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When given a job offer that has lower compensation than expected, when and how is it appropriate to ask for clarifications on the compensation amount?

#JULY20 #negotiate #interview

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Nathan’s Answer

Hey Austin,

Receiving a job offer with lower compensation than expected can be quite disheartening, which is why I have found it helpful to look at the interview process as much about you interviewing them as they are interviewing you.

Typically, a good time to talk about compensation is during the stage you're in now, where the company has extended an offer to you. When approaching the topic, I would recommend the following:

- If possible, find some examples of others in your similar position making the amount of compensation you would like. Websites like Glassdoor, Payscale, etc., and others you know personally would work.

- Pose the question about compensation by showing how the company benefits from paying you more. If you're planning to stay long term, maybe talk about how higher pay would keep you at the job longer. If you're in school, maybe talk about how higher pay would help pay for an education that makes you a more productive worker. If you're not receiving benefits or paid holidays, you could also talk about how it would be cheaper to pay you slightly more than the turnover costs of hiring another employee. A good book on thinking like this is Dale Carnegie's "How to Win Friends and Influence People".

- Try to talk in person (phone call or video call, just where it is real time) if possible, because this will allow a chance to approach this question relationally and reduce the possibility of seeming like you're just in it for the money (though money is a huge part of any job).

- Have suggestions about alternatives like a progressive pay scale. Maybe the company is uncomfortable paying a new employee the rate you would like, so you could also ask about a guaranteed pay raise after a few weeks of proving yourself. You could also ask about what skills would entice them to pay you a higher rate as well. These suggestions show that you're willing to work with them to get what both parties desire.

I hope these suggestions help and that you are able to reach the compensation level you're seeking!
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Sydni’s Answer

I think the best way to approach the situation is by first and foremost researching. Research how much the typical or average pay is for a person in your position, compare it to how much the firm's competitors are paying their employees, or look into how much a person is being compensated relative to your education level and experience. Statistics and numbers can be found on many sites where employees anonymously publish their compensation level, like Glassdoor for instance.

Don't be afraid to ask for what you want and don't settle for less than what you are worth. Be honest with the firm representative and ask about all of your options and benefits (bonuses, pay-scale, etc.) to bring yourself more clarity. It doesn't hurt to have questions!

I hope these suggestions helped!
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Ellie’s Answer

I think an easy first step would be to do a little research about what the compensation "should" be, while also taking into account your location, your experience, bonuses, ect.. Once you feel like you have some good talking points and questions I would ask to set up a meeting with a recruiter to discuss the offer and compensation. It never hurts to ask!
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Claire’s Answer

If the compensation package you are offered is not what you were expecting, it's important to learn if there are any additional benefits that are offered when joining the company.

Things like a bonus incentive scheme, educational allowance, paid holidays, health insurance etc.

You may also want to ask about the career path. Understanding the timeline and what is expected of you in order to be reviewed for a promotion.

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Neil’s Answer

Hi Austin,

If you are looking for a job it can be really useful to speak with a recruiting agency. That way you can tell them upfront and they will put you forward for jobs to which you are suited but also for jobs that match your salary expectations. However, if there hasn't been an agency involved then it is better to have the conversation with the hiring company. I would say something like, "I appreciate the job offer and am really interested in the role however, the salary that has been offered does not match my expectations. My expectation is that the salary is in this ball park XXXX"

Hope this helps.
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Jeff’s Answer

I believe it's ALWAYS appropriate to ask for clarification on the compensation amount. Unless in a very desperate situation, I would never want to take a position for below what I feel the position is worth because I'm not certain that I'd feel good about giving my all to the position. You want to be in a situation where both the company feels good about hiring you and you feel good about taking the position.

In some cases, there is flexibility on what is being offered and others there is not. Let them sell you on why the job is worth taking for that amount or potentially offer you something better. Good luck!
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Ana’s Answer

Of course it is ok to ask to understand your compensation. Very often during the interview process you would be asked about your expected salary - and especially if the offer is in discrepancy with what you suggested - you should discuss it.
You can thank for the offer, but suggest to have a short call about the compensation (and any other question that you may have).
You can then say in the call that it is below your expectations and see if there is a room for negotiation.
If not - try to understand what are possible ways and timelines for promotion (for instance they might be willing to commit to re-assess in 6 months or a year if you prove to be the right fit and provide results) - which then may work for you. You may want to understand additional benefits as somebody mentioned (bonus, paid leaves, health insurance,...). It is all legitimate questions that can help you make informed decision.
It is also good to understand average salary in the industry, market, to be more informed and know what to expect and how to position when offer comes.
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Preeti’s Answer

My experience is negotiating a salary is expected by the employer. It doesn't hurt at all to ask for more money - however timing is important. I have had people ask for more money than the range provided even before they were invited to interview. If there is a range or an amount provided and that is much lower than your expectation, that is different. However if it is within a close range of your expectation, do the interview, best case its interview practice. Once you have a job offer, then negotiate. I have never anyone say to me, we take job offer back since you asked for more money. They come back whether they can meet your offer or meet you in the middle, in some cases they may offer you sign-on bonus.
Definitely ask.
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