CHAPTER 22

NEGOTIATING THE JOB OFFER

THE JOB OFFERS finally begin to arrive and you’re never going to have this much leverage with this employer again. In this chapter you will learn the essentials of salary and benefits negotiations: handling good job offers and poor job offers, negotiating future salary, and how to evaluate the salary and the offer.

When you negotiate salary, you shouldn’t be thinking of a magic number that you’d love to make, but a reasonable and acceptable range. All jobs have salary ranges attached to them. Your approach is to come up with a salary range that puts you in the running, but doesn’t nail you down to a specific figure. You need to come up with three different figures:

1. First, given your skills, experience, and location, determine the least you would accept for a suitable job with a stable company.

2. Second, given the same considerations, what would constitute a fair offer for a suitable job with a stable company? There are three ways to figure out what would constitute a fair offer.

• A salary calculator, such as the one at www.salary.com

• Job postings

• Headhunters with whom you have a relationship

3. Third, given the same considerations of skills, experience, and location, come up with the figure that would make you drop dead and go to heaven on the spot.

At the end of this process, you’ve got three figures: a minimum, a midpoint, and a dream salary. Kick out the lowest because you can always negotiate downward. This leaves you with a salary range—your midpoint to your high point—that you can give with confidence.

When to Bring Up Salary

Unless by some cosmic coincidence you and the interviewer spontaneously start talking salary at the exact same moment, one of two situations will occur.

They’re Ready to Talk Salary, But You Aren’t

What do you do when the question of money is brought up before you have enough details about the job to negotiate from a position of knowledge and strength? Postpone money talk until you have the facts in hand. Do that by asking something like: “I still have one or two questions about my responsibilities, and it will be easier for me to talk about money when I have cleared them up. Could I first ask you about _______________?”

Proceed to clarify duties and responsibilities, being careful to weigh the relative importance of the position and its individual duties to the success of the department you may join.

You’re Ready to Talk Salary, But They Aren’t

If you are sure of your ability to deliver on the job and you want it, but the employer isn’t rushing to put an offer on the table, you can encourage him with some carefully phrased questions of your own. Here are a few questions that will make the interviewer face the fact that you certainly are able to do the job and that the time has therefore come to talk turkey:

You Want Each Other, But Are Both Being Coy

They want you, but they don’t have you. This is the first time you really have decisions to make: Do you want this job, and on what terms? The issues for your consideration are the job and its potential, the company and its stability, the money and the benefits. This is probably the only time in your relationship with your new employer when you’ll have even a slim negotiating edge. If you under-negotiate your salary, that has an impact, not only today, but on your future earnings, because all raises will be based on a lower salary. Employers are also more inclined to respect and honor a person who has a clear understanding of her worth in the marketplace’they want a savvy and businesslike professional. Armed with this knowledge, you can move the conversation forward.

The interviewer will generally initiate salary discussions with one or more of the following questions. Her goal is to make you name a figure; your goal is to avoid naming a figure: Otherwise you’ll be trapped.

Why should I hire you?

Keep your answer short and to the point. Demonstrate your grasp of the job’s responsibilities, the problems typically occurring in each area, the transferable skills that allow you to consistently deliver on them, and then a brief review of what you are like as a professional colleague, personalizing the behavioral profile for success you identified in your TJD.

What are you earning currently? Or, What were you making on your last job?

Ideally the offer you negotiate should be based on salary norms and on the value you bring to the job, not your salary history. However, it can be difficult to make that statement clear to the interviewer without appearing objectionable. A short answer might include: “I am earning $xx,ooo, but I want you to know that a major reason for making a job change right now is to significantly increase my salary. I am currently underpaid for my skills, experience, and contributions, and my capabilities are under-utilized.”

Education and salary are factors that very often get checked, and untruths in either of these areas are grounds for termination with cause. The interviewer could ask to see a payroll stub or W2 form at the time you start work, or could make the offer dependent on verification of salary. A new employer may request verbal or written confirmation from previous employers or might use an outside verification agency.

In any instance where an employer checks references, credit, or other matters of verification, he is obliged by law to get your written permission. The impossibly small print on the bottom of the job application form—followed by a request for your signature—usually authorizes him to do just that.

