Accepting a Job Offer Making an Informed Decision

Congratulations! You’ve Got An Offer!!

Now Comes the Challenging Part  know your bargaining position  making an informed decision  savvy negotiation  accepting

Strategy of Negotiation  foundation—what you do to ensure your bargaining position is as strong as possible  start working on it well before you sit down to negotiate details  builds your bargaining power  makes the most of your talents, education, job experiences, and recommendations  neutralizes your limitations

Bargaining Position  strong position lots of offers, outstanding tech skills, little competition lots of offers, outstanding tech skills, little competition name your price, but w/strategy name your price, but w/strategy you want them glad to have you, not resentful of your demands you want them glad to have you, not resentful of your demands  more typical position really want the job really want the job terrified of losing it by being too aggressive terrified of losing it by being too aggressive doesn’t negotiate effectively doesn’t negotiate effectively

Know The Market  research accurate salary data Use UCSO resources Use UCSO resources  what might cause a deviation from the going rate  how much bargaining power do you have  what factors are most important to you  what is your best alternative plan  what is the lowest salary you can accept

What Can The Employer Offer  salary  signing bonus  commissions  moving allowance  early performance review  health plan  tuition reimbursement  stock awards or options  profit sharing  pension or 401(k)  lifestyle issues  severance package

Salary  base for figuring bonuses and raises  savvy negotiating often improves an initial offer  difficult to get same boost on the job even with excellent performance

Signing Bonus  offered when they can’t pay a competitive salary right away or luring someone away from a competitor  keeps departmental salary structure because they are hidden from view as not being a part of regular payroll  often payment of bonus is delayed to keep you from getting money and running  commonly paid half at 6 months and remainder at 12 months

Bonuses  best if tied to measurable criteria  requirements for earning it performance of a sales team you support performance of a sales team you support reward for completing a schedule ahead of time reward for completing a schedule ahead of time reward for recovering a business relationship that was lost reward for recovering a business relationship that was lost based on customer satisfaction based on customer satisfaction based on money saved through operational streamlining based on money saved through operational streamlining finder’s fee for recruiting needed staff members finder’s fee for recruiting needed staff members tied to the number of new customers brought in by marketing programs tied to the number of new customers brought in by marketing programs

Commissions  sales goals  commission percentage, standards for meeting it, and additional rewards for exceeding goals  size and location of sales territory, degree of exclusivity, and access to specific accounts  length of time to keep the territory if you meet your goals

Moving Allowance  may be tax-free  may include nearly all moving expenses, including hired movers hired movers temporary living quarters temporary living quarters sometimes costs associated with real estate transactions sometimes costs associated with real estate transactions  may be a fixed sum  usually negotiable because it is a non-recurring cost for the company

Early Performance Review  for salary increase or promotion  request a 6 month or even 3 month review if you think you can make a significant impact that fast

Health Plan  company sponsored health plans vary widely many smaller firms have none many smaller firms have none  provisions of plan are not negotiable  expect to pay at least part of the premium yourself from pre-tax income  review company’s share of the premium  look for at least two options to be offered by employer

Tuition Reimbursement  standard benefit that can be worth thousands  usually have to take night classes  classes usually have to be related to something that benefits the company  some make loans rather than tuition grants and then forgive a part of the loan for each year you remain after concluding the education  try to arrange for any balance to be forgiven if you are laid off  may also sponsor educational opportunities informal, on-the-job training informal, on-the-job training mentoring mentoring formal courses and seminars formal courses and seminars

Stock Award or Options  most common and lucrative at start-up and early-stage companies  key is to argue that bigger ownership gives you more incentive to be of extraordinary value  larger, established companies are less negotiable, offer relatively fewer shares, and are sometimes restricted to middle and upper management  not so profitable in near-term money, but over years they can be sizable  do the math…know the number of shares offered and the and percentage of total shares  start-up shares are only valuable if and when the company goes public or is sold  ask about length of time for vesting before you can exercise options  if you’re planning on a short stay, these aren’t of much value

Profit Sharing  profit sharing form of incentive pay based on the company’s performance form of incentive pay based on the company’s performance you agree that a percentage of your compensation will be based on the firm’s overall profits or profits from certain deals you agree that a percentage of your compensation will be based on the firm’s overall profits or profits from certain deals

