How to Negotiate Salary After Job Offer

I’m super excited about this lesson. We’re going to talk about negotiating your
salary. Who doesn’t love negotiating their salary? I don’t know if I’ve met anybody who actually
enjoys this part of the process, because as exciting as it is, it’s confusing. I get you don’t do this for a living. You don’t do it very often. Hopefully you don’t do it very often. What I want to give you in this lesson is
… I’ve written a lot about this. There’s a whole how-to in Interview Intervention. I’ve got a little checklist here in the notes
for you. I really want to give you the philosophies
around what makes a good negotiation a good negotiation. I don’t even love the word, but the one thing
I think is really, really important is, I would almost throw out the window everything
you’ve heard about sales negotiations. This isn’t about a sales negotiation. You are both coming together to come to an
initial agreement, because that’s all it is, it’s an initial agreement, of what they’re
going to pay you for your services. This isn’t you selling somebody a product
who’s going to go off and use or selling your services, which are going to be over in a
finite a period of time. You are a team and this is something we’re
going to talk about. I want you to understand this takes on different
characteristics than just a sale. Now if you’ve done your job in the interviewing
process, they like you. They love you. They want to give you a great offer, so let’s
just run through some of these philosophies. The first thing I talk about is when to discuss
this. I’m going to mix in some dos and don’ts along
the way as it relates to each one of these, but one of the first things that I would suggest
to employers and to job candidates is you never, ever talk about compensation in the
beginning of the process and here’s why. You, the job candidate, want to talk about
it when your stock is highest. It’s not highest before they have interviewed. It should be highest at the very end. The more information they know about you,
the more they should like you, the more they should want you, the more they’re willing
to pay. At the beginning of the process you also don’t
know them, so for them to say, “Here’s what the job pays,” in most cases there’s flexibility
and ranges in what the job can pay. Not all, but most, so I don’t know why employers
would share that with you either. I also don’t know why they would want to ask
you, “What is it that you want in the way of compensation?” I’ll tell you why you don’t want to answer
that. Because you have absolutely no idea what the
entire package, and by package I don’t mean financial package, I mean the entire package
of working at that company, entails. You may love the fact that it’s across the
street from your house. You may love that you get to travel internationally
or you are going to be working with fantastic people or you are going to get to learn new
skills that you otherwise wouldn’t have. These are malleable pieces of your pie and
the financial component is one of them, so for you to give them an answer, it’s completely
uneducated. Whatever you do, do not, I repeat, do not. The biggest mistake people make is talking
money at the beginning of the process. What would strongly suggest is, if they do
ask you about money upfront, just provide them what you’re currently earning or what
you most recently earned. Then just say, “I am sure that if we are right
for each other, we will be able to come to something amenable toward the end of the process.” I just want to make sure that you know that. Don’t do that upfront, but now you’re here,
you’re at the end, so I wanted to get that out of the way. Now we’re down at the end. I want to give you some things to think about,
just the mentality of negotiation. It’s a compromise. You both want to be happy. A compromise doesn’t mean I sacrifice and
you don’t or you sacrifice and I don’t. A compromise is really bringing you both together
so that you’re both happy. We want you to get paid fairly and in a value
that makes you feel appreciated and we don’t want the employer to overpay. If the employer overpays, their expectations
are going to be a lot higher. If you feel underpaid, you’re going to be
disgruntled. If you feel overpaid, you might be a little
bit nervous. Ringing every last dollar out of the employer
is not always a great thing. I know more money is always better, but sometimes
it comes at a cost. You don’t get anything for free, so to speak. You got to think, “Okay, it’s a compromise. It’s a compromise.” I also want you to think in terms of the entire
package. We talked a little bit about this a few minutes
ago. What I get to do, who I get to do it with,
how it matches all of my requirements. Am I going 20 for 20? Oh my goodness, this is such a great place
to work. I’m willing to sacrifice a little bit. Maybe you’re trading some certainty dollars
for performance dollars. There’s a lot of different ways, but you need
to look at it holistically. Don’t just get down. This is an analogous situation to when you
are deciding whether or not you want to work at the company, and I mentioned in a previous
lesson, a few lessons ago, that you abandon your whys and your reasons. Go back to those. This is the same thing. You don’t want to throw away all of the different
needs that you have just because a few dollars are missing. Okay, so that’s another element. Along with compromises, I think the other
thing you got to think about is you are a team. You both win if you accept and you both lose
if you don’t accept. You’ve both invested a tremendous amount of