It is important to understand the “areas of allowable fudge.” For instance, if you are considerably underpaid, you may want to weigh the dollar value of such perks as medical and dental plans, pay in lieu of vacation, profit sharing and pension plans, bonuses, stock options, and other incentives. For many people, those can add between 20 to 35 percent to their base salary—you might honestly be able to mention a higher figure than you at first thought possible. Also, if you are due for a raise imminently, you are justified in adding it in.

What is an adequate reward for your efforts?

A glaring manageability question and money probe all in one. The interviewer probably already has a typist on staff who expects a Nobel Prize each time he gets out a faultless letter. Your answer should be honest and cover all bases. “My primary satisfaction and reward comes from a job well done and completed on time. The occasional good word from my boss is always welcome. Last but not least, I think everyone looks forward to a salary review.”

What is your salary history? Or, What was your salary progress on your last job?

The interviewer is looking for a couple of things. First, she is looking for the frequency, percentage, and dollar value of your raises, which in turn tell her about your performance and the relative value of the offer that is about to be made. What you want to avoid is tying the potential offer to your salary history’the offer you negotiate should be based solely on the value of the job in hand.

Your answer needs to be specifically vague. Perhaps: “My salary history has followed a steady upward path, and I have never failed to receive merit increases. I would be glad to give you the specific numbers if needed, but I’ll have to sit down with my records and give it some thought.” The odds are that the interviewer will not ask you to do that; if he does, nod in agreement and say you’ll get right to it when you get home. Don’t begin the task until you are requested a second time, which is unlikely.

If for any reason you do get your back against the wall with this one, be sure to include in the specifics of your answer that “one of the reasons I am leaving my current job is that raises were standard for all levels of employees, so that despite my superior contributions, I got the same percentage raise as the tardy employee. I want to work in an environment where I will be recognized and rewarded for my contributions.” Then end with a question: “Is this the sort of company where I can expect that?”

Have you ever been refused a salary increase?

This implies that you asked for one. An example of your justifiable request might parallel the following true story. An accountant in a tire distributorship made changes to an accounting system that saved $65,000 a year, plus thirty staff hours a week. Six months after the methods were obviously working smoothly, he requested a salary review; he was refused but was told he would receive a year-end bonus. He did: $75. If you can tell a story like that, by all means tell how you were turned down for a raise. If not, it is best to explain that your work and salary history showed a steady and marked improvement over the years.

How much do you need to support your family?

This question is sometimes asked of people who will be working in a sales job, where remuneration is based upon a draw against forthcoming commissions. If this scenario describes your income patterns, be sure you have a firm handle on your basic needs before you accept the position.

For salaried positions, this question is of dubious relevance. It implies the employer will try to get you at a subsistence salary, which is not why you are there. In this instance, give a range from your desired high-end salary down to your desired midpoint salary.

How much will it take to get you? Or, How much are you looking for? Or, What are your salary expectations? Or, What are your salary requirements?

You are being asked to name a figure here. Give the wrong answer and you could be eliminated. It is always a temptation to ask for the moon, knowing you can come down later, but there are better approaches. It is wise to confirm your understanding of the job and its importance before you start throwing numbers around, because you will have to live with the consequences. You need the best possible offer without pricing yourself out of the market, so it’s time to dance with one of the following responses.

“Well, let’s see if I understand the responsibilities fully ….” You then proceed to itemize exactly what you will be doing on a daily basis and the parameters of your responsibilities and authority. Once that is done, you will seek agreement: “Is this the job as you see it or have I missed anything?” Remember to describe the job in its most flattering and challenging light, paying special attention to the way you see it fitting into the overall picture and contributing to the success of the department, work group, and company. You can then finish your response with a question of your own: “What figure did you have in mind for someone with my track record?” or “What range has been authorized for this position?”

You could also ask, “What would be the salary range for someone with my experience and skills?” or “I naturally want to make as much as my background and skills will allow. If I am right for the job, and I think my credentials demonstrate that I am, I am sure you will make me a fair offer. What figure do you have in mind?”

Another good response is: “I would expect a salary appropriate to my experience and ability to do the job successfully. What range do you have in mind?”

Such questions will get the interviewer to reveal the salary range and concentrate her attention on the challenges of the job and your ability to accept and work with those challenges.

When you are given a range, you can adjust your money requirements appropriately, latching on to the upper part of the range. For example, if the range is $40,000 to $50,000 a year, you can come back with a range of $45,000 to $55,000.

