JOB OFFER NEGOTIATIONS

It feels wonderful to get a job offer. This is what you were striving for when you started your job search.  But do not rush to say “yes”.

When you receive a job offer, the roles are suddenly reversed. Now you have become the buyer. The employer is now trying to sell you on the career opportunity, salary, and benefits. They definitely want you, and in most cases, would like you to join as soon as possible. You have to decide whether you want them, and if so, what changes are needed in the job offer before you make a commitment.

IS THIS THE RIGHT JOB?

Here are some questions you should try to answer to determine if this is the right job.

• Are you sure this job is a good match with your skills?
• Will this job put you on the career path you want?
• Do you feel you will have a good working relationship with your boss?
• What is this company’s reputation in the industry?
• Do you have a clear understanding of the job description?
• Are you convinced that you will succeed in this job?
• How does your family feel about this job?
• Will you enjoy working with people you met during the interview process?

When you receive a job offer, you have to make a decision that will have a long-range impact on your career path. Fortunately, most companies give you a few days to make your decision. You have probably determined, before a job offer is presented to you, that the company is a good place to work and you are satisfied with the position and advancement opportunities. If you have any concerns about the company or the position, this is the time to take another look at what you may be getting into. No amount of salary or benefits will make up for a bad career choice. Assuming you are satisfied with the company and the position, take a close look at the financial aspects.

Job offers are subject to negotiation.

You can negotiate the job responsibilities, base salary, bonuses, relocation package, benefits, stock compensation, severance terms and anything else included in the job offer. This is an opportunity for you to define what you want and what you can get, and then negotiate an employment package acceptable to you.

Timing is a critical factor in negotiating. The ideal time to negotiate is when you have received a verbal offer from the employer, or through an executive search firm. Prepare a logical explanation for every change you want to request. Remember, negotiating is a two-way process, where both you and the employer try to reach an agreement that will be beneficial to both sides. 

Preparation is the key to good negotiations.

You have to research, consider alternatives, plan and effectively communicate with the employer. You have to know how far you can go, and when to pull back. When the job being offered to you is hard to fill, the employer will be more accommodating. If other candidates are available to fill the position, the employer may be less inclined to negotiate the terms of the job offer. Smaller companies are more willing to negotiate as compared to larger organizations with standard policies and procedures.

There is a big difference in salaries for the same jobs in different parts of the country. 

You should look up cost of living data when researching salaries. Here are some websites for your research.

www.jobstar.org

This is a wonderful resource for help on salary information. It helps you connect to over 300 free online salary surveys. The surveys come from several kinds of sources including: General periodicals; local newspapers; Trade and professional journals; Trade and professional associations; and Recruiters or employment agencies. This website also offers helpful links to advice on salary negotiation strategies. 

www.salary.com

This is a leading provider of on-demand human resources software to help businesses and individuals manage pay and performance, and achieve greater results in the workplace. The website includes quick links to compensation-related information: Salary Wizard; Benefits Calculator; Executive Pay Wizard; Cost of Living Calculator; Premium Salary Report; Salary Wizard Canada; Performance Self-Test; and Salary Negotiation Advice.

www.salaryexpert.com

This website was launched in 2000 to provide reporting on salaries and cost of living. Tools available on this website help people make informed decisions when planning careers and searching for jobs. Following career tools are available: Search Jobs by Salary; Cost of Living Calculator; Education Planning Center; Job Search; Career Salary Potential Report; and Student Cost of Living Report.

www.payscale.com

Payscale is a market leader in global online compensation data. It has one of the largest databases of online employee salary data in the world. This website offers salary reports based on your job title, location, education, skills and experience.

www.bls.gov/oco

The Occupational Outlook Handbook (OOH), 2010-11 issued by the Bureau of Labor Statistics is revised every two years. It is a nationally recognized source of career information for hundreds of different types of jobs. For specific occupations, it tells you: the training and education needed; earnings; expected job prospects; what workers do on the job; and working conditions. In addition, it gives you job search tips, and links to job market in each state. Occupational Outlook Handbook is available online, and you can use the Search box to find out about a specific occupation or topic. Also you can go to the A-Z Index for a listing of all occupations in alphabetical order.

