Negotiating offers

1. Negotiating offers Cornell Engineering Career Center 201 Carpenter Hall (607) 255-5006 eng-career@cornell.edu

2. Outline • Completing Online Applications • Preparing for Interviews • Negotiating and Assessing Job Offers • Factors that affect salary/“plus-ups” • Responding to an Offer • Evaluating the Compensation Package • Asking for More • Handling Multiple Offers • Delaying Your Response • Final Tips

3. Hold Off On Talking Money • Negotiating an offer should take place only AFTER the employer has formally extended the offer. • You need to be thinking about salary, however, long before your interview.

4. Online Applications • Why do some online applications require salary requirements? • Screen out applicants (too high/too low) • How should I handle the request for salary requirements in an online application? • Write in an answer (e.g. “Salary is negotiable”) • Provide a range (consistent with salary research) • Provide a mid-point (if application only allows one figure)

5. Preparing For Interviews • Research is a must! • Know the company/industry (FIT) • Mission, vision, values, philosophy, culture, etc. • Entry-level salary; salary range for position; company size and location; top challenges of the company • Know Yourself • Determine your objective • Top 3-5 criteria the job must meet (e.g. industry, geographic location, work schedule) • Top 3-5 things you want/value (e.g. aligns w/ your beliefs, particular salary, advance quickly) • Top 3-5 things you want to do (e.g. work w/ clients, analyze trends, research new markets) • Top 5 Strengths/talents • Short/long-term goals

6. Preparing For Interviews • Know Yourself • Lowest salary you’d consider • What makes you worth a higher salary? (Negotiate on FACT, not FEELING) • What can you bring to the organization? How will you add value? • Know your BATNA (Best Alternative to a Negotiated Agreement) • If you walked away from this offer, what is your best option? • How happy would you be with the alternate option? • When should you reject an offer?

7. BATNA • Ask yourself the following questions to test your BATNA versus your employer's: (1) Do they really need YOU (as opposed to someone just like you who may be out in the job market and anxious to take your job)? (2) Would it take a long time to get someone else up to speed to do what you do? (3) Would operations suffer in some tangible way if you were to leave? (4) Is it impossible for your employer to get someone with a resume/skill/ experience set similar to yours at something like the salary you now receive? (5) Do you have very attractive job opportunities elsewhere? (6) Would you easily get another job at a better rate of pay and working conditions? (7) Would you likely be happier working somewhere else? (8) Could you easily go for an extended period without another job if you had to? Negotiating What You're Worth, Harvard Business School, 2005

8. BATNA • If 1 to 8 are all "yes," then you can adopt an aggressive negotiating approach because your BATNA is good and your employer's is bad. • If 1 to 4 are "yes," but 5 to 8 are "no," then you should have a high aspiration level (because your employer has a bad BATNA), but you should adopt a less risky strategy (because your BATNA is not very attractive). • If 1 to 4 are "no," then beware because your employer may not waste a lot of time negotiating with you—it would be easier for them to ax you and get someone else who is not a pain in the butt whining about their compensation! Negotiating What You're Worth, Harvard Business School, 2005

9. Preparing For Interviews • Know your number before going in • Salary Resources: • Vault- checkout the Vault Guide to Engineering Jobs to see salary information for your specific industry; type “salary” in the search box to see additional information on salaries

10. Vault Engineering Guide Steps to get on Vault Guide 1. Go to Cornell Career Services website (www.career.cornell.edu). 2. Click on the “Resources” tab (blue bar near top of the page) and click on the “Career Insider (powered by Vault) link located near the bottom of the page. 3. Create a free account under “New to Career Insider?” using your Cornell email address. Vault Guides IT & Engineering Vault Guide to Engineering Jobs

11. Vault Industry Guides • All figures come from the US Department of labor. The first figure is the lowest paid 10%, the second figure is the median annual salary, and the last figure is the top 10% of earners. 

