Negotiating Salary after an offer

[Spanky]

Let's image that you have received an offer from a company (XYZ) that you left a year ago. The offer is the same as your current salary at another company (ABC). The offered salary is only 2% over the previous salary at XYZ, however. It seems reasonable to ask for a salary that is at least 6% over the last salary (at XYZ) that was effective two years ago, based on the assumption that you would have received the 3% annual raise if you had stayed.

Is it the rationale that you would say to the hiring manager?

 

[dallas27]

Screw all that, what are you worth? Take that, add 10% and start negotiating from there.

Your goal isnt to be fair, it's to find the maximum offer you can get from the offer. You are obviously a scarce resource, and a known quantity, and they want you. Leverage your position if power. Pay, perks, benefits.




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[Spanky]

Screw all that, what are you worth? Take that, add 10% and start negotiating from there.

Your goal isnt to be fair, it's to find the maximum offer you can get from the offer. You are obviously a scarce resource, and a known quantity, and they want you. Leverage your position if power. Pay, perks, benefits.




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Sounds good. How about the following verbiage?

"I'm really excited about the position and confident that I will make a significant contribution. I appreciate the verbal offer at $xxx, but was expecting somewhere in the $yyy range based on my experience, drive, and performance. Can we look at a salary of $yyy for this position plus 1 extra week of vacation?"

 

[dallas27]

I'd be more direct.

" i feel the contribution i will make to xyz should have a compensation of 125k. The market statistics for my skills and experience certainly support this compensation level in this market. Further, hiring me reduces your organizational risk of a bad hire on the open market that could cause xyz significant annual costs by bringing a low performer into the company"

Insert market link


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[LOL!]

Spanky has a great answer though I might change the order of one sentence:

"For someone with my experience, drive, and proven performance, I believe fair compensation would be …."

I would also ask for a signing bonus to overcome any delays in joining the 401(k) and loss of company matches.

 

[Meadbh]

How about this?

"I'm really excited about the [-][/-] position and confident that I [-]will [/-] can make a significant contribution. I appreciate the verbal offer at $xxx, but this would not be enough to entice me to give up my present position. I would be more open to an offer [-]was expecting somewhere[/-] in the $yyy range with an extra week of vacation based on my experience, drive, and performance and current compensation. [-]Can we look at a salary of $yyy for this position plus 1 extra week of vacation?"[/-]

 

[brewer12345]

I think the previous posters have the right idea. I just went through this and negotiated from a position of leverage (don't need the job). I simply stated that their offer was well short of my expectations and that they would have to do better for me to consider making a move. Since the hiring manager was a pragmatist, she simply asked me what I wanted. Have a lofty sum in mind if they ask you. Hint: you should get way more than an extra 6% to jump.

 

[Spanky]

Thanks for the all the input - be direct and start with 10%.

One more thing: XYZ has an annual bonus program that has a target payout of 15%. It is prorated, however. That is, the fiscal year starts on May 1, 2014 and ends on April 30, 2015. Starting on 9/1/14, for instance, equates to 12% (8/12 *15%). Historically, the average pay out is about 90%.

 

[MooreBonds]

Hint: you should get way more than an extra 6% to jump.

+1000! If you left on your own accord, obviously you made the choice, and you didn't come crawling back to them begging to hire you. So for them to offer you about the same salary as 2 years ago is a slap in the face. Unless they offer some other amazing benefits that you can't get anywhere (which it doesn't sound like).

 

[brewer12345]

Thanks for the all the input - be direct and start with 10%.

If it were me, I would start with +20 to 25%. You don't ask, you don't get.

 

[Spanky]

+1000! If you left on your own accord, obviously you made the choice, and you didn't come crawling back to them begging to hire you. So for them to offer you about the same salary as 2 years ago is a slap in the face. Unless they offer some other amazing benefits that you can't get anywhere (which it doesn't sound like).

Unfortunately, I was riffed. They may perceive that I am "begging" to come back.
Their benefits are great plus a bonus program with a target payout of 15%.