PREPARE YOUR RESUME TO GET INTERVIEWS

Here are some building blocks for your resume.

·         Personal Information: Full name, address, phone number and e-mail address should appear as header on the resume.

·         Career Summary: A statement of career summary should follow the personal information. This is just one or two sentences that state what you can do and how you can help your employer. You should write your career summary before you prepare the rest of your resume. This will help you to decide what should be highlighted on your resume. Do not use general statements such as “seeking a challenging opportunity with a growing company”. Such general statements are red flags that may cause recruiters to discard your resume. Your career summary should be related to the job for which you are submitting your resume. This is the first information on your resume following your name and address, and you need to make it highly effective.

·         Accomplishments: A good description of your achievements will make your resume stand out in the big stack of resumes recruiters review every day. You should translate your achievements in monetary terms whenever possible. For example, if you are in sales, you should state how much revenue you were able to bring to your company. If you are in operations, you can state how much money you were able to save for your employer. By stating several achievements that helped your previous employers to make or save money, you increase your chances of being invited for employment interviews.

·         Unique Strengths: You should think about your unique strengths and personal qualities, and develop a one sentence statement that describes the benefits you offer to prospective employers. This statement should be highlighted in your resume and cover letters.

·         Keywords:  Many companies now use keyword software to electronically scan resumes. That means you should make your resume scanner friendly by incorporating relevant keywords in your resume. To find the relevant keywords, you should study job postings for the positions of your interest. It is probable that the keywords in these postings are what the prospective employers will search for. Use those keywords that apply to the skills you possess. Sometimes, good candidates are overlooked because keywords in the job posting were not included in the resume. Job postings are often a great place to identify the keywords that are important to a particular employer. Before sending your resume and cover letter for a particular job, compare them against posting for that job to make sure the keywords in the job posting are used in your application materials.

·         Education and Training: You should state in reverse chronological order the names of educational institutions, dates attended, major subjects, and degrees received. Include any special training.

·         Academic Awards and Honors: Any awards, scholarships, honors, and special recognition you received as a student should be included here. Include any offices you held as a student and your contributions to sports, student publications, and other extra-curricular activities. This section is important for entry level positions.

·         Work Experience: Start with your current or most recent position and include prior work experience and accomplishments. Work experience should focus on the most recent jobs and describe the older jobs in lesser detail. You should include your position title, employer’s name, location, and the employment dates. The order in which you want to present the job titles or company names depends on whether you want to emphasize the names of companies you worked for, or the positions you held. In addition to full time positions, you should feel free to include part-time jobs and voluntary work. Focus on the skills you developed and your achievements in each assignment.

·         Skills: This section may contain information such as computer knowledge and languages spoken. Familiarity with computer systems and programs is essential for most jobs today. You should plan to acquire these skills and remember to include them in your resume. Knowledge of foreign languages is very important in today’s global economy. State the degree of your proficiency in reading, writing and speaking of any foreign language.

·         Country Specific Information: While it is a common practice in some countries to include date of birth and marital status, such information should not be included on a resume in the United States. It is illegal in the U.S. to discriminate in an employment decision based upon an applicant’s age, sex, race, national origin, ethnic group, religion, or a physical disability. It is important to research local customs if you are applying for a job in another country.

·         Awards and Commendations: If you have received awards or commendations from senior management of previous employers, be sure to include that information on your resume.

·         References: You should not include names of your references on the resume. You may include a general statement saying “References available upon request”

Resume should not be longer than two pages. A one page resume is quite appropriate for recent college graduates and to apply for entry level positions. On the other hand, persons with experience usually go to two pages. You should not staple a two-page resume. That makes it harder for the recipient to scan the resume or make photocopies. Remember to include your name and Page 2 on top of the second page of your resume.

A resume longer than two pages shows a lack of ability to communicate concisely; it does not demonstrate that a candidate has a significant amount of experience. As a result, such resumes often get rejected.

You should construct your resume from the viewpoint of employers. Respect the fact that resume reviewers typically review hundreds of resumes for each position, and do everything possible to answer the primary question in the reviewer’s mind: “How will this candidate match our requirements?” The more you can do to help answer that question, the closer you will be to getting that job.

INTERVIEW QUESTIONS OFTEN ASKED

Following is a list of questions often asked during job interviews.

