Accepting that first offer

A long time friend called the other day to discuss his latest job offer.The friend was quite satisfied and ready to accept the offer until we ran through the details together.After a few questions about the process I learned that my friend was about to accept the employer’s first offer.Now this wouldn’t have been the end of the world…the offer did meet the basic compensation requirements.

Negotiating legend Chester Karrass likes to point out that we should rarely, (OK he uses never), accept the first offer.His premise is two fold:

1. First offers are usually built with the expectation that there will be a negotiation so there is something “held back”.

2. The party making the offer will often feel badly about the deal if it is accepted right away….they’ll wonder if perhaps the offer was stronger than it had to be.

Great points of course.

I’ll add another thought… Over the years as a hiring manager and a “student of the game” of negotiating, especially jobs and job offers I often ask the question:

What is the single largest mistake a candidate makes in a job/compensation negotiation?

By far the most dominate answer is that the candidate fails to negotiate!

This leaves the hiring manager not only with the feelings as described above but in some vocations there’s perhaps a bit of remorse or concern about having made the offer at all. Imagine if you are hiring for a sales or customer facing vocation where negotiations are a part of your everyday job function. The hiring manager might be concerned if the candidate cannot show a bit of negotiating tenacity in a dialogue where personal motivation ought to be quite high.

It is lightning strike rare for an offer to be pulled back simply because a professional request for improvement was made.

The vast majority of the time you’ll end up like my friend. We looked at a few aspects of the offer that could be part of a counter….and today he has a new job with a larger signing bonus and more stock options than he would’ve received if he had said yes before he said no!

© 2007 Burt Hadlock

tags:
first offer,
job offer,
Negotiating,
counter offer

Haiku: The Surprise Call

Do not take the call

Unless you are ready to talk

To your agenda

 

© 2007 Burt Hadlock

tags:
take the call,
haiku,
Negotiating,
agenda

Haiku: Silence is Golden

Negotiations

Most mistakes are when we speak first

Listen, learn, then act

© 2007
Burt Hadlock

 

tags:

negotiations,

silence,

haiku,

Negotiation techniques

A Bit of a Re-think…

The blog has gone unchanged for some time now as I have been going through a bit of a business process and living a hectic life.Many of the old posts have been archived to make room for a new series of reviews. 

Folks, over nearly 25 years I’ve taken several negotiation courses/seminars and have training in a seemingly endless list of sales and relationship management techniques. I’ll bring that experience to this blog as I comment on some of the many books and seminars I’ve been exposed to or continue to participate in.

The “Parachute” review has been left in place as a forerunner for reviews to come.

Also in place still is the rant reminding me and anyone who cares to listen that the Eagles lyric:  “…sometimes to keep it together you’ve got to leave it alone…” applies more often that not to our business and personal relationships.I am a member of a fellowship that constantly suggests that I keep my ego and desires “right sized”.  A mentor has often sited the notion that some people would rather be right than happy.

We are surrounded by bright, talented and creative people who trip over their egos and never quite realize their potential.  Often they are so unhappy in the pursuit of success that the journey gets so elongated they never get to their vision of success.  How many people do you know that could lead the league but for their short temper, obsessions, or ease of distraction from that which is truly important?

Getting from being ranked third or fourth in your field or from the proverbial “bridesmaid” position to leadership is an inside job. Remember your meds, forget the booze, and get off your high horse and on your knees and life gets better.

So in negotiations, business and life I try to keep a proper perspective on what is really important and carefully examine my motives to remove bitter seasoning such as vengeance or arrogance from the recipes I employ. I don’t manage to do it perfectly but I keep trying…

In that light I plan to continue blogging….   Watch for more reviews very soon! 

Need v. Greed

NEED V. GREED:

This post figures to be more of a rant than anything else…

Midday radio programming on the local talk station, KGO, was recently altered to feature a lawyer dispensing advice in a very entertaining manner. Often the advice is more common sense than pure legal guidance. Sometimes it’s about the letter of the law or at least helping listeners understand the law.

Recently a call came in from a man who had been in an auto accident. He had been rear ended…a classic “other guy at fault” claim. He had not been injured and told the officer that at the scene. His vehicle was totaled but replaced by his insurance company. He went on to say that he had no other losses and in effect was made whole by the insurance coverage.

