GEB 4223 quiz 4 ch 6

as you come down from your asking number, request a break in the discussion. say that you need a day or two to think about the offer. this is a strong signal to make the interviewer believe that your reject number has been reached when it is in fact your acceptable number. also gives a breather to assess your chances of a better offer by talking to your connections. you might now start negotiating. when you return to the discussion, there will basically be only 3 scenarios:

1) BEWARE OF THIS ONE. extreme negotiators who sense they have the power may DROP their offer in an attempt to scare you into going back to the first (unacceptable) number. they might say they talked to their superiors and were told that they "offered too much" so they have to lower the offer. 2)they may just hold firm and reiterate that the offer cannot be changed. 3) they may make an improvement toward your desired number depending on their perception of their negotiating power VS. yours and what they genuinely believe to be a fair market rate. Unless you are offered what you asked for, in all cases, i recommend at least one more attempt to justify a higher number.

what else should you negotiate other than salary?

1) performance bonuses 2) trial pay 3) commission 4)shares and options 5)training

negotiate your salary by building a market range of pay for the job and determining where you fit in that range to create your asking number. the ______ and the _____ _______ are the only numbers you reveal. to yourself, decide on your acceptable number and your "walk away" or reject number. defend your asking number in small increments negotiate back to your acceptable number.

1) range 2) asking salary

always present your arguments as ___________ and NEVER as an _________________.

1) reasonable 2) ultimatum

A good candidate is interviewing to win the ___________ __________. a well paid candidate also interviews with the _____________________ in mind.

1) selection process. 2) negotiation.

How do you make a detailed negotiation plan?

A) decide on your bottom line reject number. B) Have the acceptable number you would like clear in your mind. C) create your asking number.

Interviewers generally ask what your salary expectations are. What should you do when asked this?

Do NOT give a number. There is no upside. Their starting position will always be less than your number. You should answer by saying that at this early stage all you want is a fair market value for the services you are expected to provide.

the time to prepare and lay the groundwork for the negotiations is ___________.

EARLY! research salaries, research what measurable number you are expected to deliver, research challenges interviewer is facing and see if you can offer anything, research what other components of your compensation package could be negotiable.

How do you negotiate power?

In any negotiation, the power lies with the side that has the best alternatives if negotiations fail.

what are some of the websites that you can go to to check salary ranges?

Jobstar.org, glassdoor.com, salary.com cover salary ranges by job type. This research is not optional if you want to be able to negotiate.

When should you negotiate?

The only time you engage in a discussion about the terms of your employment is AFTER they have made an offer.

How do you know if your power is high?

You genuinely have other job offers that you are willing to accept should this negotiation fall apart AND if you know the organization you wish to join has no alternative candidates who come close to your ability to match the requirements of the job. NEVER fake alternative offers. The second you get an invitation for an interview, STEP UP your efforts to get other interviews elsewhere.

How might a amiable type behave during negotiations?

amiable types will respond to how much the team benefited from your past achievements. they like to hear that all you are looking for is a fair deal, and just like analytical types, will want data from recognized sites to support your view of a fair salary. they don't tend to intimidate because they value the relationship and tend to dislike confrontations. are liable just to stay quiet and let the silence drive you to start lowering your own number.

How might a driver behave during negotiations?

drivers can be abrupt and intimidating and may rant to try and bring your # down. If a driver makes a low ball offer repeat that you are very excited to join the team but are disappointed in the terms. Come straight to the point with good, steady eye contact. state that you have done your research and know from national data, your connections, and discussions you are having with other organizations that this offer is below fair market rate. Then stay quiet. if driver responds with take it or leave it, do not succumb to fear; maintain your enthusiasm. explain that you will need 2 or 3 days to consider it. if driver asks what were you expecting? DONT blurt out a #. instead, have a prepared rehearsed argument that summarizes the facts from your connections and public data that support your view.

what should you do if you make a strong driver or expressive type angry?

explain you did not mean to offend, but that you have to fight for what you believe is right. explain that you are planning to work a long time at this organization; therefore, the numbers need to be the best you can make them.

performance bonuses

extra payments dependent on overachieving against agreed goals. bonuses are not given if goal is not achieved, so sometimes referred to as the "at risk" component of a compensation package. once you have reached your base salary ceiling, it is worth switching the discussion to see if they will consider a bonus for exceeding certain goals. this discussion depends on your understanding of the requirements in measurable terms.

why have a middle number?

if you do not have a middle number, people under pressure tend to drop way too quickly to the reject number. good negotiators will keep the pressure on until they feel genuine resistance. Negotiating is about coming down in small increments from your asking number to your acceptable number, NOT your reject number. You want your interviewer to believe that your acceptable number is your reject number by creating resistance at that point.

