A job offer is always good news. It means that an employer recognizes your value and wants you on their team. Offers of employment also represent a significant challenge.
You must ask yourself the following questions about the offer and, strategically and appropriately, ask the employer:
Is this the right position? Do I truly fit? What are the opportunities? Short term? Long term?
Is this a fair, competitive compensation package? Expecting more than a 10 to 15 percent salary increase is generally unrealistic.
What are the benefits, bonuses, profit sharing and retirement plans? How does each of these work? What do I have to contribute to the new location – i.e., state and local income and property taxes, housing, etc.?
What is the relocation policy? Does it include moving expenses, home purchase/sale and mortgage assistance, house-hunting trips, temporary living expenses, and trips home during the transition?
What is the career path? How does this position me within the organization? When can I expect a promotion and/or an increase in compensation? How will my performance be measured? How does this position me for future employment opportunities?
Typically, job offers are extended on the telephone, although occasionally they are presented in person. One of the biggest mistakes that can be made at this point is to accept the offer unconditionally on the spot. Contain your enthusiasm, as being over zealous reduces one’s ability to negotiate, and accepting immediately eliminates any opportunity to negotiate. An appropriate response is that of pleasure and candor. When you respond, even if you are disappointed with the offer, be positive. Remember Herb Cohen’s 1982 bestseller, You Can Negotiate Anything. For example, say, "I’m excited about the opportunity at ABC Hospital and specifically the position of vice president of human resources. This is a very important decision for me and also for ABC. I’d like to consider this opportunity and will call you by (within one week)."
Prior to responding to an offer, determine which items are not up to your expectations, which issues are negotiable, and develop a strategy for each of those items. The following are items that generally are negotiable:
Compensation – If your expectations aren’t met, perhaps other types of compensation, such as early reviews, guaranteed first-year bonuses, etc., are acceptable.
Vacation – If you had planned some time off and it will be shortly after your start date, it should be established before accepting the offer.
Insurance and other benefits – Other prerequisites may be auto, club, phone, or other credit cards; parking; paid attendance at professional meetings; a sign-on bonus; and moving expenses.
Start date – You may want to give yourself a break before starting a new job, since it could be a while before your next opportunity for vacation.
Contract – Is a contract of employment appropriate for this position?
You may wish to consult John Tarrant’s book, Perks and Parachutes, which contains additional details regarding employment contract information. If an executive search firm is involved, the search consultant may serve as a buffer within the negotiation process.
Be sure to contact the employer within the time you agreed to respond, and show your interest and enthusiasm. Present a rationale for each item that you wish to negotiate, and be prepared to tell the employer what your realistic expectations are.
Once you are comfortable with the offer, be ready to make a verbal acceptance – with the understanding that a formal acceptance is forthcoming from you when you receive a letter outlining the terms of your agreement. A scenario for asking for the offer in writing may be, "We have discussed a number of items relative to compensation, benefits, moving expenses, etc. So that I’m not confused about all these details, I would appreciate your putting together a letter outlining our conversation." Beware of any organization that refuses this request.
Ultimately, the single most important question that you must ask yourself is, "Is this situation a positive one for me personally and professionally?" If the response is affirmative, accept the position enthusiastically.
Russ Jones is a Partner at First Transitions, Inc., a corporate-sponsored career transition and executive coaching firm specializing in the healthcare field. He can be reached at (630) 571-3311, (312) 541-0294 or at rjones@firsttransitions.com. You can also visit the website at www.firsttransitions.com.
