SALARY NEGOTIATION STRATEGIES

Concepts Learned from your Best & Worst Experiences

• Research – doing your homework

• Displaying confidence

• Walking away – don’t display emotion

• Asking for time to consider

Objectives

1. Answering questions at various stages

2. Acknowledge offer; buy time to decide

3. Consider all aspects of offer

4. Close the gaps

Preserving Bargaining Power

• Sales and negotiation are two different transactions

• Biggest error people make is to negotiate prematurely

• You cannot negotiate until an offer is made

The Ultimate Rule

• Being the first to say a number erodes your ability to move up or down later

• Too high? Price self out of market

• Too low? May not be qualified

• We didn’t say to NEVER disclose, just don’t say the number first

Talk to the Decision Maker

• If HR extends the offer, go ahead and talk to the hiring manager

• Try to deal face-to- face if at all possible

Know Your Market Value

• Know salaries and negotiating climate

• www.salary.com

• www.wageweb.com

• www.wetfeet.com

• www.vault.com

• www.careers-in-business.com

• www.rileyguide.com

State Salary History

• Option One – Don’t disclose

• Option Two – Be accurate

State Salary Requirements

• Option One – leave blank, use “open” or “negotiable”

• Option Two – Look at market range and make its midpoint your starting salary

When You Are Asked about Money Early in the Process

• Option One – Ask about the job itself

• Option Two – Talk about the value you bring

When You Are Asked about Money Later in the Process

• Option One – Discuss scope of responsibility, size of territory

• Option Two – Good company reputation for fair compensation

• Option Three – If this looks good, we’re sure to agree to salary

• Option Four – What’s the range (turn tables politely)

When the Money Questions Become Direct

• Option One – Can’t compare apples to oranges

• Option Two – Prefer to fit in employer’s established range – what is it?

What will it take to hire you?

• Option One – Research shows…

• Option Two – Total Package would be (add base and benefits together)

• Option Three – What it would have been at the old job

Your Moment of Power

• Employer’s interest rises with each succeeding interview, but your power is never greater than at the moment of the offer

• When seller becomes buyer

• Recognize green lights

Rules to Remember

• Some companies are first offer, best offer

• You MUST know the going rate

• When you get the offer, use silence, drop eye contact

• Describe the offer (modest, low side)

• Ask for time; NEVER accept on the spot.

• Ask for it in writing

Let’s Watch…

• Body language• Expressions• Silence• Word Usage

Rules to Remember

• Know your walk-away number

• Express optimism• Confirm agreement first;

then tackle other issues• Counter offer (nail down

salary FIRST)• Final offer in writing – you

may have to do it yourself

Language to Use

• What can we do to work this out together?• I understand and I’m willing to wait for you

to talk to your VP (appeal to higher authority)

• Can the job be reclassified?• Can appreciate internal equity issues• I have a trip scheduled in the spring• Can we start at $x and review in six

months?

Pain – when do you want it?

• A little now when there’s discomfort in the negotiation process

• A lot later when you discover you’ve left money on the table

This is all compensation…

• Base Salary (FINISH IT FIRST!)

• Bonus (gross/net taxes, signing advantage/disadvantage)

• Medical coverage (COBRA coverage)

• Retirement, 401(k) regulated

• Vacation (language to ask for more)

• Relocation (taxes)

This is all compensation…

• Tuition Reimbursement – usage, waiver

• Expenses – who carries the cost?

• Cell phone and Blackberry

• Company car

A Bidding War

• Be careful; could send wrong message

• Let Company A (your top choice) know that Company B has made an offer

• Ask Company A if process can be expedited

• Never lie – it’s wrong AND it could backfire!

Practice Session #1

• Two interviews done; one with HR, other with manager

• Hiring manager has $X range

• Candidate has done homework; has a bottom line of $X

• Negotiations begin when offer of $X is made

Practice Session #2

• Three interviews done (phone screen, manager and technical)

• Manager’s budget allows max of $X; he really wants this candidate

• Candidate has spoken to colleagues, knows going rate. Believes special knowledge qualifies him at $X

• Negotiations begin when offer of $X is made.

Practice Session #3

• Four interviews done (two on phone, two in person, including district manager)

• Manager knows this is the best candidate, but budget will only allow for $X max. She also has internal equity issues that limit salary to $X

• Candidate can bring customers with him; has studied competition’s pay, has a bottom line figure of $X

• Negotiations begin when offer of $X is made

Practice Session #4

• One interview is done. Manager and candidate know one another from the industry

• Manager’s range is between $X and $Y; needs someone to hit the ground running, so will lean toward the higher end if necessary

• Candidate has researched and knows that $X is equitable. Will hold out for that.

• Negotiations begin when offer of $X plus $2,500 signing bonus is made.

Practice Session #5

• Four interviews held (screening, manager, work team and regional director)

• HR has valued position between $X and $Y Manager knows he must stay in $X vicinity to avoid internal problems

• Candidate feels extremely well-qualified and expects $X, the top of the published range

• Negotiation begins when an offer of $X is made

Practice Session #6

• One interview for internship held. Pay is flat $x/hour. Requires move to city three hours from NCSU and starts on May 15

• In order to pay expenses, student needs to earn $X/hour and cannot move until May 20

• Negotiation begins when manager calls and says, “We looking forward to you joining us. Are you on-board?”