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Negotiating an Offer

Many things happen when you get an offer. Primarily the ball is in your court for the first time. Prior to this the company has called the shots. But now you have convinced them that you are the best person for the job and is giving you an offer. You will never again have the leverage to negotiate your compensation and benefits.
The Cardinal Rule of Negotiating is: “The person who speaks first loses.” If you have not handled salary correctly during the interview process then you may have already lost. If you have handled it right then the company which has made the offer may have lost already and delivered an acceptable offer or is about to lose when you suggest a better compensation and benefits package.
Cardinal Rule of Negotiating
“He or she who speaks first loses.”
What can be negotiated? Almost anything, especially at senior management levels. For instance:
Advancement opportunities
Employment contract
Severance agreement
Salary and/or salary grade
Bonuses and first year guaranteed minimum
Working conditions: office location, etc.
Early vacation eligibility or extra vacation
Flexible work schedule
Additional moving expenses
Starting date

Example of poor negotiating

One executive was very concerned that she duplicate her previous salary which she considered quite generous. When the company was coming close to an offer and asked what salary she needed, she said that she wanted to duplicate her previous salary and mentioned the number. She was offered the job and was quite pleased. Several months later she was in charge of preparing the next year’s budget and learned that everyone else at her level in the company was earning a base salary 40% higher. LESSON He/she who speaks first loses.
Most people have a very poor estimation of their ability to negotiate a better offer. However, you can assume that, if you accept the initial offer, you have left something on the table.
Do not accept a salary that is too big
Most people think that no salary offer is too big. But let’s consider some of the pitfalls of accepting a salary that is considered to be high for a given responsibility.
Could it be that this company is offering such a high salary because they have a bad reputation and have been trying to fill this job for ten months? If you do not know why they are offering a high salary, it is may be that you have not yet found the termites in the woodwork that are keeping others from accepting the job.
If you accept the offer and your salary is too high for the marketplace, how can you move easily to another company later should you want or need to move? Most companies do not like to bring someone on board at a lower salary than they had been making, usually because they feel the person will continue to look until they find something better. So accepting a high salary now could put you in a severe bind later.
If your salary is high for your level within a company it becomes more difficult to move to a different part of the company.
Another danger – if your company should have cutbacks, will you be targeted because your salary is very high and you can be replaced by someone making less? This has happened in many companies.

Do not accept a salary that is too small

Accepting a salary which is low for the responsibility has its own problems. Your motivation and attitude may be affected negatively. Your level of responsibility, as perceived by others, will not be a great as you would like – therefore it will be harder to get the choice promotions or move to another company later.
The key is to be paid fairly, not too high and not too low.

Turning an offer down

Be firm. If you say you would like to accept it but the (salary? pick one) isn’t right, you are just setting yourself up to get a better offer and take the chance on developing hard feelings before all is said and done. Never enter into negotiations unless you are ready to accept a better package.
Accepting an offer
After many weeks or months of hard work you have negotiated an acceptable offer. What do you do now?
Most people react with a sigh of relief and begin the end-of-search celebration. But don’t. Perhaps the most important and most sophisticated phase of the search has just begun – if you do it right.
When you receive an offer, you can assume that the best thing to do is not accept the offer on the spot. Many people do accept on the spot but it is hardly ever necessary. Typically managers can be more flexible and offers more open to negotiation the higher in the organization the position is located. But even at a junior level, an offer perhaps should not be accepted on the spot. You need time to consider your next step.
You may want to stall so you can use this offer to extract offers from other companies. How can you stall?
First take “possession” of the offer, “Thank you for giving me the offer.”
Then explain why you are not accepting on the spot, “I have a few questions first.” “I would like to take (a few days – a week – ?) to discuss the offer with (my family), to consider its provisions and to be sure all my questions are answered.”
At a minimum, there will questions to be asked. Remember the questions that you did not ask during the interview process because you were focusing on questions about the company’s needs rather than your own? That is what helped sell them on you. You have proven to the company “What you can do for them.” Now it is their turn to show you “What they can do for you.” Do you understand, as well as you should, the job responsibilities, the pay and benefits, opportunities for the future, the stability and growth of the company, etc.?
Next, take a look at your list of what you wanted in a job and the things you wanted to avoid (Chapter 2, Exercise 4). How does this offer stack up with what you have on your list? Are there any major problems? Would you have considered this job to be a good opportunity if it had come along before you lost your last job? Are you sure that the job is one in which you are interested and one you have the skill to handle?

