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Need Negotiation Feedback!!


I have been in an interim executive management position with my company and after 6 months, I am being made an offer next week. The previous manager's salary was $90,000 (he was hired from outside).  I am very afraid that the company will attempt to low ball me as I don't have the education that he had and frankly, they rarely promote to this level from within.  They know that I am aware of that and I believe are counting on me being grateful for the opportunity (which of course I am but on the other hand, I have worked very hard for 10 years with this company to get it). 

I'm not sure what I need to negotiate for and need help.  I previously made $40,000 plus bonus in my old role as a lower level manager, but this job  is a much higher position and in another state with a higher cost of living.  I had wanted to ask for at least $70,000 but the grapevine is saying that I may get an offer in the high $50s-   I honestly don't want to have to struggle financially, especially after sacrificing what I did the last 6 months to prove that I can do the job.

Basically, I need assistance on what to do.  If they offer me a salary lower than I expected, how much negotiating room do I have? Is $70,000 too much to ask as they gave me an opportunity that I may not have gotten elsewhere?  I realize that there is a big jump between what I made and what I'm asking, but its a totally different job AND $70,000 would still be $20,000 less than the previous manager.  Also, there is a relocation package involved and bonuses are in December - Can I ask for more in the bonus area or relocation package to compensate for a low offer if they are firm?  

Any feedback would be appreciated.  Negotiating for ME is one of my weakest areas, and it would help to know if I am unrealistic in my salary expectations.  Thanks!

First off, it's probably not a good idea to think if this opportunity in terms of what the previous occupant was supposedly being paid.  The ordinary rule-of-thumb is it's not worth switching jobs, all other things being equal, for an increase in salary of LESS THAN 10% to 15% more - that's the starting point.  So, one could make the case that a salary of $45K to $50K would be justified if these were the same type of jobs.  But all other things aren't equal in this situation.  I think you have to come up with a salary range that's not only reflective of the increased level of responsibility associated with the new job and also a reasonable salary range in which you'll be pleased if you end up finally being offered the low end of your range and thrilled if you end up finally being offered the high end of your range - whatever you that range should be.  Put another way, your notion of an anticipated salary range should reflect how well you believe your qualifications for the job match the requirements of the job.  Now, having done that, and realizing that you're probably not going to be offered $90K, the next step is to wait and see what sort of actual salary offer you get.  If it's an offer you'd otherwise be happy to accept - accept it!  On the other hand, if you honestly think the offer is low, start by politely asking if their offer is negotiable and see what they say.  If it's not negotiable, but it's at least 10% to 15% more than you're earning now, it'd still be tempted to accept it because management opportunities don't come along all that often and probably won't come again for you if you turn this one down - but that's the worst case scenario.  If the offer is negotiable and you're asked what salary you have in mind, counter with your range by saying that you were anticipating an offer in the $X to $Y range.  But I also firmly believe you have to be able to state specifically WHY the job will be worth that amount with you in it based on things like your past job performance, experience, training, skills, and education.  I'd think you could start by proposing a counter-offer in the $65K to $75K range and see what happens.  I wouldn't't try negotiating a higher bonus or relocation amount.  Relocation funds have to do with covering the actual cost of moving, not increasing the amount so somebody can pocket the difference - and bonuses are based - usually - on individual performance and/or profitability.  Your best bet, as I see it, is to make your case based on how well your qualifications for this job match the requirements of this job.  Hope this helps.

Paul W. Barada

The Negotiation Expert

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