The number #1 thing you should know about job offers.

The key to successfully negotiating a job offer is understanding the leverage you have. The times in our lives when we apply for jobs are often stressed. One role has come to an end (for whatever reason) and we are looking around, frequently with the need to maintain a personal income, to stay on top of the mortgage and keep the family fed and happy.

So we feel like we will have to take whatever role appears within that financial window. So we can transition from one role to the next with minimal impact to our personal budget. That mindset affects how we perceive and negotiate job offers. Without changing that mindset, we risk taking the first offer, settling for less at a time when we have more leverage than we feel.

It’s important in these moments to understand the difference between power and leverage. Power in negotiation refers to an environmental condition, it is the inherent influence or authority someone has. Leverage is when you strategically use information, or alternative options to negotiate favourable terms.

There is no doubt that when we feel stressed by the lack of income, and feel like we have to take the job offer, then we yield leverage to the prospective employer.

But here is what I know.

By the time the prospective employer has made you an offer (an offer is only an offer when you get it in writing) they are invested in you. Despite the fact that they may wield significant power. They have reached a stage where they have spent time and money and from their perspective, they want to close the deal. They want you.

That means that despite the power imbalance you feel, in this moment, YOU have maximum leverage.

You’ve already convinced them that you are the answer to their problem. They won’t want to restart the recruitment process (which is what they have to do if you reject their offer). To them, the end is in sight and they are almost able to take the next step in their business, so long as they can get you onboard and signed up.

The challenge for you in this moment, is to first understand that how you feel is different to the facts of what is happening for you, and then to momentarily step away from how you feel, into negotiating mode to optimise the offering being made to you.

By understanding your prospective employers perspective and appreciating how much they want YOU in this moment, you can use your leverage to optimise your job offer.