Know What You’re Worth

Before you even begin thinking about looking for an internship or job, your first step should be to determine your value based on the marketplace. As with every step of the selling process, doing your homework is key. If you don’t do your research to find out competitive compensation packages for the position and city in which you are seeking an internship or job, you might be disappointed with the job offers you receive.

There are several Web sites—Salary.com, JobStar.com, and SalaryExpert.com are just a few—that include compensation ranges for hundreds of different positions in areas across the country. Visit the sites listed in Table 12.1 "Web Sites for Researching Compensation" to gather compensation information before you go on any interviews.

It’s a good idea to use these tools as a guide as there are many assumptions that are made when these numbers are prepared. However, this information can be extremely helpful to understand the range of compensation being paid for a specific role in a specific city.“Evaluating the Salary Information You’ve Found,” The Riley Guide, http://www.rileyguide.com/saleval.html (accessed November 21, 2009). You will be able to negotiate more effectively if you walk into every job interview knowing how much you are worth.Kim Richmond, Brand You, 3rd ed. (Upper Saddle River, NJ: Pearson Prentice Hall, 2008), 201.

Timing Is Everything

Although you may want to discuss compensation on your first interview, it’s a good idea to postpone discussing the topic as long as possible.Kim Richmond, Brand You, 3rd ed. (Upper Saddle River, NJ: Pearson Prentice Hall, 2008), 202. Just as in the selling process, you want to put focus on establishing your value and learning about what’s important to your prospective employer before you begin discussing compensation. A word of caution: you should be prepared to give your desired salary range on an interview as many employers want to understand your salary expectations as soon as possible. If you can avoid the topic, do so until you receive a job offer. Here’s an example of how you can deflect the conversation.

If you are forced to give a salary range, be sure you can live with the lowest number you give. Once you say a number, it will be extremely difficult to negotiate above that salary.Kim Richmond, Brand You, 3rd ed. (Upper Saddle River, NJ: Pearson Prentice Hall, 2008), 202.

Receiving the Offer

Most job offers are extended over the phone, although some may be extended in a letter and still others may be presented in person. Since companies usually interview multiple candidates for each position, chances are you won’t receive a job offer on an interview. However, you should be prepared to respond to a job offer if one is presented during an interview.

When you receive an offer, it will most likely come over the phone. When you get a phone call about an offer, write down every element of the offer (it’s OK to ask the person to hold while you get a pencil and paper). Thank the person who made the offer and tell her how pleased you are to receive the offer. Even if you think you want to accept the offer, don’t accept it right away.

It’s worth noting the time element of this negotiation. You should take as much time as you need to evaluate the offer, but you should be reasonable and state the time frame you need. Recall from earlier in this chapter that time is one of the elements that is always present in a negotiation. Sometimes a prospective employer or recruiter will try to create a deadline to force you to make a decision by a specific date. Use time to your advantage and negotiate for more time so that you don’t feel as if you are under pressure to make this important decision.

Evaluating the Offer

Congratulations on your offer! Although it’s a difficult economy, don’t feel pressured to take the first offer you get. Take the first offer you get for a job you really want. This is a special moment; it is the time when the power shifts from the prospective employer to you (remember that power is one of the elements that is always present in a negotiation). Your prospective employer has now indicated that you are their choice for the position. You have the opportunity to take the offer, counterofferA candidate’s response to a job offer. (your response to the job offer), or walk away. Whatever your choice, you have the power. As soon as you make your choice, the power shifts back to your prospective employer. That’s why it’s a good idea to take your time and completely evaluate your offer before you respond.

Now that you have all the elements of the offer, you can begin to evaluate it. Just as in a negotiation in selling, identify what is important to you. Consider making a list that includes both elements of compensation as well as other elements such as culture, opportunity, environment, commuting distance, and so on. Figure 12.6 "Compensation Elements to Consider in a Job Offer" and Figure 12.7 "Other Elements to Consider When Evaluating a Job Offer" can provide some ideas to help you create your list.Adapted from Kim Richmond, Brand You, 3rd ed. (Upper Saddle River, NJ: Prentice Hall, 2008), 204; and Paul W. Barada, “Job Offer Evaluation Checklist,” Monster.com, http://career-advice.monster.com/salary-benefits/Negotiation-Tips/Job-Offer-Evaluation-Checklist/article.aspx (accessed November 21, 2009).^,Adapted from Kim Richmond, Brand You, 3rd ed. (Upper Saddle River, NJ: Prentice Hall, 2008), 206; and Paul W. Barada, “Job Offer Evaluation Checklist,” Monster.com, http://career-advice.monster.com/salary-benefits/Negotiation-Tips/Job-Offer-Evaluation-Checklist/article.aspx (accessed November 21, 2009).

