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Negotiating a Salary
LuckyYou
Registered User new member
Registered User new member
I was recently offered a position at a company, and I am hoping to negotiate a higher salary. Since this is my first career-level job, I'm uncertain about the etiquette for doing so. My husband will be giving up an engineering position for this move (over 1000 miles away), and in the current economy, it's difficult to ascertain how quickly he would find a position out there. The offer as it stands is slightly higher than our current combined income. However, the cost of living in this new locale is significantly higher (i.e. average home price is around 500K).
1. Should I make my first attempt to negotiate over the phone or via email?
2. Should I name a specific number or simply ask if there is negotiating room? If I name a specific number, how much higher than the original offer is recommended?
3. Should I list specific reasons for wanting a higher salary (i.e. husband's job, cost of living)?
4. Are there other aspects to the offer that should be negotiated as well?
5. Can negotiating a higher salary (or anything else) hurt me (i.e. cause them to retract the offer)?
1. Should I make my first attempt to negotiate over the phone or via email?
2. Should I name a specific number or simply ask if there is negotiating room? If I name a specific number, how much higher than the original offer is recommended?
3. Should I list specific reasons for wanting a higher salary (i.e. husband's job, cost of living)?
4. Are there other aspects to the offer that should be negotiated as well?
5. Can negotiating a higher salary (or anything else) hurt me (i.e. cause them to retract the offer)?
LuckyYou on
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You're not being hired on as some low level grunt here from the sounds of things, they would probably be a little perturbed if you didn't try to oversell yourself salary-wise. This is especially true for a sales position, if that's what you're doing.
This is an important thing if you can get at least a feel for it. My understanding (IANA HR Rep) is that companies usually come at it from cost of labor rather than cost of living.
Offhand, I don't think you need to or really ought to give your reasons for negotiating. Chances are that the company (depending on its size) can't really take that into account - they probably have policies that they have to follow. Though if you're being hired for a high-level position, they might have more latitude.
I doubt they'd retract the offer solely due to you negotiating. If it's time-limited, or if you're really difficult about it, they might move to another candidate. If you make one attempt at negotiating, and they refuse to, I can't imagine they wouldn't give you the chance to take the position at the original salary.
Now, you have a few options. If there's another job you're interested in, apply now and see if you get it. Having another offer makes negotiation really easy, because you can say something like, "the only concern I have is this other job, which pays $x. do you think there's any flexibility in the salary that might make this position comparable to the other one? it's a more expensive area than we're used to, so the extra money would really help us out."
Without that, it's a bit tougher because you don't have a ton of leverage. Still, something like, "hey, this job would require my husband to move far away and give up his engineering job, so we're not sure what the financial impact would be on us as a family. do you think there's any possibility of adjusting the salary in order to keep our combined income relatively the same?"
Remember that they put in work to find/interview you, so if you disappeared tomorrow they'd have to go through the annoying process of finding a replacement. They have something invested in you already, so see if you can use it to make a few bucks.
Also, please do negotiate your salary. An extra $5k/year will give you $15k for free in 3 years, plus it allows you to negotiate future salaries (because you compare them to what you're making now), plus it will affect 401k matching and possibly a bonus if that's dependent on your base salary. Fun times.
How did they inform you that you had a job? That is usually when they tell you the salary and that is the time to negotiate.
I guess since it's cross country they called you?
Usually the job has a salary range like "$85 to $105K per year depending on etc and etc". Typically it's not advisable to ask more than their cap. Typically they also give you the lower side of the number first.
In addition to pay ask about:
- 401K/Pension, how much do they match?
- Typical Bonus numbers and criteria.
- How Raises/Cost of living increases work.
- Relocation reimbursement.
>> . Should I make my first attempt to negotiate over the phone or via email?
In person >> over the phone >> email.
Also don't make the entire meeting about that. Use it to clarify other details about the job.
>> Should I list specific reasons for wanting a higher salary (i.e. husband's job, cost of living)?
