Beyond the Interview: Negotiating A Job Offer

Because of the challenging job market, I spend most of my time advising jobseekers about ways in which they can improve their chances of landing a face-to-face job interview. However, one of the trickiest parts of the whole job seeking process is negotiating an employment offer if one is extended. And, for whatever reason, there is a lot of anxiety, trepidation and misinformation surrounding the entire job negotiation process. That said, in her article “Talk About Pay Today or Suffer Tomorrow” the NY Times THE SEARCH author Phyllis Korkki demystifies the process proves some sage advice and debunks some of the urban legends about job offer negotiations.

One of the more important (perhaps THE MOST important) aspect of the job offer negotiation process is starting salary. While many people tend to downplay its importance, at the end of the day, it is always about money. And, there is no reason why a jobseeker should not try to get the best possible salary from a prospective employer. Therefore, it is incumbent upon jobseekers to gather as much salary intelligence about a possible position before the interview and after an offer is extended. Websites like Salary.com, Glassdoor.com and PayScale.com, which list salary ranges based on industry and geography, are a great place to start. However, because these are self-reporting websites, a better option may be to talk with employees working at the company that extended the offer or with others who work for its competitors. 

An urban legend that I feel compelled to debunk is the notion that a job offer will be rescinded if the person who received the offer dares to ask for higher pay. Companies spend a lot of time, effort and money to get to the point to extend an offer to the “right fit” candidate. The prospect of starting the job search process all over again or settling for the “second best” candidate is usually not a viable option for most employers. For this reason, I advise persons who receive job offers to not immediately accept them (unless of course they fit into the category of “too good to refuse” which admittedly are very rare even in the best of times). In fact, since this is the last time that a jobseeker will be able to negotiate with his/her employer, I highly recommend “getting as much as you can.” However, as my financial adviser and longtime friend once told me, “the bears and the bulls make money, but pigs always get slaughtered!”

Until next time,

Good Luck and Good Negotiating!!!!!!!!

 

At Long Last: Sanofi and Genzyme May Be Close to a Deal!

After a five month-long series of  very public and often acrimonious negotiations, it appears that Sanofi-Aventis and Genzyme may be close to deal that would enable the French drug maker to acquire one of the world’s largest public biotechnology companies.

According to the NY Times and a number of life sciences blogs, both companies have agreed in principle on a framework for a takeover deal. The major sticking point in the negotiations is Sanofi’s tender offer of $69 per share of Genzyme stock. Genzyme executives and industry analysts view the offer as “too low” and believe that a stock share price in the mid-70s is more reasonable and likely in the end. Another sticking point is the success of Genzyme’s leukemia treatment Campath (alemtuzumab, which is in clinical development to treat multiple sclerosis but will be marketed under the brand name Lemtrada if approved). Genzyme believes that Campath will likely be a winner whereas Sanofi executives are not so sure. Consequently, the deal will likely include additional payments to Genzyme if the drug meets or exceeds certain sale targets for either or both indications.

Persons with knowledge of the negotiations suggest that the specifics of a deal will likely be worked out of the next week or so. This is because, on Monday, Sanofi signed a nondisclosure agreement with Genzyme to conduct due diligence for the deal. Really? What has Sanofi been doing for the past 5 months?

The Genzyme deal is critical for Sanofi which desperately needs to quickly get into the biotechnology game, particularly in the areas of oncology and neurological disorders. Last week, Sanofi’s experimental drug to treat breast cancer, iniparib failed to meet clinical endpoints in a late stage clinical trial. Also, Plavix, Sanofi’s top-selling anti-clotting drug will lose patent protection in May 2012 (FDA recently gave Sanofi an additional six months of marketing exclusivity based on a newly awarded pediatric indication). Plavix is the world’s second best selling prescription medication.

I don’t know about you, but I hope that this deal gets done soon! From the outset, it was apparent to most life sciences pundits and industry insiders that Sanofi would prevail and ultimately acquire Genzyme. Unfortunately, Genzyme’s ongoing manufacturing woes provided Sanofi with an excuse to “lowball” its initial offers. And, surprisingly, Genzyme’s management team had the chutzpah and wherewithal to push back hard.  The bottom line: it is a great deal for both companies—“Just Do It.”

