Negotiating Salary
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- 5timuli
I need to negotiate a starting salary. I worked out my budget and the offer is less than I need to stay 'comfortable' financially (as in not living off credit-cards).
Anyone ever done this and care to share some tips? I've never done this before and don't want to lose the offer.
- doesnotexist0
know how low you are willing to go, and give them a counter-offer that is above that.
- e-pill0
Avoid the question of salary, until you have an offer. On job applications under salary requirements, put "open," "negotiable," or "competitive." If a salary requirement must be given, then give ranges (usually begin your range at 10% higher than your last salary and add $10K to get your range). If you are asked directly how much you would like to make, try to avoid providing a number.
Do not take an offer on the spot. How valuable and in demand will you seem if you accept an offer the moment it's presented? Instead, either take home the written offer or take notes on the details of the offer. Tell the employer that you would like to go over everything very carefully, and set up a meeting for the next day. Now that you have some time to really think, you should examine the organization's entire compensation package. Be sure to consider these factors:
* Insurance: General coverage, medical insurance, dental insurance, eye care insurance, life insurance, accidental death insurance, business travel insurance, and disability insurance.
* Stock Options: How many shares, and at what price?
* 401(k) Plans: How much does the employer match, and when are you vested?
* Pension and Profit Sharing Plans: When are you vested; after how many years are you eligible?
* Tuition and Continuing Education Benefits: What percentage will be paid?
* Salary progression expected in the first 3-5 years.
* Vacation days, paid holiday, and sick/personal days: How many are you allotted, how are they earned, and what are the requirements for using them?Negotiate. Once you have considered the things listed above and they are acceptable, you are ready to negotiate. Enter the negotiation armed with a firm understanding of your skills and what they are worth. Know your strengths in your field. For example, say you were a keen negotiator for large corporate contracts that brought $1 million in revenue to the company. Explain to potential employers how you generally brought x-times your annual salary package to the company in terms of corporate profitability within your first year.
1. Negotiation is okay and is expected. If you are going into sales and do not even try to negotiate, this could be the last test of your interview. If you will not negotiate your salary, how can you be expected to negotiate multi-million dollar contracts for the company? Even if you are not applying for a sales position, employers may be wary of a deal that is made too quickly. For example, when buying a used car, if your first offer is accepted, don't you ask yourself: "What is wrong with it?" Do not allow yourself to be the beautiful candidate that the company now views with doubt because of your eager acceptance.
2. Make sure the negotiation stays win-win. When a company offers you an exact figure, it is usually safe to expect that the number is its mid-range. This is not the time to play hardball; you will be working with these people if you accept the position. Use real-life examples rather that trumped up negotiation tactics that sound like "ME, ME, ME!" Think team.
* If you have an okay offer: "After looking over your offer fully, even though I'm sure it's very competitive, the actual salary figure is lower on a monthly basis by 10% than what I am currently making. Though the bonuses will help improve the situation, those are subject to change. Is there flexibility on the salary portion of the offer?"
* If you have a good offer: "We are certainly very close. I was hoping for something more in the range of $X to $Y. How much room do we have for negotiation on the salary?
* If you have a low offer: "I really like you, the job seems to be a good match, and the goals of management and the company's organizational strategy all seem good. The only area that we need to talk about –- and the only area holding me back -– is the initial compensation offer. Quite frankly, the salary is less than I expected. I am truly interested in the position and from my research, $X is the approximate level for the salary. The other companies I am speaking with are in that range. What can you do in this area?"3. Examine alternatives. If efforts are exhausted in the salary negotiation, and the company has not offered a salary acceptable to you, but you still want the job, shift the conversation to the future.
* Discuss a 60-, 90-, or 120-day performance review and negotiate a potential minimum percentage increase.
* Discuss a year-end bonus.
* Discuss the opportunity for a lump-sum signing bonus.- omgdoesnotexist
- Nice, I was looking for something like that. Cheers e.5timuli
- yah welcome 5timmers!!
good luck!!!
-ee-pill - Thanks!5timuli
- hey thanks e-pill, that was some great info right there.RIZ
- Terminal270
Tell them that its not enough, but you really want the opportunity to show that you are worth what you are asking for. 3 months in, they give you a progress review, and if they have no complaints, they pop for the extra cash.
- Soler0
Be VERY careful about reviews. I've been promised revies by my manager and HR person, but been burned later. It HAS to be in writing and in my experience very few companies are willing to do that. I have a question: Why are you considering a job that doesn't even cover your expenses? Every job should be an increase in salary
- jamble0
Don't bother with that (the progress review).
You'll find in 3 months they'll tell you they're not sure if they want to keep you and in this financial climate they don't want to spring for the extra money so you'll be forced to settle with your lower rate.
If you're worth a certain amount, you're worth a certain amount so stick to your guns.
- 5timuli0
Do you think it's best to call or email? I got the offer through email and I'm thinking it might be better to do it in writing?
