SALARY NEGOTIATION

AGENDA

• The goal of Salary Negotiation
• Preparation
• Calculating Your Worth
• “The Offer”
• Counter Offers
• Conclusion/Q&A

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

Preparing for Salary Negotiation

• What you need to know before you begin salary negotiations

1. Know your market value- what are comparable salaries and positions
2. What do similar positions in the industry pay in your geographic region.
3. How much do current employees earn.
4. Where do you fit in the organization- is this an entry level, management or an executive position

• Factors that impact supply and demand-

THE COMPETITION!

1. What is current in the industry- targeting local and national trends?
2. Identity employers who compete for the best candidates and offer top salaries and superior benefits packages.

Calculating Your Worth

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 & other magazines
• Online resources- salary.com, www.careerjournal.com, www.hotjobs.com
• Former and current employees
• Your network- friends, colleagues, information interviews

Total Compensation Packages

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

• 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

“The Offer”

Things to remember:

• Most companies make fair and realistic salary offers
• It is not in their best interest to make “lowball” 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!
• 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 it is not about winning, but about establishing mutual interests and goals
• Know where you can compromise
• Identify your possible competition
• Logically reiterate why you should be compensated at a greater level

Counter Offers

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

• Investigate and determine your employer’s motivation
• Is it all about money?
• Will the underlying issues motivate you to move to change?
• 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 compliment and move on