April 18, 2024
11: A Simple Way to Increase Your Odds of Negotiating a Good Job Offer
When you're negotiating a salary and other compensation for a job, do you say (or think) that you're negotiating with a company? If you do, then you're making a critical mindset mistake that could cost you a lot. As a hiring manager at a Fortune 100 company and an executive recruiter at a top firm, Doug Lester saw how the wrong approach to negotiation can stand in the way of getting what you want. He shares a simple, no-cost way of improving your chances of negotiating an advantageous job offer.
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Transcript
WEBVTT
00:00:00.000 --> 00:00:04.110
Have you ever heard someone say the following thing, or said it yourself?
00:00:04.860 --> 00:00:07.469
I have to negotiate my job offer with...
00:00:08.159 --> 00:00:11.009
and then insert whatever company name is appropriate here.
00:00:11.189 --> 00:00:11.730
Really.
00:00:12.119 --> 00:00:13.080
Any company name.
00:00:13.980 --> 00:00:20.280
If you have, I need to tell you there's something wrong with that seemingly simple statement.
00:00:20.870 --> 00:00:24.390
A misunderstanding at a very basic level.
00:00:24.899 --> 00:00:33.600
But many of the people I've come across in my work as an executive and career coach and an executive recruiter don't realize it at first.
00:00:33.990 --> 00:00:44.609
And recognizing that basic misunderstanding and then course correcting can help them, and you, achieve a better result in your next salary negotiation.
00:00:45.171 --> 00:00:53.362
Stay tuned, and I'll share what I learned as an executive recruiter and a hiring manager at a Fortune 100 company.
00:01:33.884 --> 00:01:36.823
Corporations are people, my friend.
00:01:37.823 --> 00:01:40.884
I'm probably dating myself, but if you were following the U.S.
00:01:40.884 --> 00:01:49.103
Presidential race back in 2011, you may remember Mitt Romney saying and then getting into a lot of trouble for that.
00:01:49.561 --> 00:02:00.301
Obscure political references aside, there's something to be said for remembering that corporations or companies are managed and staffed by actual people.
00:02:00.713 --> 00:02:07.284
Too often, I sense that the people I coach tend to forget that when they're negotiating a job offer.
00:02:07.823 --> 00:02:16.854
The HR professional or hiring manager they've spent weeks or even months getting to know suddenly ceases to be a person in their eyes.
00:02:17.424 --> 00:02:31.794
Instead, that HR rep or hiring manager suddenly transforms into the living embodiment of their company, whose one goal is to maximize company profit by minimizing the salary of the person I'm working with.
00:02:32.447 --> 00:02:47.866
Now that the HR rep or hiring manager, or executive recruiter like I was at one time, is no longer a person but a company, the mistaken assumption is that they're incapable of being put off or offended.
00:02:48.402 --> 00:02:57.402
With that image in mind, the person I coach, or you, might be inclined to take an especially hard or aggressive negotiating stance.
00:02:57.943 --> 00:02:59.112
Don't get me wrong.
00:02:59.473 --> 00:03:01.242
You need to be your own advocate.
00:03:01.603 --> 00:03:15.883
But a sudden change in your attitude and manner can quickly derail what might've been an amicable, productive and advantageous conversation between two or more people, all hoping for a positive outcome.
00:03:16.346 --> 00:03:24.015
And you may also end up undermining the positive narrative about yourself you've carefully crafted and communicated.
00:03:24.562 --> 00:03:38.943
So how do you walk this treacherous tight rope of, on the one hand, being an advocate for yourself and, on the other, remembering that you're dealing with people who, in the end, just want to be treated like people and not a company?
00:03:40.252 --> 00:03:43.552
It all starts with a little empathy and understanding.
00:03:44.193 --> 00:03:50.252
The person you're negotiating with may be guided or constrained by the objectives and guidelines of their company.
00:03:50.943 --> 00:03:54.663
But in the end, like I said, they're still people.
00:03:54.992 --> 00:03:58.293
They have lives, they breathe and they have emotions.
00:03:58.603 --> 00:04:14.752
And they can get frustrated at the end of what's probably been a long recruiting process when suddenly the person they've come to respect and maybe even like starts treating them as if they were an obstacle, or worse, an enemy to be conquered.
00:04:15.306 --> 00:04:17.377
As a former executive recruiter.
00:04:17.437 --> 00:04:29.706
I remember times when candidates that I had come to know, like and respect in the recruiting process transformed into almost entirely different people when it came time to negotiate their offers.
