1. Making an Informed Decision
Accepting a Job Offer
Making an Informed Decision

2. Purposes of Workshop discuss negotiation positions
identify elements of an offer
view sample decision matrix
recognize ethics of offers

3. Congratulations! You’ve Got An Offer!!

4. Now Comes the Challenging Part
know your bargaining position
making an informed decision
savvy negotiation
accepting

5. Strategy of Negotiation
foundation—what you do to ensure your bargaining position is as strong as possible
start working on it well before you sit down to negotiate details
builds your bargaining power
makes the most of your talents, education, job experiences, and recommendations
neutralizes your limitations

6. Bargaining Position strong position more typical position
lots of offers, outstanding tech skills, little competition
name your price, but w/strategy
you want them glad to have you, not resentful of your demands
more typical position
really want the job
terrified of losing it by being too aggressive
doesn’t negotiate effectively

7. Bargaining Power research industry standards for compensation
resources are
trade magazines
salary surveys by NACE, CSO, SHRM, etc.
alumni
American Almanac of Jobs and Salaries
Occupational Outlook Handbook
and other Web sites
develop other job offers

8. Know The Market what is the going rate for the position
do your research
what positives or negatives might cause a deviation from the going rate
how much bargaining power do you have
what factors are most important to you
what is your best alternative plan
what is the lowest salary you can accept

9. What Can The Employer Offer
salary
signing bonus
bonuses
commissions
moving allowance
early performance review
health plan
tuition reimbursement
stock awards or options
profit sharing
pension or 401(k)
lifestyle issues
severance package

10. Salary base for figuring bonuses and raises
savvy negotiating often improves an initial offer---sometimes dramatically
difficult to get same boost on the job even w/excellent performance

11. Signing Bonus
offered when they can’t pay a competitive salary right away or luring someone away from a competitor
keeps departmental salary structure because they are hidden from view as not being a part of regular payroll
often payment of bonus is delayed to keep you from getting money and running
commonly paid half at 6 months and remainder at 12 months

12. Bonuses best if tied to measurable criteria
requirements for earning it
performance of a sales team you support
reward for completing a schedule ahead of time
reward for recovering a business relationship that was lost
based on customer satisfaction
based on money saved through operational streamlining
finder’s fee for recruiting needed staff members
tied to the number of new customers brought in by marketing programs

13. Commissions sales goals
commission percentage, standards for meeting it, and additional rewards for exceeding goals
size and location of sales territory, degree of exclusivity, and access to specific accounts
length of time to keep the territory if you meet your goals

14. Moving Allowance may be tax-free
may include nearly all moving expenses, including
hired movers
temporary living quarters
sometimes costs associated with real estate transactions
may be a fixed sum
usually negotiable because it is a non-recurring cost for the company

15. Early Performance Review
for salary increase or promotion
request a 6 month or even 3 month review if you think you can make a significant impact that fast

16. Health Plan company sponsored health plans vary widely
many smaller firms have none
provisions of plan are not negotiable
expect to pay at least part of the premium yourself from pretax income
review company’s share of the premium
look for at least two options to be offered by employer

17. Tuition Reimbursement
standard benefit that can be worth thousands
usually have to take night classes
classes usually have to be related to something that benefits the company
some make loans rather than tuition grants and then forgive a part of the loan for each year you remain after concluding the education
try to arrange for any balance to be forgiven if you are laid off
may also sponsor educational opportunities
informal, on-the-job training
mentoring
formal courses and seminars

18. Stock Award or Options
most common and lucrative at start-up and early-stage companies
key is to argue that bigger ownership gives you more incentive to be of extraordinary value
larger, established companies are less negotiable, offer relatively fewer shares, and are sometimes restricted to middle and upper management
not so profitable in near-term money, but over years they can be sizable
do the math…know the number of shares offered and the and percentage of total shares
start-up shares are only valuable if and when the company goes public or is sold
ask about length of time for vesting before you can exercise options
if you’re planning on a short stay, these aren’t of much value

19. Profit Sharing profit sharing
form of incentive pay based on the company’s performance
you agree that a percentage of your compensation will be based on the firm’s overall profits or profits from certain deals

20. Pension Profit Sharing or 401 (k)
employer contributes a certain amount to your pension plan each year
usually figured as a percentage of your salary
based on the company’s profitability
company sets aside a portion of your pretax income in a tax-deferred investment account
most employers match full or partial contributions
in principle, money is supposed to remain until retirement
some plans allow for borrowing against it or making early withdrawals
buying a home
paying your kids’ college tuition
medical care
must conform to government regulation so terms are not negotiable

21. Lifestyle Issues location travel schedule
need to balance work and family
future stability

22. Severance Package
negotiate for 3 months salary if your employment is terminated through no fault of your own
this should be the last area of your negotiation
bring it up as a conjecture, e.g. what if…
get the deal in writing in case your manager is laid off

