Salary negotiation for company change
Salary negotiation for company change
(OP)
I know that there are many of you out there with a lot more experience than I have, and I hope some of you are willing to share opinions. After all, it's not too often that an engineer wants to share an opinion... 
I started with my present company right at four years ago straight out of school doing machine design for automation equipment at a Tier 1 automotive supplier. I'm relatively content where I am now, with excellent job security and pretty good pay/benefits. The company is very strong overall as well. The problem is that I see our division heading down the road to being more of a machine procurement/project management division rather than design.
I wasn't looking to change companies, but I've recently been approached through a mutual friend by someone from an automation company in another town about an hour and a half away. We're still sort of feeling each other out right now, but from what I've heard about this company it looks pretty good as far as management/philosophy. I would definitely be open to making a move if the comp package is right, but salary negotiation is something I really haven't done before, having never changed jobs. I've been asked what my requirements are. Do I just say "I need $X", where X is my current salary (plus some delta?), or should I lay out my cards and say "I'm making $Y now with Z benefits" and let the chips fall where they may?
Thanks everybody!
I started with my present company right at four years ago straight out of school doing machine design for automation equipment at a Tier 1 automotive supplier. I'm relatively content where I am now, with excellent job security and pretty good pay/benefits. The company is very strong overall as well. The problem is that I see our division heading down the road to being more of a machine procurement/project management division rather than design.
I wasn't looking to change companies, but I've recently been approached through a mutual friend by someone from an automation company in another town about an hour and a half away. We're still sort of feeling each other out right now, but from what I've heard about this company it looks pretty good as far as management/philosophy. I would definitely be open to making a move if the comp package is right, but salary negotiation is something I really haven't done before, having never changed jobs. I've been asked what my requirements are. Do I just say "I need $X", where X is my current salary (plus some delta?), or should I lay out my cards and say "I'm making $Y now with Z benefits" and let the chips fall where they may?
Thanks everybody!





RE: Salary negotiation for company change
Good luck in your decision.
RE: Salary negotiation for company change
I am not sure there is a suits all solution, are you thinking of leaving for more money or do you want to leave and more money would be nice? If you are not well paid in your current job telling them what you earn may not be a good idea, if you are very well paid it is a good negotiating tool.
Personally I prefer to negotiate the whole package, but others will go about it differently. Would you move or travel 3 hours a day, what would the cost of moving be, or the cost of travelling, do you want to lose three hours a day sat in traffic, have you built up holiday allowance if so how much money is an extra weeks holiday worth to you, are the health and pension benefits better or worse, is there a share option at either company, where would you be happier?
To me there is a lot more to it than just the money, negotiate hard on all fronts and good luck.
RE: Salary negotiation for company change
corus
RE: Salary negotiation for company change
I'd need a pay rise of about 50-100% to justify that.
Cheers
Greg Locock
Please see FAQ731-376 for tips on how to make the best use of Eng-Tips.
RE: Salary negotiation for company change
RE: Salary negotiation for company change
RE: Salary negotiation for company change
RE: Salary negotiation for company change
Another strategy is to ask for a signing bonus to supplement the package, if they can't do the salary, or if you will be losing a bit on benefits, a sign on bonus can make that up. Also make sure that the benefits line up, and if your moving then ask for relocation expenses.
Bottom line is do a complete engineeing cost analysis, then decide on how much money to ask for.
-The future's so bright I gotta wear shades!
RE: Salary negotiation for company change
I told them approx what my salary was, plus bonuses, I told them what I needed to change. They came very close.
Plus no more long commuting on the freeway is like getting a raise.
Chris
Systems Analyst, I.S.
SolidWorks 06 4.1/PDMWorks 06
AutoCAD 06
ctopher's home (updated 06-21-05)
RE: Salary negotiation for company change
Then rate each value and see where the logic takes you.
If you don't like the result, it may be telling you something you don't want to address logically but emotionally.
Then you have to decide if you want to let logic or emotion run the decision... unless they both end up aligned.
But you really need to take each value in turn and analyse it. I say this because you obviously have some doubts and this may be the way to focus your mind better.
As an engineer you measure and calculate, changing jobs can need some of those skills too, use them.
Take all the financial considerations such as relocation etc. and list them out and put a value on the cost of the move, re-location or extra travel and what happens if you start work and travel while you look to relocate.
Willingness to relocate is always a good sign to employers because it signals committment so don't be afraid to ask for "relocation" money or signing bonus or whatever to compensate you for the moving costs.
You may not need to be direct, just say "yes, it's a great offer but I need to work out what it will cost me to move....": their cue to say "Don't worry, we'll take care of that..."
Pretty pointless moving for a 5-10% increase if it will take you anpother 4 years to recover your investment in the move. Paying such fees is a sign of commitment by the employer's but I wouldn't take it as a guarantee of job security, though it may give them a little more investment to protect.
Oh yes, if they've approached you, then add a bit of value to your expectations.... effectively they are moving you a from a buyer's to a seller's market.
Remember that starting a job is about the one time you get to have serious discussions about salary, rewards and prospects; and be sure to get agreements up front, it's surprising how "circumstances change" or the management memory fades on promises; it's probably a safe assumption that whatever promises they make, what you ultimately get will be what you get now.
If they say they want to start you and see how things work out, you know that if they don't work out, you're out so why take a reduced starting salary on a promoise of better "if things work out"?
Rule 1: If you don't ask, you won't get.
Rule 2: It's a negotiation, negotitate. That means be prepared.
Rule 3: get it in writing.... they can always type out a new agreement to reflect what you have discussed, don't take a "we'll sort it out later" approach, it will never get sorted out.
Rule 4: You don't have to accept their "standard terms and conditions" you can negotiate these as well (or you can try). I knew one guy who decided he'd been made redundant one time too many and asked for a special redundancy clause in his contract and got it. A few months later he was made redundant and walked with a substantial pay-off. (Rule 1)
JMW
www.ViscoAnalyser.com
RE: Salary negotiation for company change
Have a benefits package in mind. Remember:
- the deductibles, what is covered (if you are young, you may be starting a family soon, so orthodontist coverage is a good thing)
- how much is employee contribution that sort of thing. RRSP or in the states, 401K/Roth contribution matching by employer
- paid vacation (at 4 years, probably 3 weeks)
- how many sick days allotted (you will be having kids soon?)
- flexible hours (may or may not be important)
- anything else you deem important
If you have to move, ask about the moving package/allowance. Figure out how much it will cost you to move yourself, so you can gauge the allowance.
And yes, get everything in writing.
"Do not worry about your problems with mathematics, I assure you mine are far greater."
Albert Einstein
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