Consequently, your response will include: “That certainly means we have something to talk about. While your range is $40,000 to $50,000, I am looking for a minimum of $45,000 with an ideal of $55,000. Tell me, what flexibility is there at the top of your salary range?” You need to know this to put yourself in the strongest negotiating position, and this is the perfect time and opportunity to gain the information and the advantage.

All this fencing is aimed at getting the interviewer to show his hand first. Ask for too much, and it’s “Oh dear, I’m afraid you’re overqualified”’to which you can reply, “So overpay me.” (This actually works when you can carry it off with an ingratiating smile.) Ask for too little, and you’ll be kicking yourself for years, because all future pay raises will be based on this lower amount.

When you have tried to get the interviewer to name a range and failed, you must come up with specific dollars and cents. The key is to understand that all jobs have salary ranges attached to them. Consequently, the last thing you will ever do is come back with a specific dollar figure’that traps you. Instead, you will mention your own range, which will be from your midpoint to your maximum. Remember, you can always negotiate down but can rarely negotiate up.

What do you hope to be earning two to five years from now?

A difficult question. The interviewer is probing your desired career and earning path and is trying to see whether you have your sights set high enough—or too high. A jocular tone might not hurt here: “I’d like to be earning just about as much as I can work out with my boss!” Then, throw the ball back with your own question: “How much is it possible to make here?”

If you give a specific figure, the interviewer is going to want justification. If you come up with a salary range, you are advised also to have a justified career path to go along with it.

You could also say, “In two years, I will have finished my CPA requirements, so with that plus my additional experience, industry norms say I should be earning between $xx,000 and $yyy,000. I would hope to be earning at least within that range, but hopefully with a proven track record of contributions, I would be making above the norm.” The trick is to use industry statistics as the backbone of your argument, express confidence in doing better than the norm, and, whenever possible, stay away from specific job titles unless pressed.

Do you think people in your occupation should be paid more?

This one can be used prior to serious salary negotiation to probe your awareness of how your job really contributes to the bottom line. Or it can occur in the middle of salary negotiations to throw you off balance. The safe and correct answer is to straddle the fence. “Most jobs have salary ranges that reflect the job’s relative importance and contribution to a company. Those salary ranges reflect the norm for the great majority of people within that profession. That does not mean, however, that the extraordinary people in such a group are not recognized for their extra performance and skills. There are always exceptions to the rule.”

Once an Offer Is on the Table

You don’t have to accept or reject the first offer, whatever it is. In most instances you can improve the initial offer in a number of ways, but you have to know something about the existing market conditions for people in your line of work. If you are female, bear in mind that simply settling for a few points above your current rate of pay is bad advice for anyone and downright crazy for you.

The Women’s Bureau of the U.S. Department of Labor tells us that men out-earn women in nearly every field. (For what it’s worth, my research could not turn up a single industry in which this was not the case.) Even if a woman’s responsibilities, background, and accomplishments are exactly the same as those of her male colleague, she is statistically unlikely to take home a paycheck equal to his. According to the Women’s Bureau, male engineers make 14.3 percent more than their female counterparts. Male mathematicians make 16.3 percent more. Male advertising and public relations professionals make 28 percent more. Male lawyers and judges make 28 percent more. And male editors and reporters make a whopping 43 percent more than women performing the same or comparable work. No offense intended, but I think that this salary-parity gap will only be closed when every professional woman knows her true worth and has the ability to succinctly communicate what she brings to the table, plus the knowledge and willingness to use negotiating skills and determination to her own benefit.

Man or woman, there is no guarantee you are being paid what you are worth. The simple facts are these: If you don’t get it while they want you and don’t have you, you sure can’t count on getting it once they do have you. When a thirty-year-old under-negotiates his salary by just $4,000 on a new job, it will cost him a minimum of $140,000 over the course of a career. Remember, every subsequent raise will come from a proportionately lower base; factor in inflation, and real dollars lost over an entire career span could actually be double this figure.

Salaries are fairly standardized, so the majority of offers will come within your negotiating range. But even if the offer is fair or even exceptional, you can still negotiate.

