{"id":147,"date":"2015-07-30T00:34:13","date_gmt":"2015-07-30T00:34:13","guid":{"rendered":"https:\/\/courses.candelalearning.com\/salesx17xmaster\/?post_type=chapter&p=147"},"modified":"2015-07-30T20:16:50","modified_gmt":"2015-07-30T20:16:50","slug":"12-3-selling-u-negotiating-to-win-for-your-job-offer","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/cerritos-sales-1\/chapter\/12-3-selling-u-negotiating-to-win-for-your-job-offer\/","title":{"raw":"Selling U: Negotiating to Win for Your Job Offer","rendered":"Selling U: Negotiating to Win for Your Job Offer"},"content":{"raw":"
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Learning Objective<\/h3>\r\n
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  1. Understand how to negotiate and accept the right job offer.<\/li>\r\n<\/ol>\r\n<\/div>\r\nSo you\u2019ve completed all your interviews and it\u2019s the moment of truth\u2026you are on the verge or receiving an internship or job offer. Congratulations!\r\n\r\nAs difficult as it has been to get to this point, you\u2019re not quite there yet. This is the stage of the job searching process that really tests your mettle to get what you want. Just like negotiating and closing (outlined in the previous sections of this chapter), the quality of the job offer starts long before you actually receive the offer.\r\n
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    Know What You\u2019re Worth<\/h2>\r\nBefore you even begin thinking about looking for an internship or job, your first step should be to determine your value based on the marketplace. As with every step of the selling process, doing your homework is key. If you don\u2019t do your research to find out competitive compensation packages for the position and city in which you are seeking an internship or job, you might be disappointed with the job offers you receive.\r\n\r\nThere are several Web sites\u2014Salary.com, JobStar.com, and SalaryExpert.com are just a few\u2014that include compensation ranges for hundreds of different positions in areas across the country. Visit the sites listed in Table 12.1 \"Web Sites for Researching Compensation\" to gather compensation information before you go on any interviews.\r\n
    \r\n\r\nTable 12.1<\/span> Web Sites for Researching Compensation\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n
    Riley Guide<\/td>\r\nhttp:\/\/rileyguide.com\/salguides.html<\/a><\/td>\r\n<\/tr>\r\n
    Salary.com<\/td>\r\nhttp:\/\/swz.salary.com<\/a><\/td>\r\n<\/tr>\r\n
    JobStar.com<\/td>\r\nhttp:\/\/jobstar.org\/tools\/salary\/sal-prof.php<\/a><\/td>\r\n<\/tr>\r\n
    SalaryExpert.com<\/td>\r\nhttp:\/\/www.salaryexpert.com\/index.cfm?fuseaction=Main.Home_Personal<\/a><\/td>\r\n<\/tr>\r\n
    CareerBuilder.com<\/td>\r\nhttp:\/\/www.cbsalary.com\/?siteid=cbcrcnav<\/a><\/td>\r\n<\/tr>\r\n
    Bureau of Labor Statistics<\/td>\r\nhttp:\/\/www.bls.gov\/NCS<\/a><\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<\/div>\r\nIt\u2019s a good idea to use these tools as a guide as there are many assumptions that are made when these numbers are prepared. However, this information can be extremely helpful to understand the range of compensation being paid for a specific role in a specific city.[footnote]\u201cEvaluating the Salary Information You\u2019ve Found,\u201d The Riley Guide, http:\/\/www.rileyguide.com\/saleval.html<\/a> (accessed November 21, 2009).[\/footnote]<\/span> You will be able to negotiate more effectively if you walk into every job interview knowing how much you are worth.[footnote]Kim Richmond, Brand You<\/em>, 3rd ed. (Upper Saddle River, NJ: Pearson Prentice Hall, 2008), 201.[\/footnote]<\/span>\r\n
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    Establish Your Value Early<\/h2>\r\nJust as in the selling process, establishing your value begins with your first contact with your prospective employer. Many times you have the opportunity to meet at least one or two people at the company, usually someone in human resources as well as your hiring manager. In some cases, you may meet with several different people with whom you will be working. In some cases, you may also talk with or meet with a recruiter. At any rate, you have the opportunity to establish your value with as many people as you meet. Everything you say and do has an impact on how people perceive you and your value. Are your r\u00e9sum\u00e9 and cover letter professional? Did you do your research before you contacted the employer? How did you make contact? When you went in for an interview, did you dress appropriately and professionally? Were you prepared for the interview? Did you bring samples of your work to demonstrate your skills? Did you follow up with a thank-you e-mail and handwritten thank-you note within twenty-four hours? All these elements help establish your value long before an offer is extended. When it comes to making an impression on a prospective employer, everything matters.\r\n\r\nJust as in the selling process, if you do your homework and establish your value early in the process, you will be more likely to get the offer you want.\r\n\r\n<\/div>\r\n
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    Compensation versus Salary<\/h2>\r\nOne thing to know before you walk into any interview: compensation is different from salary. Compensation<\/span><\/span> is the total amount of money and benefits that you are paid for a particular position. Compensation can include salary, insurance, vacation or sick leave, stock options, signing bonus, car allowance, 401(k), child care or elder care assistance, and any other type of payment received in exchange for your services to the company. Salary<\/span><\/span>, a fixed amount of money that is paid regularly in exchange for services provided, is only one element of compensation. When you are considering a job offer, it\u2019s best to keep in mind that salary is not the only element of compensation. This will allow you to be creative in your negotiating as there are several elements other than salary that can be included in your total compensation package.\r\n
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    Starting Out at a Start-Up<\/h3>\r\nWorking for a start-up company can be exciting and lucrative\u2014with the right compensation agreement. The high-risk environment of a start-up might provide exactly the right place for you to start your career. But enter the business with your eyes wide open. \u201cThere\u2019s no shortage of start-ups to work for, but most are going to fail,\u201d says Greg Carney of Carney-Neuhaus.[footnote]Dona DeZube, \u201cNegotiating Compensation for a Job at a Startup,\u201d Monster.com, http:\/\/career-advice.monster.com\/salary-benefits\/negotiation-tips\/negotiating-compensation-startup\/article.aspx<\/a> (accessed November 22, 2009).[\/footnote]<\/span> This article provides insight about how to structure compensation with a start-up company.\r\n\r\nhttp:\/\/career-advice.monster.com\/salary-benefits\/negotiation-tips\/negotiating-compensation-startup\/article.aspx<\/a>.\r\n\r\n<\/div>\r\n<\/div>\r\n<\/div>\r\n
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    Timing Is Everything<\/h2>\r\nAlthough you may want to discuss compensation on your first interview, it\u2019s a good idea to postpone discussing the topic as long as possible.[footnote]Kim Richmond, Brand You<\/em>, 3rd ed. (Upper Saddle River, NJ: Pearson Prentice Hall, 2008), 202.[\/footnote]<\/span> Just as in the selling process, you want to put focus on establishing your value and learning about what\u2019s important to your prospective employer before you begin discussing compensation. A word of caution: you should be prepared to give your desired salary range on an interview as many employers want to understand your salary expectations as soon as possible. If you can avoid the topic, do so until you receive a job offer. Here\u2019s an example of how you can deflect the conversation.\r\n\r\n \r\n

