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Salary Negotiation

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					 JOB SUCCESS SKILLS

SALARY NEGOTIATION
                 PRE-TEST
                  (True – False)
1. There are five (5) stages of employer thinking.
2. You should “talk” salary as early as possible in
   the negotiation process.
3. Salary negotiation does not begin until the
   interview process is over.
4. You can no longer negotiate salary after the
   employer has made you an offer.
5. You should always negotiate salary based on
   your market value.

                                                      2
  WHAT IS THE EMPLOYER
       THINKING?
  There are 3 Stages of Employer
             Thinking:

STAGE 1 - BUDGET
STAGE 2 - FUDGIT
STAGE 3 - JUDGIT
                                   3
      STAGE 1 - BUDGET
• Most rigid stage as the company tries to
  live within its means.
• Occurs when employers first talk to you.
• Employer is looking to spend as little as
  possible.
• Employers start screening out people
  who are not in the salary range.

                                              4
        STAGE 2 - FUDGIT
• Employer is willing to shuffle expenses if
   needed.
• Employer thinks that maybe they will be able to
   meet your salary request.
• Maybe is the key word as hiring is rarely done
   during this stage.
• Do not reveal your
  salary requirements
  at this time.
                                                    5
       STAGE 3 - JUDGIT
• Employer sees you as an asset to the
  business.
• Employer makes an offer in line with
  your expectations.
• Never reveal salary
  requirements in Judgit stage
  = you could be screened out.
                                         6
     2 PRINCIPLES FOR
   NEGOTIATING SALARY:

• Delay any discussion of salary as
  long as possible.
• Know what you are worth in the
  marketplace.



                                      7
  WHEN DOES SALARY
 NEGOTIATION BEGIN?

Salary negotiation can begin…….
   • Before the interview
   • Early in the interview
   • At the interview


                                  8
    SALARY NEGOTIATION
   BEFORE THE INTERVIEW
For example…………
• If you are asked for salary requirements in a
  want ad or job posting.
• If you receive a salary-screening phone call.



              How do you respond?

                                                  9
 OPTIONS FOR RESPONDING

• Avoid the salary issue altogether.
• Say your salary requirement is negotiable.
• Politely ask what salary range they are
  considering for the position.




                                               10
    SALARY NEGOTIATION
   EARLY IN THE INTERVIEW

At times the employer will attempt to engage you
    in a discussion of compensation early in the
                  interview process.

When this is the case, you have
three options…….


                                                   11
                 OPTIONS
1. Delaying Tactics - “I would like to put off salary
   discussions until we are both sure I am right for
   the job.”
2. Nonspecific Response – “As long as you pay a
   fair market value, we will have no problem.”
3. Throw it Back to Employer – What would a
   person with my background, skills, and
   qualifications typically earn in this position?”

                                                        12
      SALARY NEGOTIATION
        AT THE INTERVIEW
There are four (4) possibilities when salary
       is raised during the interview.

1.   The salary range is acceptable.
2.   Only the top of the salary range is acceptable.
3.   The entire salary range is unacceptable.
4.   The interviewer does not give a salary range.

                                                       13
       SALARY RANGE IS
         ACCEPTABLE
    Thank the employer for the offer, but be
                 non-committal.
“I really appreciate the confidence you have in
    making this offer to me. I want to bring my
  talents and skills to work for this organization.
    Those figures you mentioned are within my
 expected starting range, depending on the entire
           salary and benefits package.”

                                                      14
     ONLY TOP OF RANGE IS
         ACCEPTABLE
      Thank the employer for the offer, but be
                 non-committal.
“Thank you so much for asking me to be a part of your
  team. I know my unique mix of skills and abilities
  will be a great benefit to the organization. Based upon
  my research and what I’ve been discussing with other
  companies, I would have to say that only the upper
  end of that salary range would be
  acceptable.”
                                                            15
 ENTIRE SALARY RANGE IS
     UNACCEPTABLE
    Thank the employer for the offer, but be
               non-committal.
“Thank you so much for the offer. I want to bring my
    skills and talents to your organization. The other
 companies I am currently speaking with , however, are
  considering me at a salary somewhat higher than that
   range. Of course, money is only one element, and I
        will be evaluating each overall package.”


                                                         16
      NO SALARY RANGE IS
           OFFERED
When interviewer doesn’t give you a specific salary
   offer and keeps pushing you for your salary
                   expectations.

 “From my research, $XX,XXX is around the base
       level for salary for this type of position.
     Considering my enthusiasm and my general
  success in the things I set out to do, I believe I’m
   worth mid-range, say $XX,XXX. What can you
                    do in that area?”
                                                         17
     WHEN TO NEGOTIATE
          SALARY

• When the employer is ready to make an
  offer.




• When the employer has made an offer.
                                          18
     KNOW YOUR MARKET
          VALUE
  Base your salary negotiations on your
              market value.

• Determine your value to the employer.
• Know how you will contribute to the
  profitability of the company.

                                          19
    HOW TO DETERMINE YOUR
        MARKET VALUE
•   Look up salary surveys in your field.
•   Ask other people in your field or profession.
•   Check the internet for salary information.
•   Use your network.




                                                    20
        FINAL THOUGHTS

• Please be careful and
  be patient.
• Look at the entire package, not just the salary.
• Be prepared to negotiate.
• Always be polite and professional – salary
  offers are not personal.
• Ask for the complete job offer in writing.

                                                     21
               POST-TEST
1. There are five (5) stages of employer thinking.
2. In the Budget stage, the employer is trying live
   within its means.
3. You should “talk” salary as early as possible in
   the negotiation process.
4. Salary negotiation can begin before, early, or at
   the interview.
5. If you receive a salary screening phone call you
   should avoid the salary issue altogether.

                                                       22
            POST-TEST continued
6.  You have three options when an employer attempts to
    negotiate salary early in the interview.
7. If the offered salary range is acceptable you should
    automatically commit to the offer.
8. You can no longer negotiate salary after the employer
    has made you an offer.
9. You should always negotiate salary based on your
    market value.
10. You can determine your market value by asking other
    people in your field or profession.
                                                           23
     PRE-TEST ANSWERS

1.   FALSE
2.   FALSE
3.   FALSE
4.   FALSE
5.   TRUE



                        24
POST-TEST ANSWERS
1.   FALSE   6.    TRUE
2.   TRUE    7.    FALSE
3.   FALSE   8.    FALSE
4.   TRUE    9.    TRUE
5.   TRUE    10.   TRUE




                           25
           ASSIGNMENT
Use the following web address to determine
   your value in the marketplace for at least
 two (2) jobs/careers in your field of interest.
    Print your results for use at a later time.


            www.salary.com/

                                                   26

				
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posted:9/6/2011
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