00:04:30.187 --> 00:04:32.346
At best, it was disorienting.
00:04:33.036 --> 00:04:40.326
At worst, it was demotivating or even troubling causing me to question my own judgment.
00:04:40.925 --> 00:04:46.115
I recognize that some industries and companies have a especially aggressive cultures.
00:04:46.475 --> 00:04:56.196
And if you're in or trying to get in one of those industries or companies, then taking on just a bit of an edge in the salary negotiation, it might be appropriate.
00:04:56.706 --> 00:05:11.375
In those situations, the person or people you're negotiating with are steeped in that aggressive culture and might even question your suitability for the industry or the job if you don't negotiate just a little hard.
00:05:12.286 --> 00:05:26.865
In most situations, though, it's possible to advocate for yourself effectively and keep your sharpest knives in the kitchen drawer where they belong, preserving the positive narrative you've crafted about yourself as a potential colleague.
00:05:27.338 --> 00:05:29.557
Use your best judgment, of course.
00:05:30.204 --> 00:05:39.564
So let's get back to the idea of empathy and understanding and give a little thought to the sacrifice the people you're negotiating with may have to make on your behalf.
00:05:40.000 --> 00:05:56.829
When you're negotiating compensation for a job, you're often asking someone, whether it's the hiring manager, an HR professional, or an executive recruiter to spend some of the political capital they've stored up in their company or with their client on you.
00:05:57.408 --> 00:05:59.898
Here's what might be happening behind the scenes.
00:06:00.492 --> 00:06:13.423
Your contact, let's call him Scott, that's my middle name by the way, has already spent many and sometimes thankless hours planning, organizing and managing the recruiting process that you've been a part of.
00:06:14.052 --> 00:06:18.372
Scott likely expressed support for your candidacy several times.
00:06:18.793 --> 00:06:25.512
And he may have even done that in the face of differing opinions and resistance at specific points in the process.
00:06:26.173 --> 00:06:34.843
In doing that, Scott probably expended a little of his political capital in his company or with his client on your behalf.
00:06:35.500 --> 00:06:46.540
Now once you've become the finalist for whatever role it is that we're talking about, Scott then pulls together a compensation package and an official offer specifically for you.
00:06:47.170 --> 00:06:59.771
Having been in Scott's position myself and having worked closely with many people serving in Scott's role, I'm pretty confident that at this point Scott is highly invested in closing the deal with you.
00:07:00.100 --> 00:07:03.821
He wants to make you an offer that you'll be inclined to accept.
00:07:04.180 --> 00:07:09.461
Or, at a minimum, that you won't be so insulted by that you just walk away.
00:07:10.000 --> 00:07:17.620
So Scott may, once again, advocate on your behalf as your compensation package is being assembled and approved.
00:07:18.230 --> 00:07:23.391
And in doing so, he gives up even more of his political capital for you.
00:07:24.047 --> 00:07:39.605
And once you have your offer in hand and want to negotiate, you'll potentially be asking Scott to stick his neck out, yet again, and give up just a little more, or maybe even a lot, of his political capital on your behalf.
00:07:40.052 --> 00:07:44.432
In doing so, his reputation and judgment will be on the line.
00:07:45.112 --> 00:07:46.922
He'd better think you're worth it.
00:07:47.670 --> 00:08:02.250
I'm not saying this is happening behind the scenes for every job offer, but in my experience as a hiring manager and an executive recruiter, it's pretty typical, especially when a mid-level or senior level role is being filled.
00:08:02.759 --> 00:08:09.990
At more junior levels, compensation tends to be more uniform, but there still can be some advocacy going on behind the scenes.
00:08:10.329 --> 00:08:14.339
The numbers are just smaller and the stakes less consequential.
00:08:14.992 --> 00:08:21.862
So how do you help ensure that Scott remains confident that you're worth the investment of his personal political capital?
00:08:22.315 --> 00:08:30.596
I think we've established at this point that you need Scott's help and support, so it would probably be good if Scott still likes you.
00:08:31.076 --> 00:08:32.696
It's as simple as that.
00:08:33.056 --> 00:08:38.546
Like most people, he wants to feel good about his work and the people who benefit from it.
00:08:38.755 --> 00:08:40.586
In this case, that's you.
00:08:41.125 --> 00:08:45.285
He's a living and feeling person after all and not a company.
00:08:45.947 --> 00:08:49.097
So how are you going to make sure that he does feel good about it?
