Negotiating a Job Offer

Top Five Things Candidates Try to Negotiate

1. Additional vacation time 2. Flextime 3. Telecommuting options 4. Professional development/tuition reimbursement 5. Job titles/responsibilities

Calculate Your Expenses

1. Credit card bills 2. Cost of living 3. Entertainment 4. Rent/mortgage 5. Student loans 6. Investment 7. Car payment 8. Insurance payments

4 Out of 5 Employers

Are willing to negotiate. Few job seekers ask for more.

Employee Assistance Plan

Confidential for child care, elderly care, mental health, chemical dependency

Negotiating a Salary 4

Depends on several elements: Type of position sought (concession, facility management, minor league baseball, NFL) Geographical area where the position is sought. What leverage you have.

Paid Time Off (PTO)

Program provides employees with paid time off for occasional illness or personal business

Word Choice is Important

1. Avoid absolutes, NEED, MUST, HAVE TO-remember they're the ones with the offer 2. Don't paint yourself into a corner or you will lose credibility 3. Don't commit to anything until you are certain that you are ready to accept. 4. A verbal accept isn't final until the paper is signed but that doesn't mean that you haven't committed to the company

Medical Plan

1. Calendar year deductible 2. Co-pay 3. Lifetime maximum 4. Office visits 5. Preventive exams 6. Hospitalization, surgeries/anesthesia 7. Emergency room services 8. Home health care 9. Ambulance 10. Physical speech & occupational therapy 11. Vision care 12. Prescription drug services 13. Mental health/chemical dependency

4 "P's" of Successful Negotiation

1. Create positive environment 2. Prepare: brainstorm compensation possibilities and reasoning 3. Prioritize possibilities to consider: will accept lower salary with more vacation days 4. Be patient: allow time for thoughtful response

Advice

1. Do you homework 2. Don't be afraid to ask for what you want 3. Shut up and listen 4. Always be willing to walk away 5. Don't be in a hurry 6. Focus on the other side's pressure not yours 7. Show the other person how their needs will be met 8. Don't give anything away without getting something in return 9. Don't take the issue or other person's behavior personally

Increases Leverage

1. Economically prosperous 2. Small company 3. High attractiveness 4. Recruit few entry level positions 5. Negotiating is normal 6. Manager wants you 7. Established relationships 8. Unique skill set 9. Relevant experience 10. Alternate offers

Decreases Leverage

1. Economically troubled 2. Large company 3. Low attractiveness 4. Recruit many entry level positions 5. No negotiating norm 6. HR wants somebody 7. No relationships 8. Undistinguishable skills 9. Lack of experience 10. No alternatives

Know Your Bottom Line

1. Establish a budget including taxes and savings 2. Decide on the minimum amount of compensation that will support your budget and make you satisfied 3. If an employer is unable to meet or exceed this amount, it may be to your advantage to keep looking. There is no point in accepting an offer you think you will be unsatisfied and want to look for another job in the near future.

Know Your Market Value

1. Glassdoor.com 2. Indeed.com/salary 3. Monster.com 4. Payscale.com 5. Salary.com 6. Simplyhired.com/a/salary/home

Things to Ask for When Negotiating a Job Offer

1. Higher base salary 2. Flexible scheduling 3. Telecommuting 4. Tuition reimbursement 5. Relocation allowance 6. Accelerated performance review 7. Start date 8. Business Title 9. Membership dues 10. Parking 11. Car, Cell phone, PC 12. Extra vacation time 13. Bonuses 14. Benefits 15. Training

How to Negotiate?

1. I win/You lose 2. I lose/You lose 3. I win/You win 4. I lose/You win

Holidays

1. New Years Day 2. Memorial Day 3. Independence Day 4. Labor Day 5. Thanksgiving Day 6. Christmas Eve 7. Christmas Day 8. Two "floating" holidays

Salary Requirements

1. Often required on job application/phone interview 2. Option one-leave blank, use "open" or "negotiable" 3. Option two-look at market range and make its midpoint your starting salary 4. Option three-ask what the starting salary is for this position

Appropriate Questions to Ask if Salary is Brought During An Interview

1. What is the salary range for this position 2. Does the organization ever pay higher than the starting salary? If so in what circumstances? 3. What is the average salary increase for the position? 4. How often are increases given?