The other driver’s insurance company called, apparently more than once to make sure that he had not been injured and that he had no further claims. He was a little sore the day after the accident he explained to the lawyer, but had recovered without medical help and was really feeling just fine…but they do keep asking he suggested…

Len Tillem,  “loi-ya” called him on it. The caller was just looking for a way to cash in on the cautiousness of the insurance company. The caller acknowledges he was hoping for some “trick of the trade” advice from the lawyer that he could use to squeeze some bucks out of the insurance company. With no real injury, no bills to pay, (or substantiate the claim), a trick was what was needed. The lawyer was quick to suggest that the caller let the insurance people know that some back and/or neck problems seemed to be cropping up.

He might miss some work, would probably go see a doctor or chiropractor. If he did that the lawyer suggested the insurance company would probably be quick to write a check for two or three grand to shut him up.

That is not a “trick”, it’s a lie.

In an ongoing relationship it would be very dangerous to your current and future negotiations to use that sort of trickery. In a one time situation like the above case the consequences are probably more subtle. Claims are paid out of proceeds from insurance premiums…every time you wince at your insurance bill or grouse about insurance companies you can thank people like the caller above for their contribution.

We all do something like this or perhaps know someone addicted to trickery.

Even though a good or service fundamentally met the objective of the original arrangement there’s that tendency to try get something out of a situation.

Ultimately we all pay the price in higher prices.

I’ve got a relative that loves to pounce on the mistakes of any service provider. Perhaps there was a bad meal or poor service at a restaurant? Maybe something awry in the air travel? Didn’t get a chocolate on your hotel bed pillow? Call the manager! Write that angry letter! Get the freebie!

That is not negotiating folks, it is trickery.

You are not getting something you need, it is just plain greed.

© 2007 Burt Hadlock

tags:
Len Tillem,
greed,
KGO,
insurance

Review: What Color Is Your Parachute? 2007

I spent some time over the weekend with the great job and career resource that is the book, “What Color Is Your Parachute 2007”.

This version is the thirty-sixth annual edition of this powerful career guide.

It is beyond my skills as a writer to heap higher praise on the book than has already been offered by so many. My intent with this piece is to offer some user advice on how to deploy Mr. Bolle’s wisdom in a negotiation.

The good news is that there is a chapter on negotiating salary in the book. Jumping to chapter 7 to understand salary negotiation would be a dangerous shortcut however.

The author acknowledges early on in the chapter that entire books are written on the topic of negotiating but goes on to offer a distilled guide to negotiating salaries. He offers six secrets on negotiating as the guides to success in salary negotiations.

These secrets are spelled out over twenty pages with some treatment as to how to deploy them. They are sound principles that have been identified by a number of experts in numerous volumes and forms over the years.  Any weakness comes from the hazard presented should a reader deploy these tactics solely based on their presentation in the chapter. Precious little space is given to application and skill building. Taken alone the chapter would be woefully insufficient training or guidance in a salary negotiation.

My advice is two fold:

1. Read the whole book. It is a wonderful guide to career management and job seeking. It should go without saying that no chapter should be asked to stand alone. The remainder of the book is full of invaluable guidance to the interviewing, research and self analysis that will instruct your negotiation. The book as a whole is a fine salary negotiation reference…just don’t rely on the single chapter.
2. For that matter, don’t rely on this single book as your negotiating platform. Read books dedicated to negotiating and apply one that resonates to your career negotiation.

 

Finally I would add that “Parachute” has salary as the primary negotiating focus. I prefer to use compensation as the euphemism for the negotiation objective. Salary is an important component in overall compensation but individual circumstances may dictate other components to be of equal or greater value in your efforts to maximize the offer. Consider components such as commute/telecommuting, stock, expense allowances, vacation time, and many others as more than “fringe” benefits.  At certain points in your life these variables change in meaning and value. Flex time or proximity to home may mean more to the parent of active children than the non-parent. Your cost of living may allow for a larger mix of stock and bonuses than someone who needs a larger cash flow from maximized salary.

There are no equations or graphics to define that for you. Use the skills associated with the rest of the book and other resources to determine what “color” your compensation should be. Then use solid skills to negotiate the compensation package best suited for your life circumstances.

© 2007 Burt Hadlock

tags:
bolles,
What Color Is Your Parachute,
career guide,
book review