PRDV217: Introduction to Sales

So you have completed all your interviews, and it is the moment of truth … you are on the verge of receiving an internship or job offer. Congratulations!

As difficult as it has been to get to this point, you are not quite there yet. This is the stage of the job-searching process that tests your mettle to get what you want. Just like negotiating and closing (outlined in the previous sections of this chapter), the quality of the job offer starts long before you receive the offer.

Know What You are Worth

Before you even begin thinking about looking for an internship or job, your first step should be to determine your value based on the marketplace. As with every step of the selling process, doing your homework is key. If you do not do your research to find out competitive compensation packages for the position and city in which you are seeking an internship or job, you might be disappointed with the job offers you receive.

There are several Web sites – Salary.com, JobStar.com, and SalaryExpert.com are just a few – that include compensation ranges for hundreds of different positions in areas across the country. You should gather compensation information before you go on any interviews.

It is a good idea to use these tools as a guide as there are many assumptions that are made when these numbers are prepared. However, this information can be extremely helpful to understand the range of compensation being paid for a specific role in a specific city. You will be able to negotiate more effectively if you walk into every job interview knowing how much you are worth.

Establish Your Value Early

As in the selling process, establishing your value begins with first contacting your prospective employer. You often have the opportunity to meet at least one or two people at the company, usually someone in human resources and your hiring manager. In some cases, you may meet with several different people with whom you will be working. Sometimes, you may also talk with or meet with a recruiter. At any rate, you can establish your value with as many people as you meet.

Everything you say and do impacts how people perceive you and your value. Are your résumé and cover letter professional? Did you do your research before you contacted the employer? How did you make contact? When you went in for an interview, did you dress appropriately and professionally? Were you prepared for the interview? Did you bring samples of your work to demonstrate your skills? Did you follow up with a thank-you e-mail and handwritten thank-you note within twenty-four hours? All these elements help establish your value long before an offer is extended. When it comes to making an impression on a prospective employer, everything matters.

Just as in the selling process, if you do your homework and establish your value early in the process, you will be more likely to get the offer you want.

Compensation versus Salary

One thing to know before you walk into any interview: compensation differs from salary.

Compensation is the total money and benefits paid for a particular position. Compensation can include salary, insurance, vacation or sick leave, stock options, signing bonus, car allowance, 401(k), child care or elder care assistance, and any other payment received in exchange for your services to the company. 

Salary, a fixed amount paid regularly in exchange for services provided, is only one compensation element. When you are considering a job offer, it is best to keep in mind that salary is not the only element of compensation. This will allow you to be creative in your negotiating as there are several elements other than salary that can be included in your total compensation package.

Starting Out at a Start-Up

Working for a start-up company can be exciting and lucrative - with the right compensation agreement. The high-risk environment of a start-up might provide exactly the right place for you to start your career. But enter the business with your eyes wide open. "There is no shortage of start-ups to work for, but most are going to fail," says Greg Carney of Carney-Neuhaus. This article provides insight about how to structure compensation with a start-up company.

Timing Is Everything

Although you may want to discuss compensation on your first interview, it is a good idea to postpone discussing the topic as long as possible. Just as in the selling process, you want to focus on establishing your value and learning about what is important to your prospective employer before you begin discussing compensation. A word of caution: you should be prepared to give your desired salary range in an interview, as many employers want to understand your salary expectations as soon as possible. If you can avoid the topic, do so until you receive a job offer. Here is an example of how you can deflect the conversation.

Receiving the Offer

Most job offers are extended over the phone, although some may be extended in a letter and others may be presented in person. Since companies usually interview multiple candidates for each position, chances are you will not receive a job offer during an interview. However, you should be prepared to respond to a job offer if one is presented during an interview.

When you receive an offer, it will likely come over the phone. When you get a phone call about an offer, write down every element (it is okay to ask the person to hold while you get a pencil and paper). Thank the person who made the offer and tell her how pleased you are to receive the offer. Even if you think you want to accept the offer, do not accept it right away.

