Concerned that you might negotiate an offer verbally and be disappointed when your paycheck doesn't match? On the other hand, are you unsure of when it's appropriate to 'get it in writing' and when it might be overkill?
Getting the offer in writing can certainly prevent expensive salary misunderstandings. Here are some examples and guidelines about when and why it's to your advantage to put pen to paper.
A classic example: Alex, an engineer, was offered '50' to work on a specific project. Alex negotiated it up to '60.' The trouble was, his boss meant $60K in salary, while Alex meant $60 an hour, which works out to $120K a year. Quite the difference!
Another example: Greg exceeded his sales quota. He was expecting a bonus equal to 10 percent of his sales-over-quota. He received only a $5,000 bonus equal to 10 percent of his salary, not 10 percent of sales.
Unlikely? Yes, but it really happened! And there are hundreds more misunderstandings and memory lapses that can occur if you don't 'get it in writing.' Here are four guidelines that will help you avoid these pitfalls in your own salary negotiations.
1. When to get it in writing? Always get it in writing.
2. If you don't get it in writing, then put it in writing. Here's how. At the end of the negotiation session say, "Why don't we just jot down what we've covered here? I can draft a letter of acceptance with the information for your review. Sound OK?" Write it down, initial it and have your employer initial it.
3. Do it for 'clarity.' Will asking your employer to initial it imply that you don't trust him? Not if you use the rationale of 'clarity.' Say, 'Here's what I've got [read your negotiation notes], and I know that it's always important to be very clear whenever money is involved. So, I'll go ahead and initial this, and when you do the same, that ought to make sure we're on the same page, OK?'
4. Avoid 'back and forth' overkill. Most negotiations have two 'back and forths.' The company makes an offer; the candidate counter offers. The company makes a second offer; both reach a final agreement. In this case, get it in writing after the second 'back and forth.'
If the negotiation is complicated and has several rounds, use the 'clarity' principle to determine when to write it down. Formulations of stock value, setting performance criteria, laboratory and equipment requirements, succession guarantees, change in management clauses, severance, etc., all might take longer to negotiate.
If, at any point during these more complex negotiations, you think there might be a chance of misunderstanding, put it in writing. However, there's no need to initial it every time, as you don't want to upset your employer. One, comprehensive document at the completion of negotiations should be enough to be initialed.
5. First is final. What if the employer only wants to put the final offer in writing? Some companies want to make sure you'll accept an offer before they put it in writing. I call that 'first is final.' For them, sending a revised offer back to personnel, finance, etc. for another sign-off means more red tape. They'll have to go through compliance, budget review, etc., all over again. In this case the hiring influence will be reluctant to sign or initial anything during negotiations. If you hear phrases like, "We need to know what you want so when we make an offer, it will be acceptable to you," that's the tip-off that you're in the middle of a 'first is final' negotiation.
For the 'first is final' scenario, you should always try to deal with the hiring influence rather than personnel. Put the cards on the table, "It looks like you want the first offer to be the final offer, so let's discuss what that should look like; if we can talk that through, I'll have no problem accepting a written offer."
In summary, always get or put it in writing. Insisting on this will not only prevent salary misunderstandings in the future, but will also project a professional image and ensure that you're taken seriously during negotiations.