salary negotiation

Salary NegotiationSalary Negotiation

AGENDA

• Goal of Salary Negotiation

• Preparation

• Calculating Your Worth

• “The Offer”

• Counter Offers

• Conclusion/Q&A

Salary NegotiationFall 2006

The Goal of Negotiation• To reach an agreement that will maximize

your potential earnings and provide for the employers needs

• To create a win-win situation with an employer with whom you can have a long term relationship


PreparationPreparation


Preparing for Salary Negotiation• What you need to know before you begin

salary negotiations – Know your market value – what are comparable salaries

and positions– What do similar positions in the industry pay in your

geographic region– How much do current employees earn.– Where do you fit in the organization- is this an entry

level, management or an executive position


Preparing for Salary Negotiation• Factors that impact supply and demand –

THE COMPETITION! – What is current in the industry - targeting local

and national trends– Identity employers who compete for the best

candidates and offer top salaries and superior benefits packages


Calculating Your Calculating Your WorthWorth


Places to Search for Information

• Professional associations – membership surveys

• Recruiters and executive search firms

• Monthly government labor reviews/ The Bureau of Labor Statistics

• Forbes, The Wall Street Journal, Business Week, Fortune Magazine

• Online resources – www.salary.com, www,careerjournal.com, www.hotjobs.com

• Former and current employees

• Your network – friends, colleagues, information interviews


Total Compensation Packages

• Bonuses• Signing bonus• Flexible schedules• Profit sharing• Retirement package• Insurance• Stock options• Timely advancement• Vacation time

• Education rebates• Cost of living raises• Parking• Company car• Cell phone/Blackberry• Child care• Maternity leave• Relocation costs• Health Care Insurance


Benefits can equal 20%-30% of your total compensation package. What’s included:

““The Offer”The Offer”


“The Offer”

Things to remember:• Most companies make fair and realistic salary offers• It is not in their best interest to make “low ball” offers• They want to hire the best candidate for the job• High employee turnover is an added expense to the

bottom line for the employer

• Translation = the “Offer” should be good!


“The Offer”

• Anticipate objections to higher salary offers

• Be clear about your own value

• Be confident in your abilities, skills, professional experience and education

• Develop rebuttals to anticipate employers possible “excuses” for not wanting to raise salary levels


Discussing Salary History

• Postpone this discussion as long as possible

• Discuss salary in future terms….– “If I was to stay in my current positions the value

of my compensation package would be…”– “I would consider a salary range of…”


Negotiations

• Remember is not about winning, but about establishing mutual interests and goals

• Know where you can compromise

• Identity your possible competition

• Logically reiterate why you should be compensated at a greater level


Counter OffersCounter Offers


Counter Offers

• Investigate and determine your employer’s motivation

• Is it all about money? • Will the underlying issues

that motivated you to move be changing?

• Know that your loyalty will now be suspect and an attitude of negativity about your choice to leave may be present

• They may feel desperate to finish a project but may not be loyal to you and made the offer

• Do you really want to work for someone who only increased your salary because you were leaving?

• Take this offer as a complement and move on


Counter offers are offers from your current employers to remain after you have announced intention to leave

Thank You and Good Luck

Professional Career Services

(410) 290-1934

www.careerservices.jhu.edu


salary negotiation

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