Received a lowball job offer… what do I do

Received a lowball job offer… what do I do

I recently applied to 2 companies for which I’m in the final process now. One of them (my personal favorite) came back with a lowball offer which would mean a 15k pay cut from where I am now. They say they won’t negotiate. However, they are a big name and brand, well-respected and it would probably look good on my resume. Despite the low offer, I do have a good feeling about them but I also don’t want to start regretting the pay cut.

The second company is still in startup phase and while I understand many people like this, I’m personally not a big fan because of the lack of processed and the dominating politics. I’m still waiting on an offer from them and it would be most likely a pay raise for at least 10k, if not more.

The third option is staying at my current company which is a shaky startup that fires employees left and right. My job is not guaranteed there.

what do I do? Take the brand name for a pay cut or the shaky startup for a pay raise? Love to hear some experiences!

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17 Comments

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  1. Ashwini Vasudevan

    I would take the brand name, even if with the pay cut and try to make a mark in the first year and grow. My rationale: 2 years down the line, you may be better off at the brand name than at the start up or atleast, it will open more doors for a job change.. best of luck!

  2. Celena Barton

    I wouldn’t take the lowball offer. You will come to resent the company as you will likely be working a lot of work for you are paid. Companies with big names often feel they can pay workers less because they know their name is a big attraction for talent.

  3. Anonymous

    You are all about the money; therefore, do the employer a favour and walk away. People like you who don't see the big picture never make good employees; you're just greedy.

    P.S.

    The likely reason the employer won't negotiate is because of what they're paying their current employees. If they met your compensation demand, they would have an issue on their hands. Their current employees are grateful to work for them, and since you're all about the money, you wouldn't be a good fit.

  4. Anonymous

    This comment is on point!!!

  5. Barb Hansen

    Wow! This is an interesting take on the concept of being compensated for the job we do for our employers.

    Aren't we all, when it comes right down to it, working for the money? If you blessed to be able to not worry about money, then refuse your check and just volunteer. Your employer will think you are the best fit for your job, except it won't be a job, it would be a volunteer position. :)

    I always expect to be paid for the work that I do and I, for the last 15 years in my career, always try to negiotate the best compensation package that I can get from a company. Companies have the right to set the financial value they want for a job and potential employees have the right to set the financial value for their work.

    If those two match, then great. If they don't match, then we negiotate and if the negiotations fail, then someone is walking away from the deal.

    And sometimes we don't get what we are asking for and we take the job anyway. I have taken a pay cut a few times in my career for multiple reasons, including I just needed a dang job or I wanted to break into a new industry or job role (and in those case, my value to the company would be less because I don't have the experience in that sector or job role).

    We are NOT greedy for knowing our value on the open market based on our experience, talent and the value that we will provide our employers.

    The OP is not asking how she can get the brand name company to pay her more, she's asking for experiences from people who have been in a similar situation. She's not greedy, she's curious.

  6. Anonymous

    This is a pretty mean comment. The fact that OP is considering the lowball offer means they are not all about the money…

  7. Joan Williams, Senior Talent Acquisition Specialist

    Wanting to be fairly compensated for the work you do is NOT greedy.

  8. Anonymous

    Haha. You would never say this to a man.

  9. Anonymous

    What a horrible thing to say. Would you be willing to take a pay cut of $15K for a job you're currently doing, just for the prestige of working for a "brand name" company that pays their employees $15K less than they are worth on the open market (what you said in your p.s., not me)? Did you read the rest of her post? Another start-up company is willing to pay $25K more than this, so what does that say about the company? People must be able to pay their bills, and if I took a $15K pay cut right now, I certainly couldn't.

  10. JB09718

    You might run into job uncertainty with the other startup too, I would personally take the offer with the established company if you can manage the pay cut.

