Negotiating Job Offers

How to Negotiate Job Offers?

Recently, a friend asked was it a given for a company to provide an acceptance date with a job offer. Her worry was that she would be asked to accept or reject the offer immediately without time to weigh her options, or wait to hear from another employer, one she would prefer to work. What if the deadline for Job #1 is set before she hears from Job #2?

This is not an uncommon problem. According to the Division of Affairs at Virginia Tech's Career Services, they suggest you do the following:

First, never accept an offer and then back out later. That's called reneging, and it's considered highly unethical and inappropriate and is very disturbing to employers (and they do talk to each other). You may hear opinions that it's okay. It's not. Ask yourself what your ethical standards are.

Without delay, call employer A and let your contact know the situation. Keep your information simple and factual regarding the offer from B. You don't have to mention organization B's name, but you might be asked. Reiterate to employer A that you really want to work for A. Ask where you stand in the evaluation process and if there is any possibility to have definitive information from A before B's deadline, and if not, when that might be. Your goals: Diplomatically learn more about your status with A, let A know your interest in them, and perhaps stimulate A to speed up their process if they really want you.

Next, without delay, call employer B. Express appreciation for the offer. Indicate that you don't yet have all the information you need to make your decision. (Good organizations will want you to make a well-informed decision and they are aware job seekers are looking at multiple options.) If A will give you a final decision by or shortly after B's deadline, you have the option to ask B for a deadline extension — just don't wait until the last minute to ask. B can say yes or no to your request; you won't know until you ask. Your goals: Maintain your good relationship with B, and perhaps gain some time to make your decision. Bottom line: Be as honest as you can while being diplomatic. Treat everyone with respect; maintaining good relationships with organizations and individuals (who may change organizations) will serve your long-term career success.

The Virginia Tech Career Services website is loaded with information that covers the following:

Skills for meeting employers: Handshakes, Career & Job Fairs, Employer info sessions, Interviewing, Business casual attire, Dining etiquette

Deciding on an Offer: Salary, negotiating, Ethical issues, Acknowledging a job offer, Deadline extensions, Declining, Accepting, Contracts, Relocating

Search Tools & Skills: Resumes and vitae, Cover and other letters, E-mail, Telephone, References, Your online presence, Researching employers

There are tons of sites, resources and local and national agencies to assist you not only with job searches, but also with negotiating acceptance of job offers. There are of course exceptions to many rules of thumb. For example, just because you ask for an extension to accept or reject a job offer does not mean it will be granted. 

Of course there are countless factors to consider when deciding to accept an offer or not: Will relocation be necessary? If so, is it only you? You and a spouse? You, a spouse, kids, pets, etc.? If there are other family members to consider, will they also work? Stay at home? Do you have enough saved to cover expenses until you both are employed? Is the company assisting with moving expenses? Can you negotiate the start date of the offer? Do they want you to start a week after you accept? Two months? Six? What can or will you do in the meantime? Will you need to sublease your apartment? Sell your home? What are your real estate options? Will you purchase a home when you arrive, or rent?

The U.S. Department of Labor is another good place to start. There you can find the Occupational Outlook Handbook, 2010-2011. The book provides the training and education needed, earnings, expected job prospects, what workers do on the job, and working conditions for hundreds of different types of jobs. It also provides job search tips, links to information about the job market in each State, and more.

NOTE: The analysis in this edition of the OOH is based on the 2008-18 employment projections and includes May 2008 wages from the Occupational Employment Statistics (OES) survey. The 2012-13 OOH to be released in late March 2012 will reflect employment projections to 2020 (released on February 1, 2012) and an updated education and training classification system. It also will include May 2010 wages from the OES.

 It also discusses Where to learn About Job Openings, Job Search Methods, Applying for a Job, Job Interview Tips, Evaluating a Job Offer, and More.  

The Handbook states that "there are many issues to consider when assessing a job offer. Will the organization be a good place to work? Will the job be interesting? Are there opportunities for advancement? Is the salary fair? Does the employer offer good benefits? Now is the time to ask the potential employer about these issues—and to do some checking on your own." Often, during the interview you will have an opportunity to ask questions, but it is best to discuss benefits with the experts, and salary negotiations often occur after you have been offered the position. Don't be afraid however to ask those you meet along the course of an interview questions about the company, relationship between management and workers, lunch breaks, community service requirements, even parking. If possible, speak to current and former employees of the organization.

