1. MoneyCounts: A Financial Literacy Series
Salary Negotiation
11-A Grange Building
University Park, PA 16802
financialliteracy.psu.edu

2. 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

3. 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

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

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

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

7. 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

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

9. 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!

10. 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

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

12. Gender pay gap 1
.78

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

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

15. 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!

16. 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

17. 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

18. 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!

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

20. Student Affairs Career Services at Penn State!
/offers-negotiating

21. MoneyCounts: A Financial Literacy Series
Comments and questions
11A Grange Building
University Park, PA 16802
financialliteracy.psu.edu