Transcript NEGOTIATING COMPENSATION

NEGOTIATING
COMPENSATION
What are you worth?
7/21/2015
Negotiating Compensation
Version 5.0
ABOUT JOBGROUP.ORG
• Mission statement – JobGroup.org empowers
professionals to effectively manage their careers by
promoting networking, volunteerism, and job search
skills.
• Eight module curriculum presented weekly
• Online resources
• Networking events
• Recruiter engagement
• Volunteers
7/21/2015
Negotiating Compensation
2
ABOUT THE PRESENTATIONS
• JobGroup.org is an organization that exists to facilitate
your job hunt and career
• We have compiled the best information that we have
from our own experience and other sources
• These presentations can benefit hugely from your input;
don’t be shy about asking questions or contributing!
7/21/2015
Negotiating Compensation
3
KNOWING WHEN
• Immediately prior to accepting a new job offer
• Whenever your value relative to a current
employer increases significantly.
– Examples:
• Promotion
• Completion of Training
• Attaining a Certification
• If you find out information that indicates you’re
being unfairly compensated
• If you get a competing job offer
7/21/2015
Negotiating Compensation
4
FINDING THE INDUSTRY RANGE
• Define field appropriately
• Online salary tools
– Payscale.com, Salary.com, Glassdoor.com, SalaryExpert.com,
SalaryList.com, Quintcareers.com
– Important to note variance between sites
• Informational Interviews are Key
• Find Salary, as well as total compensation.
• Consider regional factors.
• Make sure to make apples to apples comparisons.
• Find a ‘benchmark’ job
3 Minutes – Section 1
7/21/2015
Negotiating Compensation
5
ESTABLISHING YOUR SELF-WORTH
• Skills/Training needed for the job.
– How much would this training cost an employer?
• Complementary Skills/Experience
– How do these add extra value to an employer?
• Ideas/Projects you could implement
– How could these cut costs/increase revenue?
• Intangible traits you possess.
– How can you prove these through examples or
testimonials?
5 Minutes – Section 2
7/21/2015
Negotiating Compensation
6
KNOW YOUR ACCEPTABLE RANGE
1. Reasonable Ideal
2. Lowest You’ll Accept
2 Minutes – Section 3
7/21/2015
Negotiating Compensation
7
QUANTIFYING TOTAL COMP
It’s important to note that salary is often less flexible than other factors. By having a
list of these other factors which are important to you. You maximize the chances of
both parties feeling happy about the outcome.
Big Ticket
Small Ticket
Item
Value
Criticality
Item
Value
Criticality
Insurance
$10,000/yr
1
Training
$2,400
1
401k match
$500 per
extra pct.
Matched
2
Late Start
Date
$100
2
Signing
Bonus
$5,000
3
Travel
Expenses
$200/month
3
7/21/2015
Negotiating Compensation
8
THINGS YOU COULD NEGOTIATE
Big Ticket
• Title
• Company Car
• Medical/Dental/Visi
on/Life insurance
coverage
• Retirement plans
• Wellness plans
• Equity
• Bonus/Commission
• Flexibility in
scheduling
• Telecommuting
• Signing Bonus
7/21/2015
Small Ticket
• Accelerated Review Schedule
• Training/Education
• Vacation Days
• Food
• Travel Expenses
• Special computer hardware
• Home technical support
• Expense account
• Frequent flier miles
• Relocation expenses
• Later Start Date
• Company pays smartphone/ mobile
WAP bill
5 Minutes - Fill Out
Section 4
Negotiating Compensation
9
REMEMBER TO KEEP CALM!
•
•
•
•
•
•
•
•
•
•
7/21/2015
Try not to become emotionally involved in the discussion or
result
Don’t make the conversation about what you want or need but
rather what you deserve due to your capabilities and/or
performance
Keep your personal life off the table
As much as possible, make the negotiations a cooperative
process rather than a confrontational one
Remain positive and enthusiastic
Assertive, not aggressive
Remember: given our previous assumptions you won’t make
anything worse for yourself
You CAN hurt yourself if you leave people with the impression
that you lack self control
Even if you only receive 10% of your ideal goal you are still
better off than before
Salary negotiation is not about winning – unless both parties
win. If either party feels they have capitulated, not negotiated,
both parties lose.
