10. Negotiation

Negotiation is another step in the process. You have worked very hard at preparation and interviewing, and now you are in the position to receive an offer. You need to be prepared and to be able to think objectively when responding to an offer. If you do not negotiate, you risk not getting something that is important to you. You risk starting your new job with hesitation or perhaps, resentment. Remember, also, that this is the first business interaction you will have with your new employer. If you do not negotiate, you may be seen to be a "pushover", and this may haunt you throughout your career. You only get one chance to make a good first impression.

Negotiation is between two parties who are trying to come to a mutually beneficial agreement. The company wants you, and you want the company. You are in the strongest position in the entire job search process when you receive an offer. At that time, you are the only person in the running, even if there is a close number two. If you are unemotional and clear in your response, if you look for resolution and do not play games, then you increase the chances of gaining something in between what is offered and what is your ideal wish list.

Negotiation Steps:

1. Preparation - do your research, know your value, know the hiring range
2. Negotiable Items (see below) - make a list of the 3 or 4 items that are important to you, not just the salary. Also, have options and flexibility such as early salary review, bonuses, signing bonus, paid-for training.
3. Consider All Aspects - other factors in addition to direct compensation should be considered such as healthcare (costs/coverage can impact take-home pay), 401k, Flexible Spending Account, Stock options/purchase, vacation/sick time; location, hours (what hours, flexible hours), amount of overtime, growth, challenge, and opportunity to learn, company culture and environment, management style, etc.
4. Receiving the Offer – get them to make the offer first. The only way they can negotiate is up. If you put your request on the table first, the only way you can negotiate is down. Be positive, sincere, and enthusiastic. Let the employer know you would like to think about the offer; ask for 24 hours to consider and prepare any questions. At the point of offer, you may be in a vulnerable position, and need to get some space/perspective to consider the offer. Chances are you have not asked all the questions you would have wanted to, and therefore, you may want additional information to consider the offer. Time will allow you to be more objective and to consider a response.
5. Analyze, Discuss, Prepare Questions, List Counter-offer Options - make a list of plusses (+) and minuses (-), information you still need, discuss the offer with others to gain their perspectives and questions, prepare questions to ask, and consider alternatives to the offer’s components (negotiable items).
6. Respond - Accept/Negotiate/Decline - Before accepting outright, consider what else might be included. What you don’t ask for, you will not get. If you make a counter-offer, be clear and honest, sincere in your intentions. "I have 3 items I’d like to discuss in order to try and reach a mutual agreement." Or you can decline, but do so with professionalism. The position or compensation may not be right, but you want to be considered for another opportunity (which could happen). Or, the contact may refer you to another department, division or company where a more suitable position is available.

Potentially Negotiable Items:

Salary

Bonus

Health (medical, dental, vision) Insurance

Life Insurance

Long-term Disability Insurance

Tuition Reimbursement

Training

Stock Options / Stock Purchase

401K

Profit Sharing

Vacation

Sick Time

Holidays

Comp Time

Salary Review

Expense Account

Commissions

Car Allowance

Relocation Assistance

Employment Contract (with severance pay)

Paid Memberships in Professional Organizations

Flex Time

Tips:

· Do not burn your bridges! Do not play games!

· Look for a Win-Win arrangement!

· What you do not ask for is left on the table.

· $1/hour = $2,000 per year.