- marchelo0
I recently interviewed with a few companies in NYC, I've been a freelance/contract designer going on two years. It seemed that a major reason that I didn't get a job in some cases was because I stuck to my guns in the salary dept. Even though the economy is doing poorly, I still wanted at least what I was making at my previous employer. I guess for my level, (mid-level) there's always someone willing to do it cheaper. In some cases it was a matter of only $5 more an hour. (That I wanted.) Manhattan is expensive, my landlord doesn't care if the economy is slow. Anyways, even though I need a job right now, I still feel good about the way I handled myself. I feel fortunate too, there's a lot of people with kids and mortgages that can't afford to negotiate. A lot of helpful insight on here, thanks guys. And good luck! (I also find it best when referring to negotiating a higher rate without saying a number... Simply put, "I need to cover my city living-expenses XYZ,... you know how that is...")
- you should not have to justify your raise outside of your work ability. they will just tell yo uto cut back on your living expenses.cannonball
- designdecay0
I'm going thru this process right now. They offer me 15k less than what I'm making right now (been a designer for 10yrs). I really like the company and they ask me to come-back in so we can discuss the situation further. But a part of me feels like "I already told you what I want. If you don't want to pay me don't waste my time". Another part of me is saying (this guy is worth the money) but they want to haggle the salary. I hate asking for money but it comes with the territory.
- They countered with 15k less? Didn't they ask what you already make?Mimio
- No. They are like "we really like you, this is our offer $$$" I was sorry but that less than what I currently make.designdecay
- That's terrible.Mimio
- Mimio0
I'm finding a lot of HR at agencies ask your salary requirements and pay history up front sometimes even before an interview.
- 5timuli0
I've never had to negotiate before, whether that's my own stupidity or apathy or whatever, I don't really know. The offer is about $4-5k less than what I need to stay comfortable. I think I'll call him first then put it in an email. Thanks for the advice, it's been really helpful.
- Best of Luck to you!Mimio
- 4 to 5 k is probably not unreasonable... most companies expect some negotiation. ask for the 5kcramdesign
- 5timuli0
Here's the rough email in case anyone's interested for future reference:
Thank you for the offer, I look forward to accepting it. I really feel I'll make a very valuable addition to your team. I've spent this morning doing some basic budget calculations and I have a some questions to ask regarding the terms of the offer.
Firstly, taking into consideration existing monthly debts, medical expenses, and projected living costs, I feel the base salary of [$offered] would result in a dramatic reduction in living standards. Do you have any flexibility on this part? If you would consider as a compromise a base salary of [$requested] I can promise that with my hard work and dedication you will find the adjustment worth while.
Secondly, could you please supply a basic outline of what's included in the healthcare package, as well as details of paid vacation, sick days and frequency of any salary/performance reviews?
I'd be available to start as early as next week if we can agree on the final terms of the offer. I will be available to discuss this via phone, email or at a meeting of your convenience. I'm really looking forward to the possibility of becoming part of the [company] team.
- don't feel like you have to justify why you need that much.cramdesign
- max_prophet0
remove this immediately "I look forward to accepting it. I really feel I'll make a very valuable addition to your team."
and then the rest sounds too passive, you are setting them up to turn you down because you sound like you've already made up your mind to take the position, and now you are just trying to get some more money.
You don't need to go into talking about 'monthly debts' etc, that's none of their business.
- max_prophet0
I think e-pills post is very good, I'd refer back to that.
- cannonball0
Dont even bother explaining your living condition. They will just tell you to cut back on your own expenses. I would rather compare it to standards in cost of living and suggest the pay is not commensurate with your skill level.
- Llantera0
3-6-9 month review, don't do it.
- monNom0
Leave out the personal stuff. You're the one in control here, keep it professional.
Based on research and past compensantion, My market value is within the X-Y range. Your wage doesn't compare well to other offers I'm considering, but I like your corporate culture and work. What can you do to bring your compensation up to the level of your competition?
Sticking to your guns will make them more confident in your abilities.
- chossy0
you have to get paid enough stimmers, I know you need work but they have to pay for your skills, don't ever ever sell yourself short.
- yes, never settle or you will be so miserablesilentseven
- marchelo0
Sorry, not to steal this post, but its related. I just had a job interview with a major company for a mid-level design position in Manhattan. When asked about salary I replied with, to cover living expenses, 48-50K competitive/negotiable. I was just wondering besides a thank you for your time email. Would it be "OK" to be more clear on a particular question or two? You always come up with something later you figure you should have said. The person I'd be working with seems really chill and the opportunity to work on creative projects within a tight group is very appealing. I really hope I get this one, its the opportunity I've been waiting for. I usually wait a week or so to contact for a follow up...
- why wait a week?
its nyc, 2 days a must!!
or else you lost the job.e-pill
- why wait a week?
- 5timuli0
Maybe I should leave out the picture of my penis with a smiley face too? And maybe the poem I wrote about how wonderful it would be to work there?