The state of the job market can impact negotiations too: When supply exceeds demand negotiating upward is harder. Nevertheless, with an offer on the table, the hiring manager has made the decision that she can hire you and get back to work; she and everyone else want to be done with this project; negotiate in good faith and your negotiations will be accepted in the same way.

The formal offer can fall into one of two categories.

If you feel the salary could do with a boost, say so. “I like the job, and I know I have what it takes to be successful in it. I would also be prepared to give you a start date of [e.g.] March 1 to show my sincerity. But quite honestly, I couldn’t justify it with your initial salary offer. I hope we have some room for negotiation here.”

Or you can say, “I could start on March 1, and I do feel I could make a contribution here and become an integral part of the team. The only thing standing in the way is my inability to make ends meet based on your initial offer. I am very interested in the opportunity and flattered by your interest in me. If we could just solve this money problem, I’m sure we could come to terms. What do you think can be done about it?”

The interviewer will probably come back with a question asking how much you want. “What is the minimum you would be prepared to work for?” she might ask. You can reply, “I’d really like to make at least [now respond with your midpoint]. Is something in this range going to be a stumbling block?”

Depending on the interviewer’s response, this is the time to be noncommittal but encouraging and move on to the benefits included with the position: “Well, yes, that is a little better. Perhaps we should talk about the benefits.”

Alternatively, the interviewer may come back with another question: “That’s beyond our salary range for this job title. How far can you reduce your salary needs to fit our range?”

This question shows good faith and a desire to close the deal, but don’t give in too easily’the interviewer is never going to want you as much as he does now. Your first response might be: “I appreciate that, but if it is the job title and its accompanying range that is causing the problem, couldn’t we upgrade the title, thereby putting me near the bottom of the next range?” Try it’sometimes it works. If it doesn’t, it is probably time to move to other negotiable aspects of the job offer.

Evaluating Nonsalary Factors

Money is important, but your career trajectory more so. New jobs are pivotal points in your life that affect not just this job and the next couple of years, but your whole life going forward. They shouldn’t represent decisions made without thought or purely on salary.

The Job and Its Potential

Other questions that might follow include:

Corporate Culture

All companies have their own way of doing things’that’s corporate culture. Not every corporate culture is for you.

Company Growth and Direction

For those concerned about employment stability and career growth, a healthy company is mandatory.

Benefits

Below is a listing of commonly available benefits. Although many of these benefits are available to all employees at some companies, you should know that, as a rule of thumb, the higher up the ladder you climb, the more benefits you can expect. Because the corporate world and its methods of creating a motivated and committed workforce are constantly in flux, never assume that a particular benefit will be available to you.

The basic rule is to ask—if you don’t ask, there is no way you will get. A few years ago, it would have been unthinkable that anyone but an executive could expect something as glamorous as an athletic club membership in a benefits package. Today, however, more companies have a membership as a standard benefit, and an increasing number are even building their own health club facilities. Benefits that may be available to you, if you ask, include:

You can ask these questions over the phone, or request another meeting to review these points. I prefer the latter because you get to meet everyone as the new member of the team and the boss is buoyant because he can at last get back to work. These factors encourage agreement with reasonable requests, as might a tiny worry that you might walk and leave them back at square one.

You may get nothing more than the standard package, but you have nothing to lose by asking and everything to gain. Once the package is straightened out, come back to the base salary one last time: “I want the job, Charlie. I’m excited by the opportunity and working for you and joining the company, but is there anything we can do about the starting salary?” The answer to this question is going to determine what the final offer will be.

Negotiating Stock Options

Stock options, while typically handled in a separate document, will be offered at the same time as your other benefits. It is usually best to address the stock issue once all the others have been settled.

In good economic times, employers turn to stock options as an effective recruitment and retention incentive. Options give you the right to purchase a set amount of stock in the company at a predetermined price (usually attractive) and over a fixed period of time. In exercising your options (buying the stock), you need to remember that stocks can and do decrease in value, sometimes dramatically.

There are several types of stock options, each with its own specific tax ramifications. However, as an employee, you are most likely to be offered “incentive stock options.” Fortunately, with this type of option, you only have to pay taxes on your gains when you sell the stock; if you keep the stock for at least a year after purchase, you will not have to pay capital gains tax.

