Alan Stutts | BLOG | Education Author

At the end of your consideration of the offer, you need to make a decision. There are four possible decisions:

1. No way, not even if they doubled the salary.

2. I can do better than this.

3. I want this job, but only if they can improve the offer.

4. This is perfect; I want it.

If you decide Number 1 or Number 2, you need to call or write immediately and thank them for the offer, but say you want to continue looking for a position that more closely matches your career goals. If you would consider another position at this company, let them know that and tell them you would like to keep in touch or hear about future openings.

If your decision is Number 4, you’ve nothing left to do but call or write the company and give your enthusiastic acceptance. They may require a signed form upon acceptance or your acceptance letter may serve as the required form. If there is an employment contract to be signed or other paperwork, they will let you know. If they ask you to sign an employment contract, be sure to take a day and pass it by an attorney who specializes in employment law to ensure there are no problems. They may also ask you to sign a non-compete agreement. You may also want a lawyer to look at this.

Salary is also not the only part of the compensation package that should concern you. Employers calculate each position’s cost to them based on salary, cost of benefits, cost of recruitment, cost of office space, and numerous other factors. Having a good idea of the employer’s total cost of employing you not only gives you a more accurate picture of your own compensation, but may suggest where the employer has “wiggle room.”

Employers can offer a wide range of benefits to employees. It is important to know exactly what benefits you are being offered as part of your job offer. Even if the offer letter includes a list, ask about other possible benefits that may not be on the list. If the benefit is not monetary - flex time, compensatory time for overtime hours, casual Friday’s, bike parking - the offer may not mention it. The benefit may have a monetary value to you, however, if it means you do not need a car to commute, you and your partner can avoid childcare by shifting work start times, or you can burn less gas by coming in early or late to miss the slow commute across town.

Your current employer may try to convince you not to leave by making a counteroffer. These last minute offers often include any of the following, according to CareerJournal.com:

         A pay increase.

         A promotion and/or added responsibility.

         A promise of a future raise, promotion or other incentive.

        The creation of a new, more appealing reporting structure or organization.

What should you do? Refuse the counter offer. By reneging on your acceptance of the new position, you are forcing the company who made the offer to start recruiting all over again, says R. Gains Baty, an executive recruiter writing for CareerJournal.com. You have lost the respect of that company’s leadership, as well. While your direct supervisor may be happy you are staying, his boss may now wonder about your integrity.

If a recruiter is involved, the recruiter loses face with their client company and they lose their commission. You have lost a valuable ally; that recruiter will not help you in the future and may discourage their colleagues from working with you.

Some things in a job offer are not negotiable. The healthcare plan, for example, has been negotiated with the insurer and is contractual agreement that cannot be broken just for you. However, if the problem with the health care plan is the cost of dependent premiums, you might be able to cover that cost with a commensurate pay increase.

The elements of an offer you can usually negotiate are:

         Salary

         Signing bonus

         Performance bonuses, incentives or commissions

         Date of first salary review

         Schedule of on-going salary reviews

         Paid time off

         Start date

         Relocation expenses

         Commuting options

You cannot ask for more of everything. Negotiations are always a series of trade-offs and you will have more successful negotiations if you what you will trade for what.

At the end of your consideration of the offer, you need to make a decision. There are four possible decisions:

1.      No way, not even if they doubled the salary.

2.       I can do better than this.

3.      I want this job, but only if they can improve the offer.

4.      This is perfect; I want it.

If you decide Number 1 or Number 2, you need to call or write immediately and thank them for the offer, but say you want to continue looking for a position that more closely matches your career goals. If you would consider another position at this company, let them know that and tell them you would like to keep in touch or hear about future openings.

If your decision is Number 4, you’ve nothing left to do but call or write the company and give your enthusiastic acceptance. They may require a signed form upon acceptance or your acceptance letter may serve as the required form. If there is an employment contract to be signed or other paperwork, they will let you know. If they ask you to sign an employment contract, be sure to take a day and pass it by an attorney who specializes in employment law to ensure there are no problems. They may also ask you to sign a non-compete agreement. You may also want a lawyer to look at this.

Salary is also not the only part of the compensation package that should concern you. Employers calculate each position’s cost to them based on salary, cost of benefits, cost of recruitment, cost of office space, and numerous other factors. Having a good idea of the employer’s total cost of employing you not only gives you a more accurate picture of your own compensation, but may suggest where the employer has “wiggle room.”

Employers can offer a wide range of benefits to employees. It is important to know exactly what benefits you are being offered as part of your job offer. Even if the offer letter includes a list, ask about other possible benefits that may not be on the list. If the benefit is not monetary – flex time, compensatory time for overtime hours, casual Friday’s, bike parking – the offer may not mention it. The benefit may have a monetary value to you, however, if it means you do not need a car to commute, you and your partner can avoid childcare by shifting work start times, or you can burn less gas by coming in early or late to miss the slow commute across town.

The salary or wage paid to any employee is determined by some key factors:

        How hard is such an employee to find?

        How much training is required to do the job?

        What are competitors paying for the same position; what are the average wages for similar   positions?

        What can the business afford to pay?

        What do employees expect to be paid?

Most employers consider all of these when establishing pay rates. It is not uncommon, however, for smaller employers in particular to fail to stay up-to-date with prevailing wage rates.

Employers in highly attractive locations, such as Hawaii or Florida, may intentionally offer salaries lower than the national or regional average because they are confident the location itself is desirable enough to potential employees to make salary a less critical part of their expectations.

Getting a fair salary that you feel matches your abilities means you have to know as much about your personal market value and the prevailing wages for the industry, the geographical area, and the position itself.

