NEGOTIATIONS

							NEGOTIATIONS

     Women in NAAAP! (WIN!)
     Conference
     Presented by Kim M. Tran
     June 4, 2011
    Negotiations: Why does it matter?


      Men are four times more likely
      than women to ask for a salary
      raise.
                     -- Recent NPR Story




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    Negotiations: Why does it matter?


      Men (still) make more than women
      for same job.
          –   The U.S. Bureau of labor Statistics states in a July 2009 report
              “In 2008, women who were full-time wage and salary workers had
              median weekly earnings of $638, or about 80 percent of the $798
              median for their male counterparts."
              http://www.bls.gov/cps/cpswom2008.pdf




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    Negotiations: Why does it matter?

     Women leave $1M and $1.5M on
     the table in lost earnings.
                    -- Linda Babcock, Economist, Carnegie Mellon




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    Perception Matters


       Women asking for the same
       raise as men were perceived as
       aggressive
            -- Video survey conducted by Carnegie Mellon




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    Perception Matters

       Psychological
       Business
       Academic
       Theoretical
       Today’s Focus -- Professional Experience




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    Background

       Employment law attorney
        –   Negotiated contracts, settlements
        –   Participated in lots of mediations
        –   Litigated hundreds of cases
       Human Resources Manager
        –   Investigate claims of discrimination, misconduct
       Pro Tem Judge
        –   Preside over small claims court matters




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    Toughest Negotiations

       Becoming a shareholder – one of the first
        Vietnamese American woman in Seattle
       Multi-million dollar settlement in
        discrimination lawsuit
       Client paying out-of-pocket – Business faced
        bankruptcy depending on litigation outcome



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    Types of negotiations

       Personal life
        –   Buying a house
        –   Used car purchase
        –   Craigslist purchase
       Work
        –   Negotiating your own salary, raise, etc.
        –   Difficult boss or co-worker
        –   Negotiating a contract for your employer or
            company

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     What does negotiations mean?

        Resolve conflict
        Advance your goals
         –   Higher salary
         –   Work conditions
         –   Close a deal
        Advance your company’s goals
        Advance your client’s goals

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     Tips for Personal & Professional
     Negotiations


     One – Identify Deal-Breakers (Yours and Theirs)
      Two – Understand Bargaining Position
          Three – Find Comparators
               Four – Listen
                      Five – Memorialize It!
                            Six – Practice

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     One: Deal-breakers & Giveaways

        Identify what you want out of the transaction
         –   New job: consider salary + bonuses, other perks
        Identify your giveaways- make those appear
         to be your deal-breakers
        Recognize your value
        Be prepared to walk away
         –   When you say you have given your “final and
             best”

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     One: Deal-breakers & Giveaways

        Identify what THEY want out of the
         transaction
         –   They may be just as eager to close a transaction
         –   Your boss wants you to stay
        Present alternatives
        Consider long-term consequences of short-
         term concessions


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     Two: Understand the Relative
     Bargaining Positions

        You: independent, small business
        Them: Big multi-national corporation
        Bargaining position: Depends on the
         transaction – do not be intimidated
        Do not assume that they have a lot of other
         choices
        Do not rush to concede your rate
         –   Can always under-promise & over deliver
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     Two: Understand the Relative
     Bargaining Positions

        Are you speaking to the final decision-
         maker?
        Do you have the authority to accept changes
         to the agreement?
        Be careful about negotiating for a future
         relationship.



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     Three: Find Comparators

        In general
         –   Your comparators must be realistic – written
             documents are persuasive
         –   Due diligence on the other side
        Salary or Contract Negotiations
         –   Build your network so that you know what other
             professionals charge/make



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     Three: Find Comparators

        Buying a home
         –   How much are other homes on the block?
         –   How are the other homes the same or different?
        Business deal
         –   Use experts!
        Craigslist transaction
         –   Can you find the same item on CL or Ebay or
             Amazon

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     Four: Listen

        Repeat and parrot their position
        Listen to what the other side says they want
        Listen to what your boss/company really
         wants out of the deal




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     Four: Listen

        Ask open-ended questions instead of cross
         examining
        What are the hurdles?
         –   The other side has a demanding boss
         –   The other side can negotiate quantity, but not
             price
        Problem solve and brainstorm alternatives


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     Five: Memorialize it!

        Key Contents:
         –   Date
         –   Amount
         –   Description
         –   Signatures of all parties




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     Five: Memorialize it!

      –   Example: On June 4,2011, I, K. Tran, agreed to
          purchase the King Size Oak Bed Frame, from J.
          Nguyen, in the amount of one-thousand dollars
          ($1,000) to be paid in cash on or before June 7,
          2011.
              Signed ___________ on date _________
              Signed ___________ on date _________




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     Five: Memorialize it!

        Memorandum of Understanding
        Employment Contract
        Email Confirmation
        Scribble on Receipt
        Contract
        READ: Strikethrough, cross-out & correct


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     Six: Practice

        Find a colleague and make your pitch
        Use your professional network
        Craigslist transaction = opportunity to
         practice
         –   Bargain, Bargain, Bargain
        Script out the first few phrases:
         –   Is this salary firm or is there flexibility?


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     Negotiations

     The money belongs in your pocket,
     not left on the table.




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