They Want Me! Can I Negotiate?

I regularly get the call for job seekers that are in the latter stages of the hiring process and the conversation goes something like this:

Job Seeker: “I just got offered the job with ABC Company.” (excitement in their voice)
Mike: “Great job! Congratulations. Tell me about it. I want to hear all the good stuff.
Job Seeker: “It is great job. The people are great. I have great responsibilities. But (long pause) the offer isn’t quite right. The ________(fill in the word: Salary, Bonus, Title, Vacation, Benefits) isn’t what I was hoping for. In this job market, can I negotiate?”

When job seekers ask me for my thoughts on negotiating, I always say, why not? This is the time to negotiate if you want to. You won’t be able to negotiate after you start. If the offer doesn’t have some of the key things you are looking for, it can’t hurt to ask.

I typically will get the response from the job seeker that if he or she tries to negotiate, it might anger the company resulting in the company pulling the offer. One senior VP level job seeker asked me this question a few months back. After we discussed it for a while, he went home and shared my suggestions to his wife. A half hour later, he calls me. He proceeded to tell me that his wife asked him if I was nuts. Does he realize what the market is like out there right now? I am sure there were a few adjectives thrown around to describe my craziness.

It is my experience that most companies and hiring managers have spent hours upon hours sourcing you and vetting you to make sure you are the right fit for the company, their department, and their team. Once they have made the decision to offer you the job they don’t want to lose that investment in the time and money it took to find you. At that point, they have determined that you are the right candidate.

I have found that most of the concerns by job seekers really stem around a fear of how to effectively approach it. They realize that they haven’t honed that skill and aren’t comfortable trying it at the point of the offer. Here are a few things to consider if you are considering negotiating your offer.

Ask for the Offer in Writing: Always ask for the offer in writing. It is a good practice to understand all the components of the offer. If something is not in your offer letter than you don’t know if it is truly going to be a part of your total package.

Prepare and Compare: Do a comparison analysis of your offer with your prior job compensation and benefits. Divide a sheet of paper list out the components. Translate your benefits in to dollar amounts. For example a week of vacation is worth 1/52 of your annual base salary. What are the differences in the 401(k) match? What are the differences in premium contributions to the health plans? Once you have listed everything out and summed up the totals, look at what the variation is between the offer and your past comp/benefits package.

Understand What Is Important To You: Think about what it will take for you to say “yes.” What would the offer look like for you to feel completely excited? You need to determine what is minimally acceptable to you. What will you compromise on? Will you tradeoff a lower salary with a higher bonus? Do you want four weeks of vacation but will take three weeks if that is what is offered? Sometime companies are able to tradeoff in one area to compensate for another area.

Show Excitement: Start your discussion with by reminding them of how interested you are in the role and your excitement about starting. Thank them for the offer and the opportunity. Reinforce this message throughout the discussion. Set up the meeting to be in person if possible. It is easier to read the body language, face expressions, and general tone of the discussion.

Use Questions: Share with them that you have questions about the offer and the total compensation package (the compensation and benefits). Express to them that you have reviewed their offer (remember to reinforce your excitement) in comparison to your prior company and that you what to know if there is some room for movement in a few areas. For example: Is it possible to move the base salary by $200 per month? That would bring me closer to the total compensation package that I am accustomed to and I would be willing to start next Monday. You are not trying to corner them.

Follow up: If you get changes to the offer, ask for the revisions in a revised offer letter. Remember to thank them for their time and interest in you.