The Internet has given employees unprecedented access to information about salaries, information that in the past has been nearly impossible to find. Sites such as Salary.com and SalaryExpert.com contain databases of salary information drawn from both government and businesses sources. They also conduct salary surveys themselves to gather up-to-date data on prevailing wages. On Salary.com, you get a free basic salary report drawn from government statistics. On SalaryExpert.com, you are asked for additional information about responsibilities and experience and get a free report that is adjusted for these factors

How much a job pays is not always the most important consideration when considering an offer. Great paying jobs can be boring. But salary is important, and you want to make sure what you are offered is fair, but in the marketplace in general and for you, in particular.

Researching what salaries are being paid for the position you seek really ought not be left until you have an offer in front of you. You should start your job search with a salary range in mind, one based on knowledge rather than desire. Once an offer is received, you should know how it compares to what others are paying and being paid.

Understanding Base Salary Figures

The figure you need to know is “base salary.” This is the hourly, weekly, monthly, or annual wage you are paid before taxes and without benefits. Base salary is what raises are calculated against. You compare your current base salary with the base salary you are being offered.

If your base salary is $25,000 annually and you receive a 3% annual wage rise, the raise is $750. You do not see all of that $750, of course. Your Medicare and Social Security deduction may increase as a result of the raise, as may your Federal withholding.

Will you receive any monthly allowances, such as uniform, transportation, or travel? Are these allowances being includes in the salary figure you are given in the offer? Be sure to ask. If the figure includes allowances, ask what the base salary is before allowances are added.

A base salary does not include pay for overtime, if you are eligible for overtime. Ask if you are eligible for overtime, what the overtime rate is, and if they can give tell you the average amount of overtime pay earned in the past year by the incumbent. While overtime is not a guaranteed income, it can be significant in some positions and so it is important to anticipate its impact on your overall compensation.

The position you are offered may not be the position you were hoping to find. Job duties vary from one company to the next, and the position you long for does not seem to be available. You need to decide if the position you are offered has the potential to be the right position or will help you to later get the right position.

The factors you need to weigh include:

         What are your duties and responsibilities? You want more than a job title and job description. How often you get time to “review processes and suggest changes to improve efficiency” versus how often you must “substitute for front desk personnel as needed,” can mean the difference between being a “real” manager and being a glorified clerk. Ask what a typical week looks like or what things you are excepted to do every day. Talk to the person who holds the hob now, or some who held it previously.

         How often are performance and salary reviewed? You want to now who reviews your performance and how often they do this. You also want to know how often your salary is reviewed and what policies determine if raises are given.

        Is there a probation period?: Probation periods, a period of time after starting a job in which you can be released position without “cause”, are sometimes used to let employers avoid legal entanglements because they made a bad hiring decision. Ask if such a policy exists and how decisions about termination during the probationary period are made.

         What are the realistic chances for promotion? Internal promotions require someone above you leaves or is promoted. How many levels are above you? What is the policy on internal promotion? How often do the positions above you open up? What is the highest position it is possible to reach?

         Will the job use my skills and abilities?: Changing jobs to face new challenges is exciting; changing jobs and finding out you could do the work with your eyes closed is depressing.

         Does the company offer training programs? Early in your career, you want employers who offer in-house or external training to help you improve your skills and gain new ones. Some companies even offer tuition reimbursement to complete a degree or go to graduate school.  

        Will this job broadening my experience? A position with a wide-range of responsibilities or in which you can rotate through several departments offers not only variety in your day-to-day work, but improves your resume for the future.

         How much travel is there? How much overtime? Ask what percent of time is spent traveling and make sure it is compatible with your personal and family needs. Also ask what the policy is on overtime. A reasonable overtime policy recognizes that there are occasions when extra hours are needed, but if overtime is used to save money on staffing, this is a big red flag.

         Will this job help me reach my goals? Does this position take you closer to a career or personal goals? Don’t take a job just for the money. Even if jobs are hard to find, taking whatever comes along “for now,” can make it harder to get back on track later. If you are still interviewing and this is not your dream job, try to hold out.

You did a lot of research to determine which companies you wanted to target for resumes, but now that one of those companies has made an offer, you want to probe a little deeper. Is there anything you can find about this company that suggests you would be stupid not to take this job? Or that you would be stupid if you did take this job?

The information you want includes:

         Is the company financially healthy? Financial and market data are easiest to find for publicly held companies than for privately held ones. Chapter Two can help you find sources.

        What are the company size, growth rate, and market potential? Large companies have more opportunities than small ones. A growing company who promotes from within can offer a long-term potential.

         What are the facilities and working conditions like? What does the back office look like? What does the staff lounge look like? The lobby and guest rooms may be spotless and beautiful, but you want to know if staff facilities are clean and conducive to productivity.

         Is there a dress code? Conforming to a dress code can be a hidden cost of taking a position.

         Is the management team stable? How long has the top executive been with the company? How long has your new supervisor been with the company?

         Does the company care about staff? Companies must meet certain legal requirements for salary, benefits, and workplace safety. How much beyond these minimums they go can reflect both a competitive labor market and a sincere concern for their staff. Ask about programs such an employee assistance programs, daycare, training programs, and layoff or restructuring support to help you gauge their values in this area…

         How are decisions made? If the company is very hierarchical, you may feel you have no voice in the policies that affect your and your customers. Companies run on a consensus model can have trouble making decisions in a timely manner. You want to know how decisions are made and then decide how comfortable you are working within such an organization.

        What are the core values of the organization? These are not just the words in a mission statement, but should be reflected in behavior of the management and the staff.

         Are company policies are reasonable?: Company policies on vacation, sick time, flextime and a host of other issues can make a tremendous difference in how happy you will be on the job.

         Is the staff happy? Talk current employees and former employees and ask about their job satisfaction. Ask the person making you the offer for the names of staff you can talk with. If they refuse to give you names, this may be the answer to the question.