The realities of today
It is common knowledge that many smart companies handle economic downturns by laying off more people than necessary to allow them to go bargain hunting for high-performing talent.
The veracity of this strategy is undeniable. What good company wouldn’t want to fill their cubes with high-performing employees at cut rates? For the job seeker, this strategy provides a conundrum that isn’t easily managed. In this economy you as the job seeker are faced with cut salaries and few opportunities. But, this doesn’t mean you should let yourself be taken advantage of at the negotiation table. Below are some proven strategies from colleagues and research that can help you avoid being taken advantage of when you NEED a job.
Be realistic about salary
The vast majority of employees laid off, no matter the reason, take a cut in salary in their next position. The Bureau of Labor Statistics has reported a weekly salary drop of $2 from November to December 2008. Other key indicators point to a difficult market—currently and in the future.
You will likely not make as much as you did before, but that doesn’t mean you shouldn’t negotiate on salary. In today’s market, if you have gotten to the point where an offer is on the table, you’ve beaten out other candidates, so the company sees value.
When going into money negotiations, know what you need to make—this seems like a stupid thing to say, but many don’t know. Put together a comprehensive budget, including those luxuries that you can cut (basic cable instead of the full package, dining out less, the Y instead of Equinox). Be realistic with your budgeting. I’ll never go out to eat. Yes you will. Don’t assume you won’t buy a coffee, have a beer with friends, or go on vacation.
Once you have a realistic idea of the amount you need to make to live, you’re armed with solid knowledge of what you can afford to take. If the opening base offer is nowhere near what you need to live, then you are obliged to walk away. Alternately, having this knowledge gives you a confidence at the table that will help you through difficult negotiations.
Get creative
A Dean at Fordham Business School was counseling me on salary negotiations and he made the following statement. “All they are going to remember when they walk away from the table is your salary. Let them feel good about that and hit them everywhere else.”
If you’re lucky enough to be asked to open the negotiations with the question, “What are your salary requirements?” Hit them with the number from your budget (plus a reasonable mark up) and something along the lines of “depending on vacation time, benefits, signing bonus…” This opens the door for you to concede on salary but gain a foothold in other areas.
If they anchor the number with “We’d like to offer you the job with a starting salary of $XXXXX.” Reply, “Thank you. That’s not exactly what I was expecting. Can you give me an idea of the full package and benefits?” Once you have that, take 24 hours and crunch the numbers. Come back in twenty four hours with a counter offer that includes benefits, quality of life, vacation time, signing bonuses, etc. Be strategic with numbers—15-day vacation sounds more palatable than three weeks, a signing bonus of $11,000 dollars sounds like you’ve done some research and can explain why that number is required.
When there are a lot of moving parts, always recap your understanding of the conversation in an email after you get off the phone. Be specific and include all numbers discussed.
Consult/Temp/Part-time
There is no better way to argue your value than by having a history of creating value. Getting in the door as a non-traditional employee offers advantages beyond bringing in income while you search. Not only does non-traditional employment allow you to prove your worth, it enables you to test drive the company.
Non-traditional employment will allow you to keep looking for work. It is understood that you are looking for a permanent position, so you don’t have to worry about getting out of the office with lies or being clandestine on the phone.
Don’t bounce
Many take a job “for now” and plan to bounce out when something better comes along. This isn’t realistic in this market and the opportunity costs are too high. Looking for a job is a full-time job. Figure it takes three months to learn a position. In that time you need to do a good job, otherwise you are let go and that leaves you with a lot more to explain during the next interview. It takes six months to get settled into a job to the point where you are no longer learning and have hit your stride. So now you’ve started looking again, but you’ve lost six months, and aren’t in a position to dedicate yourself to the search that will get you in the position that offers long-term opportunities.
If the right company has the wrong job (not the right level, not the right salary), discuss that with the hiring person and make a plan. Put a timeline on when you should expect to be bumped to the position that better suits you and what criteria needs to be met to give the company the confidence that you’re worth it.
There is no magic bullet. The vast majority of those that leave jobs without another job wind up taking a pay cut. In the current market, you’re going to have to come to grips with that reality. But, that doesn’t mean you are without power when it comes to job selection and quality of life. Unless you are very lucky, you’ll have to be flexible. But that doesn’t mean you have to take whatever they offer.
