Presented by: Allison F. Corkey Assistant Director/Executive Coach February 27, 2008

1. Negotiating a Job Offer Presented by: Allison F. Corkey Assistant Director/Executive Coach February 27, 2008 The Graduate Business Career Center

2. Agenda • What Is Negotiable? • Preparing For Negotiation • Having an Offer in Play • Working with an Executive Recruiter • Internal Negotiation Tips • Resources

3. Before You Negotiate • What are your key evaluation criteria? • Will opportunity support your short/long-term objectives? • Industry and company’s position within industry • Company culture • Compensation • Location

4. What is Negotiable? • Compensation and Finance • Pay • Bonus • Signing bonus • Next scheduled merit review • Profit sharing • Restricted Stock/ Options • Moving expenses

5. What is Negotiable? • Other Compensation and Finance elements of package: • 401K or other saving plans • Medical / Dental Benefits • Tuition Reimbursement Policies Typically these are not negotiable, but you need to consider the financial impact and compare to your current situation or offer

6. What is Negotiable? • Lifestyle • Start date • Vacation time/Time off • Spousal assistance • Flexible work arrangements • Memberships • Car allowance

7. What is Negotiable? • Career • Title and level of responsibility • Specific assignments/Next assignment • Geographic location • Training

8. What You Need For Negotiating • Acquire Information: About the company • Clear understanding of job opportunity, responsibilities, deliverables, future potential • Industry information • Company background • Negotiable • Non negotiable • Cost of living for job location

9. What You Need For Negotiating • What you bring to the table: • Experience -- related accomplishments • Education • Your market value • Track record of success • Other highlights, non-business • Use negotiation matrix to be sure you are capturing your current total compensation situation

10. Do I Have to Negotiate? • All negotiations involve risk • Not negotiating involves risk • Why would you want to? • Offer is not consistent with your research • Desired elements are not included in the offer • Current situation/Other offer(s) with different or better package

11. What To Do When Offer Is Made • Always show appreciation for the offer • Make sure you obtain the offer in writing -- avoid negotiation without an offer letter • Review the letter for necessary information • Consider timeframe for your decision • Request any additional information to provide complete picture of offer and opportunity

12. Managing the Negotiation Timeline • When you receive an offer, ask when a decision is needed • Manage your timeline: • Negotiate for an extension if needed--but once only • Work to negotiate faster decisions from other companies you are still waiting for if you are in a search mode and are talking with multiple companies • Set up a time to discuss offer - in advance of your response deadline

13. The Negotiation Session • Plan your session and your strategies • Role play and practice in advance • Be aware of your tone • At first session, you are discussing the offer—you are gathering information, not necessarily accepting during this session

14. The Negotiation Session (cont’t) • Always start the session with expression of appreciation for the offer • Outline your “requests” one at a time • Start with salary, if you are negotiating on it • Consider this language:“I am looking for a salary of $____________, “ then back up your request as to why you are asking for that figure.

15. The Negotiation Session (con’t) • Consider this language as a preface to your requests: “As I consider this offer (over the next 2 days,) I would like to discuss your flexibility on some components of the package.” -This language protects you from the company assuming you are strictly countering and have no desire to accept the offer or certain components as it stands.

16. The Negotiation Session (con’t) • Wrap up session with indicating that you will be considering their offer as it stands now (taking into account any negotiated elements) and will get back to them by the deadline-- then follow up on that date or before. OR • You can choose to accept then, if you wish, asking for an addendum to the offer letter if you have negotiated changes to your package.

17. What “They” May Say • We don’t negotiate—this is our top offer • We pay market price. • Do you have other offers? • Where did you hear that? • We think the opportunity is worth the difference. • I will have to talk to someone and get back to you.

18. How Much Negotiation Is Too Much? • Series of counter offers • Not listening to their position and needs • Surprise! -- Adding new elements after initial discussion • Meet my demands or I’ll walk

19. Accepting A Position • Write acceptance letter or sign their offer letter • After formally accepting, you are committed • If you have negotiated on certain items, be sure to get offer addendum in writing • “Reneging” should not be in your vocabulary • Burning bridges at one company can come back to haunt you

20. Turning Down A Company • Respond verbally to main contact whom you have had ongoing relationship, then send letter • Respond in written form to individual who signed offer letter • Notify any additional individuals who had been particularly helpful and supportive • Be positive and appreciative • Mention “an opportunity that better fits my career objectives”

21. Working with an Executive Recruiter • How is this process different? • The search firm will have gathered all of your compensation needs/current situation before presenting your candidacy to a client company • Be sure you have been accurate in reflecting your current situation • Negotiation process may be handled by executive search firm

22. Internal Negotiation Tips • Career Management • Lateral Move Recognition for Augmented Responsibilities Reward for Completion of graduate degree • Negotiation for Promotion

23. Internal Negotiation Tips: Communication • Know your company culture • Gain insights by talking with others as appropriate • Remember your BATNA—if you are going to “walk”, then you have more leverage • Strike a delicate balance

24. Internal Negotiation Tips: Career Management • Open the dialogue at appropriate time • Set goals and objectives early for your graduate program in conjunction with your supervisor • Prepare your opening language in your own words, something along the lines of: “ I am pursuing my [MBA/MA-HRIR] and have made these contributions…what does this mean to the company?”

25. Internal Negotiation Tips: Lateral Move/Recognition • The opportunity may arise for a lateral move or increased responsibility. • Consider this language: “ I accepted my current position prior to pursuing my [MBA/MA-HRIR] program so I would like to see my enhanced contributions reflected in my salary. As I consider this move, is there an opportunity to discuss salary adjustment?” “…I would like to have this considered as an offer is prepared.”

26. Internal Negotiation Tips: Promotion/Offer • Situation for Internal Promotion • Ask clarifying questions, consider this language: “As I consider this offer over the next couple days, is this an offer that is open to negotiation?” • Then be prepared to negotiate and lay out your expectations

27. Internal Negotiation Tips: Promotion/Offer • If you want to turn down internal offer—either leaving the company or staying in current role (if that is an option) • Consider this language: “ It’s not a match for my expectations.”

28. Negotiation Tips Summary • Set up appointment with coach to discuss strategies when you receive offer—this is when we can help the most. We can talk in specifics • Don’t accept offer immediately • Get offer in writing - don’t forget offer addendum • Express enthusiasm • Don’t change after achieving objectives • Think long-term

29. If you’ve never or rarely negotiated before: Head to the Negotiation “Gym” NOW! • Negotiate easy stuff in daily life • Negotiate 5 harder things • Ask for twice as much as offered • Ask for 3 long shots • Ask for too much (more than you deserve) • Actively court “no” Acknowledgement: Ask For IT by Linda Babcock and Sara Laschever, 2008

30. Negotiation Consultation To set up negotiation conversation: • Call the GBCC front desk at 612.624.0011 to make an appointment when you know you will be receiving an offer. • Email in advance the negotiation matrix with the specifics of your offer as well as your questions so that we can focus on your priorities.

31. Resources • Salary websites – www.salary.com www.jobstar.org www.salaryexpert.com www.vault.com www.wetfeet.com • Cost of living calculators – www.moving.com www.monstermoving.com