Carroll Technology Services

Salary Negotiation

Learn about Salary Negotiation and the Offer

Salary Negotiation

Whenever possible Carroll Technology Services will have an involvement and will smooth things along by acting as a buffer. Occasionally, a hiring manager or client will prefer to deal directly with the candidate. Despite who is involved, a classic scenario plays out -- one that you should understand in advance. Carroll Technology Services will act on your behalf if possible. This information is provided in case you must deal directly with the company.

Your greatest opportunity to influence your offer comes at the time when everything else has been put aside and you are down to only areas that are negotiable.

A misconception many candidates have is that job offers are easy and cheap for a company to extend. Some candidates like to wait for an offer, although they're not interested in the company - just to see what their market value is. Others will use this as a way to solicit a counter-offer from their current employer. Both approaches are unethical and can give a person a negative reputation in the closely-networked technology industry that will take years to wear off. Offers are not easy or cheap for a company to extend. The organization must go through a complicated and occasionally exhausting effort ahead of that offer letter.

Clients companies tend to take one of two different opinions when they decide what kind of offer to extend.

"The first offer is the best offer."

A company with this philosophy decides by looking at the employment market and what they already pay others doing similar work. Usually, human resources has done a lot of competitive compensation analysis. When they extend an offer, they believe that they are being competitive and that the package represents a fair wage and is the best they can offer. There is no conscious effort on their part to "lowball" or bargain. They believe that negotiation is distasteful in this process, and have found that they accomplish nothing by bringing in an underpaid employee.

"Negotiation is normal and expected."

This is a philosophy that can either be part of the company culture, or an attitude of one of the hiring managers. Not all companies that expect to negotiate are doing so in search of a bargain, or to establish dominance. Some fine companies approach offers this way. Most companies that are thought of as 'the better employers' use the first offer is the best offer approach.

You can respond to them both in the same way - and it is in how they answer that you know which philosophy they use.

The Basics of Salary Negotiation

Chances are that you do not enjoy these situations much like when it is time to go buy a car. In these situations, we've been taught to get into our suit of negotiation armor and prepare for battle. If you come into the offer negotiation process wearing that same suit of armor and treat the process like buying a car, trouble will be your only victory.

Some people change dramatically when they begin discussing an offer. Suddenly, a talented person with the most gentle personality in the world acts like a wild bull. Ideally, this process should be a smooth one, and that success is determined by how well you break down the barriers that crop up when people naturally take sides. Remember that you'll be working together if you get the job.

Your Approach

Break down the feeling of "us versus him/her" - showing the company by your words and actions that you already a team member. Both sides can then work together to find a mutually-acceptable solution. The focus should be on this "win-win" scenario, rather than a hardball discussion of what the salary figure is.

Make certain they know how excited you feel about the new job. Ask a few pertinent questions about benefits, 401K, stock options, etc. Make certain that you know all the details of the offer before zeroing in on some issue - salary, stock, etc. - that you believe is substandard. Your questions about the company's offer may be very valuable in comparing "apples to apples." Although a retirement program may never offset a large difference in salary, it could make the difference for you.

Once you bring up your concern, companies in the 'first offer is the best offer' category will politely describe how the offer process works at the firm, and ask if you have any concerns about the actual job or responsibilities (avoiding the terms of the offer itself).

A company that wants to negotiate, however, will take your question as the cue to begin their bargaining process. They might ask what figure you had in mind, or maybe just intimate that there may be something that they can do about that. Regardless, you'll know how the company feels about offer negotiation by the way that they answer your concerns.

Here are some additional points about offer negotiation:

Always use real-life examples rather than trumped up negotiation tactics that sound too much like "I want more." You must be on their side when the discussion turns to negotiating an offer.
Don't expect an offer to be in writing 100% of the time. Although you always want confirming correspondence, you'll find some very good employers would rather discuss all the parameters of the offer first - then send you a letter of agreement after you've given a verbal acceptance.
If a company appears hesitant to move on salary, bonus, stock options, etc., then perhaps they might have some flexibility in areas like relocation, vacation days, or temporary housing.
Companies have been using sign-on bonuses or other one-time cash bonuses to offset differences a person might desire to make in order to take the new job.
Make creative suggestions when you find yourself with no flexibility in the area of salary. Such as, can the total expense the company budgets for relocation be converted to a hiring bonus, thus not costing them anything - but allowing you to pack and move yourself while pocketing the savings?
People who dismiss lateral moves may miss the long-term growth that could occur for them in the position. Generally, companies are hesitant to extend "laterals," but on occasion it is necessary to remain within the salary structure of their other employees. If so, are there reasons to consider the offer before throwing it out? People at risk of a lateral tend to be those making major career transitions.

Summary

Remember that the offer negotiation is taking place in the developing relationship between you and your possible new employer. Put yourself in the other person's shoes and you'll realize that he or she is probably uncomfortable too. Relax. Break down the barriers of discomfort that stand between you and your new boss and you'll find yourself accepting a great new position with a minimum of hassle.

The Offer itself

If you or your Carroll Technology Services representative are successful, the above negotiation results in an offer that is acceptable.

If you are made a firm offer at the close of an interview that is acceptable, feel free to accept right then. Usually, an offer comes after all interviews and additional discussion. Expect to give a verbal acceptance before receiving a written letter confirming the details.

When an offer is acceptable, always confirm your acceptance with your new boss directly in addition to your Carroll Technology Services representative. Resign and Start.

If all negotiation results in an offer that is unacceptable, let your Carroll Technology Services representative handle the client let down. Do NOT call the client and tell them directly. Remember, one of your goals for interviewing was to expand your professional network of contacts that feel positive about you. We can preserve your image while relating the difficult news to the client.