  11. Laura

    First of all, you're not being greedy. You know your worth and it is reflected in the fact that other companies DO pay the amount you are looking for. Never feel as though knowing your worth is a bad thing. Secondly, you have to weigh what is most important to you and be honest. If you are going to resent the low ball offer, then that may play into your future success at that company. Also, having worked in HR, there is usually wiggle room for bringing on great employees. What exactly did they say in terms of negotiation? Saying we can't go any higher on salary doesn't mean there isn't the potential for a sign on bonus or a revisit of the salary after the 90 day point or even a higher bonus potential percentage (if its that type of industry). With the startup company, did you have a chance to talk with them about your concerns? Perhaps, they've worked through some of the issues you are worried about and also you have a hand in shaping those things which may be a good thing. Good luck in your decision and remember NEVER question your worth!!

  12. Anonymous

    Go where you feel the most stable. Ask about a 3-6 month review and possible increases or bonuses after that. Can you take a 15k cut? Remember that’s a gross amount so you are probably losing less as the net is far less after taxes and benefits. Ask the potential new company if they would offer a sign on bonus if possible to offset the reduction of salary. I would not take a pay cut unless my current company felt so unstable that anything g is better than nothing,

  13. Anonymous

    Only you can answer this question. Which do you feel better about? Can you live on the pay cut? What will it do to your frame of mind regarding the company and how they treat people? Very few offers are non-negotiable. They may have someone in mind they would have to pay more for, but don't want to go for them if they can get you to take the low-ball offer. The other thing to consider is whether you are "overpaid" based on market value in your current role. If that is the case, and money is an issue, you should look for more senior positions. I have no use or respect for companies that refuse to negotiate, especially when offering something below market. They might be a big name, but they know and use it to their advantage. Make them believe they are privileged to have you, not the other way around.

    As for the second job, a "potential" job is not a job offer. All about that offer is moot until you have the offer in your hand. If you feel good about it, you can let the "big name" company know that you are also in contention for $25K more than they are offering, so it does sound like the "big name" is trying to force the issue with name over substance.

  14. Joan Williams, Senior Talent Acquisition Specialist

    So my first question to you is what have the conversations around compensation been up to the point of offer? Did you discuss a $15k higher salary and then received that offer?

    If you're wanting to negotiate - even though they said they wouldn't, I would start with some version of "do we have any wiggle room here". If they've already said they're not open to negotiation, I wouldn't count on being able to get more.

    Also, please be aware, that attempting to negotiate with some companies can cause the offer to be pulled altogether. I think this is a terrible practice but it does happen.

    Only you can decide if you can live on that money or not. IF you decide to accept the current offer, I really suggest you do so going all in - I don't really see the point of accepting the lower offer and then being unhappy that you accepted the lower offer - you'll just be making yourself miseralbe.

    Maybe think about the job and take the money out of it - would you be happy doing that job? Challenged and fulfilled?

    You do have a fourth option - stay where you are and continue your job search. The good news in this scenario is that you're obviously doing things right - your resume is getting you interviews and your interviewing skills are getting you offers.

    Good luck!

  15. Anonymous

    As long as the offer is lessc than what was discussed during the interview process, I would respectfully decline and say that the salary is too low. They may come back to you in a couple of weeks if they can’t find someone they like as much. I would definitely not take a $15K pay cut, you will be resentful.

  16. Anonymous

    Coming from a start up doesn't always equate into an experience salary driven hiring mindset. I've worked with start ups that offer a wage that is compelling, but isn't realistic, meaning > good money. Now, you may have more experience than a start up background in this field, and I would encourage to focus on those with salary asks. There's a reason you're still calling your present company 'start up'. It's not grown into you just sharing 'company'. Ever think about that? ALL companies were start ups at one point, but you don't here, Apple still saying they're a start up, or J Crew, or 1-800 Flowers. Change the conversation in your interviews.

  17. Anonymous

    Gs

    ailIf it were me, I would choose the stability of a company that works... start up's don't always keep it together and your current gig sounds sketchy as well. I like living in doors, need a job that can support this. Don't want to keep looking over your shoulder at current job.

    Choose curtain #1 Bob!

    Gail

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