time. Some of these interview processes take a long
time, but you’re a team. What do teams do? They work together. They share a common goal. They communicate with each other, so you got
to be sharing rationale, and why you need this and why you’re willing to trade that. You listen to the other persons or other parties
or the company. In this case company’s position. Some of these compensation packages can be
very complicated, so you need to understand what restrictions that they have and they
also need to understand your rationale. The other thing is I think you need to remain
flexible. Be open-minded. That’s a big thing. That’s a mindset. The other thing too, I always say, and I’ve
written a few articles about this, I call these the six most important words in a salary
negotiation. Assuming you’re at this point and assuming
you want the job. You want the job, but maybe you’re just not
quite happy with what it is that they’re paying you. I always suggest opening up the discussion
with these six words. I want to make this work. If you let the employer know, “I want to ultimately
accept your offer” but there are maybe a few elements to it that you want to understand
better or you would like additional concessions or more money, whatever it is, I want to make
sure that you are letting them know as early in the discussion that you want to make this
work. As a matter of fact, I’m hoping these going
to be the first six words you say, but that is really, really important because what that
will do is that will put them in a welcoming posture as opposed to a defensive posture. You want to make sure that if you truly do
want to make it work, you let them know that as soon as possible. Then just ask them the questions. Maybe you offer up some suggestions of what
it is you want to alter or what’s missing or what you’re willing to trade them back
for other things. Sometimes people are willing to trade salary
for vacation days. Sometimes they’re willing to trade vacation
days for salary. Sometimes they’re willing to trade salary
for more bonus potential or stock if that’s appropriate, or stock options or restricted
stock. There’s many, many different things so you
want to make sure that you are offering that up. I always say take your time, but answer quickly. If you’ve been through a lengthy interview
process, you should know by the time you get down to the end whether or not you want to
accept the offer, assuming that the compensation is in order. If it’s been a rather quick interview process,
days or a week or something like that, you might not know because you need some think
time. Either way, what I would do is make sure that
when you’re given an offer, the employer is likely, most of them, will likely provide
a date that they want your response. That’s great. You should reply to them verbally, not in
an email, that the date that you will give them your answer or the date that you need
to speak with them or whatever it might be … Sometimes the employers email the offer,
which I still can’t believe. Most times they will want to talk with you
about it. Sometimes they email it in advance and then
they speak with you. You should give them a definitive date by
which you will respond irrespective of what it is that they’re asking. Sometimes they’ll put two weeks out there. Sometimes they’ll put one day out there. Sometimes it’ll be a week. Either way, you should let them know what
your date is that you’ll reply with an answer and stick to it or beat it. If you have any questions or a rebuttal or
a counter offer, whatever it might be, then I would respond to them sooner than the date
you provided, and ask them or share with them how you’re feeling. I think it should be done according to a date
that you give them. It should be within the confines of the dates
that they’ve given you. Most of them will give you a week or two,
depending on how senior you are maybe even longer. The point is, if you’ve been through an interviewing
process for any length of time, you should know by now, so it should be a matter of assembling
the details. Whatever that date is that you give them,
just make sure you stick to it. These are a few pointers. I’m sure that there are going to be a lot
of notes or comments or questions that you have regarding how to handle particular situations. You’re welcome to zip those down in the comment
section. I will have a coaching call about this topic
alone or something similar. Maybe this will be lumped in with something
else. I know there are many, many variations, but
I hope that these philosophies are something you can take with you and just apply them
to your own needs. You might need to use a few of these techniques. Some of them might not apply. Sometimes the employer might just give you
an offer and say, “Hey, this is it. Take it or leave it.” In that case, you have to decide whether all
the other elements are for you. These are some things that I don’t think a
lot of people think about and you should always think about them whenever you get an offer. I hope you enjoyed this. Let me know. Give me a shout-out in the notes. Let me know you’re still here. I congratulate you for going through this. I’m assuming if you watched this module, you
probably are at a sport where you are getting an offer or will be getting an offer, or maybe
you had offer and you’re wondering what you should have done, but either way let me know
what you’re thinking. We’ll see you in the next lesson. Until the next time.

, , , , , , , , , , , , , , , , , , ,

Post navigation

Leave a Reply

Your email address will not be published. Required fields are marked *