00:08:49.697 --> 00:08:58.038
Being a strong candidate with all the skills and experience required to meet or exceed the expectations of the role helps, a lot.
00:08:58.817 --> 00:09:01.548
But there's something else that you can and should do.
00:09:01.977 --> 00:09:02.727
It's easy.
00:09:02.967 --> 00:09:10.347
Just show a little appreciation for the sacrifice of political capital that Scott has and may still be making on your behalf.
00:09:10.827 --> 00:09:13.677
He is the key to your positive outcome.
00:09:14.067 --> 00:09:17.518
And he needs to feel that the sacrifice is worth it.
00:09:18.216 --> 00:09:26.466
Consider starting your negotiation with something like this: Thanks very much, Scott, for the time it took to pull this offer together.
00:09:26.885 --> 00:09:28.716
I know it can be a lot of work.
00:09:29.885 --> 00:09:30.995
That's not complicated.
00:09:31.625 --> 00:09:33.755
And it doesn't indicate any weakness.
00:09:34.176 --> 00:09:38.916
In fact, expressing gratitude can be a sign of strength and confidence.
00:09:39.567 --> 00:09:48.216
Then focus on your clarifying questions related to the offer, requests you may have, or your reasonably presented counter-offer.
00:09:48.807 --> 00:09:51.596
We can talk about that in another podcast episode.
00:09:52.322 --> 00:09:56.253
Thanks again for the work you've put into this, Scott.
00:09:56.523 --> 00:09:57.812
I really appreciate it.
00:09:58.441 --> 00:10:14.490
It only takes a few well-timed statements of appreciation, ideally before and after your compensation related questions and requests, to help Scott feel good about the sacrifice of political capital he's probably going to make on your behalf.
00:10:15.235 --> 00:10:16.764
Everyone loves to be loved.
00:10:17.424 --> 00:10:25.644
And if you show just a little appreciation, you might get a little love back and maybe some extra cash and benefits, too.
00:10:26.216 --> 00:10:43.446
So don't let the fact that you're being hired by a company, however, big or small it might be, blind you to the fact that, if you have a job offer and there's going to be a negotiation, you're actually negotiating with a person or small group of people and not a company.
00:10:43.985 --> 00:10:50.466
And if you're negotiating with people, then you should probably treat them like, well, people.
00:10:50.975 --> 00:11:05.525
After all, if you want to improve the compensation related to your job offer, then the people you're working with are probably going to have to expand just a little of their political capital in their company or with their client to get it for you.
00:11:06.078 --> 00:11:16.788
If you keep that in mind and are intentional about showing your appreciation for the role that people involved in the recruiting process play, things will likely go more smoothly for you.
00:11:17.249 --> 00:11:24.749
And your carefully crafted narrative about yourself as a great potential colleague will remain intact.
00:11:25.969 --> 00:11:28.129
So express your gratitude out loud.
00:11:28.489 --> 00:11:30.558
Do it, whenever it seems appropriate.
00:11:30.928 --> 00:11:32.938
It doesn't mean that you're a pushover.
00:11:33.359 --> 00:11:38.548
It just means that you recognize that you're dealing with people.
00:00:00.000 --> 00:00:04.110
Have you ever heard someone say the following thing, or said it yourself?
00:00:04.860 --> 00:00:07.469
I have to negotiate my job offer with...
00:00:08.159 --> 00:00:11.009
and then insert whatever company name is appropriate here.
00:00:11.189 --> 00:00:11.730
Really.
00:00:12.119 --> 00:00:13.080
Any company name.
00:00:13.980 --> 00:00:20.280
If you have, I need to tell you there's something wrong with that seemingly simple statement.
00:00:20.870 --> 00:00:24.390
A misunderstanding at a very basic level.
00:00:24.899 --> 00:00:33.600
But many of the people I've come across in my work as an executive and career coach and an executive recruiter don't realize it at first.
00:00:33.990 --> 00:00:44.609
And recognizing that basic misunderstanding and then course correcting can help them, and you, achieve a better result in your next salary negotiation.
00:00:45.171 --> 00:00:53.362
Stay tuned, and I'll share what I learned as an executive recruiter and a hiring manager at a Fortune 100 company.
00:01:33.884 --> 00:01:36.823
Corporations are people, my friend.
00:01:37.823 --> 00:01:40.884
I'm probably dating myself, but if you were following the U.S.
00:01:40.884 --> 00:01:49.103
Presidential race back in 2011, you may remember Mitt Romney saying and then getting into a lot of trouble for that.