 

[Spanky]

If it were me, I would start with +20 to 25%. You don't ask, you don't get.

Thanks. +20% will exceed the range of this pay band.

 

[dallas27]

Thanks. +20% will exceed the range of this pay band.

So? Dude, the corporate rules are made up. You gotta stop negotiating against yourself. Let someone us tell you no, don't do that work for them.


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[brewer12345]

So? Dude, the corporate rules are made up. You gotta stop negotiating against yourself. Let someone us tell you no, don't do that work for them.


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+1000. If you do not treat your time and energy as the most valuable commodity on earth, nobody else will. If they have some sort of made up internal rule that limits your comp (if you play by their made-up rules), make it their problem rather than yours. All salary bands and HR rules are fundamentally bullshit.

 

[brett]

What you were paid before may have no relationship to current market salaries. I suggest that you determine what a competitive salary is. Then, add to it and start negotiating.

As a hiring manager at megacorp it was not unusual to pay a new employee more than an existing one-purely because of the then current job market. This is your one time ability to get a raise without concern to salary bands, so called salary freezes or caps. If I wanted to hire at an amount greater than the salary band, I just moved the potential new hire one category up.

The other negotiating strategy, depending on how you are taxed, it to determine if there are any benefits over and above salary that you would like. If these benefits are non taxable, negotiate for these and be willing to give a little on the 'taxable' income.

Be realistic, but never sell yourself short. Keep this in mind. If they bring a stranger into the organization it will take that person some time to get up to speed. PLUS, as a hiring manager, you never really know who you are hiring, or have hired, until six months or a year later. By then it is too late. This is a HUGE advantage for you depending on your function and on the company. Your hire presents NO RISK and immediate full productivity. These two have value which you should be able to turn into income or an income equivilent.....more vacation, stock options, whatever.

 

[Spanky]

Thanks for the input. That's correct that do not sell yourself short and realize that I am a known commodity who has demonstrated the ability and results for which they are looking.

 

[Brat]

6% to cross the street? No way!

 

[Brat]

Remember that they can move your position to another salary band. The higher you are in an existing band the smaller your increases in the future. CHANGE THE BAND!

If you really want to go back consider asking for a 'signing bonus'. The problem with those is that they do not build your base.

Go for both.

 

[Spanky]

Remember that they can move your position to another salary band. The higher you are in an existing band the smaller your increases in the future. CHANGE THE BAND!

If you really want to go back consider asking for a 'signing bonus'. The problem with those is that they do not build your base.

Go for both.

concurred- starting at a higher band is definitely a plus for future raises.

 

[Texas Proud]

What make you think that you will not be the first to be RIFFed again And the first one in line no less


I would stay where I am unless there were a really good reason for me to go back...


BTW, a lot of mega corps will put you right back to where you were in time working at the company for 401(k) and vacation... some even with a 5 year gap...

 

[brewer12345]

BTW, a lot of mega corps will put you right back to where you were in time working at the company for 401(k) and vacation... some even with a 5 year gap...

They may wish to do so, but f they really want to hire you away from another job they don't really have the ability to do so unless you let them.

 

[M Paquette]

Been there, done that.

UstaCorp HR Weenie: "Sorry, but our policy is to..."

Me: "Gosh! I have a policy, too... Bye!"

Being in a position of some financial security can be emancipating.

 

[Spanky]

What make you think that you will not be the first to be RIFFed again And the first one in line no less

It's entirely plausible.

 

[Texas Proud]

They may wish to do so, but f they really want to hire you away from another job they don't really have the ability to do so unless you let them.

Agree.... but someone mentioned getting paid while waiting to get on some of the benefits like 401(k) etc.... it might not be an issue IF you want to go back....

 

[target2019]

It's entirely plausible.

Are you working for a competitor now? If so, might previous company have a game plan that really turns out unpleasant for you?

I'd have a hard time going back to a company that let me go recently. Maybe it is just age talking. If you're young(er), then it is probably worth the risk to go back for 10% more. That's something like 3% for each year you weren't there, and 4% to pay you back for inconveniences you went through due to there poor judgment.