NEGOTIATE FOR WHAT YOU’RE WORTH Today we’re going to talk about Salary Negotiation. How many of you have ever negotiated salary or other benefits for a position? How many of you have ever negotiated ANYTHING? (if few hands: “I’m hoping to change that today”)

WHY NEGOTIATE? So why negotiate? Companies and organizations are expecting you to negotiate! Women are less likely to negotiate 80% of employers say candidates who negotiate leave a more positive impression! Nerdwallet infograph from http://www.nerdwallet.com/blog/loans/student-loans/negotiating-salary-study/

WHY DON’T PEOPLE NEGOTIATE? What if you succeed…? Why don’t people negotiate? Out of fear, doubt, low expectations… We just saw that 80% of students and grads who negotiate are at least partially successful! Nerdwallet infograph from http://www.nerdwallet.com/blog/loans/student-loans/negotiating-salary-study/

GOALS OF NEGOTIATION The key to a successful negotiation is to ferret out everyone’s interests so you can maximize the outcome for everyone.  -Tina Seelig, Ph.D. So…What are the goals of negotiation? (I’m anticipating answers about getting more money for them, but nothing including it being a mutual benefit) Is a goal of negotiation just to get you what you want, or also to get the employer what they want? Tina Seelig, Ph.D., is a professor at the Stanford School of Engineering and she says that the key to a successful negotiation is to ferret out everyone's interests so you can maximize the outcome for everyone. How many of you thought about negotiation in this way? As a mutual benefit? Let me share an example. https://www.psychologytoday.com/blog/creativityrulz/200908/mastering-the-art-everyday-negotiations

WHEN TO TALK ABOUT SALARY? “I’ve just completed a degree, and gained valuable hands-on experience through projects and internships. My salary history does not reflect that.” Can you please tell me your salary history? What are your salary expectations? “I need to learn more about the responsibilities of the job, and the benefits you offer.” “I can only evaluate salary in the context of total compensation.” “Do you have a salary amount in mind?” I need to know what salary you want in order to make you an offer.  

PREPARATION: 4 SALARY FACTORS Your salary will ultimately be based on four factors: 1. Market rates for the job 2. Assessment of your qualifications 3. The employer’s budget 4. Your skill in negotiating #4: Your ability to negotiate is a key factor in your present and future income

NEGOTIATION BASICS: TWO PHASES Preparation When most people think about Negotiation they focus on the actual conversation, but just like the roots on a tree, your preparation will have the greatest impact on producing a good yield.

PHASE 1: PREPARATION Subtract about 30% (taxes, health insurance premiums, 401K contributions, etc.) to determine take-home pay Determine Your Worth (before the 1st interview) 1. Add value for your relevant accomplishments, skills, personal qualities 2. 30% 50% 20% Needs Wants Savings & Debt Create a Realistic Budget What is the lowest salary you can afford? (= your resistance point) Know when to walk away! 3. Practice, Practice, Practice!

PREPARATION: BATNA Best Alternative To a Negotiated Agreement What is the best you can do when the other party doesn’t negotiate? Be prepared to list alternative perks you may want/need besides salary Figure out their BATNA if possible Are you the only candidate? Do you bring special knowledge? Ideas for a program?

IT’S NOT ALL ABOUT THE SALARY! What are some other items/ways you could negotiate? Benefits Time off Schedule/Work Hours Title Wellness Perks Professional Development Funds Technology Furniture or tools to make you a better employee Moving expenses Tuition benefits Medical time Childcare

PREPARATION: DETERMINE A ZOPA Zone Of Possible Agreement This should be a scale Acceptable lower limit Anchor Reasonable upper limit Your anchor is where you start and should be near the top so you have room to move down. You should have a point you know in advance where you will walk. ZOPA: When the range of salary they might offer intersects with the range that will make you happy. Lucy’s ZOPA 25 year old NYC PR Assistant. Happy salary range is $55-65, and market range is $50-60, so ZOPA is $55-60 ** ZOPA clip: http://www.youtube.com/watch?v=seNPehCrA7U (20:30- 21:07)

PHASE 2: NEGOTIATING THE OFFER Thank them for making time to meet with you. Make it collaborative: you and they share the same goal, getting you hired! Think: what would make the situation work for everyone? “Make it about them: Focus on serving and adding value, and what you love.” Casey Brown, TED Talk Think and say “we” instead of “I”: Present multiple ways to implement your requests (e.g., taking added the time off in slowest month) Present your salary research and other evidence Respectfully and persistently make your case, while showing understanding for their points Get any final agreement in writing before you sign! Negotiate in person to see the nonverbal and manage the conversation accordingly highly preferable to phone, which is highly preferable to email Be Positive, Confident, and Respectful Collaborative process—same goal: just discussing terms Drop the “but…” Manage silences: (Don’t get intimidated by silence.) Follow your points with silence so they can consider, and feel free to think quietly before you respond. Show your specific interest in the position Don’t assume they’re out to get you: they’re responsible for bringing you in “economically; you’re responsible for coming in on the best terms for you. Be Persuasive Don’t just ask for something: always tell the story that goes with it, showing (vs. just telling) the value you bring Consistently make your case, pause, and smile Get the terms you want for their reasons Be positive: State what you appreciate about the offer “Let’s see if we can come up with a package that works for both of us…” Kelly You should always try to negotiation in person.

