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Negotiating an Offer advice (CVX)

8,945 Views | 24 Replies | Last: 12 yr ago by TKEAg04
rngr06
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Hey all!! After months of job searching, I finally got an offer! I'm so stoked about the job since it is a company I want to work for and something I wanted to experience in my career.

So I got an from Chevron in San Ramon. The job is more business oriented. The offer comes signicantly lower than my current salary. I'm working for a competitor of chevron and in Houston. My job is a true engr job.

Would y'all recommend me negotiating my salary to at least come close to what I make in Houston?? Would it sour the relationship if I do ask for a negotiation?? Also when I negotiate, how fast does it take for them to reply back? I want to see if I can get it all done ASAP even if they do or don't accept the renegotiation. Could the potentially pull an offer??

Keep in mind the following... Currently in Houston, higher base pay, engineering job, no bonus structure.... New job in San Ramon (SF) Cali, more of a business job, has a bonus system.
aggie_bryan
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It's extremely rare for anybody to make an offer and not expect you to negotiate. I've always taken the approach that if they aren't willing to negotiate, then i'm not interested in working for that company. (not saying that I'd turn down a deal for that reason only, but it usually throws up a big yellow flag for me personally) If they can expect you to be flexible, it isn't unreasonable to believe that you can negotiate. There are many negotiation tactics you can use. One would be to explain that the position is paying less than what you are making now. You want to bring value to the company and if you start out feeling under paid, your arent going to do your best work.

Have you investigated the cost of living in CA? Not sure what cost of living is in San Ramon but I wouldn't be surprised if it's higher than cost of living in Houston, TX. This is something you HAVE to consider when talking salary.

That being said: Defend what you believe you are worth. No matter how enticing a position may seem, if you under-sell yourself, the position you thought would be a dream can quickly sour.

Also, you mention bonuses. Not sure exactly the position you've been offered but a big mistake many people make in negotiations is accepting a lower salary in return for immediate "bonuses". Companies use this negotiation tactic because it costs them less in the long run. These may be annual bonus options so this may be a moot point but it's just something to be aware of.

Overall, be happy that you got the job offer. CONGRATS! The company has expressed an interest in you and if you are worth what you should be, they will be more than willing to negotiate reasonably. Dont keep them on the line for too long. You need to do whats best for you.


[This message has been edited by aggie_bryan (edited 3/9/2013 11:28p).]
m-walker
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San Ramon is expensive. Also be clear if the offer is the true amount or before any cost of living premium.
rngr06
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I am hoping to get back in touch with the hiring manager on Monday to see if he can match my current salary. I think I would be happy with a match, despite cost of living in San Ramon/San Francisco.

Do I bring up the reasons why I want to have the company match my salary or do i just keep it simple & say what I am looking for as base salary (without the reason behind it)??

Also, once i tell them if they can reconsider my base salary, how long does it usually take for them to respond yes or no??

[This message has been edited by rngr06 (edited 3/10/2013 1:13a).]
xMusashix
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I would imagine a large company like CVX is less likely to negotiate. But just make sure that you are comparing apples to apples. They will be looking at total compensation, not just salary.

When I had considered going contract and calculated my total compensation, I think salary alone was less than 60% of my total compensation. When factoring in things like pension, 401k, vacation, training, insurances, etc, it can add up.
LostInLA07
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How far off (%age) is their offer from what you want?
rngr06
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It is about 10% off my current base salary.

I think at the end, the future bonus may make it around or above my current base. Not only is SF more expensive I think the state is pretty high there while there is no state tax here
agmatt06
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Did they not ask you your salary requirements beforehand? It seems weird that they haven't/didn't.

That being said, I know for certain that other Houston area people who have gone to Cali and received COL adjustments based on their Houston Salary. So 10% less from your Houston salary is like 20% less really.

It's a pretty lowball offer to start with. If you truly work for a competitor, you should have leverage
Petrino1
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Just tell them that the offer is a little lower than what you expected. Tell them you do not want to make a lateral move at this point in your career and do not want to take a cut in pay. Let them know what you are making now and that you were expecting an increase in salary especially since you are relocating to a state with a higher cost of living. Reaffirm your interest in working for them and thats its a great opportunity but you have to make sure that everything is in line before accepting. They should understand that someone would not would not want to accept an offer that is lower than their current salary, even if it is for Chevron. If they dont go up in pay I would probably decline the offer.
tamulax33
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quote:
Just tell them that the offer is a little lower than what you expected. Tell them you do not want to make a lateral move at this point in your career and do not want to take a cut in pay. Let them know what you are making now and that you were expecting an increase in salary especially since you are relocating to a state with a higher cost of living. Reaffirm your interest in working for them and thats its a great opportunity but you have to make sure that everything is in line before accepting. They should understand that someone would not would not want to accept an offer that is lower than their current salary, even if it is for Chevron. If they dont go up in pay I would probably decline the offer.
+1 and for what its worth the salary may have been pre approved by hr and not even adjusted for your current salary or relo package or coi increase. Bring up all of those points in the request. They wont be lookin to drop an offer without neg. on an experienced position.
kyleag02
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All of the above are good thoughts.