Multiplying offers

For those who enjoy negotiating, have a strong stomach for suspense and can play their cards close to the vest – there is a way to make the negotiating stage of the job search extremely interesting.
When you receive an acceptable offer, you can use the first offer to draw out other offers. How can you make something like that happen? There are two reasons.
One is that when you get the first offer and let other interested parties know you have an offer, you immediately become a more desirable candidate.
The other reason is that when you call Company B and tell them that you have an offer and want to know what they are going to do, they will sometimes speed up their decision making. Coupled with the reason above, you can expect a higher than normal chance of getting additional offers.
Do not use this process carelessly. Do not bluff. This process can backfire on you severely if you do not start this procedure with an acceptable offer in hand.
If you are among the relatively few who make this process work and find yourself with two or three acceptable offers, you have an enviable but very difficult decision to make. The great advantage is that your decision will more than likely be more objective since you have a real choice.

Getting an offer in writing

The prudent person will ask for the offer in writing. However, others say that they would not want to work with a person unless they trusted that person enough to have a handshake agreement. You decide. There are many reasons for getting an offer in writing including helping memories about a severance agreement should the relationship sour over time. Some believe that it is more important to get an offer in writing and in some cases a formal employment contract if you are leaving one employer for another. A similar condition would exist in accepting an offer for a job which does not start for a period of time during which you will be expected to shut down your job search.

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CEN News

St. Gerard Majella

          Career Development Series
          Comunication and Human Behavior
When: Tuesday, April 18, 7:15-8:30pm
Where: St Gerard Majella
          Catholic Church Building 2005,
          Parish Meeting
          1971 Dougherty Ferry Rd,
          St.Louis, MO 63122 Room 224
Please join us at our next Career Development Workshop, where Jason Mainard will lead an interactive discussion that focuses on ways to improve your communication skills. At this meeting, Jason will discuss the critical importance of asking questions and will provide numerous examples of “what” to ask and “how” to ask it. In addition, Jason will explain the “Pain Funnel” and how it allows you to become a better problem solver. Anyone involved in sales knows the importance of asking the right questions but these techniques can also improve communication with your boss, colleagues, clients and even your family. This is a class you should not miss.

Jason Mainard has 20+ years of training and leadership experience. He has 10+ years of solid sales, sales management and marketing experience including sales trainer with one of the nation’s largest home builders. Jason's sales and training experience enables him to offer a real world perspective to his clients. Jason has a strong passion for helping people obtain their goals and succeed in their careers.

This is the third and final meeting at which Jason has volunteered to speak about career development topics. We are very thankful and believe you will find his learning objectives to be critically important to you in your career development. And don’t forget, there is never any cost for our service.

We hope you will join us so we can continue to help and support each other! If you have questions or would like to help, please contact:
Steve Jones , or Ann Weinerth or Nick Wnuk or Barbara Axmacher

Our BJC talent acquisition team is hosting the second annual BJC Virtual Career Fair on Feb. 22 from 9 a.m.-7 p.m. We will bring together recruiters, hiring managers and potential job candidates in a convenient, online environment. Registration for the event is now open, and I invite you to share this career fair information with your teams, family members and friends. We will use BJC Today, BJCnet and local e-newsletters to ask our current team members to share Virtual Career Fair information with their friends and family who may be interested in making their career better at BJC. Employees may even be eligible for a referral bonus if they refer a career fair guest who is hired. This event is not intended for current employees looking for internal job opportunities. We will promote the event for people outside of our organization using several external channels, including our BJC Talent Network, digital radio, social media and career sites. Guests will access the online event using their computer or mobile device from any location. They will be able to:
  • Visit 25 virtual booths dedicated to different career fields.
  • Chat live online with recruiters and hiring managers.
  • Get real-time answers to questions.
  • Learn about BJC Total Rewards.
  • See how they can make their career better at BJC.
We ask of you: please invite your friends and family who may be interested in a career opportunity at BJC to attend our Virtual Career Fair and register in advance at Unemployed??? Visit and sign up for CEN's periodic job postings on the Home Page.

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Holy Spirit

CEN welcomes Holy Spirit, Maryland Heights, as their newest CEN parish, offering support for employment seekers. If you are looking for work or would like to volunteer your help for our newest startup, contact Jeff Pattison , 314-853-6197.

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