    Interviewer<\/strong>:\r\nWhat are your salary expectations?<\/p>\r\n

    You<\/strong>:\r\nI\u2019m sure your total compensation package is competitive for the position. What\u2019s most important to me is the opportunity to learn and be a part of an organization like yours.<\/p>\r\n \r\n\r\n<\/div>\r\nIf you are forced to give a salary range, be sure you can live with the lowest number you give. Once you say a number, it will be extremely difficult to negotiate above that salary.[footnote]Kim Richmond, Brand You<\/em>, 3rd ed. (Upper Saddle River, NJ: Pearson Prentice Hall, 2008), 202.[\/footnote]<\/span>\r\n\r\n<\/div>\r\n

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    Receiving the Offer<\/h2>\r\nMost job offers are extended over the phone, although some may be extended in a letter and still others may be presented in person. Since companies usually interview multiple candidates for each position, chances are you won\u2019t receive a job offer on an interview. However, you should be prepared to respond to a job offer if one is presented during an interview.\r\n
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    Video Clip<\/h3>\r\nResponding to an Offer in an Interview\r\n\r\nhttps:\/\/youtu.be\/er2km7Aja1o\r\n\r\nThe following video provides suggestions about how to handle this situation.\r\n\r\n<\/div>\r\nWhen you receive an offer, it will most likely come over the phone. When you get a phone call about an offer, write down every element of the offer (it\u2019s OK to ask the person to hold while you get a pencil and paper). Thank the person who made the offer and tell her how pleased you are to receive the offer. Even if you think you want to accept the offer, don\u2019t accept it right away.\r\n\r\n \r\n

