Negotiation by Kim Molee, Carnegie Mellon University

1. Negotiationby Kim Molee, Carnegie Mellon University How to Evaluate and Negotiate a Job Offer

2. Dream Title… Jennifer A. Morano Executive Vice President Major Nursery, Inc. Cincinnati Ohio 45150 LaShawna Morgan HR Diva (513)555-1234

3. Statistically Speaking • A study quizzed graduating master's degree students who had received job offers about whether they had simply accepted the offered starting salary or had tried to negotiate for more. • Four times as many men -- 51 percent of the men vs. 12.5 percent of the women -- said they had pushed for a better deal. Not surprisingly, those who negotiated tended to be rewarded -- they got 7.4 percent more, on average -- compared with those who did not negotiate. --The Washington Post

4. Your opinion matters Assess a potential offer based on what is important to YOU. • Some examples include: • Salary • Location • Opportunity for advancement • Flexibility of schedule • Culture/co-workers • Travel • Vacation

5. Should YOU Negotiate? • Negotiating is not a requirement - not everyone should. Do not feel pressured to negotiate if a salary offer meets your expectations and you are pleased with the offer • You must have a businessreason to negotiate. Never negotiate based on personal reasons (student loans, personal purchases, etc.) • Remember you have value. They want you and do not have you! The interviewer (company) has made a commitment to you and wants you to sign on • Do not negotiate if you are not/could not be interested and would not be willing to accept if they meet your requests

6. Should YOU Negotiate? • Assess your bargaining power realistically - be confident but don’t overestimate. It could cause resentment. • Companies typically do not pull offers just because you are attempting to negotiate but they can. • It is always possible that a position you have taken will cause the company to say, “We will not be able to meet your needs. We certainly wish you good luck.” • Consider the company’s need to be equitable among current employees of similar backgrounds.

7. What’s Involved in a Job Negotiation”? • An acceptable, reasonable and often necessary step in the job search process. • Building a solid base of data through self-assessment and market research. • Convincing the prospective employer of your value. • Isn’t just about base salary - there are many financial and non-financial terms of employment you may want to negotiate depending on what is important to you.

8. Approach • Planning is Key - Start with the end in mind • Know your Deal Breakers • Do your research • Be prepared to listen and respond • Use your decision making and problem solving skills • Play out the potential results • Practice • Negotiations are business transactions! It is notpersonal. Present your goals, rationales and alternatives in business terms (your value to the company), not in terms of your lifestyle goals.

9. What to research? • Self Assessment: Know how your skills and experience fit the job. Be confident of your value and your ability to communicate your value. • Market Factors: See your Placement Office/Career Management Center for salary survey data. Typically base salaries increase each year. • Factor in cost-of-living data: Available on several web-sites. (www.homefair.com, Salary Calculator)

10. Benefits Challenge Competition Flexibility Helping Others Independence Location Low Stress Level Making Decisions Mental Stimulation Opportunities to Advance Personal Growth Physical Work Environment Prestige Public Contact Recognition Responsibility Salary Stability Supervisory Style Teamwork Variety Know Your Values Identify and rank your values. An offer is not just about salary, but it is also about what you value in a position.

11. Research the Company and Industry Salary Policies • Try to learn how flexible a company is with offers! Some firms have tight pay ranges to fit new employee’s into, or value equity with all staff. Ask questions to learn as much as possible about the compensation policies of your company. • Investment banking and consulting industries are often unwilling to negotiate. • Consult with Career Management Staff! Have a range in mind before receiving the offer.

12. Word Choice is important! • Be cautious about using words like O.K., Yup, or Yes. • Avoid absolutes, NEED, MUST, HAVE TO remember they’re the ones with the offer. • Don’t paint yourself into a corner or you will lose credibility. • Don’t commit to anything until you are certain that you are ready to accept. • A verbal accept isn’t final until the paper is signed…. BUT…. That doesn’t mean that you haven’t committed to that company.

