SALARY NEGOTIATION STRATEGIES Kimberly Ryan, Assistant Director

What Works Research – doing your homework Displaying confidence Professionalism – don’t display emotion Showing your Value Asking for time to consider

Preserving Bargaining Power Sales and negotiation are two different transactions Biggest error people make is to negotiate prematurely You cannot negotiate until an offer is made

Bargaining Power It is expected for senior level and higher paying jobs to negotiate salary The longer the hiring process (several interviews, vetting) the more they will be willing to negotiate Greater demand for your position = greater ability to negotiate

Entry Level Negotiating https://www.youtube.com/watch?v=ejAFgROeYHg

The Ultimate Rule Being the first to say a number erodes your ability to move up or down later Too high? Price self out of market Too low? May not be qualified It doesn’t mean NEVER disclose, just don’t say the number first

Talk to the Decision Maker If HR extends the offer, go ahead and talk to the hiring manager Try to deal face-to- face if at all possible

Know Your Market Value www.onetonline.org Know salaries and negotiating climate www.onetonline.org www.salary.com www.wageweb.com www.payscale.com www.vault.com www.careers-in-business.com www.rileyguide.com O-Net uses US Census Bureau Data

State Salary History Option One – Don’t disclose -It is illegal to require previous salary in some states -State you want to paid be based off of what your current skills and experience is worth and you are more than happy to provide more information to help with the valuation Option Two – Be accurate -You have an expectation that your current salary will help you with negotiating https://www.forbes.com/sites/lizryan/2017/01/16/when-they-demand-your-salary-history-give-your-salary-requirement-instead/#10c65aa15a8b

State Salary Requirements Option One – leave blank, use “open” or “negotiable” Option Two – Look at market range and make its midpoint your starting salary (generally good rule for new graduates) Option Three – Start with the upper range of your expectation, so counteroffers are still reasonable

When You Are Asked about Money Early in the Process Option One – Ask about the job itself Option Two – Talk about the value you bring

When You Are Asked about Money Later in the Process Option One – Discuss scope of responsibility, size of territory Option Two – Good company reputation for fair compensation Option Three – If this looks good, we’re sure to agree to salary Option Four – What’s the range (turn tables politely)

When the Money Questions Become Direct Option One – Can’t compare apples to oranges Option Two – Prefer to fit in employer’s established range – what is it?

What will it take to hire you? Option One – Research shows… Option Two – Total Package would be (add base and benefits together) Option Three – What it would have been at the old job

Your Moment of Power Employer’s interest rises with each succeeding interview, but your power is never greater than at the moment of the offer When seller becomes buyer Recognize green lights

A Bidding War Be careful; could send wrong message Let Company A (your top choice) know that Company B has made an offer Ask Company A if process can be expedited Never lie – it’s wrong AND it could backfire!

Rules to Remember Some companies are first offer, best offer You MUST know the going rate When you get the offer, use silence, drop eye contact Describe the offer (modest, low side) Ask for time; NEVER accept on the spot Ask for it in writing

Let’s Watch… Body language Expressions Silence Word Usage

Rules to Remember Know your walk-away number Express optimism Confirm agreement first; then tackle other issues Counter offer (nail down salary FIRST) Final offer in writing – you may have to do it yourself

Dealing with Firm Numbers What can we do to work this out together? I understand and I’m willing to wait for you to talk to your VP (appeal to higher authority) Can the job be reclassified? I can appreciate internal equity issues Can we start at $x and review in six months?

How to Pitch A Performance Contract Why employers may say things are inflexible (You did not show your value enough, you told them you have no other offers, or you told them your last salary). Minute 4:12 https://www.youtube.com/watch?v=twJbXSpTVFA

Pain – when do you want it? A little now when there’s discomfort in the negotiation process A lot later when you discover you have been undervalued

This is all compensation… Base Salary (FINISH IT FIRST!) Bonus (gross/net taxes, signing advantage/disadvantage) Medical coverage (COBRA coverage) Retirement, 401(k) regulated Vacation Relocation (taxes)

This is all compensation… Tuition Reimbursement – usage, waiver Expenses – who carries the cost? Cell phone and Blackberry Company car

Harris Commons, Room 307 www.fit.edu/career career@fit.edu 321-674-8102