Negotiating Compensation
10
SKILL 1 - TIMING YOUR OFFERS
• Know how long the hiring process typically
takes at each company.
– Use informational interviews to discover this.
• Speed up the process by letting them know
where you are in the process with other
companies.
– “I just recently received an offer from another
company. Is there anything we can do to
accelerate the process?”
7/21/2015
Negotiating Compensation
11
SKILL 2 – DEFERRING SALARY TALK
I’d be happy to discuss
that later, and I’m
confident we can work
something out. Right
now, I’d like to make
sure I’m a great fit for
the position.
Let’s talk about salary…
General Rule: Never be the first one to throw out a number.
6 Minutes - Practice
Section 5
7/21/2015
Negotiating Compensation
12
SKILL 3 – ASSESSING THE OFFER
1. You Accept Without Negotiation
2. You Negotiate a Little, Then Accept
3. You Negotiate A Lot, or Don’t Accept
7/21/2015
Negotiating Compensation
13
SKILL 3 – ASSESSING THE OFFER
Pause and think before you answer.
“Thank you! I’m really excited to get started. I’d love some
time to think it over. When do you need an answer by?”
“Thank you so much. I’m excited to get started and I think
we’re in the same ballpark. From my research, the range is
between $x and $y, and I was expecting closer to $y based on
my qualifications. I’d like to discuss what we can do with
regards to salary.”
“Thank you, I’m thrilled to be considered! I do have to tell you
that it looks like we’re pretty far apart on salary. From my
research, the range is between $x and $y, and I think I’m more
towards $y based on my qualifications. I’d like to discuss what
we can do.”
7/21/2015
Negotiating Compensation
14
SKILL 4 – HANDLING OBJECTIONS
Handle Objections using the “Yes, And” Technique
Times are certainly tough. I
agree that the budget is a
great starting point. I also
believe that my pre-existing
degree will save the company
considerable training expense.
I’d simply ask that the salary
reflect that.
It’s just not in our budget.
After using the technique, hold the silence. Let them be the
first one to speak.
6 Minutes - Practice
Section 6
7/21/2015
Negotiating Compensation
15
SKILL 5 – MAKING CONCESSIONS
• It’s important that you make it clear that you’re
making a concession.
• This will make them more likely to give something
back later, and will preserve the equal power
dynamic.
• “I understand, can we meet halfway at “$x”
4 Minutes - Practice
7/21/2015
Negotiating Compensation
16
SKILL 6 – NEGOTIATE TOTAL COMP
• Don’t forget to ask.
– “Great! I think we’re on the same page on salary. I
do have a few other items to discuss.”
• Know what you’re working with.
– “I was curious what your benefits package looks
like.”
• Use the yoyo principle
– First a small ticket, then a big ticket, then a small
ticket, etc.
5 Minutes - Practice
7/21/2015
Negotiating Compensation
17
THE “OPPOSING” VIEWPOINT
•
•
Things that a good Hiring Manager should have in mind.
– Team Harmony
• If your compensation is out of line with others, will that cause
issues?
– Increased scrutiny of your work
• Are you worth what you asked for?
– Desperation level
• Is this an emergency backfill, a new growth area, or something in
between?
• How long has the position been open?
Likely Constraints
– Budgets
• May be temporarily limited by what they have available
– Defined salary ranges
• A good manager will want to provide you room for career growth.
– Policies
• The company may have specific policies to set limits on what a
Manager can do.
7/21/2015
Resume Optimization
18
THE END RESULT
• You should practice this with a friend.
– Bonus points if they’re a hiring manager.
– Extra bonus points if you video tape it.
• Regardless of outcome be sure to thank all parties
involved in the negotiation
• If you are unsatisfied with the result:
– Do not make any decisions or say anything irrevocable
for at least a day or two
– Consider how important your goal is
– Consider other alternatives;
• If you are satisfied with the result: Congratulations!
7/21/2015
Negotiating Compensation
19
This Presentation is Available Online
• http://www.jobgroup.org/curriculum
7/21/2015
Negotiating Compensation
20