Corrections or additions?
This article by Kathleen McGinn Spring was prepared for the October 9, 2002 edition of U.S. 1 Newspaper. All rights reserved.
Don’t Leave $100K on the Table
Leave $5,000 on the table upon accepting a job, and
you lose a lot more than that. “Think about it,” says Steve
Wolf. “If you stay with the company for 20 years, that’s
$100,000.”
Take into account the fact that raises tend to be a percentage of
base salary, and even the $100,000 figure does not adequately
represent
the loss.
Wolf, a Princeton resident and the human resources director of Empact
Solutions, speaks on “Negotiating the Employment Agreement”
on Tuesday, October 15, at 7:30 p.m. at a Jobseekers meeting at
Trinity
Church in Princeton. No charge. Call 609-924-2277.
Wolf describes himself as a “trailing spouse.” A graduate
of Michigan State, he holds master’s degrees in management and in
human resources development. After working in human resources at a
large midwestern manufacturing firm, he moved to Princeton with his
wife, Karen Wolf, when she was offered a job as president of Topdeq
U.S.A., an office furniture company with offices in Cranbury.
His wife’s job offer offered the couple an opportunity for an
adventure,
a chance to be an hour away from New York City, and they embraced
it. Upon arriving in Princeton two years ago, Wolf did work for a
biotech company, a high tech company, and a career consulting firm
before landing the job with Empact in New York City. At only 20
people,
Empact is small to have an HR director, but the company is “well
funded and growing,” says Wolf. An Internet company, its product,
EyeQ, is an online subscription service that reports and analyzes
vendors’ compliance with service agreements.
After two decades in human resources, and a few recent job hunting
experiences, Wolf speaks about negotiating an employment agreement
from both sides of the desk:
Preparation is key. Interestingly, Wolf does not begintalking about job negotiations at the point where an offer is made.Or even at the point where a job seeker starts sending out resumes.No, before a single application is filled out, says Wolf, the jobhunter has to be clear on what he needs, and on what he wants.”Whatare your income needs?” he asks. “What are your incomegoals?”The two are different, and each needs to be addressed.Before the job search begins, sit down and look at your budget. Ifyour monthly outgo is $5,000, you need to look at jobs that will coverit, or you need to reduce your expenses. Remember to factor in anyadditional commutation, relocation, or cost of living expenses aparticularnew job could bring.As for goals, if you want to be making $400,000 a year by the timeyou are 40, don’t bother looking in industries where top managementtops out way short of that figure.Establish salary targets, says Wolf. Decide on the minimum you willaccept, your goal, and the highest salary that appears possible.Establish value early. The salary, benefits, and perksa potential employer is likely to extend depend upon the value hethinks you will bring to the job. Start to establish your value fromthe very first contact. Your resume, cover letter, and early phonecontacts all need to express — succinctly and clearly — theattributes you would bring to the job.Spend time on research. As you close in on an industry,and then on a company and a specific position, learn all you can aboutwhat the range of possibilities for compensation. Look at marketconditions,read advertisements for similar jobs, and check Internet job sites.Ask as many people as you can for input on what your potentialemployeris likely to pay — and what benefits he is likely to extend —for the position for which you are interviewing.Sit tight. “Delay the rewards conversation for aslong as possible,” says Wolf. “You will be building your valueproposition, getting buy-in from the hiring manager. You want himto think you are the best candidate.” Better yet, he says,”youwant him to think you are the only candidate.”People who raise the salary issue early “give a reason toeliminatethemselves,” Wolf says. “I have met people who have said `Ineed XYZ,’ but they haven’t established that they are worth XYZ.”In an extreme example, he recently sat with a candidate who saidwithinfive minutes, “I’m glad to get to know you. While I have yourattention, I want to tell you want my needs are.” Would this guyhave moved along toward consideration? “I don’t know,” Wolfsays. His first five minutes as a serious candidate were also hislast.In this way, says Wolf, negotiating a salary is like dating. Thepersonmet on a first date could be exceptional in every way, but if he/shesays “what about marriage?” at the end of the evening, chancesare excellent that the relationship is going to end right there.React to the job offer. After the second or third roundof interviews and the reference checks are over, there probably