The Unemployed Life

How to Negotiate a Job Offer in an Employer’s Market

Finally, the hours of prospecting, submitting resumes, attending networking events, developing new relationships and attending job fairs have paid off. A company has made you an offer.

Now what?

With hiring activity is picking up, many job-seekers face a new challenge: Nailing down a decent compensation package. Historically, hiring managers and executives have told me that everything is negotiable—but what about today? Many organizations have cut salaries, 401(k) matches, company perks and paid overtime. They are being very conservative about adding new staff. And with the official unemployment rate at 9.7 percent for August, it’s a hyper-competitive job market.

In this environment, you may feel like you’re lucky to get a job offer at all. But you also want to be paid fairly. So how do you cut a good deal? Follow these guidelines.

Lay the Foundations for Negotiating Early in the Process

• During the interview process remain open when salary is discussed. The goal here is to show flexibility. Look like you’d walk without an extra and you’re out; demonstrate that you’d settle for a dollar too low and that is a dollar you may never get back.
• Don’t come across as desperate. If you’re not sure how to do that check out my recent column on this topic, How Not to Look Desperate.
• In interviews, don’t be shy about explaining what value you bring to the table. How much did you save your last company? How much revenue did you generate?
• If more than one company is interested in you, let them both know you may be off the market soon–especially if they are competitors. From my experience as an executive recruiter, employers hate the sting of losing a great candidate to a competitor!

Ask Yourself a Few Questions Before Deciding to Negotiate

• “Is there a strong backup candidate and do I risk the offered being withdrawn?” This is easy information to get if you’re working with a recruiter. If you are doing this on your own this can be challenging.  In some instances employers will tip their hand and say “Well it was a very tough choice but we have decided to make you the offer.” If they say something like this, they  have a back up candidate.

• “Do I fully understand the career path progression?” Top tier candidates want room to grow and take that next step in their career once they show value for an extended period. Is a few dollars or more vacation time worth the risk of losing out on an opportunity to take the next step in your career?

• “Will I truly enjoy the work and the people that I will be working with?” During my nine years as an executive recruiter, I’ve learned that company culture and how you are treated by your employer matters. If the staff has an established history and the boss has been with the organization a while, then this shows that employees like working there.

• “Is the business model solid and the company growing or stable?” In January, I had a candidate start a new job. They told him that a pay cut for the staff was imminent, but not to worry. Since then he has had to take two furloughs and a 10% wage cut, and is now making less money now than at his previous employer. A higher offer is no good if the company can’t make good on it.

• “If I receive what I feel is fair market value could I come in with a bull’s eye on my back and overly be scrutinized?” This year I had a candidate accept a job with a supplier to Honda. He played hardball and negotiated an above market salary. But just a few months in to the job, he sensed resentment and animosity and asked me what to do. I recommended that he offer to take a pay cut to save his job. Too late—the decision had been made and he was let go.

Have a Good Response to a Lowball Offer

• Ask for more. You need to specifically put the question to the company—specifically, to the person who made the offer. “Is this your organizations best and most competitive offer?”
• If the answer is yes, make sure you have reviewed the offer in detail. Go over the health benefits package. (Ask for one if it’s not provided.) Get a clear understating of the vacation schedule. If bonus is offered, what is based on? What percentage was paid out last year? Money isn’t everything—there are some other areas employers may be flexible on. For instance, some employers offer flex time; others company stock at a discount? See if a work/life balance is valued by the organization? Would they be open to a 30-60-90 review with a merit increase?
• Most employers don’t like the game of going back and forth negotiation. Take your time and come up with a realistic counter offer.
• Talk openly with family members and explain that cuts in the family budget may happen for the short term.
• Keep in mind there is no law saying you have to stay at your new organization for the rest of you career. Just the other day a candidate who was a back-up to the person that landed the job called me. He said XYZ Company wants to interview him again because the other person left for a better opportunity. This going to happen often to the organizations make low ball offers to niche talent.

Jay Hofmeister, Co-Founder of The Resume Bay has taken the pain out of the job-hunting process for hundreds of job seekers just like you (from entry level to executive level!) Now, Jay invites you to go to http://www.theresumebay.com and get a resume that will make you standout and   job interview coaching that will help you ace the job interview. Also, check out his radio show “The Job Prospector” at www.webtalkradio.net.

Tags: expert advice, job-hunting, Spending and Saving, The Working World