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Negotiating Your Full-Time Offer

What is negotiation?. Striving to get what you want. Why We Don't Negotiate. FEAROthers' perceptionsLosing the dealConflictEmotionNegotiating poorly. Why We Don't Negotiate. Sense that we don't deserve itWomen tend to undervalue their workConcern for relationshipsNot recognizing opportunities.

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Negotiating Your Full-Time Offer

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    1. Negotiating Your Full-Time Offer

    2. What is negotiation?

    5. Why We Don’t Negotiate FEAR Others’ perceptions Losing the deal Conflict Emotion Negotiating poorly

    6. Why We Don’t Negotiate Sense that we don’t deserve it Women tend to undervalue their work Concern for relationships Not recognizing opportunities

    7. The costs of not negotiating

    8. Why Negotiate? To make a good deal better To make an unattractive offer attractive Establish strong salary history

    9. Why Negotiate? Employers expect you to Not negotiating = bad impression Signals ability to represent org. Cooperate on mutual goal: Getting you hired!

    11. Solutions? Deference Impasse Compromise (split the difference)

    13. Integrative Negotiation Long-term relationships Common goals Multiple issues Different priorities Meet the interests of both parties

    14. Steps to Effective Negotiation

    15. Early Strategy Order your interviews Negotiate after you have an offer Develop your BATNA

    16. BATNA Best Alternative To a Negotiated Agreement “What will happen if the deal doesn’t go through?” Alternatives = Power Develop alternatives, but negotiate in good faith Don’t imply you are about to accept a deal you have no intention of taking Don’t negotiate an offer you have no intention of taking Don’t imply you are about to accept a deal you have no intention of taking Don’t negotiate an offer you have no intention of taking

    17. Planning and Preparation What makes them special? Status and reputation Nature of the position Future opportunity Culture and environment Location People you will work with and for Compensation package What makes me special?

    18. What will I negotiate? Basic compensation Additional compensation Insurance coverage Retirement benefits Relocation assistance Additional perks Career advancement

    19. Issue ranges Bottom line: Your walk-away point Establish bottom lines only for issues you are not willing to give up Target: Your aspiration Optimistic but not unrealistic “I think my experience and education put me at the top of the market, which is around $85,000. That is the figure I am shooting for.”

    20. Sources of information Department salary statistics Other published sources Contacts within organization Contacts within industry Organization itself

    21. Underlying Interests The “Why” behind the “What” “I’m shooting for $85,000.” Pay back student loans Lifestyle Pay for tuition Pay for transportation costs Prestige and recognition Equality ?????

    23. Package Range Bottom line and target for entire package Compare overall value of packages

    24. Creating Value Developing rapport: Confirms their smart choice of hiring you Show them appreciation They need to know you are multiply motivated Lowers defenses; you are going to need to enlist their help Frame it as a professional investmentDeveloping rapport: Confirms their smart choice of hiring you Show them appreciation They need to know you are multiply motivated Lowers defenses; you are going to need to enlist their help Frame it as a professional investment

    25. Creating Value Developing rapport: Confirms their smart choice of hiring you Show them appreciation They need to know you are multiply motivated Lowers defenses; you are going to need to enlist their help Frame it as a professional investmentDeveloping rapport: Confirms their smart choice of hiring you Show them appreciation They need to know you are multiply motivated Lowers defenses; you are going to need to enlist their help Frame it as a professional investment

    26. Building Trust Thank them Stress shared goals Express reasons for your interest Be honest Justify your positions Developing rapport: Confirms their smart choice of hiring you Show them appreciation They need to know you are multiply motivated Lowers defenses; you are going to need to enlist their help Frame it as a professional investmentDeveloping rapport: Confirms their smart choice of hiring you Show them appreciation They need to know you are multiply motivated Lowers defenses; you are going to need to enlist their help Frame it as a professional investment

    27. Identify Their Interests Infer from offer Ask why? And why not? “Is there some reason that moving expenses aren’t included in the offer?” Understand the weight and flexibility attached to their issues “I see that you have included a performance review after 1 year. I’d prefer to be evaluated sooner than that. Is there flexibility on this issue?” Developing rapport: Confirms their smart choice of hiring you Show them appreciation They need to know you are multiply motivated Lowers defenses; you are going to need to enlist their help Frame it as a professional investmentDeveloping rapport: Confirms their smart choice of hiring you Show them appreciation They need to know you are multiply motivated Lowers defenses; you are going to need to enlist their help Frame it as a professional investment

    28. Communicating Your Interests Be specific and direct If something is a “must have,” say so Share your reasons Keep it simple Developing rapport: Confirms their smart choice of hiring you Show them appreciation They need to know you are multiply motivated Lowers defenses; you are going to need to enlist their help Frame it as a professional investmentDeveloping rapport: Confirms their smart choice of hiring you Show them appreciation They need to know you are multiply motivated Lowers defenses; you are going to need to enlist their help Frame it as a professional investment

    29. Creating Value: Summary Avoid unnecessary compromise! Look for tradeoff issues Add issues Look for ways to address interests underlying the issues Firm on value, flexible on how you get it Negotiate packages, not single issues Add here a slide to illustrate expanding the pieAdd here a slide to illustrate expanding the pie

    30. Claiming Value Anchor on your numbers Provide justification “I think a reasonable salary would be $90,000--because that’s what similarly qualified graduates of my MBA program were offered by other companies this year.” “According to estimates I’ve obtained, I need at least $5000 in moving expenses in order to be able to move here.” Practice : “You’ll have to do better.”

    31. Claiming Value Don’t give a range Propose multiple packages Never make unilateral concessions “I would be willing to accept an earlier start date in exchange for a larger signing bonus, because it sounds like you have more flexibility on bonus than start date.” Use silence

    32. Making the First Move Best done after you have the offer Targets: high but defensible Suggest packages you’d be happy with Justify numbers with objective benchmarks

    33. Leverage your BATNA Don’t misrepresent Present alternatives as evidence of your value, not a threat. “I’m delighted with your offer and the prospect of working with you. But I do want to be straightforward with you. I think you should know that another firm has made me an offer that includes significantly more salary. Is there room for flexibility in your offer?” Use alternative offers to signal concessions

    34. Breakthrough Bargaining Extending the time horizon Contingency contracts Get it in writing Walk away

    35. Dangers and Deal Breakers Misrepresentation Emotional reactions Appeals to “Fairness” Know when to stop Be aware of office politics Don’t do anything to get the job that you would not do once you have it

    36. Dilemma #1 They’re asking for an answer by Tuesday, but you won’t know whether you have a favored alternative offer until Friday.

    37. Dilemma #2 You’re dealing with a Human Resources officer who tells you, “You received our standard offer. We don’t negotiate.”

    38. Dilemma #3 You’re “stuck” on salary, and they don’t want to talk about other issues until salary is resolved.

    39. Dilemma #4 The person with whom you are negotiating doesn’t have the authority to give you what you are asking for.

    40. Negotiation from the Employer’s Perspective Barbara Healy & Maria Stolfi People’s Bank Friday, April 29 4:00 pm Room A-74, SOM

    41. Go forth with confidence!

    42. If sequencing is a problem… “The value of any one issue isn’t as important to me as the value of the overall package.” “That seems to be one issue on which we’re getting stuck. Can we look at some combinations that might work for both of us?” “What if we trade X for Y? Would that be an acceptable arrangement for you?” “I’m happy to agree on this level for now, but I’d like to be able to revisit it later to see if it still works for both of us in light of the overall package.”

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