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Job Search Tip: Position
Comparison
Let’s assume your employment interview went well,
and there’s sincere and mutual interest on both sides.
Now you need to decide two things: first, whether the
new position is right for you; and if so, what sort of
offer you’d be willing to accept.
To evaluate the pros and cons, ask yourself the
following: Does the new job meet the criteria you
spelled out when you first began your search? Will the
new job improve your level of personal and professional
satisfaction? Or will it simply offer you a rehash of
what you already have? Hopefully, the unique qualities
you’re seeking will be within your grasp.
Keeping Score
If you’re not sure about the new job, or need help
in being more objective, take the following test as a
way to compare the two positions. You should be able to
get a feel for how the job you interviewed for stacks up
against your current position by selecting which
considerations best suit your needs.
The position comparison test can be
"scored" two different ways. You can either
tally the totals (the best job has the highest score);
or you can use the test as a way to examine your
priorities.
Let’s suppose your score was 15 to seven, in favor
of the new company. Does that mean you should change
jobs?
Well, not necessarily. It depends on which
considerations are most important to you. If an increase
in travel will ruin your marriage, then it won’t
matter how many positive considerations point to the new
job. (This is assuming you want to stay married.)
However, a simple tallying of the score can be very
helpful when the decision is a tough one, and no single
consideration acts as a "knockout" factor.
Besides, mathematical "logic" can always be
used to justify what you already feel to be the right
decision.
The Economic Factor
Compensation, of course, will be a key factor in your
decision whether to accept a new position.
Oddly, few people take the time to really understand
their economic choices, mostly because there are so many
hidden factors, such as cost of living, benefits,
relocation expenses, and so forth.
Regardless of where compensation ranks on your list
of priorities, it’s a good idea to know what you may
be getting into when faced with a career decision.
To help you put your economic choices into
perspective, use this compensation comparison to
evaluate both your prospective compensation package and
what you’re currently earning.
The best time to make your calculations is before an
offer is made. That way, you can form a clear idea of
what you’ll need, without having to dicker (or
experience shock) later on.
If you’re looking at an opportunity that’s in a
different geographic location, you might want to do some
investigating before you even interview. For example, if
you live in a nice suburban community in Lawrence,
Kansas, what would it cost you to maintain your current
lifestyle in an area like San Francisco? Your answer
(and your willingness to make the necessary trade-offs)
will help determine your level of interest when
considering the new position.
Figuring the Bottom Line
The best approach to putting the deal together is to
decide whether you want the job before an offer is
extended. This allows you to clarify whether the job
suits your needs. Unless you’re motivated solely by
money, it’s doubtful a few extra dollars will turn a
bad job into a good one.
If the job interests you, then determine the
conditions under which you’ll accept. These fall into
two categories: Bottom Lines and Porcupines.
The term "bottom line" refers to the amount
of compensation you feel is absolutely necessary to
accept the job offer. If, for example, you really want
$46,000 but would think about $45,000 or settle for
$44,000, then you haven’t established your bottom
line. The bottom line is one dollar more than the figure
you would positively walk away from. Setting a bottom
line clarifies your sense of worth, and helps avoid an
unpredictable bargaining session.
I recommend against "negotiating" an offer
in the classic sense, where the company makes a
proposal, you counter it, they counter your counter, and
so on. While this type of tit for tat format may be
customary for negotiating a residential real estate
deal, job offers should be handled in a more
straightforward manner.
Here’s how: Determine your bottom line in advance,
and wait for the offer. If the company offers you more
than your bottom line, great. If they offer you less,
then you have the option of turning the offer down or
revealing to them your bottom line as a condition of
acceptance. At that point, they can raise the ante or
walk away.
Lay Your Cards on the Table
Once the bottom line is known, you can avoid the
haggling that so often causes aggravation,
disappointment, or hurt feelings.
My experience has shown that it’s much better to
lay your cards on the table in the beginning than to
barter to get what you want. An employer can get very
irritable when a candidate says, "I’ll think it
over," or keeps coming back with new demands again
and again. Even if you get what you want, you’ve
created a negative impression with the company which
will carry over after you’ve been hired. In effect,
you may win the battle, but lose the war.
By determining your own acceptance conditions in
advance, you’ll never be accused of negotiating in bad
faith or of being indecisive. Whether you’re
representing yourself or working with a recruiter,
learning to differentiate between financial fact and
fantasy will facilitate the job changing process.