00:01:49.561 --> 00:02:00.301
Obscure political references aside, there's something to be said for remembering that corporations or companies are managed and staffed by actual people.
00:02:00.713 --> 00:02:07.284
Too often, I sense that the people I coach tend to forget that when they're negotiating a job offer.
00:02:07.823 --> 00:02:16.854
The HR professional or hiring manager they've spent weeks or even months getting to know suddenly ceases to be a person in their eyes.
00:02:17.424 --> 00:02:31.794
Instead, that HR rep or hiring manager suddenly transforms into the living embodiment of their company, whose one goal is to maximize company profit by minimizing the salary of the person I'm working with.
00:02:32.447 --> 00:02:47.866
Now that the HR rep or hiring manager, or executive recruiter like I was at one time, is no longer a person but a company, the mistaken assumption is that they're incapable of being put off or offended.
00:02:48.402 --> 00:02:57.402
With that image in mind, the person I coach, or you, might be inclined to take an especially hard or aggressive negotiating stance.
00:02:57.943 --> 00:02:59.112
Don't get me wrong.
00:02:59.473 --> 00:03:01.242
You need to be your own advocate.
00:03:01.603 --> 00:03:15.883
But a sudden change in your attitude and manner can quickly derail what might've been an amicable, productive and advantageous conversation between two or more people, all hoping for a positive outcome.
00:03:16.346 --> 00:03:24.015
And you may also end up undermining the positive narrative about yourself you've carefully crafted and communicated.
00:03:24.562 --> 00:03:38.943
So how do you walk this treacherous tight rope of, on the one hand, being an advocate for yourself and, on the other, remembering that you're dealing with people who, in the end, just want to be treated like people and not a company?
00:03:40.252 --> 00:03:43.552
It all starts with a little empathy and understanding.
00:03:44.193 --> 00:03:50.252
The person you're negotiating with may be guided or constrained by the objectives and guidelines of their company.
00:03:50.943 --> 00:03:54.663
But in the end, like I said, they're still people.
00:03:54.992 --> 00:03:58.293
They have lives, they breathe and they have emotions.
00:03:58.603 --> 00:04:14.752
And they can get frustrated at the end of what's probably been a long recruiting process when suddenly the person they've come to respect and maybe even like starts treating them as if they were an obstacle, or worse, an enemy to be conquered.
00:04:15.306 --> 00:04:17.377
As a former executive recruiter.
00:04:17.437 --> 00:04:29.706
I remember times when candidates that I had come to know, like and respect in the recruiting process transformed into almost entirely different people when it came time to negotiate their offers.
00:04:30.187 --> 00:04:32.346
At best, it was disorienting.
00:04:33.036 --> 00:04:40.326
At worst, it was demotivating or even troubling causing me to question my own judgment.
00:04:40.925 --> 00:04:46.115
I recognize that some industries and companies have a especially aggressive cultures.
00:04:46.475 --> 00:04:56.196
And if you're in or trying to get in one of those industries or companies, then taking on just a bit of an edge in the salary negotiation, it might be appropriate.
00:04:56.706 --> 00:05:11.375
In those situations, the person or people you're negotiating with are steeped in that aggressive culture and might even question your suitability for the industry or the job if you don't negotiate just a little hard.
00:05:12.286 --> 00:05:26.865
In most situations, though, it's possible to advocate for yourself effectively and keep your sharpest knives in the kitchen drawer where they belong, preserving the positive narrative you've crafted about yourself as a potential colleague.
00:05:27.338 --> 00:05:29.557
Use your best judgment, of course.
00:05:30.204 --> 00:05:39.564
So let's get back to the idea of empathy and understanding and give a little thought to the sacrifice the people you're negotiating with may have to make on your behalf.
00:05:40.000 --> 00:05:56.829
When you're negotiating compensation for a job, you're often asking someone, whether it's the hiring manager, an HR professional, or an executive recruiter to spend some of the political capital they've stored up in their company or with their client on you.
00:05:57.408 --> 00:05:59.898
Here's what might be happening behind the scenes.
00:06:00.492 --> 00:06:13.423
Your contact, let's call him Scott, that's my middle name by the way, has already spent many and sometimes thankless hours planning, organizing and managing the recruiting process that you've been a part of.
00:06:14.052 --> 00:06:18.372
Scott likely expressed support for your candidacy several times.
00:06:18.793 --> 00:06:25.512
And he may have even done that in the face of differing opinions and resistance at specific points in the process.
