John could also use what we can call the straightforward approach when responding. It would go like this: "Mr. Russell, based on my potential I really feel I'm worth $36,000, but if you would make it $35,000, the decision would sure be a lot easier."
The creative approach should sometimes be tried. Remember, the offer was for $28,000. "Mr. Russell, based on the duties you've described, I agree that the job is probably worth no more than $30,000. I'm sure you would agree with me, however, that I'm capable of handling much more. And when I began this job search, I never intended to accept anything below $34,000. But perhaps if the responsibilities were increased you could justify $34,000." Notice what has been done. The offer was for $28,000, and the interviewee is basically agreeing, but then suggests that the job is worth $30,000. Even while agreeing, the interviewee adds a little to the salary, and then asks if the responsibilities could be increased.
Another strategy is to use another job offer as leverage whenever possible. You may have received an offer where the salary is satisfactory, but the job is not what you really want. Then you may get another offer where the job is perfect, but the salary is low. You might want to say, "Mr. Stuyvesant, the job itself is perfect, and of course I would really enjoy working with you. The salary is below what I expected, and I already have an offer at 3,000 a year more. If you could adjust your budget, it would make my decision a lot easier." Employers are human too. No one likes to be rejected. If they feel they cannot match your salary expectations, the employer may decide not to make an offer even though he or she would dearly love to have you. It is important, therefore, to have a feel for the range and let the employer know that you are very interested.
Responding To "How Much Do You Want/How Much Are You Worth?" When making an offer most employers will specify a certain beginning salary. Some, however, will not, and they may ask, "How much do you want?" or "How much do you think you're worth?" If you get this type of offer you will have to depend on what your research revealed. Your research should provide you with a good idea of what the typical range is for the position you want. If you believe the range is $30-35,000, you might say, "The starting salary is important to me, but not nearly as important as a job that fits me and allows me to make the kind of contribution I know I can make. I believe in three years I should be making at least $42,000." This is a good response. You are giving the impression of being very realistic and flexible. Actually, you have just put the interviewer in a corner. The interviewer may know that the best he or she can hope to do is get you an 8% increase each year. Therefore, to reach your $42,000 goal in three years the starting salary must be the $34,000 you actually wanted. Surprisingly, it is often easier for a supervisor to start you off high at the beginning than to obtain raises commensurate with your contributions later on.
If you believe the range is $30-35,000, you could present a range by saying, "Based on my experience and potential, an acceptable starting salary would be between 32 and 38,000, depending on my full range of responsibilities and other aspects of the benefits package." This is effective because it cannot be interpreted as saying you would accept X amount. The idea is to state a range with the high end of your range slightly higher than what you assume their high end is, and your low range slightly higher than what you assume their low end to be. Or you might state a single figure about 5% above what you believe the top of their range is. If you think the top of the range is $35,000, you would look the employer in the eye and say, 'I was thinking about 37,000." The employer will probably reject that amount. Don't let it bother you. Simply ask, "What's the best you can offer?" Because of your confidence and the potential you have demonstrated, the next figure will probably be very close to the top of their range.
Of course, the employer could respond, "We were thinking close to 30." Perhaps you misjudged the range. For this company $30-32,000 may be the top of their range. Or you may not have completely sold the employer on your potential. Your response might be, "I feel I'm worth more than that. However, working for the right organization is really more important than the starting salary. I'd say 35,000 would be fair. The employer may still not go for it, or may come up to $32,000. If the employer counters with $32,000, you would counter with $34,000 and probably end up at $33,000. Not all negotiations, of course, end up with each counter proposal neatly meeting in the middle.
Wrapping It Up
How tough you negotiate depends on how strongly you feel about your worth. Once you have negotiated for the best salary possible, other factors must still be considered, particularly if the salary offer is below what you expected. If, for example, the employer offers a six-month salary review, ask for a three-month review. Other factors you will continue to negotiate at this point include: cost-of-living increases, moving expenses, tuition reimbursement, flex-time, an extra week of vacation, or anything else that is important to you.
In any negotiations, a final point is eventually reached. You know you've reached the end of negotiations when the two sides are close, yet neither side will go any further. At this point someone has to make the final compromise and say, "Let's call it a deal." Salary negotiations are usually not long and drawn out. For entry-level to middle management positions the whole process may take less than two minutes.
At the executive level, however, negotiations may take a half hour or several days, as both sides propose and counter propose. If one of the negotiation issues must be decided by someone else in the organization, it may take several days to conclude the negotiations. The ability to negotiate for a higher salary is one of the most valuable skills you can develop. Once you understand the principles, the practice is up to you.
Now You Can Decide If You Want the Job
Once salary and benefits have been negotiated, you are almost ready to decide whether you will accept the position. You need time to consider the decision. Your emotions are strong at the moment, so you need an opportunity to step back and be objective. Just as the employer did not make the hiring decision after the first interview, you need time to consider everything. Employers realize that it is never an easy decision to accept a new position or to leave a current position. The employer had time to consider several people and to check references prior to making you the offer. The employer had a chance to sleep on it and make the decision with a proper frame of mind. You need the same opportunity.
Ask for time by saying something like, "I think the salary is going to be adequate and I think we're going to work very well together. How soon do you need a definite decision?" They should give you at least three days. If you have another offer pending, you might respond with, "Today is Thursday. How about if I confirm everything by next Wednesday?" If you're going to need more than a week you should be prepared to explain some of the reasons. If you have another job offer pending, but won't know anything definite for two weeks, you'll probably need to explain the situation. You might explain that if that job comes through, you feel you owe it to yourself to be able to weigh all factors. If you've established solid rapport with your prospective boss, the person won't like it, but will understand. If the employer cannot wait that long, you may be forced to make a decision sooner than you would have liked. When you ask for the time to make the decision, do not say, "I'll have to discuss it with my wife (husband)."
Research after an Offer Is Made
Once you've gotten the job offer, negotiated salary and benefits, and reached an agreement, you still need answers to your remaining questions. Some of the questions you did ask may not have been adequately answered, and there were other questions you did not ask at all because they seemed too sensitive. Now is the time to ask those questions. To the interviewer you might say: "Mrs. Torgeson, I'm glad you had the confidence in me to offer me the position. The salary is about right and I'm really looking forward to working with you. I do have just a few questions that I would like to be clarified so that I can make the right decision." Then proceed to ask every question you have even those sensitive ones you did not ask earlier. As long as it is asked tactfully, almost any question regarding you, the job, or the organization is reasonable.
Having asked for time to decide, you now have two important tasks to complete:
- Make a final, all-out effort to discover more about the company from inside sources; and
- Contact those other organizations which have expressed interest in you.
