Just got job offer - how hard to negotiate over salary?
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Here's my current situation. I work for a "big four" firm in their consultancy division. Salary is pretty good but work life balance is shocking. I live in Nottingham and have spent the last 8 months working virtually full time in London. Before that I was working mainly in Leeds, which is also a pretty bloody long way away!
I have been offered a new permanent job based in Leicester. It's a good role in exactly the sort of firm that I want to work for. It's easy to get to and travel will be really limited. I've had some contact with them professionally and I like the management, think there's a good future for the firm. The role is a senior management role with good scope to progress further.
Salary in current job is £xx with £y car allowance. Salary that I have been offered is £xx minus £1500, no car allowance. Other benefits are similar.
New firm have told me how keen they are for me to start. I had three interviews and I'm fairly sure that no-one else got anywhere near as far through the process as me. I'm pretty sure I really want the job.
So - how hard do I negotiate on the salary (if at all)? I'm minded to say to them something like "I'm ok to lose the car allowance, but I'd like you to match my current salary" or words to that effect. It's ages since I changed jobs - what are the expectations these days? Are job offers seen as the opening stage in a negotiation or is it more "take-it-or-leave-it"?
I'm interested in your experiences and any advice you have.
Many thanks!
Here's my current situation. I work for a "big four" firm in their consultancy division. Salary is pretty good but work life balance is shocking. I live in Nottingham and have spent the last 8 months working virtually full time in London. Before that I was working mainly in Leeds, which is also a pretty bloody long way away!
I have been offered a new permanent job based in Leicester. It's a good role in exactly the sort of firm that I want to work for. It's easy to get to and travel will be really limited. I've had some contact with them professionally and I like the management, think there's a good future for the firm. The role is a senior management role with good scope to progress further.
Salary in current job is £xx with £y car allowance. Salary that I have been offered is £xx minus £1500, no car allowance. Other benefits are similar.
New firm have told me how keen they are for me to start. I had three interviews and I'm fairly sure that no-one else got anywhere near as far through the process as me. I'm pretty sure I really want the job.
So - how hard do I negotiate on the salary (if at all)? I'm minded to say to them something like "I'm ok to lose the car allowance, but I'd like you to match my current salary" or words to that effect. It's ages since I changed jobs - what are the expectations these days? Are job offers seen as the opening stage in a negotiation or is it more "take-it-or-leave-it"?
I'm interested in your experiences and any advice you have.
Many thanks!
Do the math - what are you saving by not travelling / staying in London versus travelling Notts to Leicester every day and financing your own car.
What is your extra time at home worth to you?
You're looking at, what a drop of £7500 a year (£1.5k salary + £6k car allowance?), for a lot more time at home, which is £400 a month take-home if you're a 40% taxpayer. So you're losing £20 a day to be at home a lot more.
Personally I'd be tempted to ask them to split the difference at salary £xx + £4k.
What is your extra time at home worth to you?
You're looking at, what a drop of £7500 a year (£1.5k salary + £6k car allowance?), for a lot more time at home, which is £400 a month take-home if you're a 40% taxpayer. So you're losing £20 a day to be at home a lot more.
Personally I'd be tempted to ask them to split the difference at salary £xx + £4k.
Only you know whether the drop in salary is worthwhile taking.
Do you have the opportunity to speak with your potential manager, or one of the people that interviewed you? It sounds like you'd prefer to be paid more, but would accept the job at the current salary.
If that's the case, I wouldn't negotiate through HR because it'll be difficult to explain your position and rationale or to guage where they are in terms of salary. It could be that they've pushed the boat out for you and literally cannot match your existing salary so didn't. On the other hand, they may have taken your existing commute into account and calculated what they think they can get you for based on that.
If they can see how much you want the job and that you're not being greedy, then I'm sure they'll do whatever they can to make sure you take the role and are happy with the renumeration on offer if it's within their control.
Do you have the opportunity to speak with your potential manager, or one of the people that interviewed you? It sounds like you'd prefer to be paid more, but would accept the job at the current salary.
If that's the case, I wouldn't negotiate through HR because it'll be difficult to explain your position and rationale or to guage where they are in terms of salary. It could be that they've pushed the boat out for you and literally cannot match your existing salary so didn't. On the other hand, they may have taken your existing commute into account and calculated what they think they can get you for based on that.
