Strange offer negotiation
Hi all: I interviewed for a job on Friday, and on my way home I got the call from the company that they would like to extend an offer to me. Wonderful and great, I really like the firm, and I absolutely do not like where I am right now. Here come the issue: they told me, before they make me an offer, they would like to know what my salary requirements were so they could tailor their offer to my requirements. While I am tempted to ask for a million, I know that that is very unrealistic. I am just wondering how to approach it. I have this feeling that if I ask too little, I will be resenting moving to the other firm, while asking too much would jeopardize the offer. In the past I've gotten offers and negotiated from that angle, but never had to negotiate by naming my price and have them counter me. Currently I make 70K with a company car. The census tells me that my type of jobs in the area go for around 80k and in this new position I will not get a car. Moreover, I will be forced to buy a car since I do not have one. This loss of a company car and the need for a car will cost me approximately 12K per year, and I would have to ask 82K not to loose any ground (at least until my car payments are done). Questions I have, is this a realistic approach for me to calculate what I need? Is this normal for employers to ask of me (to name my price), or something to watch out for (a trap). Should I give them a range (low to mid 80s)? How have others approached this? Any advise would be welcome. Thanks. Jan The general rule-of-thumb is that it's ordinarily not worth switching jobs for less than an increase of at least 10% to 15% more than you're earning now. Personally, I wouldn't to factor in the value of the car as part of your anticipated salary, the vast majority of employees own a car - nevertheless, a 10% increase would put you around $77K and a 15% increase would be about $80.5K per year. If I were you, therefore, I'd say my anticipated salary is negotiable within the $75K to $85K range - that should cover all your concerns and isn't an unreasonable increase to expect to justify leaving your present job. If this prospective employer thinks it's too high, I'm sure they'll let you know. And, depending on how you feel about it, you could justify taking the job for a counter-offer in the high $70Ks. And it you feel $75K is too low, make your range $78K to $85K - although the $78K amount sounds a little odd. Make Sense? Paul W. Barada The Negotiation Expert Jan, Paul, as always, has given you excellent advice. I would definitely reinforce his words not to factor in the value of a car, however. Most people have to have a car to get to work, and in fact, some employers will not hire someone without a car--because it is simply expected that if you have to go to work every day you have adequate transportation. You having to buy a car is not their problem. I don't mean to sound harsh, but that's reality, and I'm afraid if you add car payments to your salary requirement and/or you tell them you are factoring in the value of a car because you currently receive a company car, you might blow it! You yourself may have to consider whether the new salary makes it worth it for you to switch, and if the added expense of a car means you can't pay your other bills, then you simply might not be able to take the job. Follow Paul's advice--he knows what's what! Thanks Paul, that makes a lot of sense. I appreciate your help, and will let you know how this ends up. Again, thanks. Jan I respectfully disagree. The value of the car should be included in the overall compensation consideration. The fact that almost everyone owns a car is even more of a factor to include it. That means it is a fairly common thing but in JW's case, the employer is paying for it. Let's put ourselves in the situation. We are offered a job at JW's employer and the employer says "We'll give you two options: $70K with no car or $70K with a company car." Which would we choose? Of course we would choose the money and the car because the car has value to us. Why should it be excluded? In addition, a company car in some cases can be subject to income taxes to the employee... how does that differ from salary or a bonus? Better than that, ask for $80-85K. The employer will NOT want to feel he's paying for your car, even if he is. But you'll be resentful at $75 K because you consider the car worth more than $5K.
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