12. Preparing For Interviews • Know your number before going in • Salary Resources: • Salary Calculator

13. Salary Calculator https://www.jobsearchintelligence.com/salary-calculator-intro-etc

14. Preparing For Interviews • Know your number before going in • Salary Resources: • Post-Grad Reports (mean/median)- www.engineering.cornell.edu/postgradreport

15. Post-Grad Reports MAE Undergrad 2016 ECE MEng 2016 MatSci MS, 2015 http://www.engineering.cornell.edu/resources/career_services/students/statistics/postgrad_reports.cfm

16. Preparing For Interviews • Know your number before going in • Salary Resources: • Goinglobal: H1B Visa, search by company name

17. Goinglobal H1B Info: USA Search: Company Insert Company Name: Airbnb http://www.career.cornell.edu/students/international.cfm

18. Preparing For Interviews • Know your number before going in • Salary Resources: • Professional Associations

19. Professional Associations IEEE ASME

20. Preparing For Interviews • Know your number before going in • Salary Resources: • Glassdoor.com; Salary.com; Payscale.com; Indeed.com • Bureau of Labor Statistics (http://www.bls.gov/oes/) • Occupational Outlook Handbook (http://www.bls.gov/ooh/architecture-and-engineering/home.htm) • Career Cornerstone (http://www.careercornerstone.org/engineering/engineering.htm) • Peer/alumni in the industry with whom you have a good relationship (“What is a reasonable salary for this kind of job with these expectations?”) • Cost of Living Resources • homefair.com; nerdwallet.com; coli.org

21. Preparing for Interviews • Remember: Ideally, you want the employer to offer a number/figure first. • How do I handle questions about salary during my interview? • “I’m flexible, and would like to know more about the responsibilities and requirements for this position and how best I meet those needs before discussing salary.” • “My desired salary is negotiable.” • “I have a range in mind, but it really will depend on the total compensation package.”

22. Preparing for Interviews • What if they continue to push me on the subject? • Determine a strategy and style that works for you. • There are different opinions on whether it’s best to offer a range vs. providing one figure. • Whatever strategy you employ, use facts, statistics. research to back up the figures(s) you use. • For example, “The median salary for Cornell Electrical Engineers in my degree program last year was $95,000. Based on my relevant experience and educational background, I think that is a good starting point.”

23. Preparing for Interviews The "Expected Earnings" Question Use a strategy that is comfortable for you! These are just examples. • Strategy 1: Delay Your Response. "I need to take some time to think about my visit here today and what I know about the job responsibilities before I can answer that question.” • Strategy 2: Compare Yourself to Others. "Can you tell me the salary range for other employees with a similar education and experience level to mine?” Source: http://sciencecareers.sciencemag.org/career_magazine/previous_issues/articles/2002_08_16/nodoi.5523872792377801883

24. Preparing for Interviews The "Expected Earnings" Question • Strategy 3: Make a Candid Request for Advice. "You've been in the industry for many years and I am sure you have a better handle on what might be appropriate for experience like mine. What number would you find competitive if you were in my shoes?” • Strategy 4: Turn the Question Around. "I'm expecting that you'd offer me a competitive wage, but what that might be is probably best determined by how I fit into the range of experience of other employees. What range did you have in mind for this job?” Source: http://sciencecareers.sciencemag.org/career_magazine/previous_issues/articles/2002_08_16/nodoi.5523872792377801883

25. Yes You Can! Negotiating Your First Job Offer (PayScale) • Recruiters and hiring managers expect you to negotiate. • Employers (as a general rule) don’t rescind offers because you negotiate (but you need to be professional & reasonable). • You can (and should) take time to think over an offer. • Negotiate your total compensation. • Don’t throw out the first number. http://www.payscale.com/guides/career-success-guide/negotiating-your-first-job

26. Negotiating & Assessing Offers • What factors do employers consider when constructing a job offer? • Market salary data (salary range/bands)- what are their competitors offering? • Total compensation package (e.g. benefits, relocation assistance, sign-on bonus, performance bonuses, stock options, company car/cell phone, etc.) • Location (cost of living) • Company size • Non profit vs. private vs. public

27. Negotiating & Assessing Offers • What factors do employers consider when constructing a job offer? Salary “Plus-Ups” • GPA (e.g., GPA: 3.5 or higher, extra $1500) • Work Experience (years of relevant experience) • Former Intern/Co-op • Institution (e.g. university ranks in top 100 colleges) • Not all companies include salary “plus-ups.”

28. Negotiating & Assessing Offers • Are all salaries negotiable? • Short answer; no. (government, military, consulting/finance firms, may not negotiate)- doesn’t mean you can’t ask. • Responding to an offer • Scenario #1: You’re excited about the offer, happy with the salary/benefits, you want to accept! • Tips: Express your interest/enthusiasm, but hold off on giving a definitive answer right away. • Sleep on it—give yourself at least 24 hours.

