posted
Things are looking up for my husband, who I recently complained was working 80+ hours weeks on a regular basis. He's been interviewing with 2 companies, one of which has presented him with an offer, the other one claims one is coming.
The trouble with the job offer he received is that the salary is not what we expected. Without going into detail, they are offering him less money than he is making now by about 8%. He wasn't looking for a raise or anything (In fact, he recently got a 5% raise at his current job that we're not even factoring into that number since it won't take effect until this week's pay period anyway and we haven't worked it into our budget), but we were looking to maintain our current income level.
So now we're wondering how to handle this. Do you come back with a higher number than you really want and hope to shoot for the middle? Do you tell them what your absolute minimum is and see if they go for it? Do we just suck it up and start replanning our budget? How negotiable are these things anyway?
For all I know the other company will shoot him a number today that is much higher, but especially since my husband told them how much he made, I was kind of getting worried that maybe software engineers just aren't making as much as they used to and we need to get used to the idea.
Posts: 2392 | Registered: Sep 2005
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The salary at your former job has next to no bearing on your salary negotiations, unless you happen to be moving up within the same company.
Need to research what the "going rate" is for people who do what he does with his level of experience in your geographical area (Salary.com and GlassDoor.com aren't bad). Find a range, and see if the offer falls within it.
If the offer falls within it on the low end, then he can discuss what he brings to the table in terms of added value, etc. Lead with strengths, and then target just above where he thinks he'd fall compared to his peers in the researched salary range. They've alredy decided he is a good fit for the position and their company - the trick is to justify why he's worth more to them than they are offering.
If the offer falls within the high end of the researched range, things are far more difficult. Employers know what the expected range is, and if he's already 75-80% of the way to the top they're unlikely to move much.
This economy is tough, as well, and the company's budget may be hurting. If this is the case, he might be able to negotiate something along the lines of a probationary period (6/12 months) at the current salary, with an incremental increase at that time.
Do not bring the previous salary into the discussion, becuase it really isn't that relevant. Since he already brougth it up, he's in a tougher spot - because they can feel justified in offering lower, because he's "new" or "needs to get up to speed" or some other nonsense. They basically offered a counteroffer to his "initial offer" of his previous salary, and they may be thinking that they're playing between those two endzones.
The only thing that is relevant is what he brings to the company and how well they should compensate him compared to others doing the same work in the same geographical area.
Posts: 3960 | Registered: Jul 2001
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posted
I received a 50% increase between my last job and my current one, but that was because I was vastly underpaid at my last job.
Perhaps, he can negotiate for better benefits, if not for better salary. Or, maybe he can start with the 8% decrease, but ask for a bump back to his old salary level after 90 days or so?
Posts: 339 | Registered: Apr 2008
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posted
Flying Cow -- thanks, you make some good points. He actually did some research last night but is still not sure what "normal" is for his position in this area because there isn't a lot of information in general and he has a unique skill set. Then again, that's what he brings to the table. I think you're right about not bringing up the old salary. They already asked (he didn't volunteer the information) so clearly that didn't sway them anyway.
Posts: 2392 | Registered: Sep 2005
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quote:Originally posted by manji: I received a 50% increase between my last job and my current one, but that was because I was vastly underpaid at my last job.
Same story for me, but with a 75% increase in salary, plus benefits I didn't have before. Still not getting paid that much, but considering I have the same number of hours as before, I'd say this is a pretty good step.
My salary negotiation involved me saying: "I need to make more than x" and the boss saying, "ok, we'll pay you x plus 10% more." Case closed.
Posts: 9912 | Registered: Nov 2005
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posted
My husband has some experience negotiating for the salary he wants. I'll ask him to come by and read this thread later and see if he has any experience/advice.
Posts: 21182 | Registered: Sep 2004
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posted
If he has a unique and hard to find skill set, he is worth more - especially if you are in an area where quality employees in his field are scarce. Also, that unique skill set has to be something they need, otherwise it's not useful in negotiation.
Once he has his second offer, he will be in a better position - plus, he hasn't left his old job, so that's also in his favor.
He doesn't want to try to play one off the other, though, as that can end badly if not handled just right. Just clearly state what he expects to be paid based on the market, his experience, and his unique skill set - then advise that there is another offer on the table as well, and he expects to be making his decision soon.
If neither is above his current salary, and they haven't matched his salary through negotiation, he can always try to play the "I am looking for at least X to justify a move from my current position" card.
Posts: 3960 | Registered: Jul 2001
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posted
Before you accept the job is the only time you have any power in salary negotiations. They expect you to negotiate, it's not big deal. I would tell them I'm interested in working for the company but think the offer is low for reasons x,y,z, and was expecting more along the lines of $ABC where $ABC is at least 5% more than he'd actually take the job for. Worst they can say is no, at which point you say you have to think about it and wait to consider the other offer. If they say yes, though, you pretty much have to accept right away.
Posts: 7954 | Registered: Mar 2004
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posted
My sister's job negotiation was awful (for her). She did a bunch of research, came up with a number slightly higher then her then income, but seemed to be the market rate. The company looked at her number and said, oh, that's all you are asking for? We really wouldn't feel comfortable paying someone in your position that little. They added 10k Canadian to her number. My husband did the same thing, but was not as far off.
Posts: 2223 | Registered: Mar 2008
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posted
So they came back with a little more money than they were offering before -- not a lot but we found out two important things. First, their health insurance is awesome and completely paid for. Going from our absolutely sh***y health insurance to that would put about $4,000 a year in our pockets -- no exaggeration. (I even did the math to find out how much tax exemption we would lose.) That makes the offer about even. But to top it off, they have a pension plan that they add 5% of his salary to a year. That's not money in our budget but it is very real and puts their offer over the top. Plus, their 401k matching is better. (When he called to renegotiate they gave him more details about the benefits that they had forgotten to send him -- important stuff!)
Company 2 never got back and if they don't by about eleven, he's taking this one...when they bumped his offer they asked him to decide this morning. Understandable....and a bird in the fist (or however that saying goes).
Feeling pretty good. And we're leaving for a weekend vacation this afternoon so I'm glad to have this all set before we leave!
Posts: 2392 | Registered: Sep 2005
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posted
I don't think that old salary has "nothing" to do with the negotiations since he hasn't even left his old job yet.
I would approach it this way. I would call back whoever made the offer and explain, simply, that while I like the company and would like to move, I needed to be making AT LEAST as much as I was currently making (include his extra 5%) in order to make the move.
If the other company comes back before that with a higher offer then he needs to look at which company he likes better. If he likes the lower paid one better, he can take the other offer in with him and offer to split the difference.
posted
The problem with prior salary is that you can either be dramatically over or under paid at your old position. Current salary is a bit better as you have more ability to walk away from the negotiating table, but you still have to be negotiating within the market range for your skill set.
If the range for your job is $60-$75K, for instance, and are making $85K at your old position... you can ask for $90K all day long, but you won't get it based simply on your current salary.
Salary negotiations are based on the value of your skill set and the value you bring to the new company. While your previous salary shows the value you brought to your old company, it may or may not represent where you fall within the competitive market.
If you have a rare skill in high demand, all bets are off. But if you are in a pool of candidates, your prior salary generally isn't much of a factor - other than giving you the security to say "no" to an offer you don't like.
Posts: 3960 | Registered: Jul 2001
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