13. Higher base salary (if applicable) Stock options, or profit sharing Flexible scheduling Telecommuting Tuition reimbursement Extra vacation days Relocation allowance Accelerated performance review….be careful!!!! Start date Business title Membership dues for professional associations Parking Perks – Commuting cost? Car, Cell phone, PC, Blackberry Position Title Vacation Time Hours of work (Kids?) Bonuses (annual - expect to sign an acknowledgement) Benefits Training Things To Ask For When Negotiating a Job Offer

14. Some Executives can even negotiate: An exit strategy--for example, 6 mos. salary after termination. Automobile leases Financial planning assistance Insurance benefits after termination Child care CPA/Tax assistance Wardrobe allowance—WHAT???!!

16. Know Your Bottom Line • Establish a budget including taxes and savings • Decide on the minimum amount of compensation that will support your budget and make you satisfied • If an employer is unable to meet or exceed this amount, it may be to your advantage to keep looking. There is no point in accepting an offer if you think you will be unsatisfied and want to look for another job in the near future.

17. A Few Tips: • Never add more items to your Negotiating list down the line—put everything out front immediately. • Consider alternatives to higher salary—moving expenses, signing bonus, more vacation time, tuition reimbursement, etc. • Know your limits—what’s the lowest salary that I will accept? • Know your next step—if I am unable to negotiate a higher salary, what then?

18. Rule # 5---Know when to fold’em!!! • There comes a point in every negotiation when you have achieved every thing that you can…know when to stop! • Don’t upset the HR person. • Negotiating is all about achieving a win/win. Don’t be greedy or unreasonable with your expectations. • At this point accept or deny the offer.

19. Get it in Writing • It would be nice if everything discussed would actually occur, but unfortunately it doesn't always happen that way. • To avoid problems in the future, ask for a letter of employment which states all the employment conditions agreed upon (i.e. salary and benefits as well as a thorough job description). • If there is confusion at a later date, you will have a written document to refer to stating the conditions under which you were hired. This document is especially important if the conditions of your employment differ from normal company policies.

20. Final Thoughts • Negotiation is not mandatory but it is acceptable. Remember, negotiation is nota risk-free process. • Avoid being the first to mention a salary figure. Get the company to be the first to name a number. If it’s too low, tell them it’s too low but don’t say how much. If you must state a number, use a range. • Know your Deal Breakers. • Do research on salaries for your field. • Know your expected end point. • REMEMBER! You have to live in the climate you create.

21. Internet Research Resources • www.vault.com (workplace channels, career areas, compensation) • http://www.cob.ohio-state.edu/~careers/salary.htm • National Association of Colleges and Employers (NACE) Salary Survey – Available through Career Center • www.northernlight.com: Click on Power Search, type careers in the Words in URL box, next type BBA and salary in the Search For box. You will get tons of articles - pick the best ones for your particular purpose

22. Resources:Salary Negotiation Websites • Occupational Outlook Handbook - provides career and salary information for approximately 250 occupationshttp://www.bls.gov/oco/ • Quintessential Careers - provides a variety of resources and links for job seekers including resources on the web about salary negotiationhttp://www.quintcareers.com/salary_negotiation.html • JobStar Central - provides links to over 300 salary surveys and tips on salary negotiationhttp://www.jobstar.org/tools/salary/index.cfm

23. Salary Resources • http://online.onetcenter.org/link/summary/11-3040.00 • O*Net—Great Resource to get an idea of job duties, knowledge, skills and abilities of a job and the national and state employment wages for the job. • Salary.com • Payscale.com • Professional Organizations such as SHRM or the American Marketing Association. • Consulting firms such as Mercer, Hewitt, Towers Perrin and Watson Wyatt—The surveys are not free!!! However, they have excellent information on their websites! • Published Salary Ranges---Federal Gov’t, Hospitals, State jobs.

24. Resources:Cost of Living Websites • Analyze the worth of your salary offer(s) in relation to the city and state where you would be making that salary • Cost of Living Calculator from CNNMoney (for individual cities)http://cgi.money.cnn.com/tools/costofliving/costofliving.html • Salary.com Cost of Living Wizard http://swz.salary.com/CostOfLivingWizard/layoutscripts/coll_start.asp

25. Print Research Resources • American Salary and Wages Survey • How to Make $1000 a Minute Negotiating Your Salaries and Raises (J. Chapman) • Is That Your Best Offer? , Wet Feet Press • How to Negotiate a Raise You Deserve (M. Satterfield)

26. The End!