Transcript Compensation_Negotiation

Negotiating Your
Compensation Package
Agenda
• Negotiating – what it is and isn’t
• Compensation – any wiggle room?
• Other Benefits – getting more
• Work-life Balance issues
• Q&A
Negotiating – what it is and isn’t
• Negotiating is simply a discussion between two
parties to a satisfactory conclusion. It is based on
reaching a mutual agreement of issues in good faith,
not a confrontational circumstance.
• Negotiating for a position with a company is not
simply about salary – it is about working towards the
best total package you can get.
• It isn’t about ultimatums and personal greed. If it is,
the likelihood of negotiating anything beyond a first
offer is nil.
Negotiating – what it is and isn’t
• Negotiating is riding on the backs of others in
receiving a fair deal. It should be “objective” as
opposed to “subjective”.
• Hockey players have agents, we don’t. We must be
our own “agents” in negotiating our best possible
deal. What do they base it on? – statistics and
comparatives. So should we.
Negotiating – It Starts at the Interview
• When interviewing use “Action” Verbs” that speak to
your accomplishments.
• Use language that indicates you’re already on the job.
Such phrases as “we” instead of “I” when asked about
how you would handle a certain situation.
• Describing your ability to manage multiple projects,
handle important details or to follow-up on a customer
service issue contributes to your value (SAR)
• Call upon these highlights when negotiating your
package. “When we interviewed I indicated…
Compensation – Any wiggle room?
• Most employers have a set range they’re prepared to
offer. Often they will not divulge the range, so you
can assume it is in the middle. Eg. Salary range is
$38,000 - $45,000 – offer $41,000.
• Consider the following questions you need to ask
yourself:
– What is the lowest salary range you’re prepared to accept?
– What makes you worth a higher salary?
– What are others in a similar role with similar education
getting paid?
Negotiating – Do’s and Don'ts
Do’s
• Use statistical data to state your case. Our office
publishes a survey conducted every summer on
starting salaries of grads in various majors. Use it.
• Make your pitch objective. It isn’t just about “me”,
it’s about the position. “According to the Grad
Survey conducted by the Career Services office, grads
with a Finance major were earning an average of
$44,000 per year”.
• If you’re wanting to be at the higher end of the range,
ask the question “What would it take to get to the
higher end of the range?”
Negotiating – Do’s and Don'ts
Do’s
• Consider if a push for a higher salary could in fact
diminish other compensation offers. Is there a car
allowance, earned days off, higher than industry
vacation days, parking, etc.?
• Sometimes you have to accept it is what it is. If there
is no wiggle room, ask what the policy is on
performance evaluation, probationary timelines, and
compensation review.
Negotiating – Do’s and Don'ts
Don’ts
• Don’t say “My friend is earning $X, therefore that’s what
I should be paid”.
• Don’t present your case in a threatening manner. “Well
company Y says they’ll pay me $X, but I’d rather work for
you so will you match it?”
• Don’t answer the question “What are your salary
expectations?” Say you have a range based on surveys,
but it would depend on the total package.
• Don’t negotiate or accept an offer over the telephone.
• Don’t delay in getting back to them. Abide by the
timeline established and don’t push an ultimatum at the
deadline date.
The Negotiating Process
There may be two ways that negotiations occur:
1. In a second interview where details of working for the
organization are discussed.
2. A formal Offer Letter would be presented outlining
the terms and conditions of employment.
These two formats would elicit a different strategy:
The Negotiating Process
The Second Interview:
• Have several questions ready to ask about your total
compensation package if they are not addressed. These would
include:
– Overtime beyond a reasonable work week
– In lieu-of; extra days off based on banked hours (EDO or DDO)
– Consideration working towards a designation – extra time off, costs of
exams, mentorship program, etc.
– Vacation allotment, use it or lose it policy?
– Benefits package – Alberta Health Care premiums paid by employer?
When do you qualify?
– Probationary period and salary review
– Work-life balance – are they flexible in your work hours?
– Are there stock options available? When are you vested? Matching
RRSP contributions?
The Negotiating Process
The Offer Letter:
• The offer letter typically outlines the terms and conditions of
your employment. It will not likely be as detailed as some of
the questions I posed to you, but will frame the basic
parameters of employment. How to manage the offer letter:
– Immediately acknowledge receipt of the letter and your interest in the
position.
– If the time frame for the response is a concern, contact the employer to
explain why, and ask if they are flexible in their response time.
– Read through the letter and make notes that address the questions
previously. Once you’ve completed your questions, contact the person
who signed the letter to review your questions. You may ask for a
personal meeting to address your questions.
Managing Expectations
• Salaries are usually indicative of performance and experience,
not the initials behind your name. Your degree is the starting
point, not the finishing point of your worth in an organization.
• Earn your salary, don’t expect it. With some limitations,
employers reward hard work. Prove yourself and good things
will happen.
• Rewards are not always measured in salary / compensation.
By demonstrating a can-do mindset, you may be the person
selected to travel to attend a business meeting, etc.
Here’s where you want to get to