Can You Negotiate Win-Win At Offer Time? (Part 1)
I recently had a client whose negotiating stance at offer time was a stumbling block. As this person got through dozens of interviews to finalist stage while trying to hire multiple managers, she jeopardized multiple hires be being rigid at the wrong time.
Her style was so clumsy that she lost one person, and several who took a job with her came in with their guards up - she made the hire, but ended up with someone in the chair who was wary of her management style based on their experience during the offer!
Negotiating is an art, and I won't pretend to know everything about it. But in the hiring cycle, two things matter most - homework and transparency.
The most important piece of homework is to think through the spectrum of ways candidates will negotiate. There are two ends to the spectrum:
* On one side of the spectrum are candidates who lay their compensation expectations out with the expectation of fairness on the part of the company, and who usually won't negotiate - they'll see your offer and either take it or leave it,seeing the company's offer as a final valuation of their abilities.
* On the other side are those who don't give a lot of information and prefer to see an offer first. Then they will ask for adjustments, seeing the offer as a negotiating point - many of them will ask for anything and everything just in casethe company's willing to give more.
Ever wonder what's in someone's head as they prepare to negotiate? Below are some comments from job seekers who answered a question I posed on "LinkedIn" about their approach to offers. Read them - then next week we'll delveinto how to negotiate regardless of who you come up against.
Computer Software Consultant and Professional
"With offers that I have had in the past I took the former approach, allowing the company to assess my value and make the decision of what having me on their team would be worth. As I have become more experienced in business though, I have realized that approach was probably naive on my part. If I choose to look for opportunities outside of my current employment, I would probably be more apt to negotiate at this point. This is probably because I am more confident in my abilities and my value to a company at this point in my career than I was at earlier stages.
If a hiring manager is not willing to negotiate, I would be fine with that as long as that was mentioned prior to the extension of the offer. If it is mentioned after you counter offer, my suspicion would be that the statement was just a negotiation tactic on their part. "
Finance Professional
"Sometimes it means that the company is looking very closely at managing labor costs, which is great for the company and long-term company survivorship. Also, if they don't bargain, this likely will be the same near performance review, which you may want to consider. The best is to find an insider if at all possible before accepting an offer. You don't want to get stuck at a place that doesn't give out raises."
Marketing, Public Relations and Corporate Communications Professional
"I think the answer depends on your situation. First, know what value you bring to the organization and how that equates to dollars in your industry. Do your homework. Have a number in mind and don't forget to put your own value on other benefits such as quality of life and opportunity for growth. Know both what's important to you and how your unique skills meet the employers needs.
If you're making a lateral move, or going to an industry where you expect to make a little less, I've found it's better to be up front about your current salary and whether or not you are willing to negotiate. Sometimes you can agree on additional vacation time, or a flex schedule in lieu of dollars.
If you're not making what you're worth, which is often the reason people look for new opportunities - avoid sharing your current salary, but instead, do your research and if you must give them salary information, give them a range that makes sense for the new position. Remember, you should be valued based on the job you will be doing and the skills you bring to the table, not on the salary from the job you're leaving.
Overall, my experience has been fair and honest negotiations and offers usually mean fair and honest workplaces - whether you wait for their offer, or put your cards on the table. When I've hired people, I stated the salary range upfront, then made offers based on their skills and fit on my team. When I've interviewed, I've gone both directions.
Word to the Wise: In 17 years of PR and Marketing, I've received low-ball offers on two occasions, both in high paying industries. I refused them, and negotiated a higher salary before starting, then got to the work place and the environment turned out to be low-ball as well. Good employers value and respect their employees!"
Senior Technology and Management Consultant
"A few points before the answer:
1. There is nothing "fair" about negotiating your comp. package; you are there to get the highest amount; the hiring manager (and recruiter) is there is get the most employee for the least amount of $.
2. In negotiating (anything with money involved), the first person to name the dollar amount loses the edge (and ultimately leaves dollars on the table). If you name the number, and the manager (or recruiter) says "Yes", then you wonder if you could have negotiated a higher amount. If the hiring manager names the number, you know where (the range) to start the negotiation. When you are asked what you made in your last position, first ask "What is the range for the current position?"
The Answer: As a hiring manager and a candidate myself, I see both sides of the table. A good hiring manager must show a willingness to "discuss" salary requirements (up or down), based on a candidate's skill set and current employment market conditions (in most cases there is a "low, medium and high" number associated with the position). This discussion provides a perceived value to the candidate even if they are denied the requested rate later. This exercise also hows the hiring manager a glimpse of the candidate's style and skill in negotiating.
Based on my own style, if a hiring manager does not engage in a salary discussion, or at least attempt to inform the candidate of the issues on why he/she cannot engage (budget, etc.), this may be a glimpse of the manager's style and what it would be like to work with this person;(. Moreover, the manager and company may develop a negative reputation in the market or lose qualified candidates to other companies willing to engage in salary negotiations."
Interesting, no?? So how do you get to Win-Win with these folks...next week!
Want to chat about compensation and whether your approach is helping or hurting - click the email link below and we'll set up a time to talk.
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