You should research such factors about the organization as the organization’s business or activity, financial condition, age, size, and location.  This information is often on the organization's website or you can contact its public relations office.  The organization's annual report is often found among the packet of information given before or after the interview. The publication "tells about its corporate philosophy, history, products or services, goals, and financial status. Most government agencies can furnish reports that describe their programs and missions. Press releases, company newsletters or magazines, and recruitment brochures also can be useful. Ask the organization for any other items that might interest a prospective employee." If you cannot locate an annual report, there are directories that you may find in your local library in print or as online databases. These directories include:

• Dun & Bradstreet’s Million Dollar Directory
• Standard and Poor’s Register of Corporations
• Mergent’s Industry Review (formerly Moody’s Industrial Manual)
• Thomas Register of American Manufacturers
• Ward’s Business Directory

Magazines and newspapers can tell a great deal about its successes, failures, and plans for the future. You can identify articles on a company by looking under its name in periodical or computerized indexes in libraries, or by using one of the Internet’s search engines. However, it probably will not be useful to look back more than 2 or 3 years.

Long-term projections of employment and output for detailed industries, covering the entire U.S. economy, are developed by the Bureau of Labor Statistics and revised every 2 years. (See the Career Guide to Industries, online at www.bls.gov/oco/cg.) Trade magazines also may include articles on the trends for specific industries.

Career centers at colleges and universities often have information on employers that is not available in libraries. Ask a career center representative how to find out about a particular organization. During your research consider the following questions:

Does the organization’s business or activity match your own interests and beliefs?
Not only is it "easier to apply yourself to the work if you are enthusiastic about what the organization does," but you are more likely to remain there.

How will the size of the organization affect you?

Large firms generally offer a greater variety of training programs and career paths, more managerial levels for advancement, and better employee benefits than do small firms. Large employers also may have more advanced technologies. However, many jobs in large firms tend to be highly specialized.

Jobs in small firms may offer broader authority and responsibility, a closer working relationship with top management, and a chance to clearly see your contribution to the success of the organization.

Should you work for a relatively new organization or one that is well established?

New businesses have a high failure rate, but for many people, the excitement of helping to create a company and the potential for sharing in its success more than offset the risk of job loss. However, it may be just as exciting and rewarding to work for a young firm that already has a foothold on success.

How important is the job to the company or organization?

An explanation of where you fit in the organization and how you are supposed to contribute to its overall goals should give you an idea of the job’s importance.

What will the hours be?

Most jobs involve regular hours—for example, 40 hours a week, during the day, Monday through Friday. Other jobs require night, weekend, or holiday work. In addition, some jobs routinely require overtime to meet deadlines or sales or production goals, or to better serve customers. Consider the effect that the work hours will have on your personal life.

How long do most people who enter this job stay with the company?

High turnover can mean dissatisfaction with the nature of the work or something else about the job.

Additional questions to ponder:

What valuable new skills does the company plan to teach you? What is the next step on the career ladder? If you have to wait for a job to become vacant before you can be promoted, how long does this usually take? When opportunities for advancement do arise, will you compete with applicants from outside the company? Can you apply for jobs for which you qualify elsewhere within the organization, or is mobility within the firm limited?

You will want to research to determine if the offer is fair. If you choose to negotiate for higher pay and better benefits, objective research will help you strengthen your case. You may have to go to several sources for information. One of the best places to start is the information from the Bureau of Labor Statistics. Data on earnings by detailed occupation from the Occupational Employment Statistics (OES) Survey are available from Bureau of Labor Statistics http://www.bls.gov/OES and Data from the Bureau’s National Compensation Survey are available from the Bureau of Labor Statistics, Office of Compensation Levels and Trends http://www.bls.gov/eci. You should also look for additional information, specifically tailored to your job offer and circumstances. Try to find family, friends, or acquaintances who recently were hired in similar jobs. Ask your teachers and the staff in placement offices about starting pay for graduates with your qualifications. Help-wanted ads in newspapers sometimes give salary ranges for similar positions. Check the library or your school’s career center for salary surveys such as those conducted by the National Association of Colleges and Employers or various professional associations.

If you are considering the salary and benefits for a job in another geographic area, make allowances for differences in the cost of living, which may be significantly higher in a large metropolitan area than in a smaller city, town, or rural area. You also should learn the organization’s policy regarding overtime. Depending on the job, you may or may not be exempt from laws requiring the employer to compensate you for overtime. Find out how many hours you will be expected to work each week and whether you receive overtime pay or compensatory time off for working more than the specified number of hours in a week.

Also take into account that the starting salary is just that—the start. Your salary should be reviewed on a regular basis; many organizations do it every year. How much can you expect to earn after 1, 2, or 3 or more years? An employer may be unable to be specific about the amount of pay if it includes commissions and bonuses. Benefits also can add a lot to your base pay, but they vary widely. Find out exactly what the benefit package includes and how much of the cost you must bear.

Works Sites

http://www.bls.gov/oco/
http://www.bls.gov/oco/oco20046.htm
http://www.career.vt.edu/JobSearchGuide/Index.html
http://www.career.vt.edu/JobSearchGuide/MultipleOffers.html