Life Insurance

Coverage provides financial protection in the event of your death. The company may provide basic coverage for you. Optional coverage may also be available for you and your dependents.

Major Strategies Adopted in Negotiation

1. Competition 2. Persuasion 3. Accommodation 4. Collaboration 5. Compromise

Negotiating a Salary 5

1. What types of benefits are being offered?

Number of Women that Negotiatie

34%

Negotiating a Salary Cont

First time they ask how much you'll take, say the following: I am much more interested in doing the work here at the company than I am in the size of the initial offer. Memorize this response.

Most Entry-Level Positions

Have set salaries that are subject to very little if any negotiation.

What Are You Worth?

If you are a recent grad without industry experience, employers expect to pay you in the 0-3 year range or the 25th percentile of the salary range for the job. So for a job that pays $35,000 to $45,000, expect to be offered in a salary in the 25th percentile ($35,000 and $37,000). If you can convince them that you have superior education or abilities beyond your experience, you may be able to negotiate a higher salary, but expect that the company typically try to stay near its pre-determined range for your experience level.

Win/Win

In a win-win salary negotiation, employer and employee leave satisfied so learn to negotiate well. It can help you land a job at the salary that you want!

Disability Plan

In case the employee becomes ill or injured, the Disability program provides replacement income to protect from financial hardship if employee is unable to work.

Negotiation Model

Investigate Presentation Bargaining Agreement

60%

Leave room for negotiations in first offer

Retirement Plan

May be able to contribute before-tax savings account. Company may match your funds.

Education Assistance

May pay tuition cost for any business-related undergraduate or graduate courses.

Negotiating a Salary

Negotiate for Success Do not ever tell them how much you will take! Make them give you a number.

When Does Salary Negotiation Begin?

Salary negotiation can begin... 1. Before the interview 2. Early in the interview 3. at the interview

30%

Say final offer

10%

Say it depends on candidate

Negotiating a Salary Cont 2

Shows you are focused on the job not the salary. This has already separated you from the majority of the other prospective employees. You have also dodged their question.

Dental Plan

The dental plan covers a wide range of dental expenses that are either routine or needed to treat dental diseases, defect, or, injuries to your teeth and mouth.

Mid-Level Positions

Typically have salary ranges of between 10 and 20 percent (i.e., a job paying $40,000 a year may have a salary range between $37,000 and $43,000) Employers will negotiate within range, but will rarely exceed it unless you are an exceptional candidate.

Evaluating the Offer Cont

When evaluating, you may also want to consider some points that are outside of the offer itself such as: 1. Commuting distance and options to job 2. Culture/atmosphere of the office 3. Work schedule 4. Management style These may be as important to your overall job satisfaction as the salary and benefits.

Percent of Employers That Never Retract An Offer Because AN Entry Level Candidate Tried to Negotiate

90%

Paid Vacation Benchmark

>1 Year service-10.2 days >3 years-12.1 days >5 years-14.7 days >10 years-17.4 days >15 years-19.1 days >20 years-19.9 days >25 years-20.6 days

Vacations

Usually based on length of employment. Some companies allow 5 vacation days per six months of employment with additional time earned each month worked.

Are Salaries Really Negotiable?

Yes and No. It depends on the position, the manager, the organization, and your perceived value. In general, the higher-level management and executive positions offer the greatest opportunities for negotiation.

Estimate Loss

You could lose up to $500,000 by age 60 if you don't learn to negotiate

Number of Men that Negotiate

44%

Negotiating a Salary Cont 3

30% of the time you will be asked again...respond again... I will consider any resonable offer. Do this as often as they ask you the question

How Common is Salary Negotiation for New Grads

62% of new grads do not negotiate 38% of new grads negotiate

Evaluating the Offer

Once you have looked at the whole offer, ask yourself the following questions: 1. How does salary match the research you did and your range? 2. Will the salary meet your needs? 3. Which benefits are offered? Do they match your needs? 4. Is this offer acceptable? If not, what would make it acceptable to you?

74% of Employers Have Room To Increase

Their first offer by 5-10% during the negotiations.