How would you negotiate a starting salary knowing the upper limit?

[jkaetz]

I have a verbal job offer and salary number. The job posting actually lists the maximum salary budgeted for the position. Knowing both pieces of info, how would you go about convincing the hiring manager to offer more? I have a number of ideas and certainly plan to highlight my expertise and how I will benefit them but was wondering how others would approach it. I've never known both numbers before, seems like a strange way to go about it. They are presently offering ~88% of the budgeted amount.

 

[Expat]

I would probably just ask why. I don't know your qualifications. It might be tied to years of experience, training, education, etc. that you don't have the max of those. Go from there. If there is not good reason, I would see if I could get more by countering.

 

[Robert Richardson]

Go high or go home

 

[armalitesheepdog]

In these times you have the bargaining power on your side. I would ask for the max. If they decline tell them thanks for there time but you will need the top of the scale to consider working for them. They may decline at first but you will probably get a call back in a day or 2.
Times have changed.

 

[Twangbanger]

Getting your money on the way in the door is almost always the best policy, because you can't control the politics, evaluation cycle, or merit increase details after you're in. Especially if there's a recession coming. Pay raises are usually a "cost" that is budgeted for at the beginning of the budget cycle, based on assumptions of how the company will perform over the next year. Incentive pay, bonuses, etc. on the other hand are usually decided at the end of the cycle, "after" the profits have come in.

That being said, it could depend on the type of employer. Is it government, private, union, non-union, etc. Not all places have the same negotiating leeway. Some places are really keyed-in to "percent penetration" of the pay range. If they have rigid pay scales by position, they may not want to hire someone "fully penetrated" into their wage scale, then be unable to offer them a raise in a couple years unless the person gets a pay grade promotion. Do you have a decent prospect of getting a pay-grade promotion after you've been there?

I agree it's unusual, and my best guess is, it's a psych ploy. They want to reassure you that by telling you you're 88% penetrated on day one, you're not coming in in the bottom half of scale, to discourage bargaining and countering. Again, if it's a "normal" private sector nonunion workplace, I say go for it and ask max if you merit it.

 

[hoosierdoc]

Ask about a bonus structure or annual retention bonus if they can't make 100% of budgeted offer

 

[woowoo2]

I would ask for the max. If they decline tell them thanks for there time but you will need the top of the scale to consider working for them. They may decline at first but you will probably get a call back in a day or 2.

This is exactly what I did, they called back two weeks later.

 

[jkaetz]

Some more context, it is a university and I have located a staff salary database from 2020. The same rank has a large range. I've already requested to speak with one of their benefits people to get a better understanding of the complete package before I counter.

 

[fullmetaljesus]

Let's say they are offering a max of 105k.
You tell them you expect 110k bc of qualifications and industry standard. Let them talk you down to 105k

If they don't want to playball. Walk.

 

[qwerty]

Wear something low-cut.

 

[bwframe]

I'd just graciously thank them for the offer and say that you'll think it over and consider it while continuing to evaluate the best placement for yourself.

Be sure to leave them one of your business cards.


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[hammerd13]

Read "Knock 'em Dead" by Martin Yate.

It covers everything job search related...including negotiating the offer. I've used it over the years with excellent results.

Amazon product ASIN 1440536791

 

[jake blue]

I'd just graciously thank them for the offer and say that you'll think it over and consider it while continuing to evaluate the best placement for yourself.

Be sure to leave them one of your business cards.


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What's a business card?!? LOL

 

[BJHay]

Find out as much as you can about the company in advance. Bring up some of the info to let them know you did your homework.
Giving examples of past successes and (to the extent possible) how your experience will benefit them is what many hiring managers are currently being taught to look for in interviews.
You're in the drivers seat. Walk on the offer if it isn't enought.

One of my current adages is that "there is no labor shortage--- there is only a pay shortage"

 

[bwframe]

What's a business card?!? LOL

Exactly, right?


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[jake blue]

One of my current adages is that "there is no labor shortage--- there is only a pay shortage"

I use this all the time. Whenever they say 'truck driver shortage' I amend it as 'shortage of drivers who want to work for less than minimum wage'. Sure paying drivers more means an inflationary effect on basically everything America buys but no more than Biden's already inflicting on us anyways. And besides, inflation has already robbed truckers of 75% of their earning power in the last 40 years! So it's long overdue. When my grandfather and uncle drove during the 70s through the 90s they took home basically the same amount drivers earn now but back then that was enough that they were a one-income family, bought a home and raised kids even sent them to college. Nowadays the driver feels like he can't even afford to come home one day a week to SEE his family because they need that income of that extra day just to make ends meet. And that's company drivers who don't even have to pay these outrageous diesel rates or maintenance on a truck that California says he won't even be allowed to drive before he's even finished paying it off. So owner/operators are now losing money with every mile and parking their trucks in defeat. So yeah there's a driver shortage but the answer is simple - PAY THEM MORE! But the trucking industry likes to pretend it has some special considerations that make that solution NOT the answer when the Dept. Of Labor already studied the problem and said, 'yeah, better pay equals more drivers dummies!'

Sorry about the rant.

 

[wtburnette]

Just because the pay band for the position tops out at a certain amount doesn't mean that an employers wants to offer that. Most employers want there to be a little room for you to be able to get annual raises without hitting the ceiling. Does this position have high promotional opportunities within a year or two? Some companies have a policy to not offer more than a certain percentage of the max for a pay band for this reason.

 

[BJHay]

I use this all the time. Whenever they say 'truck driver shortage' I amend it as 'shortage of drivers who want to work for less than minimum wages

A couple years ago Wal Mart couldn't hire enough truck drivers. They increased the pay to $100k/year in an industry where the average pay is about $60k. Guess what? They were able to hire all of the high quality drivers they needed.
I noticed last month they increased this again so that first-year truck drivers can earn up to $110,000 and drivers that have been with Wal Mart longer can earn more.

Same issue in 1914 when automobile industry had a labor shortage. Henry Ford increased wages overnight from $2.34 to $5 per day. There were hundreds of men at his factory gate looking for work a few days later. It was considered an insane move yet his factories produced product and the competitors factories didn't.

My turn to apologize for a slightly off topic rant.