    You<\/strong>:\r\nI\u2019m very excited about this offer. Thank you so much for extending it to me. It\u2019s a very big decision, and I\u2019d like to have a few days to think about it. Can I get back to you on Thursday? What time is good for you to talk?<\/p>\r\n

    Employer<\/strong>:\r\nI\u2019m glad to hear that you are happy about the offer. We are all very excited about the prospect of you joining our team. I\u2019m happy to answer any questions you might have about the company or the offer. Don\u2019t hesitate to give me a call. In fact, let me give you my cell phone number so you can call me at any time. Then let\u2019s touch base on Thursday at 10:00 a.m.<\/p>\r\n

    You<\/strong>:\r\nI just want to repeat the elements of the offer so that I have it correct. The base salary is $45,000 with the opportunity to earn a bonus of 5 percent based on meeting performance objectives. There is a car allowance of $3,000 a month. I\u2019ll be eligible for medical insurance after thirty days of employment, and I\u2019ll receive one week of vacation after working for twelve months. Is that right?<\/p>\r\n

    <\/p>\r\n\r\n<\/div>\r\nIt\u2019s worth noting the time element of this negotiation. You should take as much time as you need to evaluate the offer, but you should be reasonable and state the time frame you need. Recall from earlier in this chapter that time is one of the elements that is always present in a negotiation. Sometimes a prospective employer or recruiter will try to create a deadline to force you to make a decision by a specific date. Use time to your advantage and negotiate for more time so that you don\u2019t feel as if you are under pressure to make this important decision.\r\n

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    Evaluating the Offer<\/h2>\r\nCongratulations on your offer! Although it\u2019s a difficult economy, don\u2019t feel pressured to take the first offer you get. Take the first offer you get for a job you really want. This is a special moment; it is the time when the power shifts from the prospective employer to you (remember that power is one of the elements that is always present in a negotiation). Your prospective employer has now indicated that you are their choice for the position. You have the opportunity to take the offer, counteroffer<\/span><\/span> (your response to the job offer), or walk away. Whatever your choice, you have the power. As soon as you make your choice, the power shifts back to your prospective employer. That\u2019s why it\u2019s a good idea to take your time and completely evaluate your offer before you respond.\r\n\r\nNow that you have all the elements of the offer, you can begin to evaluate it. Just as in a negotiation in selling, identify what is important to you. Consider making a list that includes both elements of compensation as well as other elements such as culture, opportunity, environment, commuting distance, and so on. Figure 12.6 \"Compensation Elements to Consider in a Job Offer\" and Figure 12.7 \"Other Elements to Consider When Evaluating a Job Offer\" can provide some ideas to help you create your list.<\/span>[footnote]Adapted from Kim Richmond, Brand You<\/em>, 3rd ed. (Upper Saddle River, NJ: Prentice Hall, 2008), 204; and Paul W. Barada, \u201cJob Offer Evaluation Checklist,\u201d Monster.com, http:\/\/career-advice.monster.com\/salary-benefits\/Negotiation-Tips\/Job-Offer-Evaluation-Checklist\/article.aspx<\/a> (accessed November 21, 2009).<\/span>,<\/sup>Adapted from Kim Richmond, Brand You<\/em>, 3rd ed. (Upper Saddle River, NJ: Prentice Hall, 2008), 206; and Paul W. Barada, \u201cJob Offer Evaluation Checklist,\u201d Monster.com, http:\/\/career-advice.monster.com\/salary-benefits\/Negotiation-Tips\/Job-Offer-Evaluation-Checklist\/article.aspx<\/a> (accessed November 21, 2009).<\/span>[\/footnote]<\/span>\r\n
    \r\n\r\nFigure 12.6<\/span> Compensation Elements to Consider in a Job Offer\r\n\r\n\"image\"<\/a>\r\n\r\n<\/div>\r\n
    \r\n\r\nFigure 12.7<\/span> Other Elements to Consider When Evaluating a Job Offer\r\n\r\n\"image\"<\/a>\r\n\r\n<\/div>\r\nOnly you can determine if a job offer is right for you. The following are some additional resources that you may want to review to help you evaluate a job offer:\r\n