New job offer - tiny salary - how to negotiate?

[JobCarHouseNoBaby]

Hello

I've gone through a gruelling 2 months of chats, interviews and interrogation and was finally offered a wonderful new job yesterday with a fantastic company!

Trouble is, they have only offered me a salary £1k more than my current salary. Although I ready for a change, and have many many reasons for looking for another job apart from money, I'm a bit miffed.

I work in a consultancy field, which means your skills/expertise basically go to the highest bidder. At my current job I know I'm very underpaid, as know what my colleagues charge rates are to clients. Mine is circa 25-40% lower than most.

I'm wondering whether my age has anything to do with it. After my first 'chat' (before first interview) I was emailed to confirm my DOB. I politely requested why (as it is illegal to be ageist when offering jobs) and they replied with 'so we can benchmark you amongst your peers'. I think that really they thought 'ok, so she's 25 going on 26, which equates to X salary band' - they shouldn't be allowed to do this, particularly as my current employer frequently tells me I'm miles ahead of my age bracket in terms of intelligence, skill set and value to the client.

There are other benefits to the new job, which dont have an immediate monetary value; i.e. get 1 day off every fortnight if work 8hrs a day instead of 7.5hrs, slightly closer to home (cutting commute from 1.5hr each way to 1hr each way), better clients to work for, and more stability (current employer not winning much new work).

So I'm going to try to respond to the job offer with a counter offer of a suggested salary. I'm a bit nervous about this, and wondered what you would say if you were in this position?

I.e. do I say 'thanks for your offer, but the numbers aren't really working for me, I was thinking more along the lines of X+8k' - purely as a starting point for negotiation (although if I get it I'd be laughing!)

My previous boss told me openly that I massively undersold myself in my interview for my current job so it's expected in my industry to negotiate on salary. But I'm not quite sure how to go about it!

Any help/pointers gratefully received

(I should point out I'm 100% aware I'm in a very fortunate position to a) have a job and b) have a job offer with a small salary rise, but in my industry my time literally = money for my employer, so it's important to get the base salary right so I'm not taken for a ride and also so I'm earning the right level of income for the company. Also this job move is part of my masterplan before TTC - aim is to get as good a salary as possible to allow me to put aside cash for the next 2 years and also mean maternity leave it as comfortable as I can make it)

bump

Just be careful you don't ruin it. Weigh up how you'd feel if trying to negotiate blew the offer. £8k on too of their offer is crazy. For me, that would blow it - I wouldn't want someone
prepared to ask for that much more to work for me.

Was salary mentioned at all before now?

"your skills/expertise basically go to the highest bidder"

Um. Are there other bidders? They've outbid your current employer, do you have other offers or potential offers?

Plus what hairy said, did you really have no idea of the salary until offer time?

Salary wasn't mentioned before now, although they did ask me in the last 5 mins of the 2nd and final interview what my current salary was. I was honest and told them exactly what it is. They have offered £1k more. So maybe I should have fibbed on what my current figure is?

There are other things in the pipeline - the Manchester office of my current employer is trying to get me to commute up there Mon-Fri (stay up there in the week) as they want me so much. Willing to put me up in a flat, pay all the bills and travelling plus £80/wk to buy food and 'sundries'.

I also think 8k extra is madness, but I want to demonstrate to them I know what I'm worth and want them to up their offer a bit. I'd be happy if they gave me 3k more than my current salary to be honest.

And I've had a pay freeze for 2 years, so in reality my current salary was when I was 23, 2 years less experience, so I think I'm NBU to expect slightly more in my next move? Or AIBU?

Depends what your salary is. If your on £20k then another £8 may push them over the edge. If your on £60k then it probably won't.

Not sure what kind of impression you gave off at the interview but being called JobCarHouseNoBaby probably means you need to test the waters re maternity pay. A £1k pay rise isn't anything if you lose £5k in maternity leave.

I managed a 7k and a little bit more than salary with previous employer which equalled roughly a 50% pay rise when changing jobs. I said in my interview that I was very much aware that my pay was appallingly low and that that was a reason for looking for something else.

Depends if you are happy to walk away if you don't get it!

You have shown them your hand by revealing your current salary. You don't need to reveal this and employers will immediately form an impression of who you are and what you can/cannot do based on that info. Further info here:-

www.consultancyrolefinder.co.uk/Salary-Centre/Salary-Negotiation.html

What percentage increase is £8k? I think you may be better to go back and say you were looking for a salary 'in the region' of £?k and see what they say. You might have to bat it backwards and forwards a few times before you agree but be polite and patient and you may be pleasantly surprised.

Do keep in mind that times are tough at the moment. Salaries seem to be going backwards in this area (and I'm in the South East) so don't be surprised if they say no!

I'd be brave & ask for an extra amount that's reasonable and say you'd like a review in 6 months. Also can you provide some really great references from previous employers or clients? That may help too! Very best of luck.

When I moved to this job, I managed a rise of £15k. However, I was moving up to CEO level, and the salary offered was lower than the 'up to' advertised rate.