It is worth noting the time element of this negotiation. You should take as much time as you need to evaluate the offer, but you should be reasonable and state the time frame you need. Recall from earlier in this chapter that time is one of the elements always present in a negotiation. Sometimes a prospective employer or recruiter will try to create a deadline to force you to decide by a specific date. Use the time to your advantage and negotiate for more time so that you do not feel as if you are under pressure to make this important decision.

Evaluating the Offer

Congratulations on your offer! Although it is a difficult economy, do not feel pressured to take the first offer you get. Take the first offer you get for a job you want. This is a special moment; it is the time when the power shifts from the prospective employer to you (remember that power is one of the elements that is always present in a negotiation). Your prospective employer has now indicated that you are their choice for the position. You can take the offer, counteroffer (your response to the job offer), or walk away. Whatever your choice, you have the power. As soon as you make your choice, the power shifts back to your prospective employer. That is why it is a good idea to take your time and completely evaluate your offer before you respond.

Now that you have all the elements of the offer, you can begin to evaluate it. Just as in a negotiation in selling, identify what is important to you. Consider making a list that includes both elements of compensation as well as other elements such as culture, opportunity, environment, commuting distance, and so on. Figure 12.6, "Compensation Elements to Consider in a Job Offer," and Figure 12.7, "Other Elements to Consider When Evaluating a Job Offer," can provide some ideas to help you create your list.

Figure 12.6 Compensation Elements to Consider in a Job Offer

Figure 12.7 Other Elements to Consider When Evaluating a Job Offer

Only you can determine if a job offer is right for you.

Negotiating the Offer

After you have had the time to evaluate the job offer, it is time to identify any gaps that there might be between what you think is important and the offer. If you think the offer is perfect as is, then accept it as is. Remember that many employers expect candidates to negotiate by presenting a counteroffer, a candidate's response to a job offer. Since the economy is challenging, candidates do not have as much bargaining power as when the economy is healthy. However, this is when you have the most negotiating power with your prospective employer, so it is a good idea to take advantage of the opportunity.

This is when you should identify your prenegotiation goals. Remember that your prenegotiation goals are the minimum that you will accept. Your counteroffer will be above your prenegotiation goals to allow room for negotiation. You will not be able to negotiate every element of the offer. Choose one or two key areas and focus your negotiation on those. Keep in mind the things that are important to you and to your prospective employer so that you can easily find common ground.

For example, if speed and availability are important to your prospective employer, you may want to use that fact to negotiate a more flexible work arrangement. While it may be difficult to negotiate a higher base salary in this economy, you may be able to negotiate on another area such as getting additional vacation time.

When you have identified the areas you wish to negotiate along with your counteroffer for each, contact the recruiter or prospective employer to begin the negotiation. As with any negotiation, approach it with a confident, collaborative attitude. It is important to note that you should not accept the offer until you negotiate it. Once you accept the offer, you have lost your power to negotiate.

Just as in a selling negotiation, you have to be ready to accept the offer as is or be ready to walk away. That is a lot harder to do when you are negotiating on behalf of yourself since you are emotionally involved with the decision.

The Offer Letter

Once you agree on the final elements of the offer, you should ask for an offer letter, a formal letter from the company (on company letterhead) that outlines the terms of the offer. All companies should provide an offer letter as a matter of course for an internship (paid or unpaid) or a job offer. If you received the original offer in the form of a letter, you already have the offer letter; however, you should request an updated letter to reflect the final offer on which you agreed. If you find any discrepancies in your offer letter, contact the person at the company as soon as possible to have a new offer letter issued.

A offer letter simply reiterates the terms of employment that you have negotiated and may be conditional based on requirements such as a background check or drug test or may make reference to company documents such as the benefits summary or employee handbook. While some information in offer letters may vary depending on the company, some key information should be included in the offer letter:

• Title
• Salary
• Bonus
• All other elements of compensation (e.g., stock options, benefits)
• Start date
• Any conditions of employment

Some companies request that you sign a copy of the offer letter and return it to the company. If this is the case, sign the letter and make a copy for your files before returning it to the company. The offer letter is your documentation of the compensation the company has agreed to give you. See sample offer letters in Figure 12.8 "Sample Offer Letter" and Figure 12.9 "Sample Offer Letter."

Figure 12.8 Sample Offer Letter

Figure 12.9 Sample Offer Letter