If they can see how much you want the job and that you're not being greedy, then I'm sure they'll do whatever they can to make sure you take the role and are happy with the renumeration on offer if it's within their control.
jimbobs said:
I'm minded to say to them something like "I'm ok to lose the car allowance, but I'd like you to match my current salary" or words to that effect.
Presumeably you're a 40% tax-payer so you're talking about f
k-all in the great scheme of things. Why even bother to ask?In my working life (I'd say middle management) the only time I saw most people change salary significantly was when they moved jobs. We started people in similar roles at dramatically different salaries.
To be honest, for someone going for a senior management role, your questions seem a bit incredible.
Edited by Deva Link on Thursday 4th April 22:15
I think the important thing is whether their offer is made with them knowing your current salary. If so then they are saying that they pay less and I am surprised you've got through 3 stages with no indication of that.
If not then I would simply go back and say that they're appear to be paying way out of line in comparison to your current salary and is there any movement. Be prepared to say how much more you'd like their offer to be increased by.
If not then I would simply go back and say that they're appear to be paying way out of line in comparison to your current salary and is there any movement. Be prepared to say how much more you'd like their offer to be increased by.
I hate it when they ask "expected salary". Had it on a recent job application and put a figure in. This was online. Had a phone call to confirm details etc off them following day and mentioned the figure i put in ($120,000 per year tax free) and they replied "yep, thats fine. Our HR in America will give you a phone interview on Mon"! I wish i put more in now!
Before anyone says "cant be bad", it is in Africa!
Before anyone says "cant be bad", it is in Africa!
I would respond to say that you are delighted to have been offered this position, however would need to discuss the package before being able to accept the job.
Make it clear to them that you really want this job though, that will make them more likely to increase their offer.
Taken directly from the brilliant Businessballs website-
If you are changing jobs, the best time to negotiate salary is after receiving a job offer, and before you accept it - at the point when the employer clearly wants you for the job, and is keen to have your acceptance of the job offer. Your bargaining power in real terms, and psychologically, is strongest at this point, and is stronger still if you have (or can say that you have) at least one other job offer or option (see the tips on negotiation). A strong stance at this stage is your best chance to provide the recruiting manager the justification to pay you something outside the employer's normal scale. The chances of renegotiating salary after accepting, and certainly starting, the job are remote - once you accept the offer you've effectively made the contract, including salary, and thereafter you are subject to the organization's policies, process and inertia.
A compromise in the event that the employer cannot initially take you on at the rate you need is to agree (in writing) a guaranteed raise, subject to completing a given period of service, say 3 or 6 months. In which case avoid the insertion of 'satisfactory' (describing the period of service) as this can never actually be measured and therefore fails to provide certainty that the raise will be given.
If you are recruiting a person who needs or demands more money or better terms than you can offer, then deal with the matter properly before the candidate accepts the job - changing pay or terms after this is very much more difficult. If you encourage a person to accept pay and terms that are genuinely lower than they deserve, by giving a vague assurance of a review sometime in the future, then you are raising expectations for something that will be very difficult to deliver, and therefore storing up a big problem for the future.
Make it clear to them that you really want this job though, that will make them more likely to increase their offer.
Taken directly from the brilliant Businessballs website-
If you are changing jobs, the best time to negotiate salary is after receiving a job offer, and before you accept it - at the point when the employer clearly wants you for the job, and is keen to have your acceptance of the job offer. Your bargaining power in real terms, and psychologically, is strongest at this point, and is stronger still if you have (or can say that you have) at least one other job offer or option (see the tips on negotiation). A strong stance at this stage is your best chance to provide the recruiting manager the justification to pay you something outside the employer's normal scale. The chances of renegotiating salary after accepting, and certainly starting, the job are remote - once you accept the offer you've effectively made the contract, including salary, and thereafter you are subject to the organization's policies, process and inertia.
A compromise in the event that the employer cannot initially take you on at the rate you need is to agree (in writing) a guaranteed raise, subject to completing a given period of service, say 3 or 6 months. In which case avoid the insertion of 'satisfactory' (describing the period of service) as this can never actually be measured and therefore fails to provide certainty that the raise will be given.
If you are recruiting a person who needs or demands more money or better terms than you can offer, then deal with the matter properly before the candidate accepts the job - changing pay or terms after this is very much more difficult. If you encourage a person to accept pay and terms that are genuinely lower than they deserve, by giving a vague assurance of a review sometime in the future, then you are raising expectations for something that will be very difficult to deliver, and therefore storing up a big problem for the future.