I think you are on fairly dodgy ground here. The danger is coming across as arrogant.

I'm not sure a relocation to Manchester with expenses being covered is much of a bargaining chip tbh, unless there's a signifcant salary increase as well.

Bottom line is you need to be prepared to walk away if they refuse, and whether they do will depend partly on whether they think they can fill the job with someone else for the money they are offering.

I think YABU to automatically expect an increase when moving jobs. Although one normally wouldn't move unless there's an increase you do need to bear in mind the market has probably changed - there is a reason you've had a freeze on your pay for two years.

If they don't agree to more will you be happy staying where you are?

I once got an increase by rejecting an offer. I didn't say I wanted more money but they came back with a better offer.

In your shoes I might reject the offer saying that the salary offered wasn't enough to justify the upheaval of changing jobs. I wouldn't name a figure as that might put them off if I go too high or undersell myself if I go too low. However, as others have said, the central question is whether you are willing to walk away from this job if they refuse to improve their offer.

Thanks for your help, all very valid and thought-provoking points.

I am still on the fence slightly about what to do. I don't want to lose the job offer, but equally £1k isn't enough to go through the upheaval of moving employers, as 47bridge puts it..

I have read on a few websites that when moving jobs you should go for at least 20-30% pay rise

If I can get them to up their offer by another £2k I will have negotiated an approximate rise of 10%

Don't understand the comments which are along the lines of 'can you walk away from the job if they don't improve the offer' - surely if I go back and ask for more and they stick to their guns I can still take the job, just settle for a small increase?

Well yes you could, but you need something to negotiate with, surely - either a better offer elsewhere or the prospect that you will stay where you are. If you are not giving them any reason to offer you more, any negative consequence for not doing so, then it's just asking nicely rather than negotiating.

If they have no concerns about losing you why would they increase their offer?

The last time I negotiated I simply said I felt my current salary didn't reflect current Market pay and I expected in the region of X salary.

It worked and they offered me 10k more. However, I said the above in the interview itself rather than afterwards.

If 10% is £2k then you're currently earning £20k. Asking for £28k in today's market would just be daft and could potentially put their backs up especially as they know your current salary.

Jobs around here that were £28 to £30k a year or so ago are now being advertised for £24k. I think you need to decide on a realistic figure that you are prepared to accept or just stay where you are. I would imagine pay rises of 20-30% are a bit thin on the ground at the moment.

I read it as the OP is currently on £30k. The £1k offered + an additional £2k making that a 10% raise.

What about asking for non cash benefits, maybe a car?

Oh yes, I didn't read that properly!

What are you going to do, OP?

Tried posting at work but they must have some stupid anit-forum posting thingy on the interweb...

After much deliberation I phoned them back today to state that whilst I was keen to move, the additional take home pay after deductions wasn't enough to warrant the upheaval of moving jobs. I did point out that it's not all about the money, and there are many other benefits I could see moving to their company, but if it didn't work financially it wouldn't be a good move.

You've guess figures anyway so I guess no shame in revealing vital stats; I earn £30k, they offered £31k, I've told them I was hoping to achieve closer to £35k. So my hope is they come back with somewhere inbetween (although £35k would be amazing!)

He was fairly positive when I said my piece, and admitted that he wanted me to feel comfortable with my decision and understood that money plays a big part in that (his words not mine). He wanted to go away and think about it/talk to his directors. Should find out tomorrow or Monday what they can do!

Sounds like you approached it really well, fingers crossed for you.

Totally agree with Flowery - good move.

Will keep my fingers crossed for you!

Let us know what they say. Hopefully we can all have a glass of virtual champagne!

Good luck JobCar!
Personally I don't agree with the "you might look arrogant" "you don't want to go in too high" arguments.
My view is - it doesn't hurt to ask.
When you get more senior, negotiation is often part of consultancy, so showing yourself to be a shrewd negotiator on your own behalf does no harm.
Next time, don't tell them your current salary at the interview, just say "I'm expecting to achieve a salary of x with this move."
As speckledeggy says, it's usual to bat things about a bit. IME people don't take it as a personal slight if you ask for more than they are willing to pay at first. They've gone through the recruitment process to find the right candidate, discussion about salary is perfectly reasonable. It's not a case of "you asked for too much at the very first stage so you are OUT".

Still no news - they said I'd know by Monday at the latest. On the one hand, this must mean they are not flatly refusing to revise their offer, but on the other hand they're taking their time getting back to me

More likely that it needs to be signed off by everyone from the cleaner to the MD. If you're waiting on management these things can take time I'm afraid.

Just chill. I'm sure you'll reach an agreement shortly.

I got it!!!!!!!

They rang today and said they couldn't get to £35k but could we compromise at £34k? Ummm.... YES!

So amazingly happy, and relieved. I have never negotiated a salary before so am dead chuffed it all worked out.

Thanks for the tips and advice ladies... I reckon if I had gone in at £38k that would have blown it.

Glasses of all round!