trial pay

if you have reached a point where the employer has exceeded your reject number but is clearly not going to reach your acceptable pay level you can try another approach. offer to do the job at their rate but with a salary review after 6 months. if by then you have proven that you added the value you believe you can deliver, the deal is that they will increase your salary to your acceptable number. shows you are willing to "walk the walk". make sure the terms for gaining the extra salary are measurable and achievable and that the 6 month pay raise does NOT affect your annual raise due in another 6 months. get a written statement that this initial payment structure will not affect your first anniversary salary review. otherwise you will fall behind again the following year.

commission

is a form of performance bonus that generally applies to people in sales roles. organizations will have established commission rates, which makes it more difficult to negotiate. however, in many organizations, these percentages are driven by the volume of sales. but sometimes its possible to negotiate the volumes at which the commission percentages go up. its important to check with your connections to see whats realistic.

How might an analytical behave during negotiations?

less intimidating. responds better to facts and figures from websites and alternative offers. will not respond to "promises" of how hard you will work or how much value you will bring. ONLY a facts based logical argument will win them over. will bring their own set of facts and logic but are usually calm in the process.

What can you do to increase your chances of having more than one offer?

network, target and research the requirements of specific job functions , use targeted skills development to align with jobs of your interest, develop your online profile using keywords to optimize it for searches, tailored your resume to meet the specific needs of each opportunity, prepared and rehearsed compelling examples that match the top priority results of the job opportunity, and applied your new and improved interviewing skills.

A) decide on your bottom line reject number.

offers below this line will be rejected. Build a budget on a spreadsheet where you have itemized all your living expenses at the lowest level you can handle. if you do not do this there is a chance you will accept the job on terms you cannot live on. NOTE: you do NOT disclose your reject #. EVER. if it is not reached during the offer or negotiation process, you simply ask for more or walk away.

NOTE: when you reach a conclusion that you absolutely cannot get any higher on the base salary, you should do what?....

pause, DO NOT ACCEPT IT. instead, move the discussion to other areas

why should you put a lot of thought into your asking number?

the HIGHER the asking numer when you START the negotiation,the HIGHER the END number will be when you FINISH the negotiation. the interviewer could try the "let's split the difference" on you so you don't want to pick a number that's too low.

NOTE the following carefully:

the ONLY numbers you communicate are the TOP AND BOTTOM OF THE RANGE and your ASKING number. NEVERRR disclose your acceptable number or even worse, your bottom line reject number, as that is all you will get- at best. if you disclose your acceptable number, your best case scenario is that this is where the negotiations will START. the offers will only ever go DOWN from there.

shares and options

these involve you being granted shares based on performance or tenure and seniority in the organization. if the company does well , shares or options become more valuable, and all shareholders benefit. rarely offered to employees in their first few jobs. try to buy some stock on the open market. then get into the habit of discussing the price movement of the stock with your manager. this demonstrates commitment to the company.

C) create your asking number.

this is the salary you "ask" for and the starting point from which you'll negotiate. do not refer to this as the "asking" number when talking to your potential employer or you signal that its a negotiable number. merely position it as the salary you feel is FAIR. you create this by getting info on what the market rate for the job is. (from contacts, headhunters) what you'll end up with is a range.

B) Have the acceptable number you would like clear in your mind

this should be based on a second budget that includes additional expenses at a higher standard of living. NOTE: do NOT disclose your acceptable number either.

what is your objective?

to convince the interviewer that your asking salary is appropriately positioned within the market range given your experience and the value you will bring.

training

training may suck. negotiating training upfront can be very worthwhile. you need to agree with your interviewer that a specific type of training is valuable to both you and the organization. employer may agree to invest in such training for you as a part of your package.

how can you get more money even after you have reached a point at which you really believe you cannot increase their offer any further for the responsibilities originally defined?

try to explore whether there are ways to increase or add to the responsibilities and use that to increase the offer. ask your connections inside about challenges the company may be facing then angle the discussion towards how you can provide additional value to simplify these challenges. This means changing your approach from simply asking for higher pay to asking how you could EARN more by DOING more.

How might an expressives behave during negotiations?

values examples from your past, particularly if you can provide specific examples of how much your previous boss and team benefited from your achievements. they will respond with some degree of hype and promise as they want to feel the energy. they want to win (not lose you to the competition) and will respond to the fact that you have alternative offers. expressives can get heated and appear intimidating too, and may rant and try to intimidate you into lowering your number.

Why should you negotiate?

yes, as long as you are courteous and reasonable, you will be able to atleast have a discussion. They WANT to see whether you have the ability and backbone to do so.

the ONLY time to ACTUALLY negotiate is when ....

you are made an offer. this is the time when their desire to have YOU join their organization is at its highest.