Negotiating Salary, Benefits, Bonuses & More · Negotiate the best salary you can – If initial...

Date: 11/15/2010 Copyright 2003 by Training Tamer Inc. Page: 1

Salary Negotiations

Training Tamer

Helping People

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Goal of Salary Negotiations:

Always Aim To Increase Your Salary!


Researching Salary Information

Before the Interview Research salary information before the interview

– Check salary sites on the Internet to determine the local salary range for the position you’re seeking and use this information to determine the average salary for the job

www.payscale.com (just right)

www.salary.com (a bit inflated)

www.cbsalary.com (a little low)

www.labormarketinfo.com/library/oes.htm

– Report doesn’t show all possible job titles

– Wages shown as hourly rates so you’ll have to calculate your annual salary on your own (Hourly Rate x 40 x 52)

– Check professional associations, trade journals, and people in the industry

– If you can get this info directly from company beforehand, that’s even better since it will be 100% accurate

http://www.payscale.com/

http://www.salary.com/

http://www.cbsalary.com/

http://www.labormarketinfo.com/library/oes.htm


Managing Salary Questions

Prior to Receiving an Offer If asked for salary on Job Application,

– Enter negotiable or leave the field blank

NOTE: For online applications where the salary must be entered to

complete the form, specify the average salary based on your research of

local salaries for the position.

If asked for salary during interview,

– First say, “We still have a lot to discuss together and I’m sure if things go

well, we can come to terms on a mutually agreeable salary.”

– If that doesn’t work, then say, “I’m really not trying to avoid answering

your question. Perhaps you can tell me the salary range for the job and I’ll

tell you if that works for me. That way, I won’t waste your time if we’re

not even in the same ball park.”

Your Salary Package

What are the components that make up a

comprehensive salary package?


Elements of a Comprehensive

Salary Package Salary

– Must he high enough to pay your bills, save, and have some fun

– Always get the best salary you can get before negotiating any of

the other options below

Bonuses

– Negotiate them for 6 month or 1 year period and base receipt of

bonus on concrete, measurable, and mutually agreed upon objectives

Stock

– Public vs. private

– Value of stock

– Stock option –check fine print re when you can exercise stock

options, cost of stock to you, etc.


Elements of a Comprehensive

Salary Package (2) Benefits

– How does it compare to what you had previously, especially when it comes to

what you have to pay from each paycheck as well as deductibles and co-pays

– See a comprehensive list of benefits on the next 2 slides

Work at Home Options

– Number days per week

– Pay for phone, fax, internet connection, supplies, etc.

Flextime

– Travel to/from work in off peak traffic hours

Vacation and Sick Time

Company Provided Training

Get Performance Objectives within 30 Days of Date of Hire

– Must be reasonable, measureable and mutually agreed upon


List of Possible Benefits

Health insurance

Dental insurance

Vision plan

Life insurance

Retirement plan/401k and profit sharing

Sick leave

Short and long term disability

Maternity, bereavement, childcare, or eldercare benefits

Employee assistance programs

Financial planning services

Credit union


List of Possible Benefits (2) Relocation coverage

Tuition assistance

Company car

Paid parking

Parties, retreats, company packages, etc.

Gym and/or golf club membership

Wellness packages

Free subscriptions, discount offers, tickets to events, etc.

Severance package


NOTE: The list of the above benefits came from the Women for Hire website at

www.womenforhire.com/advice/negotiating_salary_benefits/benefit_from_the_benefits.

Check the links on the left of this screen for other information related to salary negotiations.

http://www.womenforhire.com/advice/negotiating_salary_benefits/benefit_from_the_benefits





Salary Negotiations Guidelines

Avoid answering salary questions during an interview

– If asked, say, “Since we both have a lot to learn during this

interview , I think this is premature. If everything goes well, I’m

confident we can work out a mutually agreeable salary.”

– If that fails, say, “I’m not trying to avoid answering your question.

