MoneyCounts: A Financial Literacy Series Salary Negotiation 11-A Grange Building University Park, PA 16802 financialliteracy.psu.edu finlit@psu.edu 814-863-0214

Description Salary negotiation is the skill to reach earning potential over a lifetime of financial wellness Salary negotiation is based on your accurate understanding of the time value of money, saving, investing, opportunity cost, budgeting, and retirement planning concepts To budget comfortably, you need to attain the ‘earning’ you equitably deserve based on what the market is willing to offer for your education and experience level

Learning Outcomes Identify effective negotiation techniques Understand pay gap Research market-based salaries Strategize & practice negotiation techniques Learn how to reach a win-win deal

Why should you negotiate? Because you should earn what you deserve depending on the market-based compensation for similar services

Impact of earning power over time! First job 40 years later $40,000 $56,000 $1,206,420 *3% merit raise each year

How to prepare to negotiate? Practice expressing your value eloquently Know yourself Research Market-based Salaries List and prioritize Secure the offer

Know yourself Conduct a self-assessment Articulate your goals Attitudes Skills and knowledge Abilities and experiences Educational level Life styles Market target Communication styles Interpersonal effectiveness Philosophy about money Articulate your goals

Practice expressing your value eloquently Don’t regurgitate verbiage from Google! Rehearse your true qualities Test your honesty & authenticity

Secure an offer first! Know WHEN and HOW to negotiate Have a range in mind Postpone the money discussion until you actually receive an offer Deflect!

List and prioritize negotiating points Salary is only a part, consider… Insurance, saving, retirement plan, vacation, sick and family leave, advancement and promotion, workload and work hours Focus on your goals… Establish a successful career foundation Attain personal and professional satisfaction Achieve financial advancement

Pay gap Compensation varies based on education level, relevant skills, knowledge, and experience $668 $1,101

Gender pay gap 1 .78

Impact on earning over time! First job 40 years later $40,000 $48,800 $663,531 *3% merit raise each year

Research market-based job salaries Use trusted and accurate resources! Occupational Outlook Handbook (produced by the U.S. Department of Labor Statistics) Salary.com

Factor in specifics! Job tasks, responsibilities Expectations Career field Type and size of employer Location Expectations Level of education Years of experience Special skills, certifications Licenses, or other required credentials Double and triple check your calculation!

Best tactics for negotiation Consider timing and deflection. Response with appreciation Start with consensus points Research and use benchmark Use a win-win analogy Establish rapport Use effective communication

Tactics to avoid Counter with initial salary first Become emotional or defensive Use personal needs for negotiation Patronize the employer Talk too much Show off your ego

Practice makes perfect! Watch your verbal language Great! Thank you! The research suggests… Is it possible to get closer to market average….? I’m very interested!

Practice the non-verbal communication! Watch your face and body language

Student Affairs Career Services at Penn State! https://studentaffairs.psu.edu/career https://studentaffairs.psu.edu/career/resources /offers-negotiating

MoneyCounts: A Financial Literacy Series Comments and questions 11A Grange Building University Park, PA 16802 financialliteracy.psu.edu finlit@psu.edu 814-863-0214