1st time negotiating
I have been with my current company for 11 years. Every 2-3 years I have received a promotion and I am currently now at the top of the ladder with this company - there is nowhere else to go. I have applied to a position that is related to my field, but slightly different. I am currently District Sales Manager for a wireless phone company and I am in charge of 8 retail locations. The position I am applying for is for a Retail Sales Manager of high speed internet, television, wireless phone, and more. Instead of being in charge of specific subordinates, as I am now, I would be responsible for visiting accounts and training, promoting, and motivating the retail staff to sell our products. I feel the advantage that I have is that I am currently on the receiving end of these type of communications. I have been in the industry for a long time and I know how to deal with retail sales staff and management. I received an offer today and it is slightly below what I am looking for. I found the position by working with the representative who visited my locations in order to promote the products to my stores. She has now been promoted and would be my supervisor and I really feel like we have built a great relationship working together between my company and her company. She has definitely given me the feeling that she really wants to hire me, has kept me updated that a proposal would definitely be coming my way, and has even suggested negotiating the salary offer. My problem is, I have been with my current company so long, I have no idea how to negotiate a job offer. Last year, I made about 79K and my base was 40K. Now they are offering 45K with bonus @quota of 28.8K, so a total of about 73K. I don't feel I am on pace to match last year's 79K at my current position and I feel our market ison a downward trend that I cannot change. I really want to change careers in order to have more oportunities, but I am unsure how to approach the HR manager with a salary negotiation. Everything I see on the internet is very vague... How do I begin the conversation? What should I ask for without sounding too over confident or rude? Please help! Ok, let me start by saying that sales is not my area of expertise. 1. First off, you don't have to leave the job you do have, so that does give you a good base to stand on. 2. I'd start with asking if the offer is negotiable. If not, then that's that and you either need to take it for the bigger opportunity or leave it. 3. If it is negotiable, you need to know what you want to ask for. As I said, sales is not my area, so I'm not sure if you should haggle over the bonus/quota thing or not. I'm sure Chet or someone else will have more specific advice on that point. Regardless, you really need to know what your bottom line is and be prepared to walk away if they don't meet that bottom line. 4. Things to consider aside from cold hard cash. How much do you want this job. You're stuck where you are, this sounds like a great opportunity. You don't think you're going to be getting as much this year as last anyway, is there really that much difference in salary/bonus if that happens? What are the prospects for next year and the year after that if you stay put or if you go? How often do jobs like this come along in your field? If you pass this up, will there be anything better any time soon? You will be increasing your base over 10% regardless of the bonus/commission thing. That's a pretty good thing, espcially if the market is tanking anyway. So, I'm sure I didn't answer your questions, but more things to think about. Tess Start by politely asking whoever actually made the salary offer if it's negotiable - even though your friend told you to negotiate the offer. On the surface, you're in an ideal position to negotiate since you're presently employed. On the presumption that their initial offer is negotiable, I think you need to be prepared to propose a salary range in which you want to be. Generally speaking, it's not worth switching jobs unless you can increase your total income be at least 10% to 15%. If you're asked what salary you have in mind, be prepared to say something like, "I was anticipating an offer in the $X to $Y range." You can break the total amount down between salary and bonus however you feel is most appropriate. The salary base you were offered is slightly more than a 10% increase, but it sounds like the bonus plan isn't as attractive as the one you have now, so it probably makes sense to propose an alternate bonus plan that will advance your total compensation package to at least reflect a 10% to 15% increase. I think you can also make the point that your present compensation package generates approximately $79K and that as excited as you are about the job, it simply doesn't make sense to switch jobs for a lower total compensation package - and see wha sort of response you receive. Zat help? Paul W. Barada The Negotiation Expert | |
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