At first I would probably keep that info close to the vest unless asked. If asked or the conversation feels like it would benefit from it; than yes, a few "bullet points", but don't draw it out to a long ass story of your life. Secondly, focus on why this would be good for them. If you have a good performance record or have a counter offer from your current work or, etc..
You know, they probably really don't care about your living situation; but they will more likely care about what they are going to get for that extra $X.
If you can't or won't do it for that amount; flat out tell them that it is to low considering your other options.
Seriously, Check out the cost of living for the area you'll be moving to in detail. An increase in combined salary can be erased if everything is butt fuck expensive where you live. Depending on where you're moving from/to, groceries will cost you a lot more.
So yeah, do that and check out the local engy market for your husband.
As for the actual negotiation, once they start talking numbers, you're negotiating. Everything is up for negotiation, signing bonus, moving expenses, salary, etc. Keep in mind though that most companies are going to offer fair value and not try to lowball you. They have an interest in keeping compensation in line with their current employees. This is of course assuming that their operation isn't goosey.
After you find out what your expenses for living in the area, and the general salary for someone in your field with your experience, you can get them to offer first.
This has the added bonus of getting to know if they're going to lowball you or if they really don't have any idea how much someone in your field should be making (a good way to tell if the job is going to absolutely suck too).
Employer: "So, what kind of salary were you looking into?"
You: "I've been haggling with some numbers in my head, but, if you're willing I'd like to entertain a few numbers tossed out by you on salary and compensation."
At that point you'll either get a number (At which point you can talk them up a little bit, which you should do)
Or you'll be met with:
"Well our budget isn't finalized, let's hear some numbers and we'll go from there."
In which case you'll want to ballpark yourself on the high end of medium range (or if you know a lot and know everything they're quizzing you on, shoot for the moon). Going too high though, is a problem, and this is why I look for jobs where salaries are posted.
I've gotten an interview where the company thought a Level 3+ programmer/software engineer should be making 20,000 a year, and be in charge of a team.
Try your best to get them to offer the numbers up first. Get to know the company too, why someone's vacated the position, or if it's a new position, and what kind of company (Small/large/medium, big profits or low profits) and go from there. These are key to negotiating salary.
Something to remember here: HR is essentially the enemy when negotiating your salary. From my expierence:
1) Do not disclose what you currently make. If they press you on the matter, offer a range, rather than a set figure. You can lie here a little, as even if you produce a pay stub, and the amounts differ, you can chalk up sign on, or year end bonuses to offset that income, hence what you stated.
The reason: If they know what you make, they can offer say, 10% more, and while yes, that's 10%, in the market you'll be moving too it's still below average for your position in that area. It's a cheap weasel tactic, and i've been burned by it.
2) Get everything written in your offer letter. Bonuses, perks, relocation assistance, everything. You want it in writing, and spelled out clearly. If it's not in the offer letter, and you assume it's there, then that means nothing to them. Don't let'em pull a fast one.
3) If you get them to start naming numbers, you're already ahead of the game, so once you're interviews are over, and they want to hire you, start the salary negotiation. Let me come to you if you can, and be prepared to say "That isn't enough." If you're going to move a long distance away from friends and family, it needs to be worth your while. A parking space and a corner office isn't, in my mind, worth that move, but dollars are.
Also be clear on any bonus/raises. If your company offers you say 20% bonus and 10% raise per year based on performance; make sure they either pay up to offset that lose or have a similar policy.
If you are making $100K at your current job with the ability to pull in an extra $30K in bonus/raise; that is a hellva lot better then getting $140K a year with no bonus/raise program. (good for year 1, bad for year 2 and onwards)
Also at many places, like government, their may be several pay grades and a range withing each one (eg: grade5 is $75k-$95k and grade6 is 90k-100k). You'd like to be in the range with as much room to grow as possible as some places will stop giving increases once you reach the top of your range.