A couple more, if you want another two cents...

Make sure you have all your ducks in a row before you talk to them again. When you negotiate, you're likely going to have one shot. Getting the offer raised will almost assuredly require approval from someone in a more supervisory role than whoever you're talking to. If they go to bat and get the offer up, they're not going back to the well if you balk.

They may even ask you for a soft commit that if they can get X, you're theirs, so be prepared for that mentally. You're more likely to see that from an external agency recruiter, but it still may come up. Obviously that's not signing anything in blood, but again, make sure if you tell them you want more that you have it thought out.

I'd also assume you're going to get a counter from your current company. They're probably not going to let you go to a competitor without a fight, so you'd be well served rehearsing that scenario up front.
aggiemike02
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does your current salary include a bonus? if not you may ask more about the CIP b/c its probably higher than the 10% you are asking for...
rngr06
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Thank you all for your reply. This was really helpful! I called the hiring manager today, and he was understanding of my concern. He mentioned that CVX does not really have a cost of living adjustment and I talked to a fellow CVX beforehand and he said the same thing. he said he could try to offer a signing bonus to offset.

I think the signing bonus will help tremendously. Like everyone said, the annual CIP bonus can be pretty sizeable and my current co offers no bonus. Also I asked about the annual raise and they said they get one every yr. I'm hoping ill hear back by tmw

Also, is it not recommended to put in termination notice once accepted but going thru background and drug test???
TKEAg04
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It took me about 1.5 months after I accepted the offer to start date with CVX. There are multiple background/drug/credit checks they do and will rescind that preliminary offer if anything comes up. If you are clean and have nothing to hide though you won't have a problem. Like what other people have said also - the CIP is pretty substantial and you will also get a relo package to move to California which is also pretty substantial. All in all, you need to look at your total compensation to make an educated decision on whether to take the offer or not. There are quite a few perks within CVX that add to the total package. I have been very happy with CVX if that makes any difference - I plan on spending the rest of my career here.

Congrats!
TKEAg04
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There are housing allowances though that offset the high cost of housing in CA if that is where you are moving to. You need to look at the relocation packages at http://hr2.chevron.com - it is an open website that is not on the internal intranet.
rngr06
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When I asked the mngr, he didn't know too much of the details of the relocation package since it is handled by a 3rd party. If true about housing allowance, that would be an added bonus! My current employer offers something similar thru their relocation co as well. The only catch is for my current employer the cost of living adjustment is only applicable for current employees transferring. I dunno if it'd be the same for CVX.

I'm getting pretty excited. I'm can't wait Til he calls me again. Hopefully everything will be smooth
rngr06
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TKEAg, how long did it take to get the background/drug/credit check done? At least from when u signed the offer letter to when u got the clearance from the background/drug/cred check??
TKEAg04
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Over a month.
rngr06
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The hiring mngr told me he'd start working on getting me a signing bonus and was hoping he'd let me know yesterday, if not today. If I don't hear back from the hiring manager towards the end of the day, should I follow up with him?
tamulax33
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Yes.
sts7049
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If cvx is like shell, they probably have ranges for their pay groups. I'm sure there is some wiggle room but may not be much if they're slotting you at the high end already.
FishinAg02
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I ALWAYS negotiate. And if the company wants you, they will work to meet your needs and bring you on board. If they don't care for you specifically, they wont... and that's not someone you want to work for anyways.

I find that companies have respect for someone who puts themselves out there and negotiates... will translate to job skills.

I also work for a competitor of CVX and know a ton of people that work there. I'm in cali as well. If you PM me with what the job is, etc, I might be able to supply some incite.

Gig'em!

rngr06
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Thanks. I can't PM for some reason.

Here is my email: dadave01 at gmail dot com
rngr06
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The mngr called yesterday and I accepted the offer! Thank you everyone for the help and support. I'm really excited about the job.

I think they are going to email an electronic offer letter where I accept online. How long does it take for them to send me that to accept?? Cant wait til i get all the paperwork, background and drug test out of the way so I can start.
aggiemike02
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congrats. dude, enjoy a few weeks of freedom!
TKEAg04
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quote:
The mngr called yesterday and I accepted the offer! Thank you everyone for the help and support. I'm really excited about the job.

I think they are going to email an electronic offer letter where I accept online. How long does it take for them to send me that to accept?? Cant wait til i get all the paperwork, background and drug test out of the way so I can start.


That takes maybe a couple of days? Depends on HR. Formal start is when you are ready. If you have never relocated before, that process will start also. You will get your own personal agent to help you through the process.

Congrats - CVX is a fantastic company to work for!
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