Pension Profit Sharing or 401 (k)  employer contributes a certain amount to your pension plan each year usually figured as a percentage of your salary usually figured as a percentage of your salary based on the company’s profitability based on the company’s profitability  company sets aside a portion of your pretax income in a tax-deferred investment account  most employers match full or partial contributions  in principle, money is supposed to remain until retirement some plans allow for borrowing against it or making early withdrawals some plans allow for borrowing against it or making early withdrawals buying a home buying a home paying your kids’ college tuition paying your kids’ college tuition medical care medical care  must conform to government regulation so terms are not negotiable

Lifestyle Issues  location  travel schedule  need to balance work and family  future stability  company culture

Severance Package  negotiate for 3 months salary if your employment is terminated through no fault of your own  this should be the last area of your negotiation  bring it up as a conjecture, e.g. what if…  get the deal in writing in case your manager is laid off

Determine Negotiating Priorities  use these to evaluate offers quality of learning opportunity quality of learning opportunity rapport with supervisor rapport with supervisor respect for your colleagues respect for your colleagues workplace atmosphere workplace atmosphere intense or relaxedintense or relaxed competitive or mutually supportivecompetitive or mutually supportive chaotic or organizedchaotic or organized work alone or part of a group or combination of twowork alone or part of a group or combination of two socializing or being more privatesocializing or being more private

More Priorities to Consider  other forms of compensation  vacation and time-off policies  flex time or telecommute options  benefits such as health insurance  perks, e.g. international travel  recognition, e.g. speaking opportunities  company’s prestige  importance or value of what the organization produces

Use a Decision Matrix  helps stay focused on the factors of most importance to you  identifies your main negotiating points  recognizes when you should decline an offer

Negotiation: You’re Not Buying a Car!!  Job negotiation is not like buying a car where they offer, you counter, they counter your counter, and so on where they offer, you counter, they counter your counter, and so on  determine your bottom line in advance if they offer more than your bottom line, great if they offer more than your bottom line, great if they offer less than your bottom line, then if they offer less than your bottom line, then walk away orwalk away or reveal your bottom line and see if they can meet itreveal your bottom line and see if they can meet it  lay your cards on the table to avoid aggravating the employer

Avoid Pushing Too Far  your deal may be rescinded  you invite over-scrutiny and criticism  you have to live in the climate you create

Don’t Ask For It All  a long list looks like you’re a high maintenance employee  concentrate on the 2 or 3 things that matter the most to you  consider the other options only as part of your decision matrix for evaluating offers

End of Negotiation Signals  final words that signal the end “I just can’t go beyond what I’ve agreed to already” “I just can’t go beyond what I’ve agreed to already” “I think your expectations are beyond what we can do” “I think your expectations are beyond what we can do” “Please consider this our final offer” “Please consider this our final offer”  continued pushing will cause alienation and negative outcomes

Additional items regarding an Offer include:  pass a physical examination  document your citizenship or immigration status  obtain a security clearance  undergo a thorough background investigation, in which your credit history, criminal records, and travel history might be examined  verify your academic credentials  provide proof of your past employment, salary, or military service

Delaying a Decision  be reasonable, but you can usually get more time to decide  if negotiations have been verbal, ask to receive the terms in writing  ask for a few days to consider the offer  clarify a few points if more time needed

Declining A Job Offer  act decisively; don’t string them along further  call or a thank you for the manager’s time and efforts  graciousness means you won’t burn any bridges

Reneging On An Offer  When you accept an offer STOP all active job search activities STOP all active job search activities employer has terminated discussions with other candidates employer has terminated discussions with other candidates it’s disrespectful to the company and lacks integrity it’s disrespectful to the company and lacks integrity  it’s dishonest  it’s unethical  written offer is a contract once it’s signed by you  you can avoid this problem with careful planning

Ethics Of Accepting A Job Offer  get it in writing title and major responsibilities title and major responsibilities starting date starting date person you will report to person you will report to salary salary other forms of compensation other forms of compensation moving allowance or other special arrangements moving allowance or other special arrangements  keep a signed copy in a safe place

UCSO Resources  Salary data  Relocation  Negotiating  Benefits Career Resource Links

Questions?