Career Tips

Negotiation Process


Hi there,

I had 3 questions on what is appropriate during a negotiation process....

I had originally spoke with the HR Recruiter before going into the 2nd round of the interview process for a job.  At this time, I specifically mentioned that I did not want to take a salary cut if this position was offered to me (Note:  I live in San Francisco, Ca and this job is in Raleigh, NC.   Although cost of living is significantly lower, I work in tech and after checking salary.com and others, salaries are comparable).  She said we were in the ballpark/not to worry, so I proceeded.  After the second round of interviews, I had a follow up phone conversation with my potential boss to discuss any remaining questions.  During this conversation, he brought up compensation and said that they only budgeted about 10K less than what I was making now.  I responded that I would not accept that offer, and would need to at least be making what I am making now (Note:  I wasn't prepared to discuss compensation - this was before exploring salary, cost of living, etc).  He said he was going to "try and make that happen", kept trying to get me to commit to the job if he could (which I blew off with a strong "probably"), and we ended the discussion.

Questions:
  • Is it appropriate for a hiring manager to have that discussion with me?   Of course, it's concerning that he was not informed of my previous conversation, but also feeling uncomfortable that he was pushing me to commit.
  • After doing my research and comparing my current benefits with this new position, I realized that I would not be comfortable making a lateral move. I'm relying on salary.com data and other online sources - is this reliable? 
  • At this point I know what my "magic number" is.  Is it appropriate to throw that out there in the conversation?  Note: I am very qualified, happy in my current job, and they have been recruiting me for a few months now.  Is it Ok to do this over email?
Thanks in Advance!

1 - Yes, it is appropriate for the hiring manager and HR to discuss salary. I think it is good that you laid the cards on the table early and the issue seems to be a lack of communication between HR and the hiring manager. There's also nothing wrong with the hiring manager trying to get you to commit. What he wants to do is boil the issues down so that he doesn't come back with your salary and then you tell him there are problems with the job, title, parking spaces, etc...

2 - Salary sites can run as much as 30% high so I would not rely on them. Do your own research. Look at the same or similar jobs in Raleigh that require the same or similar education and experience that this job requires and see what they are paying. If they are more than what you make now, go for it. My guess, however, is that because of the differences in the cost of living (although I am not sure how big that is) the salaries will tend to skew lower than what they would in SF.

3 - Since you don't need to get this job, don't need to relocate, etc... you can negotiate without fear of losing this opportunity. I would put your "magic number" out there and either they can meet it or not.

Thanks so much for your detailed response. Definitely made me feel more confident in my negotiation approach. One question: how would you recommend one research salaries of similar jobs in the area, besides on sites like salary.com?

I totally agree.  Without going through your points one at a time, it' s completely appropriate for the hiring manager to discuss compensation with you and it' s equally important for you to have mentioned  the salary discussion you had with the HR person if, for no other reason, than to ask for clarification from the hiring manager - he needs to know what you know the HR person led you to believe before negotiations proceed.  Chet' s right about not basing your anticipated salary on any of the salary surveys out there - they do tend to run high and really have no bearing on the value a particular employer places on a particular job being offered to a particular candidate with a unique set of qualifications.  It just doesn' t make sense to lump everybody into a single salary category based on the assumption that every X job should pay Y to people with Z qualifications - companies are different, job responsibilities are different and candidates are people, not statistics.  Lastly, since you' re currently employed you have lots of negotiating power and, assuming that you' re happy in your present job and otherwise willing to keep it, there' s no reason not to propose the salary range that you anticipate.  I would not do it be e-mail, however, I' d talk with whomever you think the appropriate person is first, THEN follow-up with a confirming e-mail to that person with maybe a copy to either the hiring manager or the recruiter.  Your call on the copy to whomever.

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