Salary Negotiations
What do you need to know to get the best possible agreement?March 14, 2015PACES Workshop – Job Hunting in Today’s Economy
A salary negotiation story*…
At the end of the final job interview, the hiring officer asked the enthusiastic PT student, “And, what starting salary were you looking for?The PT student replied, “I would like to start in the neighborhood of $100K, depending on your benefits package.”The officer responded, “Well, what would you say to 4 weeks vacation, 14 paid holidays, full medical & dental, company matching retirement fund up to 50% of salary, and a company car lease… say a red Corvette?”The PT student sat up and said, “Wow! Are you kidding?”“Of course, said the hiring officer. “But you started it.”
*Modified fromEssentials of Negotiation(Lewickiet al, 2004)
Before you go in…
Salary negotiations are usually the last stage in the job interview processAt this point you have the jobIFyou and the employer can come to an agreement on your compensation packageRemember to listen to WIIFM, your new employer is…
Before you go in…
Go in to the negotiation prepared!!!Look at salary ranges for your job and area.www.salary.comhttp://www.payscale.com/mypayscale.aspxLookat cost of living in your area.Ifyouare moving, this is especially importanthttp://cgi.money.cnn.com/tools/costofliving/costofliving.htmlhttp://www.payscale.com/cost-of-living-calculatorhttp://www.bestplaces.net/col/Dress appropriately… this is still part of the interview process.
Before you go in…
Get to know the benefits/bonus packageMostlarge companies will have something on their intranet site, ask to look at it or ask for information.Decideon your ideal and BATNATakeinto consideration any benefits andbonuses.Lookat your personal needs and motivationsBenefitsand bonuses can account for half of the total compensationpackage.Berealistic in yourexpectations
What can you negotiate?
TimeMoneyBenefitsWork EnvironmentRelocationPromotion
*Negotiating Your Salary, Exchange, 2006 (Ford Career Center)
In the negotiation…
Remain calm andprofessionalThecompany does want you to work forthemBeready to reinforce yourpositivesWhatcan you do for the companyPresentreasons why you deserve the salary youwantWhilebeing realistic in your requests
In the negotiation…
Make sure that youunderstandeverythingclearlyWritedown what was decided foryourselfDoublecheck with employer if you feel that you needtoRemembernothingisfinaluntilyou signthecontract
Common mistakes
Not doing your researchBluffingYou forget about benefitsBeing too interested in the package
7 questions that make interviewerscringe…
Whatdoes your company do?Howmuch does the role pay?Whatare the hours of the position?Howmany sick days do I get?Howmuch time do I get off?IfI'mhired, when can I beginapplying for otherroles in the company?Doyou do background checks?
www.Careerbuilder.com
Things to keep in mind…
There arequestionsthat employers can not askButthey mighttryThisisaprofessional situationButthere will be some smalltalkThemoreprepared youare,the betterTheywill find it harder to throw you a curve ball.
Afterwards…
Get the details about your compensation package in writingEspeciallythe extras younegotiatedItshould be part of the contractthat you signYour compensationpackageis betweenyou and your employer.It is not something to openly discuss.
How to “win” salary negotiations
TimingWhen do you ask the salary?Respondingto… “whatsalary are you looking for?”Prove your worthReach an agreement
Types of contracts
ExplicitDetailed, written contractCoversall contingencies and requires no further cooperationBindsthe parties through an outside enforcement mechanismNorelationship exists between parties apart from the exchangeCommunicationis limited, formal, relies on technical languageObligationslimited, parties only bound to explicit commitment
ImplicitBroadoral agreementAcceptingof unforeseen changesLeavesroom for parties to deal with problemsBeginsformation ofpersonalrelationships-relieson relationshipImportanceof relationship overrides substantive concernsCommunicationis extensive, formal and informal, verbal andnon-verbalObligationsare unlimitedandimmeasurableFuturecannot be foreseen or included, trouble is expected and the contract allows for maneuverability
Contract Completeness
Contracts can range from:Totally completeRelativelycompleteBothof which are higher in cost at thebeginningRelativelyincompleteIncompleteBothof which are higher in risk at thebeginningThedifferences offer the trade-off between greater safety and predictability and greater flexibility
How do you choose?
Certain factorshelp determinewhich kind ofcontractoneselects:Environmental uncertaintyTransactionspecificassetsAvailabilityof alterative supplier
Final advice…
Read up on ‘the art of negotiation’ before starting your job interview(s)http://www.negotiations.com/articles/10-college-grad-interview-negootiation-rules/Talk with mentor(s) about what you can expect, what to avoid, etc.Don’t make any decision(s) that have not been thought throughHiring is a big decision for both partiesNot to be rushed in toTry for ‘win-win’ negotiationavoid remorse for either party
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