SALARY NEGOTIATION STRATEGIES

Concepts Learned from your Best & Worst Experiences Research – doing your homework Displaying confidence Walking away – don’t display emotion Asking for time to consider

Objectives 1.Answering questions at various stages 2.Acknowledge offer; buy time to decide 3.Consider all aspects of offer 4.Close the gaps

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

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 We didn’t say to 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 Know salaries and negotiating climate

State Salary History Option One – Don’t disclose Option Two – Be accurate

State Salary Requirements Option One – leave blank, use “open” or “negotiable” Option Two – Look at market range and make its midpoint your starting salary

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

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

Language to Use 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? Can appreciate internal equity issues I have a trip scheduled in the spring Can we start at $x and review in six months?

Pain – when do you want it? A little now when there’s discomfort in the negotiation process A lot later when you discover you’ve left money on the table

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 (language to ask for more) Relocation (taxes)

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

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!

Practice Session #1 Two interviews done; one with HR, other with manager Hiring manager has $X range Candidate has done homework; has a bottom line of $X Negotiations begin when offer of $X is made

Practice Session #2 Three interviews done (phone screen, manager and technical) Manager’s budget allows max of $X; he really wants this candidate Candidate has spoken to colleagues, knows going rate. Believes special knowledge qualifies him at $X Negotiations begin when offer of $X is made.

Practice Session #3 Four interviews done (two on phone, two in person, including district manager) Manager knows this is the best candidate, but budget will only allow for $X max. She also has internal equity issues that limit salary to $X Candidate can bring customers with him; has studied competition’s pay, has a bottom line figure of $X Negotiations begin when offer of $X is made

Practice Session #4 One interview is done. Manager and candidate know one another from the industry Manager’s range is between $X and $Y; needs someone to hit the ground running, so will lean toward the higher end if necessary Candidate has researched and knows that $X is equitable. Will hold out for that. Negotiations begin when offer of $X plus $2,500 signing bonus is made.

Practice Session #5 Four interviews held (screening, manager, work team and regional director) HR has valued position between $X and $Y Manager knows he must stay in $X vicinity to avoid internal problems Candidate feels extremely well-qualified and expects $X, the top of the published range Negotiation begins when an offer of $X is made

Practice Session #6 One interview for internship held. Pay is flat $x/hour. Requires move to city three hours from NCSU and starts on May 15 In order to pay expenses, student needs to earn $X/hour and cannot move until May 20 Negotiation begins when manager calls and says, “We looking forward to you joining us. Are you on-board?”