I recently had an experience that reminded me that you truly can negotiate anything.
I got a call from a buddy telling me that he his manager was looking for a contractor to replace somebody who wasn’t performing to the level they needed in a business analyst type of position. The person they were replacing was a low-range contractor, so the rate they had been paying was substantially lower than what I’ve been making (as a program manager), but they also expected they’d need to pay more to get the skill-set they were looking for.
That set my expectation to expect that there would be some serious negotiation around rate, so I tried to take my usual approach: avoid discussing rate with the client. In general I was able to succeed, and and instead talk about the job and how I would be effective in helping them (particularly in areas that the prior person had failed).
I do have another rule, however, which is that I will honestly answer a question put to me directly, so inevitably the question of rate did come up. The dreaded question of “what was your last rate?” comes up, and is always uncomfortable for me. I thought I did a good job of answering the question by letting them know that rate is not the deciding factor for me, that I expect a fair rate for the work being done, and that I wasn’t expecting anything like my prior rate. After that preface, I did let them know my last rate (as a program manager on an implementation project), and tried once again to set the expectation that I wasn’t expecting to recieve that sort of rate on this engagement.
I had this conversation with the Director of the group that was looking for help, and everything went well there. We connected well on our phone screen, and he turned me over to his hiring manager to complete the process (since it was her group and I’d be working for her).
At the end of the process I asked my usual questions about how I did, and whether they had any concerns that would keep them from offering me the job. It seemed I had done well, and that the next step was for them to complete their interview schedule, and check references. The Q&A about prior rates came up again, and I thought I once again responded with rate not being the deciding factor for me.
I diligently followed up with a thank-you email to each member of the team, and continued to ask my buddy about my chances. Eventually I got an email from the hiring manager telling me that it was between me and one other candidate. My friend told me there was no comparison, and that the only reason I might lose out would be on rate, since I was more qualified and had his backing.
After another weekend, I got an email from the hiring manager telling me that they had decided to go with the other candidate based on rate. This surprised me a little since I didn’t really think we’d ever discussed rate. So I dropped an email back to the Director (cc’ing the manager) asking why they thought my rate was too high when we hadn’t discussed it. I carefully crafted the email as a question about my communication skills and helping me to improve them:
I heard from <your manager> and my friend that the decision was to go with another candidate based on rate.
I was a little surprised since I didn’t think we had gotten to the point where a negotiation of rate had started, beyond my responding to questions about my rate on prior engagements. My experience in the past has been that if the rate is too high, they simply ask me if I’ll take less.
If you could help me out in understanding if I set an unreasonable expectation, or if this was instead just a matter of the other guy being a better fit, I’d appreciate any feedback you could give me.
Interestingly what the net result of this email was, was that the negotiations were reopened. He replied to me that they had compared the rate I had told them from my previous work, to the rate that the other contractor was asking for, and simply assumed that I wouldn’t be happy with a reduced rate. We traded emails back and forth a few times, and we agreed on a rate that was the same as what they were looking for with the other candidate, and it felt like there was a chance I’d won the engagement.
In hind sight, I think one mistake I made here was sending this email to the Director instead of to the hiring manager, since she was the one who would ultimately make the decision. That said, I did re-learn a valuable lesson about negotiating: it ain’t over until it’s over ….
It’s all about getting to yes, and by asking these people if they could help me understand why we hadn’t negotiated on rate, I helped them understand they could have negotiated for a more valuable resource a little better, and kept the negotiation open.