Salary Negotiations by liwenting

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									―Let us never negotiate out of
  fear. But let us never fear to
  negotiate.‖
                  --John F. Kennedy
Salary Negotiations
    Why Negotiate?
    Six Reasons Why You Should
     Negotiate, from idealist.org
   It’s okay to ask for what you’re worth.
   The first offer is often not the best possible one.
   A higher starting salary means higher raises (in
    this or future jobs).
   Salary is not the only part of a compensation
    package that you can negotiate.
   Asking for a more competitive salary/benefits
    package does not suggest that you only care
    about money, or that you do not care about the
    mission of the organization.
   Negotiating shows that you are confident in and
    can advocate for yourself and your abilities
                  Basics
1.   Determine the benchmarks for the
     position
2.   Assess your Bargaining Power
3.   Determine your Priorities
4.   Identify What is Negotiable
5.   Develop a Negotiating Strategy
6.   Negotiation Approaches
7.   Negotiation and Gender
      DETERMINING BENCHMARKS
 What    Is Benchmarking?

     ―Researching and comparing the broader job
      market’s standards for compensation, title,
      responsibilities, and perks based on the
      position, your skill set and qualifications.‖

                        -- Negotiating Your Salary & Perks, WetFeet
      DETERMINING BENCHMARKS
 Research     Salary Surveys:
     Opm.gov
     Bureau of Labor Statistics
     Jobstar.com
     Vault.com
     The Riley Guide
     Salary.com
     cbsalary.com (calculator tool by region/state)
     DETERMINING BENCHMARKS
 F&ES   Statistics, Class of 2009

    SALARIES BY DEGREE ($US) Masters
                               MEAN
     • 1 degree n=34           52,931
     • Joint degree n=11       75,318
     • Total n=45              58,404
     DETERMINING BENCHMARKS
 F&ES     Statistics, Class of 2009

    SALARIES BY SECTOR ($US) Masters
                                     MEAN
     •   Non-Profit/NGO              53,708
     •   Private (bus/consult/law)   72,319
     •   Gov/Public                  54,502
     •   Academic (k-university)     57,000
     DETERMINING BENCHMARKS
 GS9, typical starting salary for Masters
 degree, Jan 2009, from opm.gov

    Step 1, Atlanta: $49,581
    Step 1, Boston: $51,871
    Step 1, Seattle: $50,628
      DETERMINING BENCHMARKS
 Other   Sources of Information
     Trade Magazines
     Human Resources Websites (for employer
      and competitor salaries and benefits)
     Local Cost of Living Data
     Recent Alums
 ASSESS YOUR BARGAINING POWER
Stronger Items:
    • You were strongly recommended
    • There are few other candidates
    • The employer is concerned about you taking a job
      elsewhere
    • You have very relevant education, skills and
      experience
    • You have several offers and are not worried
    • You have strongly ―sold‖ your value to employer
 ASSESS YOUR BARGAINING POWER
Weaker Items:
    • There are many candidates
    • You have little relevant experience/education
    • Your calls are not returned or are taken by an
      assistant
    • You’re feeling desperate
    • You learned about job through a job posting
    • You’ve left it to employer to assess your value
      rather than strongly selling yourself
 ASSESS YOUR BARGAINING POWER
 Note
     on Entry Level Positions and
 Bargaining Power:

While some degree of negotiation is
 appropriate for any position…it is better to
 approach negotiations for an entry-level
 position with limited expectations and a
 shorter list of ―must haves.‖ – idealist.org
    DETERMINE YOUR PRIORITIES

