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Old 05-07-2009, 09:43 PM   #1
ski
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Negotiation: What % salary increase do you ask for?

...in this situation:

I'm an engineer, get paid okay for the DC area, in defense contracting business. My current job is okay for now.

A partnering company sought me out (a bunch of different companies work together on the same project), and they want me to take a job in Utah, where I've wanted to move for years now.

How much % salary increase over my current can I reasonably ask for?
1) They said there's an internal guy they have for this position, but I have the expertise and reputation for them to offer it to me, so THEY want ME. I feel the ball is in my court.
2) Living cost difference between DC and Utah SHOULD mean I'd make less, so they're doing me a favor when they said they would at least match my current.


Given this, would they laugh at me if I said:
I want X salary (predetermined number based on feedback).
I want relocation costs covered.
I want 2 months living costs covered while I buy a home.

?
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Old 05-08-2009, 01:29 AM   #2
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Quote:
Originally Posted by ski
Given this, would they laugh at me if I said:
I want X salary (predetermined number based on feedback).
I want relocation costs covered.
I want 2 months living costs covered while I buy a home.

?

First two seem reasonable. Not sure about the third.
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Old 05-08-2009, 06:24 AM   #3
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ANY increase would be great - as you mentioned, the cost of living is way lower there, so you're already a step ahead. I'd ask for 10% & see how they react.

Also, it should be a given that your relocation costs are covered. You need to find out from them what their relocation policy is, and then read it carefully to see what is & what is not covered. That'll give you a better idea of what you should ask for.
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Old 05-08-2009, 06:41 AM   #4
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agreed. don't ask the 3rd until you look at the relo package.
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Old 05-08-2009, 08:49 AM   #5
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My relo package included one month of #3. They would either pay my rent or put me in corporate housing.
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Old 05-08-2009, 09:12 AM   #6
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yeah, it's customary for reloc to include 1 month. I find it difficult that you'd get another month.

What you may be able to swing is for them to give you a free trip out there before you relocate and meet with a real estate agent to get you started on finding a house before you even get there. that way, you could ideally put in an offer when you first get there, and maybe get them to extend your corporate housing for a few days-week till you're done with closing.
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Old 05-08-2009, 09:15 AM   #7
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oh, and in terms of $$$.

is your current job only salary? any built in or performance bonuses? and are bonuses factored in with the new company?

to make it easy...
if salary is all there is for both, i'd agree with 10% being a reasonable starting point for you. they understand it's negotiating
they're not going to be like, this isn't going to work and walk away.
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Old 05-08-2009, 11:22 AM   #8
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Agree with everyone else. Request an increase of 10-15% and relo. As others have said, it'sn negotiation so they will come back with something else if they don't agree to it outright.
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Old 05-08-2009, 11:40 AM   #9
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ask for 10% get fired and collect unemployment
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Old 05-11-2009, 02:17 PM   #10
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I have 18 hours to respond, help.

Got offerred 15.5% higher salary, but only $2K relocation, because the req was originally internal (they were offerring NO relo for the other guy).

2K covers a UHaul from DC to Utah, that's it. No money or housing once I get there.

That said, does that salary bump make up for having to go out of pocket to cover the initial living costs?

I don't want to take a bad deal...
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Old 05-11-2009, 02:27 PM   #11
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Quote:
Originally Posted by ski
I have 18 hours to respond, help.

Got offerred 15.5% higher salary, but only $2K relocation, because the req was originally internal (they were offerring NO relo for the other guy).

2K covers a UHaul from DC to Utah, that's it. No money or housing once I get there.

That said, does that salary bump make up for having to go out of pocket to cover the initial living costs?

I don't want to take a bad deal...

Any more wiggle room with the relo ($3k instead of $2k)? If not I'd still take it as the 15.5% will far outpace whatever you may have gotten in relo after a short period of time.
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Old 05-11-2009, 02:28 PM   #12
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if it was me, it would be a no-brainer. i think your relo costs if job-related are tax deductible. plus you're likely moving into a cheaper area.

PLUS...it's freakin' UTAH! biking, hiking, snowboarding, skiing, etc. paradise.
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Old 05-11-2009, 02:43 PM   #13
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PLUS...it's freakin' UTAH! biking, hiking, snowboarding, skiing, etc. paradise.

