The market has made a lot of talented people available.
In recent blogs we have discussed what to do if you have been laid off and how to get back into the interview mode. This means getting past the emotional part of the RIF, so some introspection and reframing the lay off as an opportunity will be needed to focus our energies on what we really want next!
Yes…it can be a gigantic pain in the (fill in the blank). However, it does represent a huge opportunity for planning near term, longer term growth, (and happiness?).
If you were laid off during this recent market cycle, it’s time to be encouraged. This particular cycle doesn’t seem to have the same teeth that previous downturns had, (at least that is what I am hearing from many coaching subjects.) Many have done their personal SWOT analysis, widened their perspectives on potential employers and have started interviewing.
In preparation for negotiating after receiving your next offer let’s discuss:
1) What is important to you?
2) What is considered acceptable negotiation?
3) How to handle multiple offers?
4) How to decline an offer gracefully?
1. What is important to you?
Many people haven’t had the need to interview in quite a while. To solidify their thought processes, very often I will ask coaching subjects to take a blank piece of paper and make a diagram like the one below.
At the top, write something like, “My perfect job would be ______________”, or I want my next job to be_____________” This is to get their wheels turning without overthinking it! I want them to just start writing down what pops out before their brain has a chance to hijack it.
On the Left side, under the Plus (+) Sign, write down the must haves and nice to haves. Do the same under the Minus (-) Sign for the deal breakers and / or don’t wants. Once these are made clear we move on to the summary at the bottom of the page. The summary is the basis for forming their elevator speech, i.e. that short flowing synopsis of who they are and what they are looking for next. Many times we intentionally place it near the top of their resumes.
It sounds something like this:
“I am a highly skilled ______________professional with extensive experience in leading ______________and developing _____________ to deliver exceptional_______________, with proven track record of ___________, ___________ and ___________. What I’m really looking for next is __________, [or] I want my new role to be”
Of course this is going to vary by demographics, stage of career, wants and desires. Feel free to adapt it to your process. Yes…go ahead and create multiple resumes that target different jobs.
2. What is considered acceptable negotiation?
In the cartoon below, the candidate is overly zealous to accept an offer…any offer. It looks like the hiring managers can barely get the words out before the job seeker pounces on it. This leaves
them second guessing themselves regarding the veracity of their new hire.
Most employers expect you to negotiate at least one round.
If you don’t, you may be leaving something on the table. The key is reading the situation to know how assertive to be without damaging the negotiation process. Multiple factors influence negotiation of compensation, total reward, i.e. demand in the current economy, geographical significance, desire for flexibility, technical and/or educational specialization.
Some state laws have changed with regard to salary transparency and what can or cannot be asked of a candidate’s past salary history.
Be sure to understand the latest state laws and how they could impact your situation. In instances where pay transparency is in effect; be sure you are leveled correctly according to your education and experience.
Getting The Offer*
*From University of Connecticut Career Center
Some guidelines for negotiating
A) Have an idea of your market value– There are multiple sources of information to survey the market or locality in which you are searching. Sites like Payscale.com, Glassdoor, and salary surveys by agencies like World at Work are a good starting point. Keep in mind your best source of fresh data may be your network of colleagues, family, and friends.
B) Get the offer in writing– Eliminate any potential misunderstanding. Have a clear understanding
of terms and conditions. If it involves more complex things like equity, employment contracts, deferred compensation, non-compete agreements or other restrictive covenants, you may want to consider a legal review.
C) Study the total reward – Wait a day or two after receiving the written offer before negotiating.
Give yourself time to fully understand the offer and think through a negotiating strategy based on what it contains. Look at the cash and non-cash components of the offer. Get a feel for which things are negotiable and which things are not. The offer letter will usually ask for a “reply by date.”
Money is important but so are other factors such as stability of the company and career path. The promise of a large base, with bonus and equity in a company that may not exist in a year or two won’t be much consolation when you have to start looking again, (unless you did it intentionally to gain experience)
If salary is negotiable and you are asked for a specific number, use an unusual number. For example, don’t say $120,000, instead say $121,500. Instead of 60,000 as for $62,500. If the job is more highly compensated, bring up other financial based deal makers such as equity or stock options. Give the impression that you have done your homework and have studied the market for your services.
If the employer has made it clear that base pay is off the table for discussion, think about requesting a six month re-evaluation based on your performance. Search for other things that are negotiable and appropriate for the role. Of course, get any revisions agreed to in writing.