·         Tell me about yourself. Suggestion: You should limit your answer to two minutes. In addition to providing factual information, emphasize the work experience you enjoyed the most and the positive results you accomplished. Point out to your strengths and good work habits. This question is a test of your ability to select the relevant portions of your background, and present that information clearly in a short time.

·         What are your major strengths? Suggestion: This is an opportunity for you to focus on your personal traits such as integrity, punctuality, persistence, enthusiasm, hard work, and the ability to get along with others. You should highlight two to three traits and describe how those traits helped you to do a superior job in your previous positions.

·         What is your major weakness? Suggestion: You need to give an honest answer, and at the same time, make a positive presentation. When you mention a weakness, also point out some positive aspects associated with it. You may also want to refer to your self-improvement programs such as training courses.

·         Why are you interested in this position? Suggestion: Describe how your skills, experiences and background match the job requirements.

·         Why do you want to leave your present job? Suggestion: Say positive things about your company and your boss (whenever that is true). Emphasize how the position for which you are interviewing, offers a better opportunity to use your skills and experiences.

·         Why should we hire you? Suggestion: This question is uppermost in the interviewer’s mind whether it is asked directly like this, or in another way. The right way to answer this question is to point out the benefits that will result to the employer by hiring you. You should offer some proof by relating how you helped your previous employers make more money by increasing sales and revenue or by reducing costs or solving problems.

·         What are your salary requirements? Suggestion: The best way to answer this question is to say that you are very interested in the position, and the salary would be negotiable. You should not name a number for the desired salary at this early stage. However, if pressed for this information, give a broad, but feasible range that can help the company determine if you fit within the salary guidelines for the company. When the salary question is asked by a recruiter from an executive search firm, you should clearly state your requirements. The recruiter needs to know if your salary requirements match the client guidelines, and whether you should be referred to the hiring company.

·         How does your experience relate to this job? Suggestion: This is a direct question, and an opportunity to emphasize how your experience fits the job requirements. You should pick each of the major job requirements and describe how your experience would enable you to do an excellent job.

Here is a great question some interviewers use to judge the quality of the candidate they are facing. They ask “Tell me how you spent your day yesterday”. If you have a disciplined and well organized daily routine, you will probably talk about reading the newspaper and trade magazines, checking the available positions of interest online and in print media, adding names and phones to your contact list, researching the companies you have targeted for job search, preparing follow-up letters and thank you notes, making follow-up phone calls, and doing your favorite exercise routine to keep your body in shape. On the other hand, persons who are not focused and organized will probably show their true character. This is a good way for employers to rule out unsuitable candidates.

HOW TO GET READY FOR AN INTERVIEW?

In preparing for job interviews, you should keep one question uppermost in your mind: Why should they hire me over all the other candidates? 

You need to be fully prepared for the interview. Preparation will give you a sense of confidence, which is critical during the interview. In addition, the preparation will enable you to focus on the job requirements and how your skills and experiences match those requirements. Here is good advice from Abraham Lincoln on preparing for interviews. He said: “When I am getting ready to reason with a man, I spend one-third of my time thinking about myself and what I am going to say and two-thirds about him and what he is going to say”. When preparing for interviews, your primary focus should be on researching the employer, reviewing the job requirements, and anticipating the questions they are likely to ask you during the interview.

The following are some suggestions to get ready for an interview.

·         Confirm arrangements: Get confirmation of the time, date, location, and a contact phone number. Also get the names and titles of the persons who will interview you. If you received a confirmation letter or e-mail, take it with you. Ask whether you will need to sign a non-disclosure agreement prior to the interview. If so, ask for a copy so that you can carefully review the agreement.

·         Learn about the job: You should study the job description, and understand the principal responsibilities and requirement. You should have a clear picture in your mind of the requirements and how your skills and experiences match those requirements. You want to highlight those parallels during the interview. If you did not have the job description when you were preparing the cover letter for your resume, ask the person scheduling the interview, to send you the job description prior to the interview. Most employers will readily comply with your request, and they will be impressed with your interest in learning more about the opportunity. You might want to find out how long the position has been vacant, and why the person in that position left. If it is a new position, try to find out the reason it was created and what results are expected. Also, try to find out who will interview you first and what additional interviews are expected. You should try to get as much information as possible about the persons who will interview you.

