Potential employer wants me to give offer - how to respond?

Questions on how we spend our money and our time - consumer goods and services, home and vehicle, leisure and recreational activities
User avatar
Abe
Posts: 1731
Joined: Fri Sep 18, 2009 5:24 pm
Location: Earth in the Milky Way Galaxy

Re: Potential employer wants me to give offer - how to respond?

Post by Abe » Tue Feb 06, 2018 12:15 pm

A Mega-corporation is highly skilled in salary negotiation, more so in most cases than the people they are hiring. A skilled negotiator will try to get information that is useful to them. The more information they get, the more likely they will prevail. When the Mega-corporation ask the OP "what it would take" for him to join, they are fishing, trying to get information that gives them an advantage. They may have been willing to pay him much more than the number he would take. Once they know what he's willing to take, they can offer him that amount or a little more and still not have to pay him the maximum amount they were willing to pay. One may not be able to pull this off every time, but it's generally better to get the other side to throw out a number first. In negotiation it's good to have negotiation skills; it's also good to know when others are using these negotiation skills on you and that is what's happening here.
Slow and steady wins the race.

JuniorBH
Posts: 52
Joined: Fri Jun 09, 2017 12:54 pm

Re: Potential employer wants me to give offer - how to respond?

Post by JuniorBH » Tue Feb 06, 2018 4:58 pm

Several people have made this point and I agree; figure out what number you need to switch, and ask for it. And then don't come off that number. If they say "what will it take " and you say "$150K", if they come back lower, simply refuse. That's it.

And I understand the anxiety of asking for a number and "leaving something on the table". If that's the case, play the game differently; if you want $150K, tell them you want $160K and see what they come back with. But, in the case, you can still refuse if they come back $150K or maybe you get lucky and get the $160K.

User avatar
greg24
Posts: 3045
Joined: Tue Feb 20, 2007 10:34 am

Re: Potential employer wants me to give offer - how to respond?

Post by greg24 » Tue Feb 06, 2018 5:17 pm

Everyone complains about companies lowballing them. Well, for once, the ball is in your court. Shoot for the moon.

Pretend you make $100k. You think an offer of $150k would make you ecstatic. Then tell them you want $175k. Or $200k.

Anchoring works both ways. If you throw out a huge number, they're not going to be comfortable coming in well below the number.

YOU HAVE ALL THE LEVERAGE. You are in a job you like. You don't need this job.

Shoot for the moon.

Random Poster
Posts: 1594
Joined: Wed Feb 03, 2010 10:17 am

Re: Potential employer wants me to give offer - how to respond?

Post by Random Poster » Tue Feb 06, 2018 5:37 pm

noraz123 wrote:
Sun Feb 04, 2018 5:55 pm
I recently interviewed with Megacorp, and things have gone well. They have said they'd like to make an offer. However, instead of making an offer, they asked "what it would take" for me to join. Essentially, they want me to throw out the first offer.

I am not sure what to say. I do not want to give specific numbers like $X salary, $Y bonus, etc. My thinking is to tell them that I am excited at the prospect of joining, believe that I could add much value, and for the right opportunity offer, would accept.

How should I best respond?
Might be too late now, given their more recent reply, but I would have responded with "An offer that will wow me. I'll leave it up to you all to figure out how to do that."

I guess it is possible you could use some variation of that response to their request for what the comp package should be.

User avatar
Abe
Posts: 1731
Joined: Fri Sep 18, 2009 5:24 pm
Location: Earth in the Milky Way Galaxy

Re: Potential employer wants me to give offer - how to respond?

Post by Abe » Thu Feb 08, 2018 1:25 pm

Years ago a very wise person advised me to get the book, "Secrets of Power Negotiating", by Roger Dawson. I am very glad I did because the information I got from that book has made me a lot of money over the years. In the book Dawson explains negotiation gambits, which are tactics you can use to achieve your negotiating goals . Before reading the book, I didn't realize how many times other people were using the gambits on me. I remember one time, after reading the book, I made an low ball offer to a salesman. He got this shocked look on his face and said, "what", as though he couldn't believe what I had said. I said to him, "that was a good flinch". A flinch is a negotiation tactic where the individual pretends to be shocked at your offer. He knew then that the flinch tactic was not going to work because I knew what he was doing. Another poster up thread said that this is 2018, implying that these negotiation tactics are old fashioned and hence don't work any more, but I can tell you that they work in 2018 just as well as they did 50 years ago. Even if you don't want to use these gambits on others, it's very worthwhile to know when they are using them on you, and I guarantee you they will use them.
Slow and steady wins the race.

FoolMeOnce
Posts: 106
Joined: Mon Apr 24, 2017 11:16 am

Re: Potential employer wants me to give offer - how to respond?

Post by FoolMeOnce » Fri Feb 09, 2018 3:47 pm

noraz123 wrote:
Mon Feb 05, 2018 5:07 pm
As mentioned, I sent a note yesterday saying that I would consider total compensation, not tied to any number, etc.

They replied back with this:
Next steps are you just need to let me know what comp package (base/sign on/RSU combo) it would take for you to make the move. Have you decided yet?
I'm thinking of saying something like, "My biggest motivation is to make the move to further my career. If I assume I were have the identical responsibilities I have today, then here's what it would take me to come [insert very high offer details of base/rsu/signing bonus here]."

