Job Offers Are Not Always Negotiated By Employees

Posted September 16, 2013 by

While job seekers may put a lot of effort into their job searches, they may not necessarily think as much about negotiating upon receiving job offers. Did you know that nearly half of workers accept offers without negotiation? This is understandable since many people just want to find employment.  The following post takes a closer look at this issue.

A recent study done by Careerbuilder, which included nearly 3,000 full-time, private sector U.S. workers and more than 2,000 hiring managers and human resource professionals nationwide, examined how each side of the table handles salary negotiations and looked at compensation trends for the upcoming year. The survey was conducted online by Harris Interactive on behalf of CareerBuilder from May 14 to June 5, 20l3.

The following groups are more likely to negotiate job offers based on age, gender, and industry:

Age: 55% of workers 35 or older typically negotiate their first offers, as opposed to 45% of workers between age 18-34.

Gender: 54% of men are more likely to negotiate their first offers, while women are at 49%.

Industry: 56% of professional & business services workers are likely to negotiate salary; 55% of information technology, and leisure and hospitality workers; and 54% of sales workers.

Rosemary Haefner of Careerbuilder

Rosemary Haefner of Careerbuilder

“Many employers expect a salary negotiation and build that into their initial offer. So when job seekers take the first number given to them they are oftentimes undervaluing their market worth,” said Rosemary Haefner, vice president of human resources at CareerBuilder. “Not every hiring manager will be able to raise the offer, but it’s never a bad idea to negotiate—especially if you have experience and possess in-demand, technical skills.”

Other benefits employers would offer:

Flexible schedule: 33%

More vacation time: 19%

Telecommute at least once per week: 15%

Pay for mobile device: 14%

38% said they would not be able to provide anything.

Salary Trends for 2013-2014

Current Employees

The survey also asked employers about expected average compensation increases for current workers and new hires. 51% of employers expect salary increases of less than five percent for current employees in the next year, while 16% expect increases of five percent or more.

23% of all employers expect no changes while nine percent are unsure.

55% of employers who expect an increase in salary said the increase is due to a standard cost of living adjustment. Other reasons include:

· Rewarding employee tenure –28%

· Combatting voluntary employee turnover – 21%

· Smaller staffs are handling heavier workloads – 19%

· Competitors are offering more money – 18%

· Customer demand has increased – 16%

New Hires

54% of hiring managers and HR professionals reported that they are willing to negotiate salaries on initial job offers in the next year. For offers given to new hires, 34% of employers say the average change in compensation is expected to grow less than five percent in the next year, and 16% expect increases of five percent or more. 34% anticipate no change, three percent expect decreases, and 14% are unsure.

39% percent of employers expecting increases for new hires say the hikes are to entice skilled applicants to apply, and 25% say increases are coming because job offers were turned down due to low compensation.

For both new hires and current employees, information technology hiring managers were nearly twice as likely as the national average to provide salary increases of five percent or more. Sales hiring managers were also significantly more likely than other professions to see increases of five percent or more.

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