What really matters to you for your
 satisfaction in this career move? What are
 your goals?
    • Sample Priorities List:
          Location                                 35%
          Salary                                   20%
          Org’s commitment to social justice       20%
          Rapport with supervisor and colleagues   10%
          Opportunity of this career move          10%
          Benefits                                  5%
IDENTIFY WHAT IS NEGOTIABLE
   Tuition Reimbursement
   Professional Development Opportunities
   Profit-Sharing and 401(k) Programs
   Health Insurance
   Work Schedule/Flex-time
   Vacation Time
   Severance Pay
   Local Travel
   Housing
IDENTIFY WHAT IS NEGOTIABLE
   Title
   Responsibilities and Opportunities
   Salary
   Signing Bonus
   Moving Allowance
   Performance-Based Bonuses and
    Commissions
   Review Date
   Stock Options
DEVELOP A NEGOTIATING STRATEGY
           Essentials

    Self-knowledge—to ―sell‖ yourself, position
     yourself with more bargaining power and
     increase value of position
    Increase the value of you in the position
    Effective Presentation—give yourself
     immediate credibility, add bargaining power
DEVELOP A NEGOTIATING STRATEGY

   • Be enthusiastic and connect personally
   • Don’t ask for no as an answer (i.e. ―Is there
     any chance you can go higher than
     $40,000?‖ Instead try ―Wouldn’t you agree
     it’s important to be competitive? Based on
     my research, $45,000 is an average
     starting rate.‖
   • Connect with the decision-maker
        DEVELOP A NEGOTIATING STRATEGY

Connect with Decision-Maker: Negotiations
     in Different Sized Companies

   Medium-sized Company
       Usually starts with HR manager—may be screening
        phone call to check for competence, honesty and
        appropriateness to position.
       Likely that you will then be passed on to reporting
        manager.
       Offer likely to be made by reporting manager who you
        can negotiate with directly.

           -- Negotiating Your Salary & Perks, WetFeet
        DEVELOP A NEGOTIATING STRATEGY
          Connect with Decision-Maker:
   Large Company
       Usually starts with HR manager
       May go to hiring manager, who may make the offer
        and negotiate with you.
       For lower level positions, however, HR manager may
        make the offer and do the negotiating with you. In
        this case, you should try everything you can do to get
        your resume to the reporting manager, who can be an
        ally—increases your bargaining power.
       If negotiating with HR manager, you can still discuss
        potentially negotiable areas. After you’ve pushed in
        all areas, try to negotiate for an early performance
        review.
           -- Negotiating Your Salary & Perks, WetFeet
        DEVELOP A NEGOTIATING STRATEGY

          Connect with Decision-Maker:

   Small Company
       Jobs commonly posted directly by decision-maker
       Decision-maker may be owner or senior staff
       Hiring manager may handle the whole process—
        interview, offer, negotiation
       Less formalized, more opportunity to connect
        personally




           -- Negotiating Your Salary & Perks, WetFeet
DEVELOP A NEGOTIATING STRATEGY

   • Explore everything an employer can offer
   • Benchmark all aspects of an offer
   • Know how to discuss salary history
     intelligently
   • Continue to interview elsewhere
   • Be selective re: what you negotiate on, i.e.
     review priorities
   • Don’t name the salary first
DEVELOP A NEGOTIATING STRATEGY
      Naming Your Salary
―The person who gives the first number sets the
  starting point. But if that's you, you lose. If you
  request a salary higher than the range for the
  job, the interviewer will tell you you're high, and
  you've just lost money. If you request a salary
  lower than the range, the interviewer will say
  nothing, and you've just lost money.‖
  -- Penelope Trunk, Brazen Careerist, The Answer to the Toughest Interview Question
DEVELOP A NEGOTIATING STRATEGY
   Don’t Name the Salary First

 The  salary discussion and other
  negotiations should ideally begin when an
  offer is given
 If asked during an interview, try the
  following responses to avoid giving a
  number…
DEVELOP A NEGOTIATING STRATEGY
   Don’t Name the Salary First

 What        salary range are you looking for?

   "Let's talk about the job requirements and
   expectations first, so I can get a better
   sense of what you need."
 -- Penelope Trunk, Brazen Careerist, The Answer to the Toughest Interview Question
DEVELOP A NEGOTIATING STRATEGY
   Don’t Name the Salary First

I  need to know what salary you want in
   order to make you an offer. Can you tell
   me a range?