You may want to itemize your bottom line, and, if
it’s appropriate, show it to the company (or your
recruiter) as a means to justify your salary request.
Carefully figure your total package, and document any
loss of income that may result from a differential in
benefits, geographic location, car expenses, and the
like.
If a recruiter asks for your bottom line, he or she
isn’t trying to manipulate you or conspire with an
employer that plans to "lowball " its
candidates. The recruiter is simply making a good faith
effort to discover what makes you happy, and put
together two interested parties.
The Porcupine Category
Of course, there are considerations aside from money
that usually need to be satisfied before an offer can be
accepted. Factors such as your new position title,
review periods, work schedule, vacation allotment, and
promotion opportunities are important, and should be
looked at carefully.
To understand the candidate’s needs, I use the
porcupine approach to quantify each consideration or
"point" made by the candidate as a condition
for acceptance. Once I understand each point, I can work
with the company to put the deal together, without
having to go back later to get "one more
thing."
Once you know your bottom line and each condition, or
point on the porcupine, you’re in a better position to
get what you want, since you’ve established
quantifiable goals to shoot for.
How an Offer Is Staged
Every company makes hiring decisions differently.
Some will encourage shoot-from-the-hip managers to make
job offers on the spot. Other companies will limit the
decision maker’s ability to act quickly and
unilaterally, and require a drawn-out series of staff
meetings, subsequent interviews, corporate signatures,
and so on.
These days, it’s not uncommon for the hiring cycle
to last weeks or even months, regardless of how
"critical" the position might be. The best
approach is to maintain contact with the company,
allowing for the fact that there’ll probably be some
delay. Presumably, you asked what the hiring procedure
was when you first interviewed. Their answer should give
you some indication as to when a decision will be made.
Offers can be extended by either a letter, or
verbally from a hiring manager. They can also be made
through a third party, such as a recruiter. In either
case, be careful. An offer needs to include these three
components before it can be considered official:
Your position title;
Your starting salary; and
Your start date.
Before you resign from your present job, make sure
you nail down each of these components from a company
official, either verbally or in writing (in the form of
an offer letter). Even if the offer comes through a
recruiter, you should always contact the employer
directly, and if possible, get a letter of offer or
acceptance to verify the deal (although a verbal offer
and acceptance will act as a legal contract).
Not long ago, I was working with a candidate who
interviewed for a position with one of my client
companies. The interview went extremely well; so well
that the VP of the company called the candidate at his
home that evening to discuss the offer.
"Well, Paul, we really like you," the
employer told the candidate. "The job is yours if
you want it."
"I want it," said Paul. "When do I
start?"
"Well, I’ll call Bill tomorrow and work out
the details," replied the employer.
Understandably, Paul got excited. Filled with pride,
he drove his ailing grandmother by the new company the
next day, so he could show off his new place of work.
But guess what? The employer never called me, and
never called Paul, either. For some reason he changed
his mind, and didn’t have the decency to let anyone
know.
The reason I tell this story is to warn you that even
when the cat seems to be in the bag, it ain’t over
’til the fat lady sings. An offer has to include a
position title, a starting salary, and a date of start
to be official; just telling you the job is yours
isn’t enough.
Here’s another word of caution: Offers sometimes
have strings, or contingencies attached. Don’t be
surprised if the fine print requires you to:
Pass a physical examination;
Document your citizenship or immigration status;
Obtain a security clearance;
Undergo a thorough background investigation, in
which your credit history, police records, and travel
history might be examined;
Verify your academic credentials; or
Provide proof of your past employment, salary, or
military service.
Very often, these contingencies must be satisfied
before you can to report to work or receive a paycheck.
Accepting the Offer
If everything about the new position is satisfactory,
go ahead and accept the offer. If you’re expecting an
offer from a second company, you should let the second
company know about your offer right away, so they can
speed up their decision. That way, you’ll avoid
jeopardizing one deal for the sake of another.
Once an offer’s on the table, it makes common sense
to accept or reject it within a day or so. Otherwise,
your inability to commit will reflect poorly on the way
you make decisions; or it will telegraph your lack of
enthusiasm to the new employer. In either case, you’re
likely to be bruised by waiting too long.
If you have legitimate concerns, or you still have
questions that need to be answered, now is the time to
bring them up. Rather than tell the employer,
"I’ll have to think it over," use the
following script:
"Mr. Employer, this job looks very good to me,
and I’m enthusiastic about coming to work for your
company. I’ll be in a position to accept your offer
and start in two weeks if I can just clarify a couple of
things..."
