Negotiating an offer
The moment of truth comes when the interview is complete, the references are checked and a company is ready to make an offer. In this competitive market, how does an employer come to that magic number that will make a prospective employee ready to take the plunge? It can be difficult to determine but here are a few simple tips to remember:
1. Always make sure you have the salary information from the previous position, including any bonuses or other forms of compensation like stock options. Any offer is going to have to be competitive with a candidate’s current salary.
2. Consider cost of living. Is the candidate likely to be moving to a more expensive or less expensive area? Maybe relocation is not necessary. This can be an important factor since cost of living can vary so greatly across the country. A Director of Admissions that is making 90,000 a year in FL is not going to be able to have the same standard of living in most of CA for the same compensation.
3. Look at your benefits package. How does it compare to other employers in the industry? Does it cover medical, dental, etc. If not, what is an estimated cost for the prospective employee to cover his or her own needs?
4. Lastly, the offer is the first step in establishing a long term relationship with this future employee. This is an opportunity to show her that she is going to be a valued part of the organization. These first few moments can have a tremendous impact on the attitude that the employee has toward the company, the supervisor and the position. This is not the time to try to save a few dollars. As in any other negotiation process, you typically get what you pay for. A company with a competitive salary structure and opportunities for advancement is going to draw candidates that are serious, no non-sense professionals.