·         Learn about the company: You should do research about the employer organization. This is an essential step for interview preparation. You should know about the company’s mission, values, history, management team, major clients, and operating results. You should find out how long the company has been around, and what is its history. What are their plans and objectives?  Such information is usually available on the company’s website, trade directories, and in annual report for a public company. Learn as much as you can about the organization. This will enable you to effectively respond to questions during the interview, and also to ask intelligent and appropriate questions. Employers expect you to know information about the company before you appear for the interview.

·         Plan appropriate clothes for the interview: This depends on the industry and the job for which you are interviewing. A two-piece matching business suit is usually appropriate when you are interviewing for a professional position. When in doubt, ask the person who is scheduling the interview about the attire that would be appropriate for your interview.

·         Prepare documents to take to the interview: You should take with you the confirmation letter you received for the interview, extra copies of your resume, job description for the position, and a pad in a holder for taking notes.

·         Anticipate questions and have your own list of questions to ask:  The employer’s objective is to evaluate the candidate’s skills, qualities, and experience level as related to the job requirements. Your objective is to convince the interviewer that you are the right candidate for the position. Your response to each question should be clear and relevant to what is being asked. You should grasp the question before starting to answer it. If you do not understand the question, ask for clarification. Provide a concise answer, and ask the interviewer if further details are needed. Focus on your strongest skills and experiences as they relate to job requirements. You should always be honest during the interview. Never say something that you know is not true.

WHAT THE EMPLOYERS EXPECT?

Following is a summary of what the employers expect when they interview candidates.

·         First and foremost, it is your appearance. This includes your dress and grooming, your handshake, your eye contact, how you express yourself, your body language, your consideration for others and your overall manners. If the initial reaction is negative, the candidate is not likely to be hired.

·         Second, the impression you create about your reliability. It includes showing up for the interview on time. When hiring a new employee, the employer wants to add someone who will be an asset and get things done. They want you to be a part of the solution to their problems. Many of the interview questions are intended to establish reliability. If a candidate comes across as unmotivated or disorganized, it is likely that someone with lesser experience will get the job.

·         The third and ultimate expectation of the employer is that you possess the skills and experiences to effectively handle the job responsibilities. You are invited for the interview because the employer believes you have the needed skills and experiences. Now it is up to you to prove that you possess the needed skills and experience in greater measure than all other candidates. This requires preparation and a clear understanding of your own capabilities as well as the job requirements. Many candidates have the needed skills, but they are not able to communicate that in the interview process.

Many career opportunities are lost because of simple mistakes such as not being on time, bad breath, limp handshake, avoiding eye contact, not using their names during interviewing, poor choice of clothes, bad manners, lack of consideration for others, failure to thank, and leaving the interview without an understanding of the next step . 

HOW EMPLOYERS FILL JOBS

Human capital is the most important resource for any company’s growth.

Take a careful look at how a company handles human resources, and you will know how successful that company will be in the long run. When a company has done a good job of finding employees, and they are motivated towards building the company, the sky is the limit for its growth. If the company has a haphazard hiring process or the employees are not happy, the company will eventually fall apart.

The most desirable way for an employer to fill a position is to do so from within the organization. Employers like to hire persons whose work they have seen. If you really want to work for a company, and you cannot get hired in the job you want, try working for them part-time or as an independent contractor or consultant. That is one way to build a career with the company you really want to work for.

There are two ways employers use to find new employees. They do the recruiting on their own, or use outside resources for recruiting such as executive search firms and employment agencies.