When negotiating stock options, always bear in mind that they are a gamble. The employer is going to talk about the offered stock options as if they were money in the bank, but they are not. Don’t get bamboozled by rosy descriptions of the company’s future; stay focused instead on the current market value of the stock. This is especially important if you are being asked to accept options as part of your overall compensation package. In some instances, you can be asked to accept options in lieu of cash. If the options you are offered are in any way meant to replace salary, think carefully, as you can’t eat stock options.

If you are accepting a job with a publicly traded company, learn the value and performance of that stock by obtaining public records. On the other hand, if the company is privately held, you’ll have to rely on the information that is provided to you by the employer. In this instance, consider market segment, business strategy, operations, liquidity, and senior management track record. In effect, you are evaluating your faith in the company, the imminence of their going public, and whether or not the company is a start-up or a well-established entity.

Of course, if the stock options do not impact your take-home pay, it can’t hurt to get as many as you can. There is a big difference between getting the options and actually exercising your right to buy and sell them. Your considerations will include: what the purchase price will be, when you can exercise your options, and the restrictions on when you can buy the stock and when you can sell it. These matters will all be laid out in the separate options agreement furnished by the employer at the same time as the employment agreement, so read it carefully before you start negotiations in this area.

Everything to do with stock is negotiable, so you don’t have to accept whatever you are offered without question and negotiation. Naturally, you will ask for more options than you are initially offered. You may not exercise those options, but having them available is in your best interests.

Your stock options will have a vesting period’the length of time you must work for the company before you can exercise your options. The employer, who is using the options as a retention tool, wants the vesting period to be as long as possible, thus tying you to the company with the lure of the stock. You, on the other hand, want to shorten the vesting period and, if possible, get an “incremental vesting schedule.”

An incremental vesting schedule allows you to buy a few shares every month or quarter, probably getting you fully vested in the same period of time, but in smaller, more frequent steps along the way. Another reasonable request is to ask for “accelerated vesting” in the event of the employer merging or being bought by another company. This way, you become fully vested at the time of the acquisition.

Your agreement will also limit the time period in which you can exercise your options—not only when you can first exercise them, but also the point at which your option ends. For your financial flexibility, you will want to negotiate to extend this period as far as you can, even after you leave the company. For example, if you have a noncompete clause, you are essentially still tied to the company for a specific period of time, so it is reasonable to ask if you can exercise your options through the same period of time covered by your noncompete and nondisclosure clauses.

If you are not offered a “cashless exercise provision” you should certainly negotiate for it. A cashless exercise provision allows you to buy stock without spending any of your hard-earned money. The way it works is that when you buy a block of stock, you are simultaneously allowed to sell as many shares as are required to cover the costs of buying the stock; hence it becomes a cashless exercise, leaving you with the stock but not out of pocket.

Getting the stock options is one thing. Exercising them is another step, which you will not want to take without professional financial counsel.

Raises, Bonuses, Promotions, and Other Goodies

Here are a few arrangements corporate headhunters frequently negotiate for their recruits.

Employment Obligations and Restrictions

Any verbal offer you accept is dependent on the offer being in writing and your being comfortable with what’s in the employment agreement. Pay careful attention to what the company will ask of you in signing the agreement. Employment contracts are legal documents designed to obfuscate and intimidate the neophyte. You can and should take the time to have it explained and then take it home and see if you agree with that interpretation; if in doubt, take it to any employment lawyer.

Your employment contract may include:

Assignment of Inventions

If you create anything during the period of your employment, the company may require you to turn it over. This may include work you do on your own time if it relates to your duties at the company.

Nondisclosure Clauses

Companies will likely require that you not discuss company business with any outside source to prevent the competition from learning company secrets. The language is likely to be general and thus unfavorable to you. If you’re concerned about this, try to get the language more specific.

Noncompete Clauses

The company may want to restrict you from working for competitors after you leave the company. This can have a negative impact on your future career, since it restricts your employability. Try to make the language more specific.

Severance

Negotiate for as extensive a severance package as you can’say, a month’s salary for every year of employment or every $10,000 of salary, with outplacement/job search assistance. Since outplacement is only as good as the person giving it, it is preferable to negotiate a dollar amount so that you can spend the money in the way you think most suitable to your needs and with the consultant of your choice.

If you sign a noncompete clause, request that your severance extend through the entire period of your noncompete restrictions. This is a perfectly reasonable request that should be accommodated without trouble.

