Best Practices in Managing Contingent Workers
American Staffing Association
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The Job Offer The Art of Negotiation | back to tip sheets
So, you’ve made it through all the hoops and came up a winner! You may have been completely certain about the job when you first interviewed with the company, but throughout the interview process, perhaps you learned some things about the position that now give you pause. Is it really the ideal situation for you, or should you keep on looking? Being made an offer, as pleasant as it is, doesn’t obligate you to say “yes.” Now is the time to make sure you’re getting most of what you want and that you can live without the things you can’t have.
What to Say When an Offer is Made Start with thank you. Whether you want the job or not, you should feel flattered that someone would choose you from among many contenders. Always be gracious and appreciative of the offer. If you are confident that this is the right job for you, accept the offer and ask that the employer confirm it in writing.
If you decide this is not the job for you, say something positive about the company and how much you enjoyed interviewing with the employer. Be polite. You don’t want to burn any bridges. Let the employer know in a diplomatic way that you are looking for a position more in keeping with your expectations, but that you are very impressed with what the company has to offer.
For most people, the answer will be neither yes nor no. They need some time to think about it. In that case, again express your appreciation, but indicate that you need a little time to consider the offer. Most employers do not expect an immediate acceptance and are accustomed to applicants asking for additional time, even if it is simply as a formality. Agree on a reasonable time frame in which to get back to the employer with your final decision.
Play it Cool . . . But Not TOO Cool Applicants should be aware that this is a critical juncture in the negotiation process. If you show too much resistance, interviewers may begin second-guessing their decision, wondering if you are really motivated to work for them. Remember, the interviewer most likely has a second- and possibly third-choice candidate in mind for the position (perhaps with very similar experience and abilities). Lack of enthusiasm, hedging, wishy-washy responses, asking for too much additional time, etc. can send out the wrong message. An employer is looking for your behavior to validate his or her choice. Choose your words and actions wisely.
Do I Really Want It? Here are some key questions you should ask yourself as you begin to evaluate whether this position is the right one for you:
- Is the job interesting to me? Will it make use ofmy skills and talents?
- Will the job help my career? Does it fit into my long-range career plans?
- Do I have the opportunity for advancement?
- Do I want to work for a large or small organization?
- Do I want the risk (and excitement) of working for a young company, or the stability (and predictability) of working for a well-established one?
- Is the organization in an industry with favorable long-term prospects?
- Is the location favorable? Will it offer available housing, transportation, educational facilities that I need? Do I want a long commute?
- Will I be compensated fairly? Are the fringe benefits satisfactory or bare minimum?
- If the salary is on the low side, are there other factors that might compensate? Does the job provide a unique opportunity I may not easily find somewhere else?
- Is the job environment one I could feel comfortable in? Does my work style fit with theirs? Can I get along with my co-workers? Is the work culture personality-driven, or more of a team approach?
- Is my boss someone I can work with? Can I accept instructions and mentoring from this person?
- What’s the turnover rate at the company? Do people like to work there?
- Will the job balance with my other commitments (family, friends, outside pursuits)? Will it require more of me than I’m willing to give?
- Is the organization flexible enough for me? Does it fit with my lifestyle preferences?
- Will I be fairly evaluated? Are there periodic performance reviews, commendations, opportunities for growth?
- Is the company stable? Does it have a solid reputation in the industry, or do I get the sense I’m being asked to save a sinking ship?
A Little Research Ok, you’ve bought yourself a little time. Once you’ve answered the questions above to your satisfaction, do a little sleuthing about your profession. Find out what the average salary range is for your field and in your geographic area. Classified ads will sometimes provide salary ranges for similar positions. The Occupational Outlook Handbook, published by the Bureau of Labor Statistics, can provide excellent insight into what you might reasonably expect given your demographics and cost of living. And many employment agencies publish salary surveys for specific professions.
In addition to these statistics, make a list of the qualifications and credentials that should make you worth more to the employer. Clearly, if an offer was made, the employer views you as a standout. Why do you think these skills and experiences should translate into more money or better benefits? Practice what you are going to say. Seeming hesitant or unsure will make you appear vulnerable to an employer, giving him or her the upper hand in the negotiating game.
Uh, Oh . . . the Salary is Too Low Too often people make salary their “bottom line.” This is a mistake, as there are often other forms of compensation that, when added up, amount to a considerable benefit. Make sure you consider factors beyond the bi-weekly paycheck, such as:
- Relocation stipend
- Vacation time
- Signing bonus
- Health and other insurance coverage
- Education and training benefits
- Flextime
- Stock options
- Spousal assistance
- Performance-based compensation
- Liberal leave time
- On-site daycare
- Overtime
- Travel
- Telecommuting options
- Pension/retirement
In addition, take into account some of the “softer” benefits. A casual, low-stress work environment may be very persuasive to you. The job might involve a level of mental stimulation and creative challenge you need to feel happy and fulfilled. It may offer you an unusual amount of flexibility and independence. It may be a family- or community-oriented company that supports your values. You can’t affix a monetary value to these factors, but they can be every bit as important to you as salary.
The Counter Offer First, remember that your decision to negotiate will not result in the employer rescinding his or her offer. Negotiation is an expected part of the hiring process. You are well within your rights to ask for a compensation package that meets your expectations, so long as they are reasonable. In the salary negotiation, try not to be the first one to mention a salary figure. That locks you in . . . and it is an unfortunate truth that the one who mentions the salary figure first usually ends up losing in the negotiation. If the offer is below your expectation, find out what the benefits include. You might begin the negotiation process by simply saying that you are very interested in the position, but disappointed that the offer is lower than expected. Reinforce your position by quoting the statistics you‘ve collected on current salary ranges in your field, and by citing your valuable skills and qualifications. Be firm, but non-confrontational. You are grateful for the offer, and confident that this can be a “win-win” situation for both of you. When citing a counter-offer, it’s best to aim for the top of your estimated salary range. Be prepared to accept less than this, as many employers have formal pay structures or fixed entry-level salaries. Be sensible, but aim high. The worst that can happen is they’ll say no. One graceful segue might be:
“Thank you again for the offer. I’m very excited, and think this could be a great opportunity for me. However, knowing that the going rate for my position is _______, I was really looking for something in the range of _____ to ______. Is this possible?”
Finally, make sure you get the final offer in writing, particularly if it must now reflect a modified salary or benefits package. Typically such a letter indicates a starting date, salary, employment location, fringe benefits, and supervisor.
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