Job Offer: How To Negotiate

Reading the title of this post may bring a couple of reactions.

1. An offer feels like a far away concept right now.
2. How did Tim know I was looking at an offer?
3. Negotiating?  In this economy, is that even possible?

But the reality is that at some point you will get one.  And, of course, you need to be ready.  Now earlier here on the blog I created a tool for you.  It is called SideBySide™.  This tool is designed to help you evaluate a job offer.  To look at it objectively when you may be in the least objective position (i.e. ready for this job search to end and open to anything that will provide a solution).

Here’s the post where I introduced the tool:

How Do You Evaluate A Job Offer?  Introducing SidebySide™

And if you like to download the tool directly (it’s free), you can go to the free downloads page.

Now that you’ve done an objective evaluation, you have a choice to make.  You can (A) accept the offer or (B) you can begin a discussion about how the offer might be re-arranged or improved somehow.  And, while I would not advise you to simply accept an offer without a discussion, I would not beat you up for doing so in a tough economy.  Especially if your financial situation is dire or if the offer is actually pretty close to your objectives.

You can spoil a great interview and offer process by being a sour negotiator. One who holds back acceptance on small, rather insignificant points.  Yes, it’s true that “if you don’t ask, you don’t get”.  It’s also true that you are unlikely to negotiate much after you start on day one.  But I think it matters what you ask for, why you ask for it and how that request is delivered.

One more reason this is an important discussion.  One that should be well-thought out.  This is your first real strategic discussion with your new boss and/or new company.  It will set the tone for your transition into the new organization.  Others will find out if your negotiation was strong and confident vs. petty and ill-conceived.  That matters.

So here are my five thoughts:

1.  Know Your Situation

One
of the keys will be really understanding your situation.  Being able to
objectively review where you are financially, psychologically and
physically.  You may say: “I’m done.  It has been 9 months and I just
can’t do it any more.”  You may also say: “While I am ready to get back
to work, I need to make sure that in this negotiation I stand
up for myself and ask for what I deserve.  I am OK if it means that I
need to keep looking.”  Whatever your situation, be aware of it.  Know
your financials.  And importantly, know the perspective of
your family.  Even if you are ready to negotiate hard, how does your
spouse feel about that?

2.  Ask Questions

Form
a hiring manager’s perspective, asking questions  says something
important about you.  It says that you are thoughtful.  That you are
not impulsively asking for more money simply because that sounds like the
right thing to do.  Asking questions allows you to gain critical
information about the situation of the company overall and perhaps may
give you some insight as to how you might be able to create a “win-win”
for both parties.

3.  Get Creative

Let’s
face it, a negotiation can go a number of different ways.  And this is
your last significant interaction with the company and its staff prior
to potentially becoming a part of it.  You want to leave a positive
lasting impression.  Because once the letter is signed, you need to
shift into “adding value” mode.  And you can kick off this new
relationship in a good way be being creative now.  Offering the company
some unique ways to satisfy your needs in a way that works for them.  A
way that perhaps was not on their list but would be an acceptable
substitution.  Say, for example, and education allowance or small car
allowance instead of a salary increase.

4.  Simplify

Sometimes
we do all the right things.  We brainstorm 10 different ideas.  Some
big and some small.  All things in an offer letter we’d like to change,
add or remove.  And then that great brainstorm turns into a request.
You ask for all of it.  And in some economies, that might work.  In
this one and in the average economy, it won’t.  And it may backfire on
you.  So I suggest you simplify.  Pick one or two important things
based on your situation and supported by the company’s answers to your
questions.  Focus on those two things.  If you get them both, great!
If you get one, make sure you can feel good having received that
adjustment.

5.  What Matters

In the end,
you really have to think big picture.  Long term.  Is it really about
salary for you?  Is there a number you absolutely must have that you
will fight to the end for?  Fall on your sword?  Or are you at a
point in your career where education assistance is really most
important.  Building your skills through a degree, advanced degree or
series of seminars.  Knowing where you are in your career and what
matters to you is important.  And it will also be important to the
company.  If your request is purely selfish (and there is nothing wrong
with asking respectfully for what you believe you are worth), you will
potentially get a different reaction.  If you are asking for something
that helps you and supports your ability to grow or improve the
company, well that can help.  But what matters most to you?

And one last point.  Negotiate, where possible, in person.  Across the desk.  Your presence helps to create a sense of urgency for both parties and allows for a more personable discussion.

So now it is up to you.  You get to decide.  I hope these thoughts will give you some ideas on how you can do it successfully.

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