Negotiating a Job Offer During COVID-19

Asking for compensation and benefit guarantees may be an option

To say the job market is in flux is an understatement. At the time of writing, the unemployment rate stands at 13.3% compared to 3.6% at the same time last year. Many businesses are preparing to resume operations as soon as possible, but some hiring freezes are still in effect, and no one seems sure when normalcy will return.

This uncertain environment makes it difficult for both people changing jobs and businesses hiring for open positions. With no way of knowing what the future will bring, negotiating salary and benefits is especially delicate for employees as they try to secure their future with a new employer.

Here are some considerations when negotiating a job offer during the COVID-19 pandemic:

Securing the future

No matter how strong a company seems today, a lengthened shutdown could change everything. Some businesses know that candidates are skeptical about changing roles in the middle of a crisis, making them more open to negotiations that secure vital employees. Other organizations see the job market swinging in their favor as unemployment rises, and may be less likely to deal.

As a rule of thumb, the more specialized and vital the experience and position, the more negotiating power a candidate will have.

Candidates should consider these items—if they are in a position to ask for them and want some guarantees of stability: 

• Guarantee of compensation
  Only 39% of workers negotiate their salary during a job offer. And candidates may worry about pushing this issue too hard right now while wondering if the new position will exist in a few months if the economy takes another hit.

  One option for navigating these worries is to ask for a guarantee of compensation for a minimum period. If the company decides to eliminate the position, reduce hours, restructure, or shuts down completely, you have some insurance.

• Guarantee of bonus
  Negotiating a guarantee of an offered bonus amount is another option to achieve some security. Bonuses are typically based on total compensation, so you should solidify your salary first. A candidate could negotiate for a minimum percentage when it comes to a bonus, but allow room for that to grow if they or the company has a stellar year.

  This is a good fallback position, especially if the employer can’t or won’t budge on salary. Some businesses may simply not have the budget right now to offer higher pay. But a performance-based bonus adds value to the offer for the candidate while providing peace of mind for the business by tying increased compensation to real results.

• Guarantee of benefits

  80% of people value a job with benefits more than a position with a higher salary and no benefits. That is the case now more than ever, especially when it comes to healthcare. But what happens if you get laid off in two months? 

  Seeking a guarantee of benefits such as health and disability insurance for a period may be a viable ask. Employers who won’t move on salary or bonus may be willing to guarantee continued coverage for a specified period.

The job market is in flux—weigh your circumstances and your options
Additional benefits like stock options, flexible work, and professional-development opportunities are on the table for negotiation, depending on the organization. But salary, bonuses, and insurance benefits are priorities in this climate.

The room to negotiate anything will depend on the position, your skills and experience, and the individual company. With double-digit unemployment and a potential wave of white-collar layoffs, the overall pendulum has swung from a job seeker’s market to an employer’s market.

That said, many organizations are restructuring, so the positions they are hiring for right now are more likely to be genuinely needed. And individuals with specialized experience and qualifications should remain in high demand. Thus, how much leverage a candidate possesses should be assessed on a case-by-case basis.

As always, do your homework on the organization, the role, and your skillset while taking into account the pandemic and its economic fallout. Some employers will have a wide pool of candidates to choose from and resist significant negotiations. In contrast, others may be prepared to combat uncertainty with guarantees to recruit the best candidates.

Carrington Legal Search is celebrating 20 years in business: we were in the trenches with our clients during 9/11 and 2008. We partner with our clients to identify leaders and mission-critical talent to shore up and grow companies even during the most challenging times. We are here for you! To make our nationwide network work for you, get in touch at 512-627-7467 or email carrie@carringtonlegal.com.