29. Negotiating & Assessing Offers • Responding to an offer • Scenario #2: You’re excited about the offer, but want to negotiate your salary. • Tips: Do your homework! Be prepared to backup your claims. • Attitude is important! • Negotiate only if you’re genuinely interested. • Be clear as to what you want (communicate your rationale). • Be prepared to live w/ the response and officially accept/decline.

30. Negotiating & Assessing Offers • Evaluate the Total Compensation Package: • Base Pay • Sign-on Bonus • Relocation Assistance • Performance-based Bonuses • Insurance (health, dental, vision) • Vacation Time/Sick Leave • Retirement Savings Plans • Stock Options • Continuing Education • Student Loan Forgiveness • Parking/Transportation • Flextime • Company Car/Cell Phone

31. Negotiating & Assessing Offers • Before asking for more money: • Determine 1. What makes you worth more money?: • Previous relevant work experience; outstanding academic achievements; unique technical skills. 2. Is the initial offer significantly below the median? 3. Does the offer factor in the cost of living? • Practice your delivery (How you negotiate will depend on the circumstances.) • “When deciding on the salary figure, did you factor in my previous internship experience?” • “I know you can’t match $75,000, but would you be willing to compromise and meet me in the middle?”

32. Negotiating & Assessing Offers • Be prepared for the counterargument. • You don’t have enough experience. • Other employees aren’t making more. • The budget won’t permit it. • That’s what we’re paying new hires. • Be prepared to accept/decline. • If you ask for $70,000, and the company offers you $70,000, don’t try to renegotiate. • If you’re not happy with the final offer, you can politely decline. • If you want the job, but don’t like the offer, ask if you can get reviewed in 3 or 6 months instead of 1 year.

33. Multiple Offers • Scenario #1. • Your first offer is not your first choice. • Contact your preferred employer and inform them that you have another offer, but you are very interested in their position. Ask what their timeline is for making a decision. • Scenario #2. • You have offers from multiple companies, but your top company offered a lower salary. • You can reach out to your top company and tell them they’re your first choice, but that you have another offer. Are they willing to work with you?

34. Delaying Your Response • Timeline for Responding • Cornell provides employers with guidelines for extending offers to students. See Cornell’s Job-Offer Acceptance Guidelines, which are updated annually. (Companies sometimes provide incentives for students to make decisions earlier.) • Delaying Offers • A company makes you an offer. You’re excited about it, but would still like to explore other opportunities (e.g. participate in the Career Fair and Cornell’s on-campus recruiting program).

35. Delaying Your Response Things to consider: • Date by which they want you to make a decision (if it’s before Cornell’s suggested timeline, you might say that Cornell’s recruiting guidelines state that students should have until the “x” date to make a decision). See “Professional Correspondence” handout for tips on drafting emails to employers. • Are they offering you a monetary incentive to decide early? • How much more time would you like? Will you realistically be able to interview with other companies during that timeframe? • How will you respond if the employer isn’t willing to give you more time? • Engineering/Technical Positions • Delaying an offer may not be realistic in some cases since engineering/technical firms recruit very early in the semester. • Some technical/engineering firms may have non-compete clauses as part of their contract. Review the contract carefully because by signing it, you are agreeing not to enter into competition with the employer after you leave the company.

36. JOB OFFERS & DECISION MAKING Consider/Revisit: • Values and Interests • Personal & Family Concerns • Decision Making Workbook Consult • Family/Other Confidants • Career Center Know/Have in Writing: • Salary • Benefits • Start Date • Title Remember • Ask for time if needed; don’t accept a job you don’t want • A verbal accept is an accept • Reneging on an accepted offer can have lasting repercussions

37. Final Tips • Negotiate over the phone, NOT via email (you can follow-up on your conversation via email so that you have a written record of what was discussed/offered). • Ask for the offer (salary/benefits) in writing. • Consider the full compensation package when negotiating your salary. • Remember, some employers do not negotiate salaries. • Know the economic climate before initiating salary negotiations (if a co. downsized, laid off employees, etc., they may not be willing/able to offer more). • Many employers conduct drug screens and/or background checks; offers may be contingent on you passing both.