How To Negotiate A Job Offer

How To Negotiate A Job Offer

September 17 2019

You got the job! Congratulations!

Now it's time to work out the agreement.

Read on (or listen in) to discover how to negotiate a job offer.

 

 

How To Negotiate A Job Offer

Laura: Today, we're going to be discussing negotiating a job offer. Very interesting stuff. So somebody has just been given an offer of a new role. It's such an exciting time in your life. Should somebody negotiate the offer, Paul?

Paul: Yeah, that's not a straight forward person to answer. I think for this in particular, this is probably for someone who's gone directly as opposed to through a consultancy like ourselves. Normally if you've gone through a recruitment consultancy or an agency, they look after the kind of negotiation side, which can be a benefit, I suppose, because you're a step removed from the process, we need to do a little bit of hard work. But yeah, if you've gone directly and you've received an offer, negotiating I think depends on a number of different factors.

Paul: Firstly, the role itself. Is it a role that you really want? Do you want to jeopardize not getting that role by negotiating too hard? I think that's one thing that people really need to consider. And is the offer a fair offer relative to the market? You know, you may be on X and expecting an increase of whatever, 10%, 15%, etc, but an offer that's made that may be competitive in the market. Just because it's not an increase that isn't necessarily as much as you wanted, it doesn't mean it's not a fair offer so you need to take that into account.

Paul: Obviously, the converse can be true as well. So you know, it may not be an offer that is relative to the market. I suppose the point is to look at what's out there in terms of market rates.

Paul: I think people really need to consider the full benefits package. I know when we had David Kindlon from Eppione on the show, we talked to a database and you know, things like pension, life insurance, all of that stuff is important, it does add up, even for more junior roles. If you're a little bit younger listening to this, believe me, a pension is important and you'll appreciate it. So do take all those things into consideration.

Paul: Is there a potential for a bonus? I think that's important also. One thing that we would always kind of advocate for is if this is the right role for you, it is a starting salary. Salaries can always improve with serving the company, etc. I think the days of very incremental increases are kind of gone. Increases are a lot more kind of competitive now so I think yeah, the main things are to really think about the role, is this a fair offer in comparison to markets and is this is kind of in line with your expectations?

Paul: Maybe one other thing. You know, if salary has come up previously in earlier interviews or whatever and the offer that's been made is in line with what you've said your salary expectations are at, then that can be a difficult enough position to negotiate from. So yeah, it's not a straightforward question or not a straightforward answer to the question.

How to negotiate a job offer - advice

Laura: I think sometimes when people are negotiating the offer, effectively, you have to reject the offer that's on the table.

Laura: So you need to be very, very careful about how you go about it. So supposing somebody applies directly and that's offered directly from the company and they want to negotiate, how should they go about it or who should they go to?

Paul: I suppose it depends on who you're dealing with. Sometimes companies will do it all through HR or sometimes it will be directly with a hiring manager or a team leader or business owners. So it really depends who's come out to you with the offer. But normally, I'd say that's the person that you need to be going back to, whoever that person is.

Paul: In terms of how do you do this, I think a lot of this needs to be based on data. So you know, on facts as well. There's no point going back with, "I feel I should be getting a salary of whatever," it just doesn't wash. If you can go back with specific examples of similar roles and similar companies paying whatever it is that you feel you want to negotiate too, that's a much better way, puts you on a much stronger footing with that potential employer.

Paul: The other thing is you need to be careful, I think, in terms of how you actually approach us. Remember, regardless of whether it's someone in HR who you're not directly going to work with going forward or your direct manager, this is your very early kind of interactions with the company that you're going to be potentially working for. So just be careful in terms of how you negotiate it. It should come across as you're really interested in the role and you really want to make something work, boss. You feel that the offer isn't quite where it should be as opposed to, "No way I'm taking that offer, you need to offer me more money." There needs to be kind of a fine line there.

Negotiating a job offer

Paul: The other thing is I suppose the converse of going in too strong is going in too weak. If you're going in too weak, you can only consent like, "Oh, thanks a million for the offer. Is there any chance you could possibly do a little bit more for me?" You know, I think if you are going to negotiate, you need to negotiate from a relatively strong footing with that data, with the reasons why you feel you deserve an increase, but you have to be careful about how you have you do it as well.

Laura: Sure. I think you've answered my next question on how much is too much negotiation. Think if you have done the research, you have the data and know what the competitors are paying, as you said it puts you on a really strong footing.

Laura: Any other key takeaways, Paul?

Paul: I think like the main stuff is, is it a role in the company that you really want, is it a role in the company that you feel you're going to be there for a long time? That should really kind of set the tone, I suppose, for how you negotiate.

Paul: You do need to really consider, as you said or you know, are you rejecting an offer and before you start to negotiate, because very often that's how it's going to be viewed. Be cognizant of the fact that you need to have kind of a minimum in mind if you are going back. If that isn't going to be achieved and are you happy to walk away from us, I think it's one of the main things.

Paul: One thing that I have seen a little bit, not a huge amount since ... God, 2007 when I started in recruitment, I hate seeing people step away from roles or offers for the sake of, you know, a couple of thousands ... I don't say a couple of thousand flippantly like it's nothing, I really hope it doesn't come across like that. Really, if it is an offer that's fair and equitable, and it's a company that you want to work for and it's the right role and you see yourself there long term, just be really, really careful about-

Laura: It's not worth sacrificing.

Paul: Not for the sake of that of a few thousand, and you will make it back. You know, ultimately if you're happy and you're motivated and you're engaged, etc, and you're doing good work, that will be rewarded over time, you know?

Laura: Absolutely. Thanks for that, Paul, and thank you, everyone, for tuning in again.

Need Help?

If you want any information or are interested in one of our roles in the Fintech and financial services industry, get in touch with us at Top Tier Recruitment.

Check out our podcast and, if there's ever anything that you would like discussed, feel free to get in touch, info@ttrmail.com.

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