Until next time...

Good Luck and Good Job Hunting!!!!!!!!

 

Part 8: Ask the Recruiter--Negotiating Job Offers

The key to successful negotiations of any kind is realizing that you ARE NOT going to get everything that you want or expect. Likewise, this means that the person(s) sitting on the other side of the proverbial table is not going to get everything that he/she wants either. Simply put, you have to “give-to-get” during negotiations to reach an agreement that is mutually acceptable to all parties.  Please note that I used the word “acceptable” rather than “satisfied” when referring to a negotiated agreement. In my experience, neither party is ever COMPLETELY satisfied with a negotiated agreement. Rather, the respective parties each received enough of what they initially wanted/expected to consider the deal ‘acceptable.”

When working as a professional recruiter, I determined, early on, that job offers are generally extended to “right-fit” candidates within several days after an interview. That said, if you haven’t heard back from a company within a week or so after your interview, it is likely that you are not their first choice for the position.  Nevertheless, when you receive a job offer, the most important thing to remember is that  ALL offers are negotiable. Based on my own personal and professional experiences, a company’s first offer is usually neither their best nor final offer.

Frequently, inexperienced job candidates are reluctant to negotiate an initial offer because they are afraid that the company might retract it if they appear “too greedy.” This is simply not the case. Because companies/organizations typically offer jobs to only those individuals who they want to work for them ,their primary objective is to do whatever is “reasonable” to induce the candidate to join their organization. Of course, companies sometimes have limited resources or flexibility regarding  what they can offer a candidate to accomplish this! That said, job candidates are obliged to test the limits of corporate flexibility to negotiate the best compensation package they can before they are required to make a decision of whether or not to join a company/organization. Simply put, most nonprofit organizations and corporate entities expect some back and forth negotiations before a candidate makes his/her decision to accept or reject a job offer.

In my experiences, there are certain things that can and can’t be negotiated after an offer has been extended. Things that  can be negotiated include:

  • Starting salary
  • Stock options
  • Relocation costs
  • Signing bonuses
  • Start dates

In contrast, items that are rarely or cannot be negotiated are:

  • Health benefits
  • Rank/title
  • Vacation time
  • Performance bonuses

Although most employers expect candidates to negotiate job offers, the way in which the negotiations are handled and conducted are extremely important. Candidates must remember to be cordial and professional at all times and to never give a prospective employer an ultimatum–e.g., “If I don’t get this salary, I will not take the job”. Ultimatums are the “kiss of death” for any prospective employee because it signals that the individual is demanding, inflexible and likely to not be a team player. 

Another thing to remember is to not become emotionally invested in the negotiations taking place between the company and you. When a candidate becomes overly emotional or demanding during negotiations, exchanges between a company and candidate may become acrimonious and unpleasant. To increase the likelihood of success i.e. to get what you want, it is best to be as dispassionate and business-like when negotiating a job offer.  Nobody likes to negotiate with an overly emotional or unreasonable individual (take it from me–I know!).

When it comes to negotiating a job offer, the best case scenario is to allow a recruiter to negotiate the offer on your behalf.  Because a recruiter usually has a preexisting  relationship with the hiring manager, he/she can do all of the so called “heavy lifting” to help a candidate get what they can from a company. To that end, the recruiter generally knows before entering into negotiations with a prospective employer exactly what his/her candidate’s “needs” are and how far he/she can push the client to help a candidate secure the best offer. Needless to say, this option is only available to those candidates who used a recruiter to interview at the company/organization in the first place.

Negotiations become unnecessarily “nasty” or belligerent may come back to haunt you if you accept an offer and work at a particular company. To that end, you may find yourself working for or with the person(s) who you negotiated with!  And, if bad feelings were generated during the negotiation process, it may take some work to overcome the negative impression you created for yourself. For those of you who may not know, organizational/corporate memory has a long shelf life!

In my next post, I will discuss some strategic approaches and tactics that candidates can use to optimize a job offer from a prospective employer.

Until next time….

Good Luck and Good Job Hunting!!!!!!!!