23. Determine Negotiating Priorities
use these to evaluate offers
quality of learning opportunity
rapport w/your supervisor
respect for your colleagues
workplace atmosphere
intense or relaxed
competitive or mutually supportive
chaotic or organized
work alone or part of a group or combination of two
socializing or being more private

24. More Priorities to Consider
other forms of compensation
benefits such as health insurance
perks, e.g. international travel
recognition, e.g. speaking opportunities
company’s prestige
importance or value of what the organization produces

25. More Priorities to Consider
vacation and time-off policies
usually paid time computed by formula based on time with the company
may also be allowed extra time without pay
don’t make it first on your list of demands or you look like you’re not enthused about your job
flexibility of the work schedule
8 am to 6pm is most common schedule
permission to work from home two or three days per week
may be better off proving yourself first and then negotiating flexibility
may be able to negotiate comp time, generally an hour off for each hour of overtime
ask about cashing in unused comp time at the end of the year, but make sure you document your time well

26. More Priorities to Consider
career-advancement opportunities
location
commuting distance and related considerations, e.g. availability of public transportation or parking
on-site facilities, e.g. fitness, child-care centers

27. Using a Decision Matrix
helps stay focused on the factors of most importance to you
identifies your main negotiating points
recognizes when you should decline an offer

28. Creating a Decision Matrix
list the factors that matter most to you
assign each a relative weight out of a total weight of 100
rate how strong the offer is on each factor on a 0 to 10 scale
multiply the weight for each factor by the rating you gave
add up the results for each factor

30. Negotiation Tactics
what you do to achieve the best outcome considering your bargaining position

31. You’re Not Buying a Car!!
resist the classic sense of negotiation where they offer, you counter, they counter your counter, and so on
determine your bottom line in advance and wait for the offer
if they offer more than your bottom line, great
if they offer less than your bottom line, then
walk away or
reveal your bottom line and see if they can meet it
lay your cards on the table to avoid aggravating the employer

32. Always Negotiate With The Decision Maker
they know more about the job
they are more concerned about losing you
they have more latitude in taking in special circumstances
they are more creative
flexible hours
extra vacation days
signing bonus
company-furnished laptop

33. Avoid Pushing Too Far your deal will be resented
you invite over-scrutiny and criticism
you have to live in the climate you create

34. Ask Yourself Questions
do you care enough about it to meet expectations
is the money, recognition, or intrinsic value rewarding enough
are the expectations realistic
will you be happy there in six months
are there enough challenges and learning opportunities to keep the job fresh over time
are you intrigued by the ongoing responsibilities or just solving the initial problem
do you commonly fall prey to the grass is always greener syndrome
do you stick to what you start
how well do you fit into the company’s culture

35. Never Name The Salary First
too high and you risk scaring away the employer
too low and you shortchange yourself or devalue the position

36. Don’t Ask For It All
a long list looks like you’re a high maintenance employee
concentrate on the 2 or 3 things that matter the most to you
consider the other options only as part of your decision matrix for evaluating offers

37. End of Negotiation Signals
final words that signal the end
“I just can’t go beyond what I’ve agreed to already”
“I think your expectations are beyond what we can do”
“Please consider this our final offer”
continued pushing will cause alienation and negative outcomes

38. Immobile Barriers To Negotiation
union contract terms
policies set by the board of directors, such as formulas for determining pay
policies set by management, such as not providing allowances
group-hire decisions, such as internships
the pay level or your peers or the person you would report to

39. Offers May Have Strings Attached
pass a physical examination
document your citizenship or immigration status
obtain a security clearance
undergo a thorough background investigation , in which your credit history, police records, and travel history might be examined
verify your academic credentials
provide proof of your past employment, salary, or military service

40. Ethics to Consider delaying a decision declining an offer
reneging on an offer
accepting an offer

41. Delaying a Decision
be reasonable, but you can usually get more time to decide
if negotiations have been verbal, ask to receive the terms in writing
ask for a few days to consider the offer
clarify a few points if more time needed

42. Declining A Job Offer act decisively; don’t string them along further
call or a thank you for the manager’s time and efforts
graciousness means you won’t burn any bridges

43. Reneging On An Offer
you accept an offer, quit your current job and your partner quits theirs, sell your house then the company backs out…how does that feel?
employer has terminated discussions with other candidates and does many other things
it’s disrespectful to the company and lacks integrity
it’s dishonest
avoid this problem by careful planning about your ideal position

44. Ethics Of Accepting A Job Offer
get it in writing on company letterhead and signed by hiring manager
title and major responsibilities
starting date
person you will report to
salary
other forms of compensation, i.e. bonuses, commissions and details
stock options, dates they will be granted, the vesting schedule
perks, e.g. moving allowance, tuition reimbursement, extra vacation time, flextime, early salary review, other special arrangements agreed upon
written offer is a contract once it is signed by you
if they are reluctant to write it, you do it and submit it
file a signed final copy in a safe place
stop interviewing and notifying any pending companies

45. Congratulations! You’re Hired!