Steve's Blog (for Jobseekers & those hiring)

Recently, a friend asked me for insight regarding negotiating his salary for a new job.  Considering that many of us may go through similar situations, I wanted to provide an overview of his situation, and share some of my observations.

Background:

My friend, like many others these days, is facing a transition at work.  Specifically, he will soon be one of many from his firm being laid off in the interest of controlling costs.  As anyone else in his shoes, he is doing the prudent step of sourcing other opportunities (in this case jobs) for himself, applying, interviewing and (hopefully) obtaining offers.  One such lead may have lead to an offer for full-time work.  (Great!).  Now comes the hard part: do I say yes to their salary offer.

For my friend, his concern is not that the salary is completely unreasonable.  It is, however, slightly less than he was expecting.  Perhaps, for the role he is interviewing for, or for similar roles in this field, the expected pay may typically be in a higher range.  Granted, this salary is close to what he is making currently, but from his description, it would seem that his current company had been under-paying him for the level and scope of the work he provided.  He specifically asked if there was anyway to diplomatically push for more money without alienating the hiring co. and possibly ruining his chance of being hired.

That said, here are my observations.  I list these as if I am speaking to him (or anyone one else in a similar position).  Please Note: I have removed any reference to his personal name, and tried to limit the specifics of his situation as to maintain his anonymity.

My Two Cents:

Thanks for emailing me with this. I think you are right to be cautious. My first instinct is to tread lightly. Touch base with the recruiter, but I recommend not pushing too hard. Inquire if there is any traction on salary (or possibly other perks – pay-at-risk, bonuses, stock options, benefits, flex time, etc.). If you happen to know anyone that works there, research what the culture is like for negotiating salaries. Be clear that you are still very interested in the position, and in building a future with this firm (not just looking to extort more $).

Perhaps you can demonstrate how you have built value for your previous co.’s and have a plan for how to do the same here, etc. Demonstrate that you are worth the added investment. If the response is no, don’t be discouraged. I would then ask if they might consider re-evaluating your role in six months to a higher salary (perhaps by shifting your role to take on added responsibility, etc.).

DO NOT MAKE IT EASY FOR THEM TO SAY NO. Remember: Hiring companies have the luxury of a deep candidate pool to draw from. Just because you beat out other applicants to get the offer, this does not mean that candidates #’s 2 and/or 3 are not so close that they may not still be in the running. That said, I personally believe that any salary discussion is impacted by the following:

1) The amount of leverage that you have in the negotiation (this might be the impact of former managers/co-workers/clients you have worked with who work at the firm and have influence over your hire and salary, and/or a specialized skill set or experience that you offer)

2) The financial condition of the hiring company (larger co’s are typically more conservative on $’s, yet have more stability, and longer-term growth potential – start-up’s are more volatile, but might have a higher short-term return, etc.)

3) Timing of the hire (closing of the fiscal calendar, backfill for someone leaving, help with a ramp-up, etc.)

4) Availability and suitability of alternate candidates (which I mentioned above)

I recommend you take a little bit of time to think this out.  Discuss with family, etc.  It helps to take a day or two to consider where you are at, how urgent it is that you maintain your working time line, not to mention the income coming in.  Do not drag this out, or make it seem like you have any doubts, but make sure that you have made an informed decision.

Consider the timing of hire. If you are receiving a severance from your current co., you may want to work out the timing of your start to allow you to capitalize on this.

I can tell you from experience it is infinitely harder to get hired with gaps in your resume. If it is at all possible to maintain the continuity, I recommend doing what you can to minimize or lessen any gaps.

Also, do your research regarding salary for the position you are being hired into, and know the justification for why you would be worth more.  Be patient, direct, and assertive, but not confrontational.  Again, impress upon them that you are flexible, and are committed to building a future with this firm.