salary negotiation strategies. concepts learned from your best & worst experiences research –...
TRANSCRIPT
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
• www.salary.com
• www.wageweb.com
• www.wetfeet.com
• www.vault.com
• www.careers-in-business.com
• www.rileyguide.com
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?”