   "I'd appreciate it if you could make me an
   offer based on whatever you have
   budgeted for this position and we can go
   from there."
 -- Penelope Trunk, Brazen Careerist, The Answer to the Toughest Interview Question
DEVELOP A NEGOTIATING STRATEGY
   Don’t Name the Salary First

 What  are you expecting to make in terms
  of salary?

  ―Have you established a range for the
  position?"
 DEVELOP A NEGOTIATING STRATEGY
       What are your salary
          requirements?
 ―My requirements are negotiable,
  depending on the responsibilities of the
  position.‖
 ―Salary is negotiable.‖
 ―My salary requirements are negotiable
  and flexible‖ (but do this only if you are,
  indeed, flexible).
DEVELOP A NEGOTIATING STRATEGY
   What is your salary history?
 ―As I’m just completing my masters degree, I
  have a new set of qualifications, experience and
  level of expertise, so don’t have comparable
  salary history data.‖—then move on to your
  benchmarking figures…
 State your salary history (if applicable) or
  desired salary in a broad enough range so as
  not to knock yourself out of the running or set
  the offer lower than what the organization
  expected to pay.
What Salary Should you Expect?
DEVELOP A NEGOTIATING STRATEGY
Factors to Consider in Determining
         Your Living Wage
    Housing
    Clothing
    Food
    Automobile/Transportation
    Insurance
    Medical/Health
    Support for other family members/pets
    Bills & Debts
    Taxes
    Savings/Retirement
    Discretionary
    Cost of Living in New Location
DEVELOP A NEGOTIATING STRATEGY
  Determine Your Living Wage
 BOTTOM:    Living on ramen and popcorn
  with 20 mile bicycle commute from tent
 TOP: 2 weeks in Europe every year, new
  hybrid, shopping at Whole Foods, puppy

      Wage = Somewhere in between.
 Living
 Compare Living Wage with Benchmarks
DEVELOP A NEGOTIATING STRATEGY
       Walk-Away Point

 The  point at which you move on to the
  next opportunity.
 Is your living wage your walk-away point?
  The bottom of your benchmarked figure?
  Is the point higher? Lower?
 Is point firmly in mind?
You Get An Offer, What Next?
       NEGOTIATION APPROACHES
You should negotiate from a position of strength—
  not need or greed.
                      -- Dynamic Salary Negotiations, Ron and Caryl Krannich


   Response based on benchmarking (According to the
    salary surveys I’ve read…)
   Response based on employer’s needs (As we’ve
    discussed, I have extensive experience in the areas
    related to the position, and over and above can bring
    expertise in x…)
   Response based on creative alternatives (I realize this
    offer is based on company-wide salary-standards, which
    is very fair. However, I’m confident that I will make a
    significant contribution in a short time. Would you
    consider a salary review in 3 months?)
                               -- Negotiating Your Salary & Perks, WetFeet
     NEGOTIATION APPROACHES
 Response designed to create tension (I am
  looking at several opportunities…)
 Response designed to reduce tension (I hope
  I’m not being unrealistic about what you can
  do—I’m very interested in the position and hope
  to reach an agreement that seems fair to you
  and takes into account what I bring to the job…)
 Avoid the counterproposal (I was really hoping
  for x…) and your needs (you should know what
  you need, but don’t have to share all the details)
      NEGOTIATION APPROACHES
        Responses to Avoid
   Runaway Ego (―I don’t need this job, so if you
    don’t make it worth my while…‖)
   Showing Off (―I really don’t need the money, I
    just like the work.‖)
   Patronizing Manner (Have you read my resume?
    Do you know I’m from Yale?)
   Showing Your Cards (After a great offer saying
    ―Oh I thought it was going to be much lower!‖)
   Late-Breaking Demands (Bring up prior
    commitments early in process, not at the end)
                       -- Negotiating Your Salary & Perks, WetFeet
       NEGOTIATION APPROACHES:
         Leveraging one offer against another

You get an offer from Organization A right away,
  but you really want to work for Organization B.