00:06:26.173 --> 00:06:34.843
In doing that, Scott probably expended a little of his political capital in his company or with his client on your behalf.
00:06:35.500 --> 00:06:46.540
Now once you've become the finalist for whatever role it is that we're talking about, Scott then pulls together a compensation package and an official offer specifically for you.
00:06:47.170 --> 00:06:59.771
Having been in Scott's position myself and having worked closely with many people serving in Scott's role, I'm pretty confident that at this point Scott is highly invested in closing the deal with you.
00:07:00.100 --> 00:07:03.821
He wants to make you an offer that you'll be inclined to accept.
00:07:04.180 --> 00:07:09.461
Or, at a minimum, that you won't be so insulted by that you just walk away.
00:07:10.000 --> 00:07:17.620
So Scott may, once again, advocate on your behalf as your compensation package is being assembled and approved.
00:07:18.230 --> 00:07:23.391
And in doing so, he gives up even more of his political capital for you.
00:07:24.047 --> 00:07:39.605
And once you have your offer in hand and want to negotiate, you'll potentially be asking Scott to stick his neck out, yet again, and give up just a little more, or maybe even a lot, of his political capital on your behalf.
00:07:40.052 --> 00:07:44.432
In doing so, his reputation and judgment will be on the line.
00:07:45.112 --> 00:07:46.922
He'd better think you're worth it.
00:07:47.670 --> 00:08:02.250
I'm not saying this is happening behind the scenes for every job offer, but in my experience as a hiring manager and an executive recruiter, it's pretty typical, especially when a mid-level or senior level role is being filled.
00:08:02.759 --> 00:08:09.990
At more junior levels, compensation tends to be more uniform, but there still can be some advocacy going on behind the scenes.
00:08:10.329 --> 00:08:14.339
The numbers are just smaller and the stakes less consequential.
00:08:14.992 --> 00:08:21.862
So how do you help ensure that Scott remains confident that you're worth the investment of his personal political capital?
00:08:22.315 --> 00:08:30.596
I think we've established at this point that you need Scott's help and support, so it would probably be good if Scott still likes you.
00:08:31.076 --> 00:08:32.696
It's as simple as that.
00:08:33.056 --> 00:08:38.546
Like most people, he wants to feel good about his work and the people who benefit from it.
00:08:38.755 --> 00:08:40.586
In this case, that's you.
00:08:41.125 --> 00:08:45.285
He's a living and feeling person after all and not a company.
00:08:45.947 --> 00:08:49.097
So how are you going to make sure that he does feel good about it?
00:08:49.697 --> 00:08:58.038
Being a strong candidate with all the skills and experience required to meet or exceed the expectations of the role helps, a lot.
00:08:58.817 --> 00:09:01.548
But there's something else that you can and should do.
00:09:01.977 --> 00:09:02.727
It's easy.
00:09:02.967 --> 00:09:10.347
Just show a little appreciation for the sacrifice of political capital that Scott has and may still be making on your behalf.
00:09:10.827 --> 00:09:13.677
He is the key to your positive outcome.
00:09:14.067 --> 00:09:17.518
And he needs to feel that the sacrifice is worth it.
00:09:18.216 --> 00:09:26.466
Consider starting your negotiation with something like this: Thanks very much, Scott, for the time it took to pull this offer together.
00:09:26.885 --> 00:09:28.716
I know it can be a lot of work.
00:09:29.885 --> 00:09:30.995
That's not complicated.
00:09:31.625 --> 00:09:33.755
And it doesn't indicate any weakness.
00:09:34.176 --> 00:09:38.916
In fact, expressing gratitude can be a sign of strength and confidence.
00:09:39.567 --> 00:09:48.216
Then focus on your clarifying questions related to the offer, requests you may have, or your reasonably presented counter-offer.
00:09:48.807 --> 00:09:51.596
We can talk about that in another podcast episode.
00:09:52.322 --> 00:09:56.253
00:09:56.523 --> 00:09:57.812
00:09:58.441 --> 00:10:14.490
00:10:15.235 --> 00:10:16.764
00:10:17.424 --> 00:10:25.644
00:10:26.216 --> 00:10:43.446
00:10:43.985 --> 00:10:50.466
00:10:50.975 --> 00:11:05.525
00:11:06.078 --> 00:11:16.788
00:11:17.249 --> 00:11:24.749
00:11:25.969 --> 00:11:28.129
00:11:28.489 --> 00:11:30.558
00:11:30.928 --> 00:11:32.938
00:11:33.359 --> 00:11:38.548
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