And all the mormons you can eat!
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Old 05-11-2009, 02:44 PM   #14
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agreed. 15.5% from dc to utah. it's hard to see how you don't come out ahead. craigslist off as much as you can, and start new :-)
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Old 05-11-2009, 02:44 PM   #15
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I forgot my handle was "ski" and was going to ask how you knew I considered all the outdoor stuff :lol:

The $2K is capped.

Thanks for the quick advice - hoping to sleep on it tonight and feel good about it in the morning.
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Old 05-11-2009, 04:20 PM   #16
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A salary bump you take with you if you decide to move on. It raises the bar for the compound raises you'll get (hopefully) for the rest of your career. The other things are a 1-time event and can be negotiated anew for the next gig if you do move on. I wouldn't risk it, but you can always hang up the phone with the HR guy and talk directly to the hiring manager. That's something you typically do to get a better salary, but a reloc is a nit in the grand scheme.

A defense engineer in Utah. I'm guessing the company begins with either an "A" or a "B".
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Old 05-12-2009, 05:58 AM   #17
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Yeah, it's still a good deal even with crappy relo. You should jump on it - it's a great opportunity to get to a place you wanted to go anyway & you'll be at a much higher standard of living than you could afford in DC.

If nothing else, see if you can negotiate a few extra vacation days to go apartment hunting (AFTER you start with them, so you get paid for those days).
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Old 05-12-2009, 07:56 AM   #18
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I do believe Cheapie is right. Relo costs are tax deductible if it's a work-related move.

http://www.irs.gov/taxtopics/tc455.html
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Old 05-12-2009, 08:00 AM   #19
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Quote:
Originally Posted by ray
I do believe Cheapie is right. Relo costs are tax deductible if it's a work-related move.

http://www.irs.gov/taxtopics/tc455.html

Just don't forget to subtract the portion that's reimbursed to you (the 2k.)
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Old 05-12-2009, 04:18 PM   #20
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Where in Utah would you be relocating to? Maybe I can help more if I know the area you would be moving to.
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Old 05-12-2009, 09:59 PM   #21
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I'll be starting at Hill AFB (north of SLC) in mid-June. My sweetheart here (oh, I'm in Utah now on travel) is taking a one-way ticket to DC to drive across the country with me. Pivotal moment in life? Check!

Who says G|A'ers don't give good advice? Thanks for all the input. If anyone wants to get a 3% alcoholic beer on me when I get to Utah, let me know! :cheer:
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Old 05-13-2009, 01:42 AM   #22
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Quote:
Originally Posted by ski
If anyone wants to get a 3% alcoholic beer
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Old 05-13-2009, 06:16 AM   #23
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Originally Posted by Prngr44
Just don't forget to subtract the portion that's reimbursed to you (the 2k.)

Unless it is paid for directly by the company I believe you can deduct all of it. I'm pretty sure you have to count the relo as income just like any other bonus.
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Old 05-13-2009, 07:00 AM   #24
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Quote:
Originally Posted by ski
I'll be starting at Hill AFB (north of SLC) in mid-June. My sweetheart here (oh, I'm in Utah now on travel) is taking a one-way ticket to DC to drive across the country with me. Pivotal moment in life? Check!

Who says G|A'ers don't give good advice? Thanks for all the input. If anyone wants to get a 3% alcoholic beer on me when I get to Utah, let me know! :cheer:


just drive over to grand junction and get the good stuff and you'll be fine.
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Old 05-13-2009, 07:23 AM   #25
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Welcome neighbor! I'm in Logan, just a bit north of you. Make sure you take a day trip up my way and visit Bear Lake. The drive through Logan canyon is incredible. Let me know if you have any questions about the area, I'm happy to help!
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Old 05-13-2009, 07:30 AM   #26
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Quote:
Originally Posted by ski
I'll be starting at Hill AFB (north of SLC) in mid-June. My sweetheart here (oh, I'm in Utah now on travel) is taking a one-way ticket to DC to drive across the country with me. Pivotal moment in life? Check!

Who says G|A'ers don't give good advice? Thanks for all the input. If anyone wants to get a 3% alcoholic beer on me when I get to Utah, let me know! :cheer:

Let us know if you're going to be traveling through Colorado on the way!
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