The toughest time in a job search is when an offer finally arrives.
Yay! Company X wants me! It’s a good offer, but maybe I should ask for more? And what about Company Y? They say I am a finalist, but they won’t have a decision until next week. And then there’s company Z, with one more round of interviews to go. It’s such a cool job, but now I have to make a decision before they schedule that next round…
The best of times, the worst of times. It’s a great problem to have, but there’s just sooo much stress and uncertainty.
Help is on the way in this read.
This is not a treatise on every aspect of managing job offers, which is a complex and nuanced topic. One could write a book. No kidding!
The goal here is to provide a suite of best practices that will serve you well in the majority of situations. The recommendations also serve as a framework for thinking through more complicated scenarios and provide guardrails that will save you from making offer-ending mistakes.
Where to start? Research the market and assess your value to potential employers.
You have to know what employers generally pay in your market. You also have to know what they are likely to pay for the job type and level of role you are seeking.
Websites that track salaries and cost-of-living (COL) are valuable tools to employ. In the United States, for example, Salary.com’s Cost-of-Living Calculator provides both the cost-of-living differential between US cities and the salaries employers in those cities are likely to pay. Sometimes there is a huge gap between the two.
What companies will pay can change quickly. The very hot market for 2021-2022 is not the slowing market of 2023. Stay on top of the local and global economy and trends. Don’t rely on what you heard through the grapevine about the offers people pulled in even six months back.
Word to the wise: people tend to exaggerate their offer numbers when boasting to others. Consider the source before you take a job offer data point as guidance for determining the salary you are seeking!
Understand salary ranges.
Job postings in seven US states (Colorado, Maryland, Connecticut, Nevada, Rhode Island, Washington and California) must state salary range. The EU’s Pay Transparency Act is now in place requiring EU job posts to state salary range (http://www.consilium.europa.eu/en/policies/pay-transparency/).
A giant leap forward… BUT, as one senior talent acquisition leader at a Fortune 100 company in the US told me, “The posted salary tells you maybe 1 percent of the story.”
Why? Because the posted range and the “desired hire-in salary” can be very different. Companies are still most often trying to hire-in around mid-point for the range.
Moreover, ranges can be very broad, and can even cover vastly different experience levels within one job title.
You’ve got to clarify the range.
When you start speaking with a recruiter (internal or external) or HR, ask for clarification of the range, as well as annual bonus percentages.
During the interview process, check in for any updates, because the company may have adjusted their range for the role you are pursuing—due to changes in the economy, budgets or other considerations.
Know your worth and your desired range (never a single salary number)
Know what you are worth. Be realistic about your skills and experience. Look at LinkedIn profiles of people in the jobs you want and at your target companies. How does your experience stack up? Be realistic about your knowledge and experience gaps. Companies certainly will be.
Finally, develop a range that works for you. Make it realistic considering the market, your skills and experience. The bottom number of that range must be a number you would happily accept as a fair market offer. For the top of your range, shoot for a reasonable and realistic (not huge!) percentage above your bottom number. This is your “Wow!” number.
The prelude to the dance… Are you interested?
As you move through the interview rounds, your recruiter and/or talent acquisition (TA) will ask you about your interest, and what you might be looking for in terms of salary. This is why you want to have your own— reasonable and fair—range at the ready.
Be prepared to have this conversation two or three times during the interview process. External recruiters and talent acquisition want to know if your thoughts have shifted since the last conversation. Business-savvy candidates will provide a rationale for the change in their thinking about what would be a fair and attractive salary.
Talent acquisition professionals are not impressed by candidates who are cagey about their desired salary range. TA is trying to gather information that would allow the company to make an attractive offer should you be the winning candidate. It’s in your best interest to provide guidance.
Receiving the offer: verbal and written offers
You made it through all the interviews. You’ve been waiting to hear. Then, you get an email or phone call from the recruiter or talent acquisition. If it’s good news, it’s likely a verbal offer.
The overarching purpose of a verbal offer is to get the company’s salary and bonus figures into your hands. Either you like their offer, or maybe there is a conversation that needs to be had. This is what the recruiter/talent acquisition is trying to determine.