You can contact Organization B and let them know
  that you’re really interested in their position, but
  that you’ve received another offer. Tell them
  your timeline (when you need to either accept or
  decline the first offer), reiterate your interest in
  their position, and ask if they’ll be able to let you
  know their decision in time for you to evaluate
  both positions.
                                           – idealist.org
       NEGOTIATION APPROACHES
                Nuance and Win-Win

Some job seekers end up creating a situation that
  is more confrontational than it really needs to be.
  Negotiation is a nuanced art; it is never an
  ultimatum…Beware of your tone and the
  language you use…be sure to begin with mutual
  respect, an awareness of other perspectives,
  and an understanding that the end result isn’t
  victory or defeat, but an agreement that allows
  both sides to come away satisfied.
                                     – idealist.org
         NEGOTIATION APPROACHES
           The Power of Silence
―So, we think your resume looks good and the team is
  excited to work with you. Our current thinking is that it
  might make sense to start you off at an annual salary of
  $50,000…

   Good Response? Silence.
     Employer may rephrase as a direct question to which you can
      then open negotiations on.
     Employer may be more uncomfortable than you are with silence,
      and may be compelled to speak up and up the previous offer.
     Demonstrates that employer cannot assume a dominating role.
    Tip: If uncomfortable with silence or eye contact at this point, look
      thoughtfully at your materials.
                                 -- Negotiating Your Salary & Perks, WetFeet
     NEGOTIATION APPROACHES
   Take Time to Think Over Offer
   When Negotiating is Through
 Ask   for the offer in writing (buys you a few
  days)—may not be a contract, but a
  summary of salary and benefits in writing.
 Tell the employer how much time you’d
  like to consider offer (This is fantastic, and
  I’m extremely interested. I’d like a few
  days to consider the offer, and will get
  back to you on Wednesday.)
        NEGOTIATION AND GENDER
   In surveys, 2.5 times more women than men said they feel "a great
    deal of apprehension" about negotiating.
   Men initiate negotiations about four times as often as women.
   When asked to pick metaphors for the process of negotiating, men
    picked "winning a ballgame" and a "wrestling match," while women
    picked "going to the dentist."
   Women will pay as much as $1,353 to avoid negotiating the price of
    a car, which may help explain why 63 percent of Saturn car buyers
    are women.
   Women are more pessimistic about the how much is available when
    they do negotiate and so they typically ask for and get less when
    they do negotiate—on average, 30 percent less than men.
                      --Women Don’t Ask: Negotiation and the Gender Divide
     NEGOTIATION AND GENDER
         Another Take
―I think the reason women do poorly in
   negotiations is that women assume you should
   ask for what you want, but men know that’s not
   how the game is played. Men know that you
   need to be aware of what you want, but that’s
   not necessarily what you ask for.‖
             --Try this: Don’t ask for what you want when you negotiate, Penelope Trunk
     NEGOTIATION AND GENDER
         Another Take
―Think of the sex example: If a guy
 approaches you for sex, you hang up on
 him. If he approaches you for lunch, you
 think he's very sweet. And then later you
 have sex.‖
  --Try this: Don’t ask for what you want when you negotiate, Penelope Trunk
    NEGOTIATION AND GENDER
     Analogous Negotiation
The agency you are negotiating with has
 offered you $45,000, but you are shooting
 for $50,000. You know they don’t allow a
 moving allowance, but you bring it up anyway.
 Then you bring up sign-on bonuses, dental
 insurance and remind them about your special
 qualifications. Unprompted, the HR rep offers
 you $2,500 more in your starting salary. Now
 you’re half way to your goal and you
 haven’t even asked for it.
          And Remember…
 There  isn’t one right way to negotiate.
 While there are a number of steps you can
 take before the negotiation (wait for an
 offer, research benefits, prioritize which
 elements of an offer are most important to
 you), there isn’t a foolproof script to follow.
                                  -- idealist.org

								
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