Good idea? Should I not give any numbers? Should I not mention anything about "identical responsibilities"? I'm terrible with negotiating, and very much appreciate the avdice of crowds, at least when the crowds are Bogleheads.
So.....what happened? "Enquiring minds" and all.

noraz123
Posts: 189
Joined: Tue Jun 10, 2014 1:23 am
Location: SF Bay Area

Re: Potential employer wants me to give offer - how to respond?

Post by noraz123 » Thu Feb 15, 2018 10:36 am

FoolMeOnce wrote:
Fri Feb 09, 2018 3:47 pm

So.....what happened? "Enquiring minds" and all.
I gave them numbers 30% more, and am now waiting to hear back. Things move slowly at megacorp. :happy

Jack FFR1846
Posts: 6657
Joined: Tue Dec 31, 2013 7:05 am

Re: Potential employer wants me to give offer - how to respond?

Post by Jack FFR1846 » Thu Feb 15, 2018 10:42 am

Think about it and decide for yourself what it would take to move you from a job that you currently like. Any number is fine. Go into it with the mindset that you can just as well stay where you are as move. The more you really want to move, the lower the number would be. The less you want to move, the higher.

Personal example. I interviewed for a position similar to what I had with some added responsibilities. As I delved more into the requirements, I realized that the added responsibilities were far more than first talked about. I decided that they were almost talking about enough work for 2 people. So I gave them a number that was twice what I was making. You'd think they'd laugh at that offer. Their response? "And how much equity would you require?".

I changed my tact and just told them I didn't want the job.

My point is that no number is out of line. If they can't do it, they'll negotiate.
Bogle: Smart Beta is stupid

michaeljc70
Posts: 2618
Joined: Thu Oct 15, 2015 3:53 pm

Re: Potential employer wants me to give offer - how to respond?

Post by michaeljc70 » Thu Feb 15, 2018 8:53 pm

They asked you what it would take. We can't tell you what you would take. You don't need the job. In fact, it sounds like money would be the only reason to move. So tell them what it would take. Aim high- you have nothing to lose. There is always risk in changing jobs.

Why play around? If you try some deferral tactic and then they throw out a low offer, what good does that do? Then you have to counter (thereby putting out a number) or decline.

noraz123
Posts: 189
Joined: Tue Jun 10, 2014 1:23 am
Location: SF Bay Area

Re: Potential employer wants me to give offer - how to respond?

Post by noraz123 » Wed Feb 21, 2018 1:16 am

I wanted to give an update. I gave my numbers, 30% more in total compensation. They agreed, and looks like I will be joining Megacorp, albeit I am now waiting on formal written offer.

Thanks everyone for the help and advice, much appreciated.

User avatar
BrandonBogle
Posts: 2014
Joined: Mon Jan 28, 2013 11:19 pm

Re: Potential employer wants me to give offer - how to respond?

Post by BrandonBogle » Wed Feb 21, 2018 2:41 am

noraz123 wrote:
Wed Feb 21, 2018 1:16 am
I wanted to give an update. I gave my numbers, 30% more in total compensation. They agreed, and looks like I will be joining Megacorp, albeit I am now waiting on formal written offer.

Thanks everyone for the help and advice, much appreciated.
Congrats! :sharebeer

Tamales
Posts: 1218
Joined: Sat Jul 05, 2014 10:47 am

Re: Potential employer wants me to give offer - how to respond?

Post by Tamales » Wed Feb 21, 2018 11:30 am

noraz123 wrote:
Wed Feb 21, 2018 1:16 am
I wanted to give an update. I gave my numbers, 30% more in total compensation. They agreed, and looks like I will be joining Megacorp, albeit I am now waiting on formal written offer.
I imagine you are having second thoughts about what you proposed, since they agreed with no modifications or pushback (implying they might have gone higher). Don't. You were satisfied with what you proposed or you wouldn't have proposed it.

JuniorBH
Posts: 52
Joined: Fri Jun 09, 2017 12:54 pm

Re: Potential employer wants me to give offer - how to respond?

Post by JuniorBH » Wed Feb 21, 2018 4:05 pm

Tamales wrote:
Wed Feb 21, 2018 11:30 am
I imagine you are having second thoughts about what you proposed, since they agreed with no modifications or pushback (implying they might have gone higher). Don't. You were satisfied with what you proposed or you wouldn't have proposed it.
Agree; congrats!

noraz123
Posts: 189
Joined: Tue Jun 10, 2014 1:23 am
Location: SF Bay Area

Re: Potential employer wants me to give offer - how to respond?

Post by noraz123 » Wed Feb 21, 2018 6:36 pm

Tamales wrote:
Wed Feb 21, 2018 11:30 am
noraz123 wrote:
Wed Feb 21, 2018 1:16 am
I wanted to give an update. I gave my numbers, 30% more in total compensation. They agreed, and looks like I will be joining Megacorp, albeit I am now waiting on formal written offer.
I imagine you are having second thoughts about what you proposed, since they agreed with no modifications or pushback (implying they might have gone higher). Don't. You were satisfied with what you proposed or you wouldn't have proposed it.
I do not have second thoughts, but I didn't quite give the full update. Megacorp initially came back to me with about 15% increase in total compensation, and I immediately said no (that was last Friday). They came back yesterday, and agreed to my terms.

But I think that even if Megacorp came to me initially and agreed to my terms, I would be happy. I gave my number and was comfortable to accept it, or to say no.

Thanks everyone again for the advice. Very much appreciate it.

Post Reply