How to negotiate for a higher salary?

[EngineerDave]

Company A offered me X
Company B offered me X-$6,000

Company B has an outstanding reputation but is in an area with a 20% higher cost of living than Company A. So the equation shifts to something like (X-6,000)*0.8

I want to ask Company B to make up the $6,000 difference that the other job offered, but under no circumstances do I want to jeapordize the offer at Company B.

How do I word my response when I call them?

 

[TheTick]

The basis of starting any negotiation is counting the costs. You need to decide in advance what, if anything, you are willing to risk.

It may be a sad but simple fact that you can not bring up salary negotiation without putting the offer in at least a small amount of peril. However, it is obvious from this post that you have your price. Be frank, take the risk, and name your price. If there are alternatives to cash (stock options, vacation, etc.), be sure to let them know. Be ready to say good-bye without wincing.

 

[EngineerDave]

Yes I am worried about putting the offer in peril. I have 2 new job offers and am currently unemployed.

Not sure the best way to phrase it. Also since there are alot of PhD's at this location, I'm thinking their is a bit more of a tier system here.

I think that simply asking for a bit more and mentioning the other offer is reasonable and shouldn't jeapordize it. I do need to give them an answer within the next few days, so I'd like to talk to them tomorrow about the salary again.

I currently have nothing but a verbal offer.

 

[GregLocock]

The way I've done it in the past is to decide the minimum I will take. Then I've asked them to meet that. If they don't, I reject the job.

Two years later they go under (well OK, maybe that's a coincidence).

The disparity between the two offers is rather large, do you understand why?





Cheers

Greg Locock

 

[EngineerDave]

Mr Locock

I believe the disparity may be in part due to the prestige of the lower offering company. It is so well known that people will accept a lower offer for the experience and resume building potential of it. Since I am new to this particular field, it would be great for me to have that on my resume for 2-3 years.

I am very hesitant with the negotiation, because I don't want to lose the chance to go to the prestigous company. On the other hand there is a higher cost of living there, so it certainly is an issue of concern.

 

[IRstuff]

I think that given your situation, you're simply being greedy and the usual consequences of that type of outlook are never that good.

Consider, what if you ONLY had the lower offer? Would you accept it?

A little story. I was once in a similar situation, although compounded by the offer not actually having a numerical value UNLESS I accepted the offer. So I try to find out what the salary would be by telling the company what my other offers were. So they respond, "Oh, we would have never offered you that much, anyway."

TTFN

 

[EngineerDave]

IRstuff that is very interesting. In this case the only thing that is bothering me about the offer that I actually want to take is that it's in a town with very high cost of living, and on top of that the salary is lower than the other offer.

If I only had the lower offer, I would accept it, and actually feel like I had less room to make a counteroffer.

 

[ctopher]

since you are currently unemployed, take the job that you think you will enjoy more. The more you enjoy the work, the better your work is, the better the possible raise. As IRstuff writes, don't be greedy ... it will show, IMO.

 

[COKA]

My suggestion to you is to give it a try and negotiate. If you don't try, you will be left with a question in your mind "Would I have gotten a bigger salary if I asked for it?" and it will always bother you.
And if you do ask and they decide NOT to give you the job because you asked, which is unprofessional to me, then it was just not ment to be. The worst that they can do is say NO. My 2 cents..

Good luck

Coka

 

[TheTick]

COKA raises an interesting point. You can learn a lot about your prospective employer by their reaction to your attempt to negotiate. Chances are, you may expose some toxicity you would like to be aware of ahead of time.

 

[EngineerDave]

Well I did ask. Now I am playing the waiting game.

First I asked for the written offer
Second I told them I had another good offer
Third I ask if there was any flexibility in salary

She said she would talk to the head of the department.

If there is no flexibility the written offer will reflect what she verbally quoted me.

She seemed to be very friendly. I hope I don't ruffle any feathers with the offer. The interesting thing was she didn't ask me how much more or any details like that.

Hopefully it will go well. It seemed to.

I will post an update as soon as I have one.

 

[EngineerDave]

Oh BTW Coka I totally agree with you. I couldn't have lived with myself without at least trying, although the slight risk of ruffling feathers or not getting the offer bothers me.

BTW I bought an interesting book last night. Negotiating your Salary: How to Make $1000 a minute. I haven't read it all, but it does cover raise time as well.

I figure hopefully I'll at leatt make back the $12.95 I spent on it!

I think asking for more does demonstrate the value, but it's best to do only after you have an offer. They are in the buying stage then. The only thing that bothers me is her offer was verbal.

I will let you know

 

[NickelMet]

Engineer Dave:

I was confronted with a similar situation several years ago when changing jobs. And, I was looking at cost-of-living studies and such. However, I was also looking at moving, which I don't know if you are. When I threw in taxes (state and local), housing, benefits, retirement plan, relocation package, etc. as something else to look at, one job (even though on the surface more attractive) was immediately dismissed. A high profile position and mid-range salary couldn't compete with the other offers.

Additionally, a second company was dismissed when I started reading about their company from various websites (including the Yahoo business boards). I found out they were being sued on several fronts regarding labor. Six months after turning the offer down, they lost the lawsuit and half of the management team was out the door (and it could have been me).

What it came down to was 2 companies that everything seemed to be on the up and up, the only difference being salary. (Benefits were about equal.) When I compared taxes though, the lower paying job was in a state without local or state income taxes. So, the difference in salary was alleviated. So, the only 2 remaining offers I had were about equal. Personally, I picked the lower offer company, told them I had another offer for more money and an extra week's vacation, and waited on the "No". The good news, they didn't come back with a "No" but with a matching offer (without me prompting them for an exact increase).

I guess what I'm saying is to look at much more than just a salary difference. And, when you are sure of your facts and figures, and CONFIDENT in yourself, state your case clearly and consisely, don't beat around the bush.

Good luck with the new job! (Whichever one it turns out to be.)

~NiM

 

[NickelMet]

Engineer Dave:

You did the right thing in asking for WRITTEN offer. However, regardless of which job you pick, make sure their offer is WRITTEN with all critical issues included. I've heard tales of companies that stiff people of promised vacation time, retirement plan, bonus pay, comp-time pay, etc. I've also had one engineer friend who had training time, professional dues, and networking time put into his offer in order to protect it.

Again, good luck!

~NiM

 

[BJC]

EngineerDave
The outstanding reputation Company B won't get you much at Safeway. The value of company B to you is how much you gain besides money. Do you acquire valuable experience whild working for them? Will you be able to go out on your own or work for company A in two three years for more than X $s ?
Reputation is good for them but if it doesn't put money in your pocket it's not worth much to you. USe them if you can.
Lots of big companies are good because they hire good people at all levels. Not all of them advance, you could still be pulling an oar in ten years.
Try doing a present worth evaluation of both options and a combination of B and A.

 

[EngineerDave]

Guys update. I tried but no dice. But I will take the lower paying job. There are just too many other benefits, the most striking is the fact that this job for 2 or 3 years would really boost my resume incredibly and open some other doors further down the road for me.

It's a new field for me so I need the experience and this place will provide me with a great experience and excellent name.

 

[EngineerDave]

My last post wasn't clear. I tried to get more money but they told me that the offer at Company B was the best they could presently make.

The benefits of Company B still outweigh the salary difference in my mind. I need to look at the big picture 2-3 years out. Company B will open doors to alot of other positions.

 

[ctopher]

good for you. Wish you the best

 

[NickelMet]

Good luck on your new direction!

~NiM

 

[COKA]

At least you are not going to be unemployed any more!

Coka