Relocation

When job-related relocation comes around, we all find ourselves in an ocean of unexpected expenses. So once the overall offer is acceptable to you, key in on relocation issues. Many companies expect to pay all or part of your relocation costs unless you live within fifty miles of your new workplace, in which case you are usually on your own. Since the employer regularly addresses these issues, you should not be reticent about negotiating them.

Relocation packages vary enormously from person to person and company to company. However, if they want you badly enough, employers will usually try to accommodate reasonable requests.

The higher up the corporate ladder you climb, the more relocation services you are likely to receive. On the low end, you may get offered reimbursement for a moving truck and a few hundred dollars for incidental expenses. While the employer expects to bear the cost of your relocation, every dollar spent affects the bottom line of the HR department. So no matter where you stand on the corporate ladder, getting above and beyond the standard offer will require your asking for it.

For example, companies know your relocation costs will be treated as taxable income, but they won’t say anything about it unless you do. Explain that the taxes you expect to pay can amount to 30 percent of the monies spent, and that this would place a heavy burden on you financially. With a typical executive relocation running around $50,000, the tax implications of relocating to accept a new job could come as a nasty shock. Ask that the company pick up the personal income tax burdens you incur as a result of your move.

Only some aspects of your relocation are tax deductible. For example, the costs of moving your personal belongings and one trip to the new location are deductible, but house-hunting trips and the costs of temporary accommodation are not.

Other things you can ask the company to help or reimburse you for include:

It will help your negotiating position to estimate these costs in advance. You can pick up the phone and request estimates, or you can visit websites like www.homefair.com and www.homestore.com, which have electronic calculation tools and cost-of-living comparisons. The latter will help you evaluate how far a dollar will go in the new town in comparison with where you live today.

When it comes to offer letters and employment agreements, the employer naturally hopes that you will accept them as they are presented, but you are under no obligation to do so. Every aspect of the offer is negotiable, and as these are largely issues that have not arisen in the interview cycle, the employer will expect a savvy professional to address them. Remember: This is probably the only time in your relationship with your new employer when you’ll have even a slim negotiating edge.

Handling References When a Job Offer Arrives

A few words here on handling your references when an offer is imminent. When references get checked, employment dates and leaving salary are always verified; don’t think of fudging, as it is cause for a dismissal that could dog your footsteps for years. Beyond that, your immediate past manager is the one most likely to be checked. Depending on the company and your level, coworkers and other past managers can also be contacted.

Call potential references, describe the job you have been (or are about to be) offered, explain why you think it is a good opportunity and why you believe you can be successful (omit these details when talking to exact peers unless the offer is already in the bag). Ask if they think it would be a good fit, and why.

You can then, if it’s appropriate and time allows, tell the reference some of the questions he might be asked. These might include the time you have known each other; your relationship to each other; the title you worked under (be sure to remind your reference of promotions and title changes); your five or six most important duties; the key projects you worked on; your greatest strengths; your greatest weaknesses; your attitudes toward your job, your peers, and management; the timeliness, quality, and quantity of your work; your willingness to achieve above and beyond the call of duty (remind him of all those weekends you worked); whether he would rehire you (if company policy forbids rehiring, make sure your reference will mention this); your earnings; and any additional comments the reference would like to make. This whole list may be an overwhelming amount of information to unload on a colleague, so pass on questions tailored to your situation.

If you have any doubt about the quality of a pivotal reference, take the precaution of having a friend do a dummy check on all references just to confirm what they will say when the occasion arises. Of course, this only works if that friend is a consummate professional capable of carrying it off! This way you can distinguish the excellent references from the merely good.

Better yet, go to www.allisontaylor.com, the leader in the reference-checking business. For a modest fee (about $80 for a basic reference check), they verify references on your behalf. That way you’ll know in advance just who will be your best spokespeople.

Offer Letters and Employment Agreements

Never resign an existing job until you have an acceptable written offer in hand. The rule is: if you don’t have an offer in writing, you don’t have an offer. When that offer letter or employment agreement does arrive, you are in the final stages of negotiation. This is the time when you’ll see if the written offer reflects your understanding of previous conversations, and you’ll see if there are some things still to negotiate.

An offer letter should include specifics about your compensation package, start date, benefits, policies and procedures, and relocation issues; an employee handbook detailing everything you are entitled to as an employee may well accompany the offer letter.