Key question for OP is why change...........lifestyle, culture, reward, career, etc. Read your post as work/life balance. If so, only you can decide if the "reward cut" is worth the trade off.
My 2 penneth worth.......
In any meeting over salary/reward
Good luck
My 2 penneth worth.......
In any meeting over salary/reward
- know your bottom line before going into meeting/discussion
- make it clear that you re really excited over working with the people/business
- keep it business like with humanity
- be prepared to ask why they are offering below your current remuneration
- if they do not budge on initial offer, be confident to ask if you can sleep on it/discuss with family
Good luck
Sounds to me that would would take this offer as it stands but as people have said there is no harm in asking for more.
As a headhunter I very rarely place someone on less money. But lower offers have been made over the years. My usual response is basically 'the candidate has asked if there would be any flexibility on the salary because their current package pays £x amount more'
It's a nice way of asking, you are not demanding anything or any set figure and the ball is left in their court.
I'll bet they offer you more if you ask (nicely!)
As a headhunter I very rarely place someone on less money. But lower offers have been made over the years. My usual response is basically 'the candidate has asked if there would be any flexibility on the salary because their current package pays £x amount more'
It's a nice way of asking, you are not demanding anything or any set figure and the ball is left in their court.
I'll bet they offer you more if you ask (nicely!)
petop said:
I hate it when they ask "expected salary". Had it on a recent job application and put a figure in. This was online. Had a phone call to confirm details etc off them following day and mentioned the figure i put in ($120,000 per year tax free) and they replied "yep, thats fine. Our HR in America will give you a phone interview on Mon"! I wish i put more in now!
Before anyone says "cant be bad", it is in Africa!
Zimbabwean dollars, then.Before anyone says "cant be bad", it is in Africa!
Well done, you're just a phone call away from a job with an annual salary of £217.
CommanderJameson said:
Zimbabwean dollars, then.
Well done, you're just a phone call away from a job with an annual salary of £217.
Well they did ask if i could put a deposit down for clothing and accom through Western Union to their HR department in Lagos, cant see a drama with that!!Well done, you're just a phone call away from a job with an annual salary of £217.
Quick update for what it's worth.
Just had a long and positive chat with the CFO. Discussed the salary issue and it was clear that he feels he has gone as far as he can to meet my current salary without busting their pay scale. They are a reasonably new start up and my current firm is at the generous end of the pay spectrum so I do understand his issues.
Based on that, and on the fact that I got him to budge on some of the other benefits like healthcare and a couple of other things, I have decided to accept at the offered salary.
As with selling a car, there's always a slight "what if I'd asked for more?" feeling but it will make a massive work-life balance difference to me so I've definitely come out ahead overall.
Just had a long and positive chat with the CFO. Discussed the salary issue and it was clear that he feels he has gone as far as he can to meet my current salary without busting their pay scale. They are a reasonably new start up and my current firm is at the generous end of the pay spectrum so I do understand his issues.
Based on that, and on the fact that I got him to budge on some of the other benefits like healthcare and a couple of other things, I have decided to accept at the offered salary.
As with selling a car, there's always a slight "what if I'd asked for more?" feeling but it will make a massive work-life balance difference to me so I've definitely come out ahead overall.
jimbobs said:
Quick update for what it's worth.
Just had a long and positive chat with the CFO. Discussed the salary issue and it was clear that he feels he has gone as far as he can to meet my current salary without busting their pay scale. They are a reasonably new start up and my current firm is at the generous end of the pay spectrum so I do understand his issues.
Based on that, and on the fact that I got him to budge on some of the other benefits like healthcare and a couple of other things, I have decided to accept at the offered salary.
As with selling a car, there's always a slight "what if I'd asked for more?" feeling but it will make a massive work-life balance difference to me so I've definitely come out ahead overall.
Congratulations.Just had a long and positive chat with the CFO. Discussed the salary issue and it was clear that he feels he has gone as far as he can to meet my current salary without busting their pay scale. They are a reasonably new start up and my current firm is at the generous end of the pay spectrum so I do understand his issues.
Based on that, and on the fact that I got him to budge on some of the other benefits like healthcare and a couple of other things, I have decided to accept at the offered salary.
As with selling a car, there's always a slight "what if I'd asked for more?" feeling but it will make a massive work-life balance difference to me so I've definitely come out ahead overall.
Sorry I am a big late in saying that. I've been busy.
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