LinkedIn has undertaken extensive studies which indicated that nearly 42% Americans feel uncomfortable to negotiate their new job salary. In fact 25% have never ever undertaken any salary negotiation of any kind. What’s more the rest 39% Americans feel very anxious when negotiating their current job offer. Have you just received a job offer and feel that you need to negotiate with your potential employer? Then do not shy away. What you need to do is understand clearly regarding what are the basic things to undertake before a job offer negotiation and also understand what are the areas that you can negotiate on.
Evaluating before Job offer Negotiation:
1. Clearly understand what you want and what your basic needs are:
Before you enter into the process of job offer negotiation, you have to define what is the minimum salary and benefits that you are going to accept. You have to understand realistically the current economy scenario and also understand the fact that they are people who would be willing to take up the job offer at a lesser salary than what was offered to you. The main idea here is to balance your wants with your needs when negotiating for a job offer.
2. Evaluate the market value of the job:
Before you start your interview process, you should undertake a small research on your own regarding the market value of the job. The best thing to do here is use your network resources and find out how people in other companies are getting paid of this job. This simple analysis would help you to understand the level of negotiation you can undertake, when you receive the job offer.
3. Analyze the company’s profile:
When you are undertaking an interview for a specific job, do you understand the profile of the company and its vacancy? It is essential that you grasp a few essential facts like how long has this vacancy been open and what are the skills they are looking at. Once you understand the basics you can negotiate with the hiring manager if the vacancy has been empty for a long time and they are unable to fit the right candidate there.
4. Be positive in your outlook:
When negotiating a job offer do not play very hard to get. It is essential that you give them an impression that you are interested in the position but you need to negotiate on few things. Hiring managers should never get the impression that you are playing along and will ultimately not take the job, even if they offer you the needful salary and benefits.
5. The importance of understanding the person’s personality with whom you are negotiating:
A company will not negotiate the job offer with you. A hiring manager or senior management personnel will negotiate the job offer on behalf of the company. Here in order to influence and convince the person, you have to understand the person’s personality. You have to grasp and analyze regarding what are the current concerns and interests of the person. Most HR experts are of the opinion that during job offer negotiation, you would need to be diplomatic and tactful if you are negotiating with your current boss than the hiring manager. Also the boss would be more accommodative to your needs than the hiring manager.
6. Accept the limitations that a company faces during job offer negotiation:
If you are senior personnel you would understand that sometimes the company faces certain limitation which prevents them from offering the compensation you want. The hiring manager likes you and so does your immediate boss. But there are certain internal guidelines which cannot be breached and thus they cannot offer the compensation you seek. For example if a company is recruiting many people for a singular job profile, you should know that here you cant negotiate much. However if it is a niche skilled job opening, you can negotiate well. Thus you have to be realistic about the constraints and work out a solution which would be beneficial for both.
7. Accurately draft your negotiations:
One of the easy tricks to undertake is to accurately draft your negotiation plan and present it in a written form to your potential employer. Most employers respect the fact that you are organized and methodical and thus they would discuss your negotiation proposal in length among themselves and then might react positively towards it. Once our negotiation terms are accepted you can request for a revised job offer which you would accept immediately.
Things to Negotiate in a Job offer:
Now that you have understood the basic things to do before you sit for your job offer negotiation. The next vital step is to understand are the various components in the job offer which you can negotiate on.
You can negotiate on the basic salary that you would be receiving. A survey undertaken by CareerBuiders.com indicates that nearly 49% Americans do not negotiate on their current job offer.
Date of Joining:
The date of joining is an area which requires frequent negotiation. The new company would want you to join them within 15 working days. But you have a one month notice period to serve. Here you have to understand the importance of your position and thus take a stand which would be beneficial for both. Remember you cannot leave your old company in hot water as you are joining a new company. Here you can look into the leaves that you have in hand and encash them immediately.
Potential employers are very strict when it comes to negotiating regarding working hours. However you can request for flexible work schedule and also explain why you need so.
This is another area which requires negotiation frequently. For example if you have been a Project Manager you might be given the designation of a Senior Consultant- Projects if you are joining a large company. However here you could request that you be assigned the Project Manager designation. The final decision here would depend on the HR and whether they would be able to accommodate you on this matter. It is essential that you understand that the role that you would be playing in the project, would determine the designation you have.
Roles and responsibilities:
When you join a new job, you would want to undertake more responsibilities. Thus when you feel that you require certain changes in the role and responsibilities in the job offered to you, it is best to talk to the hiring manager and negotiate with them.
Most people tend to negotiate on salary without understanding the importance of benefits. In fact most employees are happy to add more benefits in the job offer, so that the person is happy with the offer and joins the company. A simple example would make this clear. You might have a clothing component as benefit in your job offer. You might request a percentage increase on it by maintaining that you would meet high end clients and need to be appropriately dressed for the occasion. Other benefits which can be considered for negotiation are servant allowances, car and transportation allowances.
If you are confident that you can achieve the objectives set by your new company easily. Then you can negotiate on the performance bonus which you are likely to earn once you accomplish your project.
Your new job offer might be in a new city. But you have already settled in the current city with your family which includes your children who are going to school and universities. Thus you can request for a change in job location and also clearly state your reasons for it.
Working for home:
Your new company has Saturdays as a full working day. But you have young children who need your care. Thus you can request to the hiring manager or your immediate boss whether you can enjoy the facility of working from home every Saturday. Depending on the role that you have, the request could be accommodated.
If your new job is a new city, relocating is an expensive affair. Thus you can request for a relocation expenses which would also include accommodation for your family in the first two weeks in the new city.
Your new job would require you to engage in certain specific skills. Thus you can request the company if they can send you for training program where you would be equipped with the skill. Here it is important that you explain the significance of having the skill in the current role you are undertaking and how it would benefit the company.
Salary Negotiation Fails – What Companies do?
A recent study has indicated that if the employer fails to meet the job offer negotiation demands of an employee, they would do the following things which are:
- 33% of the employers would encourage the new employee to have a flexible work schedule.
- 19% of the employers would encourage the employee to spend more vacation time with the family annually.
- 15% of the employers would allow the new employee to work from home at least once a week.
- 14% of the employers would help to employee to enjoy a new expensive smartphone.
Only 38% of the employers would explain to the new employee that they are unable to help them with their various negotiating demands on their job offer. It is essential to understand that a company would go out of its way to accommodate the demands of a good employee. They understand that a good employee is a major asset to the growth of the company.
Once you have completed all the necessary negotiations related your job offer, you should be confident and mention to your new company the value that you would be adding to the company when you join them. Here it is also necessary that you set realistic expectations that they should have from you, and the company should not expect you to build castles in the air, in the next few months. You on your part should also give yourself some time to adjust in the new environment, so that you can understand your responsibilities well and undertake them efficiently. Once you get started in your new job you would be happy regarding the negotiations you had undertaken and give your best to help the company reach its business objectives easily in the near future.