1. Direct recruiting by employers: Employers may post jobs on one or more job boards on the Internet, place employment ads in newspapers and trade journals, and post the job on company website and bulletin boards. As a result, they receive hundreds of resumes for each job posting. Their approach is to first screen out candidates to come up with a manageable number for interviews. Each resume gets a few seconds glance, and if it does not stand out as a good match with job requirements, it gets discarded. The candidates who pass this initial test may be invited for a short screening interview by a representative of the Human Resources Department, or receive a phone call to establish their interest and suitability. A few candidates who make it through the screening process are invited for face-to-face interviews. Two or three of these candidates will get invited for follow-up interviews, and one of them may receive a job offer to work for the company. The selected candidate will be offered an employment package consisting of salary, bonus, benefits, and relocation assistance when needed.
2. Recruiting through outside sources: Employers also use outside sources such as, executive search firms and employment agencies to attract suitable talent. The outside sources charge fees from employers for finding employees. I founded and managed an executive search firm for ten years, and worked with many employers. I charged a fee equal to 25% of the first year’s salary of a placed employee; most recruiters charge a fee in the range of 20% to one-third of the first year’s salary. The employers were willing to pay substantial executive search fees in order to find exceptional employees. To attract candidates for my search assignments, I made extensive use of my network of contacts in the industry to identify suitable candidates. I would share the details of my search assignments with my network and seek their recommendations regarding exceptional candidates. In addition, I would place job postings on my own website as well as on major job boards, and place ads in trade journals. I would conduct extensive interviews with candidates and talk to some of their references. I would generally select two to three candidates for consideration by the client organization. The hiring decision was up to the employer. When the employer decided to offer the job to a candidate I submitted, I would play the role of an intermediary to come up with an employment package acceptable to the candidate. This often involved coordination of negotiations between the employer and the candidate regarding the base salary, bonus arrangements, and relocation assistance.

To find the job you deserve, you have to target the employers of special interest to you, focus on your network, and use other job search methods available to you. It is most important to remember that you should not limit yourself to just one method of job search. When you focus on just one source for jobs, you are limiting your chances of a successful job search. The candidates who use just one method of job search are likely to get frustrated, and some of them will abandon their job search. It is a good idea to use three to four available sources to locate suitable job openings.

HEADHUNTERS CAN BE VERY HELPFUL

Executive recruiters or headhunters as they are more commonly known, work from outside the hiring company to attract management talent.

Headhunters advertise jobs, interview candidates, and present suitable candidates for final decision to be made by the employer. They have access to senior management jobs around the world. They often determine which candidates are to be introduced to client organizations. The employers hire search firms to find special talent which is in short supply. Executive recruiters look for candidates who are currently employed, have a good growth record, and are making good compensation.

Headhunters can be very helpful to you at some time in your career. It is wise to cultivate relationships with some of them in your field. When you meet a search firm’s criteria, you get immediate attention. On the other hand, remember that search firms work for employers and get paid by them. When you do not get a response from a search firm, it means that you do not meet their criteria for positions they are trying to fill.

There are two types of executive search firms – retained search firms and contingency search firms. Retained search firms generally have an exclusive assignment to fill a specific position, and they get their fee even if they are not able to fill the position. Contingency search firms are paid a fee only when they fill a position.

The starting point for your approach to executive search firms is to realize that they are not under any obligation to talk to you. Their fees and expenses are paid by hiring companies, and their primary obligation is to the employers. However, they need suitable candidates to meet their obligation to client organizations. A recruiter from a search firm would be interested in talking to you only when you are a good match for a current search assignment, a possible match for a future assignment, or when you are referred by a good source known to the search firm.

The search firms receive hundreds of resumes for each job posting. They go through a quick screening to find possible candidates. As a recruiter, I was able to find only one or two candidates for phone interviews, out of every 100 resumes I received. The other applicants did not fit my area of recruiting specialization, lacked the required qualifications, or just did not generate any interest for further investigation.

Whenever sending your resume to a search firm, remember to include a cover note pointing out how you fit the job requirements for an advertised position or the search firm’s area of specialization.

When you are contacted by an executive search firm, you should expect to answer questions about your background, experience, and current compensation. The recruiter is trying to determine whether to consider you for referral to the client organization. Any attempt to withhold information or provide a vague answer is likely to disqualify you from further consideration.

When the headhunter thinks you are a possible match with the job requirements, you will probably have a phone interview to be followed by face-to-face interviews. And if the recruiter decides to refer you to the hiring company, you will be invited for interviews with the employer. Since the executive search firms are paid by hiring companies, they always try to satisfy the employer’s interest. The employers have to pay substantial search fees for recruiting candidates through executive search firms, and therefore, they use this resource mostly for senior management positions or those positions that are hard to fill. Reliance upon executive search firms is more useful for candidates for senior level positions and less effective for junior level jobs.