Evaluating the Offer

I already noted that previous salary is just one data point I look at when formulating an offer. If possible we'll try to top it, but only if the result is still around the market rate for the job. And keep in mind this is not an exact science.

Some companies try to make the process more predictable by defining job grades such as “Engineer I” or “Engineer II”, but how do you determine which grade a candidate falls into? Or where they should fit within that grade? Years of work experience is not a reliable indicator of competence, nor is their education level.

In my company the hiring manager generally negotiates the salaries (subject to executive approval), rather than HR. I don't know whether that's how it works in other companies, but that's how it was done in all the companies where I was a manager.

Hence as the hiring manager I have to make a judgment call based on my evaluation of the candidate’s skills. That call may mean a significant swing in the offer by thousands or even tens of thousands of $ in either direction. I'm trying to arrive at a fair salary that both the candidate and the company can live with. I know that if I overpay for a candidate, it will upset our salary structure and potentially bust our budgets. Conversely, if I lowball somebody they'll just be unhappy and sulk, and probably bolt for another job the next chance they get. That will cost us tens of thousands of dollars in lost productivity and recruiter fees.

So what does this mean to you as a candidate? Well, when you’re first quoted an offer your reaction may be elation or disgust. Possibly “Holy, cow, I‘m rich!”, or “What the hell, are they kidding me? Is this a slave galley?” But more likely it will be somewhere in between, a ‘meh’ kind of reaction.

But before you dismiss the offer, keep in mind that most offers are negotiable. Not all of them, but many are. Unless you come in at the very top of a company’s desired salary range it’s usually possible for them to bump up the offer by a few thousand $. It won’t make a huge difference to them, but to you it may mean the difference between a mediocre offer and an attractive one.

So it doesn’t hurt to ask for more; the worst that can happen is they’ll say no. I’ve never heard of, and can’t imagine, a company simply retracting an offer because they were offended that a candidate tried to negotiate a higher salary.

Next time: More on the Negotiation process.