willbe a job offer. No matter what it is, Wolf emphasizes, “alwaysbe polite and grateful.” The person extending the offer may besomeone with whom you will be spending a lot of time over many years.The relationship is important.Keep emotion in check. Anyone who has been out of workfor any length of time might be strongly tempted to jump up and downat a job offer, any job offer. Restrain yourself, is Wolf’s advice.”Emotion can creep in,” he acknowledges. Dampen it with thethought that leaving just a few thousand dollars on the table couldsubtract a six-figure amount from your lifetime earnings.Raise the ante. After thanking the hiring manager forthe job offer, it is possible to ask for more money, or to ask forany number of additional perks, ranging from a laptop computer tomore vacation to a telecommuting arrangement. While the possibilitiesare endless, Wolf advises keeping the requests in the low singledigits.”Three is a good number,” he says. Four is okay, too. A12-itemlaundry list probably is way too long.The knowledge gained from preparing for the moment an offer is madecan guide the requests. If your sources have told you that the amountoffered is at the high end of what the company generally pays forthe position, and if they also have told you that there is a goodsupply of talent ready to fill the position at that salary, you mightnot want to push for too much more money.However, says Wolf, no matter what the economy, getting an additionalweek of vacation generally is an easy sell.Offer explanations. Tell the hiring manager why you wantto telecommute one day a week, need a laptop you can take home,deservefive weeks of vacation, and are worth an additional $10,000 a year.Make the case simply, but persuasively.Go home to think. No matter how good the offer, sleepon it. Tell the hiring manager, Wolf advises, that you want to talkit over with your family. “If nothing else,” he says,”takea day to enjoy it. Take your spouse out to dinner.”Get back by phone. Decision made, present it in personif possible. This is often inconvenient, however, Wolf concedes,suggestingthat the telephone is the next best thing. If you are waiting fora response to your counteroffer, be prepared to accept or reject itbased on the expectations you set up at the beginning of your search.Leave the door open. If you do not get the salary, workingarrangements, or benefits that you hoped for, but still want to acceptthe job, it is a good idea to use the negotiations to ask that theissues be revisited at a specific time in the future, maybe six ortwelve months down the road.Keep in mind, says Wolf, that the negotiations over your initialsalary and other terms of employment are absolutely the best chanceyou are likely to have to set your own terms. “After you arehired,”he says, “the window is pretty much closed.”Top Of PageCorporate AngelsBetty Brite Cleaners has launched its 13th annual Coatsfor Kids campaign. The company collects coats at its dry cleaninglocations, picks them up from customers, and organizes collectionpoints in stores, professional offices, and schools. Gently used coatsare cleaned and distributed to those in need. Over the past 12 years,the company has collected more than 12,000 coats.Says Arthur Weiss of Betty Brite Cleaners in Windsor: “We arehelping to solve a problem where those less fortunate may otherwisefind themselves unprepared for the cold winter to come.”To sign up to collect coats or to volunteer to deliver them, callWeiss at 609-426-4600.The Trenton Thunder and First Union Bank haveawarded2002 Educational Winner’s Circle grants. Stony Brook-MillstoneWatershedAssociation is the main recipient, and will receive $25,000 to expandtheir Trenton Link Program. The other recipients are People andStories-Gentey Cuentos and the Princeton-Blairstown Center High Quest Program.The Thunder and First Union developed the Educational Winner’s Circlein 1994 in an effort to support local non-profit organizations whichenhance educational opportunities for area children. Both the Thunderand First Union donate five cents for every ticket sold during thebaseball season. Since the inception of the Educational Winner’sCircle,more than $365,000 has been donated to groups in the area.Mack-Cali Realty Corporation is donating $75,000 toimproveSayen Gardens, a public park in Hamilton. Plans call for theinstallationof an underground irrigation and sprinkler system.Other upgrades to the park, which is located at Mercer Street andHughes Drive, include new benches, a pond, fountains, and landscaping.Says Mitchell E. Hersh, CEO of the real estate trust: “We’re happyto build on our alliance with the Hamilton Township community andto enhance the quality of life for both its residents and its businesscommunity.”Previous StoryCorrections or additions?This page is published by PrincetonInfo.com— the web site for U.S. 1 Newspaper in Princeton, New Jersey.
