Negotiation & Decision Making
Compensation Expectation & Negotiation
How much do you expect to earn?
This is one of the toughest questions in a job interview, often asked before getting any kind of an offer, even as early as the first phone interview. This has the effect of encouraging you to talk first, and set the first salary benchmark.
A wrong answer might take you off the callback list. If you aim to high, you might look unaffordable to the employer. If you aim too low you will “anchor” the negation and end up with an underpaid position.
Whether you should make the first offer or not depends upon how much information you have. If you believe you have sufficient information about the other side's reservation value, it pays to make a reasonable opening offer that anchors the discussion in your favor. If you suspect that you may not have enough information you'd be wise to defer an opening offer until you have collected more information.
Call a wide range: research what are the salaries range of the position or similar positions you are interviewing for, there are many sites who can give you an estimate, such as Glassdoor, salary surveys on LinkedIn, and more. Your employer/ interviewer will be more knowledgeable on this subject than you so make sure your range is wide.
Talk about the package you received in your previous position: You can say how much you make considering your bonuses, perks (like a car) and other benefits.
Do not bluff: It is at this point that people are tempted to exaggerate an offer they have received from someone else. You risk getting caught.This may not only risk the current position you are interviewing for but also your reputation (which may hurt future interviewing).
Be honest, but strategic: When asked about other offers, you can say "I am negotiating with other companies”. But make sure it is not a bluff! Start talking to other companies - it will provide you with a helpful feeling of having options whatever happens.
Don’t make a rash decision, when receiving an offer: Ask for time to review it and avoid saying yes or no on the spot. Take at least 24 hours to think about the total package you have been offered and see if it matches your goals.
Evaluating an Offer
Congratulations, you got the job! But should you take it? Always allow yourself enough time to carefully consider the offer, NEVER accept on the spot. Take time to make sure:
- Does this offer meet my career objectives? Role / Function, Industry, Company
- Do I fully understand the offer (see below “Clarifying Questions”)?
- What are the costs/benefits of accepting this position vs. continuing to search?
- Consider the short and long-term consequences of your decision
- Make sure you have the offer in writing.
It is recommended to have a 1:1 meeting with you advisor to discuss the offer and any unanswered questions you may have.
Clarifying Questions
Use this list of sample question to make sure you have all the information required to make a decision.Can you answer all of them?
Job Responsibilities
- What is the position, what will I do?
- Who will I report to?
- What short term goals will be expected of me? Are they reasonable?
- How will I be evaluated and how often?
- What kinds of decisions will I be making?
- What are the long term goals or expectations for this position?
Working Conditions
- What are the working conditions: number of hours per week, overtime expectations, etc.?
- What are the necessary resources to do the job budget, equipment, staff, time?
- Is traveling a part of the position, and if so, how often?
Salary/Benefits/Company Policies
- How are salary increases determined? How often are they given?
- Are there any kind of bonus structures are in place? Is there equity or stock options available?
- What kind of vacation time do I get? How and when do I qualify for increases in vacation time?
- What is my salary structure (Israel only)
- Do I get benefit for being an Oleh Hadash, and if so, what are they?
- Fringe benefits: am I getting a car/phone/laptop?
- Am I getting an “employee savings plan” (keren histalmut), and if so, what kind?