NEGOTIATING THE OFFER Tone - Be Positive!!! Salary Negotiation is a discussion about your qualifications Aggressive goals, but not aggressive behavior Reframe negotiating from competition to problem solving Incentives vs Threats Affable v. competent – figure out a way to demonstrate competence without being arrogant or aggressive Negotiate in person to see the nonverbal and manage the conversation accordingly highly preferable to phone, which is highly preferable to email Be Positive, Confident, and Respectful Collaborative process—same goal: just discussing terms Drop the “but…” Manage silences: (Don’t get intimidated by silence.) Follow your points with silence so they can consider, and feel free to think quietly before you respond. Show your specific interest in the position Don’t assume they’re out to get you: they’re responsible for bringing you in “economically; you’re responsible for coming in on the best terms for you. Be Persuasive Don’t just ask for something: always tell the story that goes with it, showing (vs. just telling) the value you bring Consistently make your case, pause, and smile Get the terms you want for their reasons Be positive: State what you appreciate about the offer “Let’s see if we can come up with a package that works for both of us…” Kelly

NEGOTIATING THE OFFER Be Persuasive Put your analysis and research to use. Use your research to show your interest in the position, company, or progression Focus on the facts and objective criteria Develop a compelling rationale Present multiple packages, potential of better outcome and you appear more flexible Negotiate in person to see the nonverbal and manage the conversation accordingly highly preferable to phone, which is highly preferable to email Be Positive, Confident, and Respectful Collaborative process—same goal: just discussing terms Drop the “but…” Manage silences: (Don’t get intimidated by silence.) Follow your points with silence so they can consider, and feel free to think quietly before you respond. Show your specific interest in the position Don’t assume they’re out to get you: they’re responsible for bringing you in “economically; you’re responsible for coming in on the best terms for you. Be Persuasive Don’t just ask for something: always tell the story that goes with it, showing (vs. just telling) the value you bring Consistently make your case, pause, and smile Get the terms you want for their reasons Be positive: State what you appreciate about the offer “Let’s see if we can come up with a package that works for both of us…” Kelly

NEGOTIATING THE OFFER Anticipate Anticipate the employer’s needs Explain how you fit their performance goals, products, and conditions Anticipate responses and prepare conversational turns This goes back to preparation.

NEGOTIATING THE OFFER: TO AVOID Getting personal Making assumptions Rushing Negotiating via email Hedging (being less direct) Taking it personally Over-negotiating

NEGOTIATING AN OFFER: LANGUAGE Avoid “ummm”, “like”, and “just” Avoid qualifiers We might, I think, Maybe Replace “but” with “and” Be articulate and intentional with your words Use specific amounts, not ranges

NEGOTIATING AN OFFER: BODY LANGUAGE Take up physical space Be a presence in the room. Don’t shrink down, showcase your confidence and belief that you deserve this. Seem open and welcoming Smile and remember you may work with them! Stay engaged and focused on the goal

WHAT IF IT DOESN’T WORK? Don’t take it personally Choose your battles If it is within your ZOPA and you are interested, take the position You can always ask to revisit at a 6 month or 1 year performance evaluation Walk away if it is below your ZOPA minimum Easier said than done? What’s the opportunity cost?

EXERCISE: PRACTICE NEGOTIATING AN OFFER Prepare & Pair up: Choose a ‘realistic’ prospective salary range, and review your strengths for the position Explain why you should be higher on that range than their offer: (“Based on my salary research…”) (“Remember: I also bring x, y, and z strengths . . .”) Be reticent: (Silence) (Limitations on budget) (Counter offer) A. Deal with it: (Rephrase + maintain courteous silence) (Think of ways to make it work: “I could take the additional time off when we’re slowest.” “We could agree on goals, arrange a salary review in 3 months, and decide on making up the difference.”) (Request other items than salary – frame in terms of benefits to them) B. Engage more positively: “Here’s what we could do…” Have people choose a salary range that seems reasonable. (Keep in mind, you can do a real salary research later.) Then practice in pairs for 3 minutes, each side. (A starts first round. B starts second round.) If there is time, have them switch. Then if time permits, debrief as a group.

QUESTIONS? Have people choose a salary range that seems reasonable. (Keep in mind, you can do a real salary research later.) Then practice in pairs for 3 minutes, each side. (A starts first round. B starts second round.) If there is time, have them switch. Then if time permits, debrief as a group.