Other negotiable items might include:
- Work location – Remote may actually be hybrid and can change over time by management
- Relocation expenses – Have an estimate to speak from vs the standard offer (take the higher)
- Corporate housing – If moving to a new city and have a spouse or family coming later
- Position title – Sometimes a bigger title offsets a little less salary but looks good on the resume
- Signing bonus – Depending upon how hot the job is and how great a fit you are for the job
- Tuition reimbursement – Great for finally finishing the degree that has eluded you up to now
- Students loan payoff – A great help for those who want to eliminate debt trailing them over time
- Transportation costs – If returning to the world of commuting, (also coved under psych benefits)
- Parking allowance – If parking on-site, this can be significant depending on the market you are in
- Office space – A real office with a door vs a cubicle unless that is your preferred environment
- Technology allowance – For work related systems, computer, updated software, internet, phones
- Child care or Elder care – If concerned about the ability to leave loved ones in a care facility
- Paid time off – Amount that is appropriate to the market conditions and your professional level
- Parental leave – This is a big one as many benefit plans are not customized to family lifestyles
- Professional development – Work-related classes and membership in a professional association
- Work-life balance – Additional paid time off, flex time hours, gym membership, off line time
- Equity compensation – Stock, performance shares and options. Startups often offer equity
- Guaranteed severance – Collection of benefits that you can receive if your company lays you off
- Commission percentage – For sales roles, earn commission based on the sales you produce
- Typical benefits:
a) Health, dental, vision insurance (ask to as soon as possible)
b) Group life insurance (use guaranteed issue at time of hire)
c) Disability insurance 401K or retirement plan (ask for the better company match)
d) Pre-tax FSA or HSA accounts
D) Countering the offer – Get to the right person to offer your counter. After studying the offer, ask to speak with the decision maker. This is usually the hiring manager. Recruiters are great, but they are not the decision makers nor will they end up being a reporting relationship. Understand the proper use of Emotional Quotient (EQ) in countering. Be sure to respond professionally vs reacting emotionally.
Negotiating is crucial to getting off on the right foot. Nobody wants to start a new role looking backwards like they weren’t compensated fairly or correctly. We want the appropriate amount of enthusiasm to launch in an excellent way!
Be gracious and thankful for the offer. Ask for 10% higher than what is offered on salary base unless they told upfront it would not change. An increased base salary is more valuable in the long term than a one-time bonus you might be offered.
You might start by saying, “The base salary is a bit lower than I was anticipating. What upward flexibility do you have here?” Ask an open-ended question first. They may come back with a bigger increase than you expected. If not, communicate a target range, with the bottom number acceptable to you, and the top number something that you would be really happy about.
Know when to close your mouth. It’s normal to feel nervous when negotiating your compensation. There is an old rule in sales at the closing table, “Whoever speaks first loses.” Whether this is true or not, don’t be freaked out by silence. Slow down and give the other negotiation partners time to think and respond.
3. How to handle multiple offers?
When you reach a fork in the road – take it!
This is a good problem to have and it requires real thought. Remember what’s important to you in the near term and your longer term career goals. At this stage, many people are ready for a change in career. This is a time to do what you are called to do. Think it through!
Be gracious and buy as much time as you can. Ask for time to review the offer with your spouse or family. Buy some time by asking them to send whatever documentation they can share about benefits etc. This is completely reasonable. Never feel rushed to make a big decision like this. All good recruiters have a short list of 3-4 candidates. If you wait too long or play one company against another they are likely to move on. Just be honest. Tell them you are sincerely interested in their company, if you are, and tell them in a professional manner that you have an offer from another firm (but don’t mention them by name or share any information about other offers).
4. Declining offers gracefully
If you decide to decline an offer – put a smile on it
Your goal is to keep connected and remain viable as a future candidate. Today’s declination could be tomorrow’s acceptance. Leave good vibes for them from their cordial interactions with you.
Impress them with how professionally you handled the declination and sincerely thank them for their interest in you as a candidate. Keep up to date with news of that company. Consider networking with them to send them people as candidates from your network. They will recognize you as a team player.
In an upcoming blog we will talk about using an onboarding plan for the first 100 -180 days on the new job. Congratulations on your new role!
Well done.!…I knew you could do it….Lee
