extended the job offer, to see if you can buy some additional time. You need to this in as collaborative and professional a manner as possible; keep it simple, thankful, and reasonable. Reach out to Human Resources and say, “Thank you very much for your offer. I do have some other factors to consider. May I have a little extra time to talk to my family and make a decision?” Then gauge the situation carefully. They may or may not be willing to extend your deadline, so proceed accordingly. Missing a hard deadline could result in a withdrawn offer.

Step 2: Reach out to the Human Resources department of Beam Me Up, Inc. to see if you can give the process a nudge. Be direct and honest. For example, “I just wanted to let you know that I received an offer from another company, but Beam Me Up is still my first choice. I believe the work you’re doing is more challenging and rewarding, and that I am an ideal cultural fit. Were the company to make an offer in the range we discussed, I would happily accept it. I look forward to hearing from you, and thank you!” The wheels of corporate bureaucracy move slowly, but a call like this can provide the essential momentum.

3. You receive simultaneous job offers from both companies and you have no clear preference. Make no mistake, receiving two competing offers puts you in an advantageous bargaining position and certainly provides a nice ego boost. You are indeed in a prime position to lure the two employers into a bidding war.

That said, rather than risk your good fortune and potentially jeopardize your relationship with each employer by trying to sweeten the pot, it may be better to compare each offer on its own merit and make a decision accordingly. Consider the following factors:

• The Work Itself. Which role will be the most rewarding, and will help you achieve your long-term career goals? Don’t just look at the job title, since these may mean different things at different companies. Focus on the specifics of the job description, and the specific work experience and skills you will gain. We devote most of our waking hours to work – maximize the ROI on your precious time with a fulfilling career.

• Total Compensation. The salary figure presented by an employer is almost always the primary consideration, but compensation is much, much more than just salary. Total compensation can include medical insurance, paid time off, bonuses, 401k matches, employee discounts, car allowances, and other benefits. Run the numbers – a job that pays a high base salary but makes you pay for the bulk of your medical expenses out-of-pocket or gives you minimal vacation time may be a bad deal in disguise.

• Company Culture. Where are you going to going to feel good heading to work every day? Which employer shares your professional values? Even if all other factors of their offers are equal, company cultures and work environments – even in the same industry – can dramatically different. And don’t forget to factor in work/life balance. Get as much information as possible.

Once you’ve worked through the details and compared the offers, proceed carefully. Beam Me Up, Inc. and We Make Flying Cars, Inc. both believe you are lucky to get an offer from them. If you try to negotiate with the companies and come across as demanding, unreasonable, or ungrateful, or if you appear to be fostering a competition, an employer may believe their offer was a mistake and consider withdrawing it – especially if they feel like they are being played off against each other. Have your salary market data ready (pay a visit to compensation site paysa.com), do your homework, and be reasonable in your request. If you’re already being offered a compensation package above the market average, requests for more may not be well received; the converse is also true, where if you do your homework and discover you’re being offered below market average, you may have room to negotiate and improve your standing. But it’s still a precarious situation.

If Beam Me Up offers you $5,000 less than We Make Flying Cars, and you ask Beam Me Up to match their offer, you must be prepared to accept the revised offer if they meet your request. A back-and-forth between yourself and both companies will only engender ill will and may result in no offers to choose from. Keep in mind that how you handle the negotiation will be a reflection of your integrity.

Philip Roufail contributed to this article.

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Scott Singer is the President and Founder of Insider Career Strategies Resume Writing & Career Coaching, a firm dedicated to guiding job seekers and companies through the job search and hiring process. Insider Career Strategies provides resume writing, LinkedIn profile development, career coaching services, and outplacement services, including a free resume review. You can email Scott Singer at scott.singer@insidercs.com, or via the website, www.insidercareerstrategies.com.