Employment agreements become more common the higher up the corporate ladder you climb and the more critical your work becomes to the success of the corporation. An employment agreement is a more restrictive document that goes into greater detail about what you can and cannot do as a result of employment with the company.

In the employment agreement, you’ll find everything you would in an offer letter, plus issues such as assignment of inventions, nondisclosure, noncompete, severance, and relocation, all of which are likely to be addressed in detail. Any stock option agreement will probably be in a separate document but presented to you at the same time as the formal offer. As these contracts can be extremely limiting and even affect your employability after you leave the company, you may wish to consult with counsel. An employment lawyer can review and advise you on the specific implications of each clause and help you with revised and less restrictive wording. As you will have a solid understanding of the issues, you will be able to phrase your questions succinctly and control the costs of any such legal consultation.

Once you have a clear understanding of the complete offer, review it with the employer: “I understand the offer is …” and after itemizing the components of the offer, finish by asking, “Is this your best and final offer?” With this question, you must look the interviewer directly in the eye, and maintain eye contact. Remember that the tone in which such a question is delivered is important: With the wrong intonation this can be interpreted as combative.

Evaluating the Offer

Once the offer has been negotiated to the best of your ability, you need to evaluate it—and that doesn’t have to be done on the spot. Some of your requests and questions will take time to get answered, and very often the final parts of negotiation’“Yes, Mr. Jones, we can give you the extra $10,000 and six months of vacation you requested”’will take place over the telephone. Regardless of where the final negotiations are completed, never accept or reject the offer on the spot.

Be positive, say how excited you are about the prospect and that you would like a little time (overnight, a day, two days) to think it over, discuss it with your spouse, whatever. Not only is this delay standard practice, but it will also give you the opportunity to leverage other offers, as discussed in the next chapter.

Use the time you gain to speak to your mentors or advisors. First, a word of caution: In asking advice from those close to you, be sure you know exactly where that advice is coming from—you need clear-headed objectivity at this time.

Once the advice is in, and not before, weigh it along with your own observations—no one knows your needs and aspirations better than you do. While there are many ways of doing that, a simple line down the middle of a sheet of paper, with the reasons to take the job written on one side and the reasons to turn it down on the other, is about as straightforward and objective as you can get.

You will weigh salary, future earnings and career prospects, benefits, commute, lifestyle, and stability of the company, along with all those intangibles that are summed up in the term “gut feelings.” Make sure you answer these questions for yourself:

Notice that money is but one aspect of the evaluation process. There are many other factors to take into account as well. Even a high-paying job can be less advantageous than you think. For instance, you should be careful not to be foxed by the gross figure. It really is important that you get a firm handle on those actual, spendable, after-tax dollars’the ones with which you pay the rent. Always look at an offer in the light of how many more spendable dollars a week it will put in your pocket.

Accepting New Jobs, Resigning from Others

Once your decision is made, you should accept the job verbally. Spell out exactly what you are accepting: “Mr. Smith, I’d like to accept the position of engineer at a starting salary of $82,000. I will be able to start work on March 1. And I understand my package will include life, health, and dental insurance, a 401(k) plan, and a company car.” Then you finish with: “I will be glad to start on the above date pending a written offer received in time to give my present employer adequate notice of my departure. I’m sure that’s acceptable to you.”

Notify your current employer in the same fashion. Quitting is difficult for almost everyone, so you can write a pleasant resignation letter, walk into your boss’s office, hand it to her, then discuss things calmly and pleasantly once she has read it. A career spans upward of half a century, so you don’t want to burn bridges today that you may need to cross again tomorrow. Take the time to craft professional documents. One of the companion volumes to this work, Knock ’em Dead Cover Letters, will help you create powerful, professional letters for all occasions. The book is full of examples and has specific sections on acceptance, rejection, and resignation letters.

Notify any other companies that have been in negotiation with you that you are no longer on the market but that you were most impressed with meeting them and would like to keep communications open for the future. (See Chapter 24, “Multiple Job Interviews, Multiple Job Offers” for more on this topic.)

It bears repeating that your resignation is not the time to air your grievances; you have simply been presented with a great opportunity and are thankful for the skills this job gave you. This same person may be checked for a reference down the line, and you want the recollections to be positive.