SALARY NEGOTIATION STRATEGIES

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SALARY NEGOTIATION STRATEGIES
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Concepts Learned from your Best Worst
Experiences

• Research doing your homework
• Displaying confidence
• Walking away dont display emotion
• Asking for time to consider

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Objectives

• Answering questions at various stages
• Acknowledge offer buy time to decide
• Consider all aspects of offer
• Close the gaps

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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

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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 didnt say to NEVER disclose, just dont say
  the number first

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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

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Know Your Market Value

• Know salaries and negotiating climate
• www.salary.com
• www.wageweb.com
• www.wetfeet.com
• www.vault.com
• www.careers-in-business.com
• www.rileyguide.com

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State Salary History

• Option One Dont disclose
• Option Two Be accurate

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State Salary Requirements

• Option One leave blank, use open or
  negotiable
• Option Two Look at market range and make its
  midpoint your starting salary

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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

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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, were sure to
  agree to salary
• Option Four Whats the range (turn tables
  politely)

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When the Money Questions Become Direct

• Option One Cant compare apples to oranges
• Option Two Prefer to fit in employers
  established range what is it?

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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

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Your Moment of Power

• Employers 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

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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

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Lets Watch

• Body language
• Expressions
• Silence
• Word Usage

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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

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Language to Use

• What can we do to work this out together?
• I understand and Im 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?

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Pain when do you want it?

• A little now when theres discomfort in the
  negotiation process
• A lot later when you discover youve left money
  on the table

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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)

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This is all compensation

• Tuition Reimbursement usage, waiver
• Expenses who carries the cost?
• Cell phone and Blackberry
• Company car

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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 its wrong AND it could backfire!

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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

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Practice Session 2

• Three interviews done (phone screen, manager and
  technical)
• Managers 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.

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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 competitions pay, has a bottom line
  figure of X
• Negotiations begin when offer of X is made

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Practice Session 4

• One interview is done. Manager and candidate
  know one another from the industry
• Managers 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.

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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

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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?