want from a prospective employer only to turn it down.
You Want the Job, But . . .
If you like the job, but not the offer, try these tips:
· Evaluate the gap between what is being offered and what you really want. Are there alternate (non-salary) ways to bridge the gap?
· Put yourself into “sales mode” and link your skills and talents to your prospective employer's needs. The interviewer needs justification for meeting your salary requirement if it's out of the normal range for the job.
· Be sure you're negotiating with the decision-maker (usually the person to whom you'll be reporting, or his/her boss).
At the Negotiating Table
You can approach the salary negotiation one of three ways:
1. Open-Ended, Indirect: “Is there any flexibility in the salary?”
2. Open-Ended, Direct: “Based on my hands-on knowledge, language proficiency and research about what this job typically pays, I was hoping for a salary in the ‘X-Y' range. Is there anything you can do to get me into that range?”
3. Closed-Ended, Direct: “Based on my level of experience and my understanding of the market average for this type of position, I will need at least ‘X' in order to accept this position. If you can bring the offer up to X, I'll accept right now.” Be prepared to hear that it can't be done, and be willing to accept that you may have just closed the door to further discussion.
There are several possible outcomes at this point. You may get what you've asked for, in which case you're expected to accept the job. Or you may receive an offer that is less than your counter offer, and you'll need to evaluate the compensation package in relation to your priorities. Once you accept the offer, a verbal “yes” is binding. It's a good idea to follow up with a letter outlining your understanding of the specifics of the job offer.
Potential Roadblocks
Budget and salary compression issues may be roadblocks you simply can't get around. Budgetary constraints may not permit hiring someone at a higher pay scale than longer-term employees in the same department. Or, salary compression for current employees may affect what a company can offer new hires. Even though the market rate may be higher than it was three years ago, individuals hired at that time are not earning today's pay rate. Use this as an opportunity to ask for non-salary perks such as a higher bonus, more vacation time, a review at six months instead of 12, or a car allowance.
Finally, Don't Forget the Taxes!
Signing bonuses are taxed as income, typically at a higher amount (45 to 50 percent). The same usually does not apply to relocation allowances, because employers often “gross them up”, meaning they include the tax amount in the payment so you “net” the actual amount promised. To avoid making any incorrect assumptions about taxes, ask the employer which components of the compensation package are taxed, and which are not.
Barbara Limmer is Director of Career Management Programs at Thunderbird, The American Graduate School of International Management. Barbara Limmer oversees the student preparation functions of the Career Management Center, including job-search related workshops and programs, individual career advising, and the Graduate Associate Program.