Figure 12.6 Compensation Elements to Consider in a Job Offer

Figure 12.7 Other Elements to Consider When Evaluating a Job Offer

Only you can determine if a job offer is right for you. The following are some additional resources that you may want to review to help you evaluate a job offer:

• http://careerplanning.about.com/cs/joboffers/a/evaluate_offer.htm
• http://rileyguide.com/salguides.html
• http://www.ehow.com/how_2068763_evaluate-job-offer.html
• http://www.black-collegian.com/career/joboffer-199702.shtml
• http://www.salary.com/careers/layouthtmls/crel_display_nocat_Ser16_Par41.html
• http://career-advice.monster.com/salary-benefits/Negotiation-Tips/Job-Offer-Evaluation-Checklist/article.aspx

Negotiating the Offer

After you have had the time to evaluate the job offer, it’s time to identify any gaps that there might be between what you think is important and the offer. If you think the offer is perfect as is, then accept it as is. Keep in mind that many employers expect candidates to negotiate by presenting a counteroffer, a candidate’s response to a job offer. Since the economy is challenging, candidates don’t have as much bargaining power as when the economy is healthy. However, this is the time you have the most negotiating power with your prospective employer so it’s a good idea to take advantage of the opportunity.

This is the time when you should identify your prenegotiation goals. Remember that your prenegotiation goals are the minimum that you will accept. Your counteroffer will be above your prenegotiation goals to allow room for negotiation. You won’t be able to negotiate every element of the offer. Choose one or two key areas and focus your negotiation on those. Keep in mind the things that are important to you and to your prospective employer so that you can easily find common ground. For example, if speed and availability are important to your prospective employer, you may want to use that fact to negotiate a more flexible work arrangement. While it may be difficult to negotiate a higher base salary in this economy, you may be able to negotiate on another area such as getting additional vacation time.Kim Richmond, Brand You, 3rd ed. (Upper Saddle River, NJ: Pearson Prentice Hall, 2008), 208.

When you have identified the areas you wish to negotiate along with your counteroffer for each, contact the recruiter or prospective employer to begin the negotiation. As with any negotiation, approach it with a confident, collaborative attitude. It’s important to note that you should not accept the offer until you negotiate the offer. Once you accept the offer, you have lost your power to negotiate.

Just as in a selling negotiation, you have to be ready to accept the offer as is or be ready to walk away. That’s a lot harder to do when you are negotiating on behalf of yourself since you are emotionally involved with the decision.

The Offer Letter

Once you agree on the final elements of the offer, you should ask for an offer letterA formal letter from the company (on company letterhead) that outlines the terms of the offer for employment., a formal letter from the company (on company letterhead) that outlines the terms of the offer. All companies should provide an offer letter as a matter of course for an internship (paid or unpaid) or a job offer. If you received the original offer in the form of a letter, you already have the offer letter; however, you should request an updated letter to reflect the final offer on which you agreed. If you find any discrepancies in your offer letter, contact the person at the company as soon as possible to have a new offer letter issued.

A offer letter simply reiterates the terms of employment that you have negotiated and may be conditional based on requirements such as a background check or drug test or may make reference to company documents such as the benefits summary or employee handbook. While some information in offer letters may vary depending on the company, some key information should be included in the offer letter:

• Title
• Salary
• Bonus
• All other elements of compensation (e.g., stock options, benefits)
• Start date
• Any conditions of employment

Some companies request that you sign a copy of the offer letter and return it to the company. If this is the case, sign the letter and make a copy for your files before returning it to the company. The offer letter is your documentation of the compensation the company has agreed to give you.Kim Richmond, Brand You, 3rd ed. (Upper Saddle River, NJ: Pearson Prentice Hall, 2008), 212.^,John Steven Nisnick, “Job Offer Letter Sample,” About.com, http://jobsearchtech.about.com/od/jobofferletters/a/jobofferletter.htm (accessed November 21, 2009). See sample offer letters in Figure 12.8 "Sample Offer Letter" and Figure 12.9 "Sample Offer Letter".

Figure 12.8 Sample Offer Letter

Figure 12.9 Sample Offer Letter