Negotiating Salaries

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Negotiating Salaries

• Presented by
• Jeffrey Peters

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Overview

• Introduction to Salary Negotiations
• When to Start Negotiating
• Negotiation Techniques
• Conclusions

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Salary Negotiations

• May be necessary at any time
• Initial employment interviews
• Compensation reviews
• Often based on a number of factors
• Market value
• Skill set
• Education
• Experience

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Wide Range of Pay

• Typical Aerospace Engineer salary
• Ranges from 89,000 to 112,000
• Negotiating can make the difference

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When to Start Negotiating

• Introduction to Salary Negotiations
• When to Start Negotiating
• Negotiation Techniques
• Conclusions

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When to Start Negotiating

• Postpone salary negotiation if possible
• Stronger bargaining position
• Prevent negative messages to company
• Avoid stealing attention from qualifications
• Early discussions often interviewing ploy
• Gauge self-interest versus interest in the job
• Not serious negotiation

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How to Postpone Negotiations

• If asked early, try to defer
• Learn more about job requirements
• Inquire about responsibilities
• If pressed, state previous salary
• Forces interviewer to decide next move
• Opportunity to defer

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Negotiation Techniques

• Introduction to Salary Negotiations
• When to Start Negotiating
• Negotiation Techniques
• Conclusions

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Avoid Making the Initial Range

• Common rule in salary negotiations
• The one who speaks first loses
• If pressed, provide range
• Always avoid specific numbers

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Most Important Know Your Value

• Know your value
• Going rate
• Skills
• Education
• Special fit considerations
• In most cases
• You know your value better than they do!

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Ways to Determine Value

• Professional Associations
• Employment Agencies
• Trade Journals
• Salary Study Sites (previous example)
• U.S. Bureau of Labor Statistics

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Valuation Pitfalls

• Never inflate past earnings
• Leading cause of negotiation breakdown
• Easily checked by prospective employer
• Growing trend for W-2 submission
• If past pay was low
• Use as a reason for seeking new employment

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Do Not Neglect Benefits

• Benefits are an important part of salary
• Quality benefits may offset lower base salaries
• Benefits may be more negotiable

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Typical Benefits
Health Insurance
Prepaid Legal Plans
Disability Income Protection
Bonuses
401K
Life Insurance
Child Care
Dental Insurance
Company Car
Tax Deferred Programs
Paid Tuition
Spending Accounts
Flex Time
Paid Vacation
Maternity/Paternity Leave
Paid Sick Days
many more
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Know When to Stop

• When to stop?
• When process becomes stagnant
• Recognize not all salaries are negotiable
• Art of differentiating tactics vs. unwillingness

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Entry Level Positions

• Salaries for entry level are less negotiable
• Generally a range of at least 5 above initial
  offer
• Increased negotiation with higher education

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Conclusions

• Introduction to Salary Negotiations
• When to Start Negotiating
• Negotiation Techniques
• Conclusions

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Main Conclusions

• Postpone negotiations as long as possible
• Avoid specific numbers
• Offer range of possible salaries
• Know your value
• Be confident

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Questions?