One Big Negotiating No-No

On August 10, 2015

In the August 11, 2015 Ask The Headhunter Newsletter, a reader almost blows it.

Question

I live and work on the West Coast. Two days ago I was offered a position back in the New York area. I was so happy to go back home, and with my initial offer (including base salary). Nonetheless, I managed to negotiate a sign-on bonus to cover my relocation expenses — but that’s about it. I verbally accepted, and gave permission to do the background check.

After thinking it over, I am kicking myself for not pushing the envelope to negotiate a higher salary, fearing the risk of losing the offer. Do you have any meaningful advice that can help me? Is it too late to negotiate anything else after verbally accepting the offer? I would really appreciate it. Thank you.

Nick’s Reply

Last week we discussed The ONLY way to ask for a higher job offer. Your question is a nice bookend to this topic. It’s important to know when negotiations are over.

negotiatorImagine you bought a new car. The next day, you arrive at the dealership to pick it up and hand over a check for the agreed-on price. The salesman tells you he hopes you don’t mind, but he wants to charge you a few grand more. Is that okay with you?

That’s what you’re talking about. Forget about whether it would be fair to re-open negotiations. It’s unacceptable, it’s bad practice and it’s unbusinesslike.

If I were the employer, I’d pull the offer instantly. I’d question your integrity and ability to deal with others – especially after I agreed to give you a starting bonus. Negotiations are over when both parties agree to the deal.

Having said that, I’ve got no problem with you changing your mind. If you feel strongly about the compensation being too low, then rescind your acceptance, apologize, and walk away – but it’s really bad business to accept a deal and then try to renegotiate it.

Now for the soft part. I know how you feel. Been there, done that. I think you’re beating yourself up for nothing. The offer was good enough that you accepted it. Enjoy your win! Enjoy your satisfaction. As for “leaving some money on the table,” that’s actually a sophisticated negotiating practice. It leaves the other guy feeling like he (or she) won, too — and it buys you some good will in your new relationship. Not asking for more could be the best thing you ever did.

But the best thing you can do now is either walk away from this immediately – or take the job and do your best to earn a raise in the first year. Heck, once you’ve proved yourself, you can even ask for an early salary raise.

I would not go back to the well for more money at this point. Put yourself in the employer’s shoes. What would it say about you?

I’m sorry you’re not happy with your offer. But once terms are agreed to, the negotiating is done. The lesson here is not to accept a job offer so quickly — no matter how excited you are. Take at least 24 hours to think it through.

Use this to negotiate a better deal next time: How do I prove I deserve a higher job offer?

Have you ever “left money on the table?” Did you ever risk an offer to re-open negotiations? Is there a way to re-open negotiations that I’ve missed?

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The ONLY way to ask for a higher job offer

On August 3, 2015

In the August 4, 2015 Ask The Headhunter Newsletter, a reader wants more money.

Question

How should I request a better offer than the one that was made? By phone? By e-mail? By regular mail? Do you ask the HR person, since that is who handles the offer letter in the first place? How does the give-and-take take place?

Nick’s Reply

Almost everyone makes one huge mistake when asking for a higher job offer. They fail to justify the extra pay.

Want more? Prove you’re worth it!

want-moreWhy would anyone give you more money just because you asked for it? Yet job seekers try that lame approach all the time.

If you want more money, you must explain why you’re worth more.

(By the way: Don’t waste your time quoting salary surveys. No survey includes the exact job you’re applying for, or your exact constellation of skills and attributes. You will always lose the survey game because any smart employer will respond with yet another survey that “proves” its offer is handsome! See Beat The Salary Surveys: Get a higher job offer.)

When negotiating for a better offer, the goal should be to engage in a discussion rather than to put a stake in the ground, unless you are absolutely sure your asking figure is firm. This allows the company to explore the money issue with you, rather than be forced to respond with a yes or no.

Ask the manager, not HR!

It’s critical to have the discussion with the hiring manager, not with HR. HR might control the hiring process, but it’s the manager’s budget that your compensation will come from. So have this discussion with the manager, in person or by phone. (I would not use e-mail. It’s too impersonal.) Try this:

Make a commitment

“First, I want to thank you for the offer. I want to come work with you.”

That’s a powerful opening statement because it resolves one big question for the manager: Does this candidate want the job? Once you’ve made this commitment, managers know it’s worth their time to work out the terms. Too often, job candidates try to negotiate money without consenting to the job itself. Bear in mind that saying you want the job doesn’t obligate you in any way. If the money can’t be negotiated to your satisfaction, you can ultimately turn the job down.

Now comes the most important part:

“I realize you have carefully considered how much you think this job is worth. As we discussed in our interview, I believe I can do this job [more profitably, more efficiently, more quickly, more effectively] by doing [such and such]. For these reasons, I believe my contribution on this job would be worth between $X-$Y in compensation. Of course, if I can’t show you why I’m worth more, you shouldn’t offer me the job. Are you open to discussing this?”

Deliver more value

The key element here is value: You must show how the added value you will deliver is worth more money. Employers love it when you reveal you have thought carefully about the work and how you would do it profitably. It shows you are motivated to make the deal a “win” for the employer.

But I will warn you: If you cannot explain exactly what you will do to perform the job more profitably, efficiently, quickly — better, in some way, than the employer expected — then you have no business asking for more money. This is not a negotiating game. It’s about exchanging fair value for fair value, and you must be prepared to explain it.

HR cannot have this kind of discussion with you, because HR will never understand the ins and outs of how you will add more value to a certain job. Talk to the hiring manager, and let the manager go explain it to HR.

(Don’t know how much to ask for? See How to decide how much you want. Once you figure this out, lay the groundwork for your salary negotiations early in your interview. See The most important question in an interview.)

Once you’ve said your piece, it’s up to the manager to respond and engage in a discussion. The manager may decline to discuss a higher salary. So, you must know in advance whether you will back off and take the offered package, or politely walk away from the offer.

Be the better candidate

The only way to approach salary negotiations is to grant the manager a concession: Clearly state that you want to work for him or her. Separate your interest in the job from the compensation, and the manager is more likely to negotiate terms with you.

“I’m ready to come to work, if we can work out the terms — the compensation.”

(For more about how to negotiate based on your value, see Fearless Job Hunting, Book 6, The Interview: Be The Profitable Hire and Book 9: Be The Master of Job Offers.)

There’s no guarantee about how this will work out. But, the better prepared you are to discuss how you will do the job better than anyone else, the better your chances of working out a mutually beneficial deal with the manager. The only way to ask for more money is to show the employer the money!

How do you ask for more money? If you’ve been turned down for more, why do you think you were rejected? Can you prove you’re worth what you ask for?

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