The Job Offer Is Not Always As Good As It Looks

The Job Offer Is Not Always As Good As It Looks
Have you ever negotiated an offer?

If not, you are not alone. Most people DO NOT negotiate
salary. They accept what is offered.

Whether you negotiate a salary or not is secondary to doing
your homework before accepting an offer. It is always best
to take some time before signing on the dotted line so that
you understand exactly what you are gaining - or losing.

Here's an example of someone who jumped at an offer before
doing his homework.

Nicholas received an on-the-spot offer and was thrilled.
This was the job he wanted and he was anxious to get
started. He was going to get more money, and a bonus. What
more could he ask for?

When he got home that evening, he sat down with pencil and
paper and began to evaluate the offer, and what he was
getting overall. He was not only shocked by what he
discovered, but wished that he could go back and talk about
some of the issues. But, he had signed on the "dotted line"
that afternoon.

Once you sign the offer letter, you have essentially signed
a contract. It is too late to go back and negotiate. Never
accept an on-the-spot offer, unless it is absolutely
out-of-this-world. It is generally wise to evaluate what
you are gaining and losing. Let's look at what Nicholas
found out by doing some simple calculations.

Nicholas was offered $55,000 per year, with a hiring bonus
of $5,000 paid in two payments over the next six months.
This was a $5,000 a year increase from what he was making
on his last job, and a bonus to boot. An extra $10,000.00.

When he and his wife looked over the benefits package they
discovered that he would now have to pay the insurance
premiums for his dependents. His last employer had paid the
premiums for the entire family. -$350.00/per month -
$4200 per year His new vacation package offered two weeks
time off, accrued over the next twelve months. His former
package included three weeks vacation. -$962.00 one week's
vacation pay

Nicholas was receiving a 6.5% yearly bonus, based on
company earnings in his last position. His new company does
not have a planned bonus as part of the salary. Bonuses are
earned based on performance, and given as judged
appropriate. -$3250.00 per year - lost bonus

His former employer matched 50 cents for every dollar
contributed up to 6% on his 401K account. This company does
not match funds. -$1500.00 per year (based on 6%
contribution)

His calculations showed a minus of $10,000 a year from his
new offer, based on cost of insurance premiums, lost bonus,
and lost matching 401K contributions. He wasn't quite so
thrilled with the offer anymore.

At least he got that $5000 hiring bonus, which will cushion
the fall. But even that will be affected - he didn't
anticipate the higher tax rate on "special" checks that was
deducted from the bonus money. These higher rate taxes can
run as high as 41.5%.

Nicholas got the job he wanted, and maybe that is worth
more to him than the money difference. But, it would have
been wise to make the decision with all the facts before
signing the offer letter. He may have been able to
negotiate another $5,000 to compensate for the benefits
differences. Or, given the higher tax rate he could have
negotiated for an increase in the hiring bonus.

It is always best to take some time to reflect on the
"total package." Benefits can be worth another 20-50% of
your salary. There are other factors to consider besides
money - more challenging work, better company, a greater
opportunity. It may be worth giving up dollars now to
invest in your future. However, the decision should be
thought through before rushing ahead.

If pressed to give your answer to an offer on-the-spot,
always stall for time. Tell them that you need to do some
calculations and think about it. There is only one window
of opportunity to negotiate your terms of employment.. Once
you say "Yes!" - the window closes.

Make sure you take the time to consider all your options.
It's not always as good as it looks.

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Carole Martin, America's #1 Interview Expert and Coach, can
give you interviewing tips like no one else can. Get a copy
of her FREE 9-part "Interview Success Tips" report by
visiting Carole on the web at http://www.interviewcoach.com