***If you need to negotiate the verbal offer, jump down to the section on negotiating offers below.
Accepting a verbal offer doesn’t mean you are signing on the dotted-line and fully committed. An acceptance is the green light that the offer number is acceptable, and the company can move forward on preparing the written offer.
The first order of business: respond as soon as you can. They are excited. You want to show them that you are excited, too!
You don’t have to answer on the spot if the offer is extended over the phone—although you certainly can.
If you need a day to mull the offer, thank the person extending the offer and reiterate your interest in the opportunity. Next, and VERY IMPORTANTLY, find out when they need your reply. Not replying in a timely manner can result in an offer being rescinded.
Written offer review: read the fine print!
You have the written offer in hand. Your mission now is to read the offer letter carefully. Jarrett Fenlon, Principal Recruiting Officer at the executive search firm FenlonHayward Associates, notes that, “There is often language in the offer letter that candidates will want to clarify. That might be regarding long-term compensation, repayment of a relocation package, or sign-on bonuses, any number of things. You have to understand what the offer really says, what their language means and what your obligations are.”
Your to-do: Read the offer and compile your questions. You’ll be folding these into the due diligence that you will be doing below.
Your turn to ask questions and do due diligence
During interviews, your goal is to show the company that you are the person who can successfully do the job THEY need done. When you are working to pitch your skills to the potential employer, asking “you-centric” questions about what the company can and will do for you won’t help you win an offer.
However, with an offer in hand, it’s your turn to do your due diligence.
Make a list of your key questions that clarify the role, the hiring leader’s expectations, timelines for critical project milestones, performance metrics and so forth. Or you may have questions about a situation facing the company that might be a little touchy (a merger, for instance) that has definite bearing on your comfort level with moving forward.
These are business-focused questions that serve you by giving you additional important information. They also demonstrate to the hiring team that you are thinking strategically about the company and the role.
To get the best answers, you’ll likely want to have another conversation with the hiring manager. Don’t hesitate to ask talent acquisition for a short follow-up meeting, of course being respectful of the hiring leader’s time.
You can also clarify important benefits questions with HR around medical plans, vacation time (e.g., does it roll over each year?) and so forth.
The bottom-line: don’t go overboard with your questions and don’t stray too far down into the weeds.
I once had a candidate holding an offer from a Big 4 IT Advisory team who wanted to know if the firm would cover his dry cleaning bills when he was traveling on company business. Yikes!
If you are unsure about the wisdom of a question, and you have an external recruiter helping you, get their thoughts.
If you are running your own search, consider this: the company chose you because you were qualified, seemed like a great fit and demonstrated keen interest. Your goal throughout the offer period is to ensure that your behavior, words and deeds continue to build this positive impression. If the question seems like it might cast doubt on your judgement or sincere interest in the role, hold back!
Negotiating the offer. Should you? Shouldn’t you? It depends.
The most critical elements to consider when deliberating a job are the “Big 5”: The company. Your future boss and team. New challenges and learning inherent in the role. Future growth. Alignment with your career plan. This is where the rubber meets the road for your ongoing growth and success.
Of course, money is important, but it should not be the primary driver of your decision-making around an offer. The base salary offered must be considered in the context of all the other elements of the package—bonus, long-term compensation, stock grants, benefits, commute, flexibility and so forth.
Consider both the Big 5 and the total package before you decide to negotiate. Also think deeply about whether you are letting your ego get in the way when it comes to the offer. Sometimes a lower offer for an awesome job is totally worthwhile. “Do what you love and the money will follow.” If you are primed for success because you are excited about the company, the new role, your boss and team, you’re likely make up that $5-10K below your ideal base salary in no time.
Consider your audience. In the US, geographic regions and industries perceive negotiation differently. In the Midwest, where I recruited for many years, Fortune 500 companies typically try to make their first offer their best offer. They are not keen to negotiate. In the northeastern US, negotiating an offer is a norm. In consulting, companies often don’t mind seeing a candidate’s negotiating style in action together with how well they build their business case for the ask.
Keys to success
- Ask your trusted advisors for intel and find out as much as you can about the style of your prospective employer when it comes to negotiating offers.
