11/18/2019 0 Comments Negotiating Job Offers (Income/Skills)Don't stress, this is a good thing. They like you!
Before we get into the job offer (and a blog I will cover later), hopefully you have done your homework on your worth within that industry and that location, via numerous methods, that you have applied. You probably gave them a ballpark salary range, or you wouldn't have got this far. Phone screens and interviews went well. You caught the clues they liked you, you got the phone call they want you on-board and now you get the official letter with the details. Take a pause, let it sit, let it resonate. This is a good thing. After a day or so, come back to the offer letter and look at the details. 1- Salary: You gave them a ballpark figure and they came back with an offer. Does the offer fit this salary range? Is the offer a match for your skill set? Do you have other offers and how does this compare? Have you researched the salary range for this position in your location? This is how you consider the salary. 2- Bonus: Is there a bonus offer? How does this supplement the rest of the package? Think about why. You are in a world of finances and cashflow now. A bonus now may save the company money in one area. It also may look nice up front to you, but is that best for you in the long run? Way the pros and cons of upfront money versus the long haul. 3- Relocation (HOR move): Have you used your Home of Record move? You can leverage that if you have not and instead get more of a bonus or negotiate it into your salary. If not, how far are you moving? How much do you have to move? This is a large cost to organizations, so if you can offset it, it will be a nice bargaining chip. However, you may need it just as much, so something worth considering. 4- Stock options/401k match: Depending on the size of your company, you may or may not be able to negotiate this. Sometimes, private organizations have "stock" options and you may be able to negotiate that. What is the company history and background? What are your short and long term goals? Is money upfront less risky? Maybe the money upfront helps you fund a side hustle. 5- Time off: Similar to 4, may or may not be negotiable. Tread carefully here, coming out the gate asking for more time off may start the buyer’s remorse thinking off the bat. 6- Insurance: Again, similar to 4, 5, may or may not be negotiable. As healthcare costs increase, this is something you may want to seriously look at and consider however. What is your health, the health of your spouse, are you planning on kids, surgeries, etc? 7- Work from home: Have you considered this a benefit? What is it worth to you and why? Tips 1- Have your statistics ready. Have reasons why you are asking for each and be able to support it. 2- Prepare from the starts. 3- Try not to discuss salary until the offer is made...keep it broad. 4- Try not to be the first to throw a number out. 5- Don't try to negotiate if they met all your demands. 6- Be willing to walk away. 7- Don't negotiate until the offer is in writing. 8- Do not haggle. You are not buying used car. Take each category separately for the reason/stats you found. Example: This is not a store, and you are not bartering. The employer tells you that the annual salary for that position is $150,000, and you thought you deserve more, so you ask for $175,000. The employer expresses the possibility that they may be able to provide $160,000 for the position, then you jump in with $165,000. When he said that $165,000 is already over their budget for that role, you ask for more vacation days. Let’s face it: this looks tacky. You just made yourself look tacky, cheap… and unprofessional. How to avoid this mistake: Again, you should have already researched on the salary for that position, and how much budget the company allotted for it. Name your target figure, and ask whether it is within their budget range or not. If they say no, then believe them. Take this exchange, for example: Candidate: I am aware that you have budgeted $150,000 for the position. However, I believe that my level of experience warrants a higher rate, should I accept the job. HR: How much do you have in mind? Candidate: Can you make it $165,000? HR: Due to budget constraints and limitations, we can only go as high as $160,000. Candidate: I see. Then, may I give you my answer on Friday? You asked for a salary for a reason and a number of days off for a reason, don't be tacky and change it because one area was not met. It isn't really good faith negotiating and looks tacky as stated above. These are all things to consider when accepting or putting a counter-offer in. And again, relax, they like you and negotiating is part of your life now, after all, you are in the business world now!
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