The answers you get will make your decision for you,
and you’ll either accept or reject the company’s
offer.
If you decide to reject an offer, remember that
it’s almost impossible to resurrect the deal at a
later date, since the position will be offered to
someone else, or the employer will feel insulted, and
close the door on your candidacy. Whatever you do, make
certain your decision is final.
New Angles and Unusual Deals
Most deals come together quite cleanly, with little
need for haggling or creative financing. Sometimes,
though, it takes a little imagination to satisfy both
parties.
Money can present a problem for employers when your
salary requirements exceed the published range for the
position, or create an inequity within the department.
In fact, internal equity issues (in which your expected
salary might be greater than someone on the staff who
has more professional or company seniority) are the
cause of most deals that fail to close for financial
reasons.
To satisfy money matters, look for ways to increase
your overall yearly compensation, rather than your
annual salary. Here are a few added goodies you can
shoot for to boost your earnings without ruffling too
many feathers:
A sign-on bonus to be paid in cash on your date
of start;
A performance bonus to be paid after thirty, sixty,
or ninety days, assuming your clearly defined goals are
met;
A discretionary bonus to be paid in a lump sum, or
over a specified period;
A generous relocation bonus to be paid on your date
of start to cover expenses (but which can be spent at
your discretion);
An accelerated review which would occur after three
or six months, rather than on your first anniversary of
employment, in which your salary would be increased; or
An early participation in the company’s bonus,
stock purchase, or pension plan; or other employee
benefit program.
When required, companies will sometimes serve up
these tasty morsels to hungry candidates who recognize
that overall compensation consists of more than salary
alone.
The craziest deal I ever put together involved a
candidate who’d just purchased a home and was beyond
commuting distance to the interested company. Since the
candidate wouldn’t sell his home and relocate, the
company president agreed to buy the candidate (who had a
pilot’s license) a single engine airplane so he could
fly to work each day. It just goes to show, where
there’s a will, there’s a way.
Careful evaluation mixed with a little bit of
creativity will help you get the deal you want.
Position Comparison Guide
Candidate
______________________________
Current position __________________________
Current employer _________________________
Prospective employer ______________________
Old position _____________________________
New position ____________________________
Today’s date ____________________________
Prospective start date ______________________
Directions:
Compare the position you have now
with the one you are considering, according to the
following elements:
Current job New job Element
under consideration
[ ]
[ ] Position
title
[ ]
[ ]
Supervisory
responsibility
[ ]
[ ]
Project authority
[ ]
[ ]
Decision-making autonomy
[ ]
[ ]
Freedom to implement ideas
[ ]
[ ]
Freedom to affect change
[ ]
[ ]
Promotion potential
[ ]
[ ]
Challenge of tasks
[ ]
[ ]
Ability to meet expectations
[ ]
[ ]
Access to skill training
[ ]
[ ]
Professional growth potential
[ ]
[ ]
Company/industry growth
[ ]
[ ]
Company/industry stability
[ ]
[ ]
Starting salary
[ ]
[ ]
Future compensation
[ ]
[ ]
Company benefits, perks
[ ]
[ ]
Commuting distance
[ ]
[ ]
Travel requirements
[ ]
[ ]
Working environment
[ ]
[ ]
Rapport with co-workers
[ ]
[ ]
Rapport with management
[ ]
[ ]
Comfort
with corporate culture
[ ]
[ ]
Other
considerations (specify)
Score: _____ Current job _____ New job New job
differential (+/-) _____
Position
Compensation Guide
Candidate __________________________________
Current position ______________________________
Current employer _____________________________
Prospective employer __________________________
Old position _________________________________
New position ________________________________
Today’s date ________________________________
Prospective start date __________________________
Directions: Compare the position you have now
with the one you are considering, according to the
following elements:
Current job New job
Element under consideration
$__________ $________ Base salary
$__________ $________ Bonus, perks
$__________ $________ Profit sharing potential
$__________ $________ Value of stock or equity
$__________ $________ Pension
$__________ $________ 401(k) contribution, tax
savings
$__________ $________ Reimbursed expenses
$__________ $________ Cost of living differential
(+/-)
$__________ $________ Non-reimbursed moving
expenses
$__________ $________ Job-related travel expenses
$__________ $________ Insurance premiums
$__________ $________ Property taxes
$__________ $________ State taxes
$__________ $________ Sales taxes
$__________ $________
Other expenses (specify)
Current job $___ New job
$___ New job differential (+/-) $___
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