- If you do decide to negotiate, take this advice from a talent acquisition leader at a major company: know what you CAN ask for. Make a list of your top asks, prioritize them, and keep them within reason. Have a business case for what you are asking for.
- Your negotiating style speaks volumes. Todd Weinman, President and Chief Recruiting Officer at the Weinman Group, a specialist search firm in the digital trust space, notes, “How you behave and present yourself during the negotiating process is either reaffirming the prospective employer’s positive impression or tarnishing it.”
Be gracious, clear and understanding of their position while working to advance yours. Generally, with the majority of US companies, nickel-and-diming, driving the hardest of deals, is NOT the style that is going to win you friends, get you a corner office or pave the way to a smooth start at your new job.
Addressing the issue of the offer below existing base salary
Due to salary history bans in a growing number of US states, many companies cannot ask about your current salary. This can lead to offers being made that are below the candidate’s existing salary.
Todd Weinman suggested a strategy for this scenario that he has seen be quite effective for job-seekers. “Although companies cannot ask about compensation history, you are able to offer that information if doing that is in your best interest. For example, If a company comes in with an offer below your current compensation, you can politely say something like, ‘I am very interested in the offer; however, I am currently at $X, can we get to $Y?’ Bear in mind that you have a much higher chance of getting a company to increase the offer if you give them a clear, and reasonable, target that will lead to your acceptance.”
Stay in touch during the offer deliberation process!
Stay in touch with your recruiter and/or talent acquisition contact. A very seasoned internal recruiter told me that if a candidate goes radio silent and doesn’t reply to emails or calls, this raises concern and potentially a red flag.
Also, you may be talking with HR or benefits folks to get answers to your questions, and it is possible that the hiring manager doesn’t know that this is in play. The hiring manager is your future boss. Start the relationship off right by communicating about the progress being made on your questions; restate your excitement and interest in the role; and let them know that you’ll be replying on their offer on the date agreed upon—or sooner!
Navigating offer timing issues
It frequently happens that when it rains it pours. No interviews, and then bam—you have a bunch in fast succession, and they all seem to be going great. But now you have an offer in hand. Can you ask for more time to conclude your final interview with another company?
As mentioned above, companies do not want their offers “shopped.” They don’t want to get into bidding wars. AND they expect that if the candidate is really interested in the job, they have done their negotiating and due diligence and should be ready to make a decision.
Key takeaway: Decision-making is hard. This is where you demonstrate your maturity and skills as a business professional. You either take the offer or let it go and see what else comes your way.
Some might argue that it is in their best interest to accept the written offer and commit to the start date and continuing interviewing. Then, if a better offer comes in, accept it and decline the first accepted offer. Having worked in the digital trust space for over 25 years, I don’t see this as an honorable career move.
It comes down to having principles and a firm grounding in ethics. Isn’t being a “trusted advisor” a critical part of being an IT audit, IT GRC, or a cybersecurity professional? Reneging on an accepted offer is breaking your word. It is a trust-destroying act and a sure way to burn a relationship to the ground.
Beyond that, communities of specialized professionals are small even in large markets. Word gets around. You can count on it. Moreover, companies make a note of that kind of situation in their candidate databases. And hiring managers are unlikely to forget such unpleasant and unprofessional behavior.
Accept joyfully, decline graciously
Hooray! You’ve made your decision! Call your new buddy in talent acquisition and let them know. Follow up with a cheery, enthusiastic email. Be sure to thank them for their help throughout the process. Next, send an energized email to your future boss with the great news. You want to keep the warm and fuzzy going as you start the on-boarding process.
OK, so you have to decline. Do so graciously. Let them know you appreciated the offer but have decided to go a different direction. Thank them for the opportunity to interview and learn about the company. They’ll be sad, but they’ll be impressed by your professionalism, which is your goal. You just never know when you will bump into that hiring leader or talent acquisition person again.
Happy endings!
The offer process can be a make-or-break stage in your job search. While you can’t necessarily control it, you can work to steer it skillfully to the best achievable outcome and avoid disasters. You are going to go through the offer process at least a few times during your career, maybe more than a few. View managing offers as a critical career skill to learn. Master it and it will always serve you well!
Do you have an offer story to share or have a follow-up question? Please drop a line on LinkedIn!