The Art of Negotiating Job Offers – Know Thyself

A few years ago, while helping negotiate a CIO candidate’s offer with a client, the candidate helped the process by writing a three page, clear, concise document outlining exactly what was needed to win the deal.  The hiring manager (the CEO) agreed with the requests and an offer letter was sent to the candidate, who signed it and accepted the CIO position.  Everyone was a winner.  There were no hassles, bad feelings, or unresolved issues.  This is the ideal scenario, but what can you do if faced with less than desirable conditions during offer negotiations?  How can you win at the offer stage?

Negotiations have a life of their own and it could be the only time when you can express what you and/or family will need to make a move to a new opportunity.  Offer letters and handling verbal offers can be tricky if you are not prepared.  Too many negotiations and even minor requests can turn off a hiring manager.  If a candidate does not plan and articulate what he/she needs up front (prior to the final interview), the chance may never come again.

The opportunities for you to move into a new CIO position can happen quickly.  Recruiters will call, or you may be in an active job search and be asked into an interview.  Are you prepared to discuss what you are looking for, do you know what you need?  Competition for CIO and senior IT leadership positions is fierce right now.  If you find yourself in the enviable position of being the final candidate, be ready to discuss your needs and know which ones are deal breakers, if not met.  Recently, I have heard of candidates getting multiple offers, even counter offers.  What will you do to secure the best offer?

Here is an outline of some suggested items you need to clarify and have answered during negotiations of an offer.

1. Title
2. Base salary/performance yearly bonus/sign on bonus discussion
3. Reporting relationship(s)
4. Benefits
5. Basic health: major medical, dental, vision, life insurance, disability
6. Retirement: 401k, 403B, SERP, deferred comp, executive benefit package, etc
7. Perks: mobile and handheld devices, PC/laptop, vehicle allowance/travel expenses, data-lines, memberships, etc.
8. Health and drug screen
9. Behavioral tests
10. Vacation: Currently ____ weeks, paid holidays
11. Office support/location
12. Relocation: temporary housing, moving of household goods, realtor visits, rent stipend
13. Other rare and unusual relocation requests: sale of house, down payments, housing stipend, moving of boats, horse, cars, etc
14. Upcoming events already scheduled
15. Start-Date/availability date

What are the  cautions in handling offers that you need to be aware of?

Verbal Offers

Sometimes during a final interview, the hiring company surprises a candidate with an offer, or they might call a candidate after a single interview and surprise them.  Be aware that what you say or don’t say can make or break the deal.  If you are working with a recruiter, let them handle the negotiations and be open about what you need to the recruiter.

Counter offers

Everyone says “do not take counter offers”, since your current employer knows that you have been interviewing and your loyalty will always be questioned.  A candidate of mine did take a counter-offer, and after a few years regretted that decision.  Some counter offers are better than an outside offer that you must rely on your own judgment and gut feeling whether to take it.

Signature line

Make sure the offer letter has signature lines for yours and the hiring manager’s signatures.  Keep a copy for your records and send the hiring manager the original.  I have seen offer letters without signature lines and I would caution against accepting them.

Multiple offers

Handle multiple offers by comparing pros and cons of each and determining best fit with your life style and career needs.  Don’t over negotiate or make unreasonable demands.  In this economic climate, employers will move on to the second finalist or even start a search over. 

Deal breakers

In your list of must haves, are there any that if you do not receive you will walk away from an offer?  What are the  deal breakers?  Realize that the hiring manager will have some deal breakers, one of them could be asking for a base salary above the salary range.  One CIO candidate of mine walked away from an offer, after discovering the bonus program was not available for two years after hire.  Another candidate turned down an offer when the relocation meant the spouse was losing a job and no opportunities in his/her field were available.  In all cases, the spouse, significant other and/or family need to buy into the move.  Be sensitive to the hiring manager’s deal breakers too.

These are my thoughts and stories, but I am interested in your views.

How have you handled offer negotiations?  What tips can you suggest?  How do you feel about counter offers?  What are some key deal breakers?

Your insight and stories will add to this important discussion about handling offers, please share what you know!