Perhaps if you could tell me the salary range, I can tell you if that

works for me. If not, we won't be wasting each other's time”


When to Negotiate

Negotiate salary, benefits, bonuses, etc. at the time

an initial job offer is made

Any discussions before then are premature

– Employer doesn’t know enough about you, nor you

them


Negotiate Salary Recall the local salary range for the job from your

earlier research

Determine your minimum range, desired range, and

dream salary range before the interview

– Base it on local salary survey data or insider information


$30 - 34.4K

$33.5 – 36.9K

$37 - 40K

Negotiate Salary (2)

Let the employer make the initial salary offer

If they ask you what you want for a salary, ask them

this question:

– What do you typically pay a person with my skills and

experience for this position?

Remember that employers expect you to make a

counter offer so they usually come in low on their

initial offer

That leaves you free to negotiate and counter offer


Negotiate Salary (3) Prove your worth

– Use work samples and measurable accomplishments from previous jobs to

prove you’re worth

– Point out ways you can add value to the company from the start

Negotiate the best salary you can

– If initial offer is at your dream salary ($40K) or darn close, you’re golden

– If you’re not in dream range, counter with a figure that brings you into the

next level or higher

Example:

Initial offer is at $32K which in your minimum

You might counter with $36.5K to get you into the high end of your desired

range or go for something in you dream range

Keep in mind that the employer will probably counter you with a reduced

figure so adjust your counter offer accordingly

– Focus on getting at least your desired salary

– Only accept minimum salary ($30K) when there are no other alternatives and

be sure you can live with it


Negotiate Salary (4) If the final salary offer seems to low, consider negotiating

bonuses, benefits, etc. to compensate

Once the employer has made a final verbal offer,

– Ask to review it overnight to give you time to evaluate it properly

Say have to agreement with spouse/significant other to

always discuss with him/her before making final decision

– Evaluate the overall compensation package to decide what it’s worth

and compare it to what you had in your last job

– Consider the impact of State Employment Taxes if you didn’t have to

pay them in your previous job (or if they were lower)

– Consider salary, bonuses, stock, benefits, work at home options,

perks (e.g. Golf Club Membership), training, etc.

– If you’re unclear about anything, ask questions to get clarification


Negotiate Salary (5)

Ask yourself if you’re happy with the company (e.g.

culture), your manager (e.g. management style,

personality), your co-workers, and the benefits

– You’ll be spending a lot of time there and if you don’t like it, you

could end up in the same position you’re in now all over again

Avoid continually coming back with additional counter

offers

– Figure out what you want/need thoroughly so you don’t drag out

the negotiations and leave the employer thinking you’ll never be

satisfied

– Doing so could cost you the job!



Negotiate Benefits

Compare the company’s benefits to those offered by other companies including your last employer

– Check out the breadth, quality, and cost of benefits

– Find out when benefits become effective (coverage gap issue) and how much you have to pay (impacts your take home pay)

– If not effective immediately, ask company to start them now

– If cost is high given salary you negotiated, request company pay all or part of your portion of the benefits cost

– Consider cost of deductibles and co-pays for health, dental, and vision and how they compare to your last job

– For 401k, find out when it starts, terms company match (if any), and vesting time (when company’s contribution can no longer be taken back if leave)

– Remember, the benefits package is worth 25-45% of your base salary


Negotiate Benefits (2)

Ask for additional vacation or sick time paid by company

Whatever else you can dream up


Negotiate Bonuses

Types of Bonuses

– End Probationary Period (3-6 months)

– Annual Review

Bonus based on meeting or exceeding your

Performance Objectives for a specific timeframe


Negotiate Stock

Some companies offer stock to some or all employees

– Stock Options

Gives you the option to buy stock based on terms set by employer

Check out terms to make sure they provide near term value for you

– Actual Stock: Public or Private

If your position doesn’t qualify for stock, ask

employer to consider giving you some anyway

Even if you do qualify for stock, it’s also fair to

negotiate for additional stock


Negotiate Perks

Use of company vehicle

Membership in country club

Whatever else may be available to staff at

your level


Negotiate Work

Hours and Location Explore flextime options

– Can help you avoid rush hour traffic or manage your personal schedule better

Check out work at home options

– May be able to work at home some or all of the time

– Option may be available after you have a certain amount of tenure and know the inner workings of the company and staff you rely on


Negotiate Completion of

Performance Objectives Establish date for completing written

performance objectives

Agree that objectives need to be clear, and measurable, and attainable

Determine potential for additional compensation if performance objectives are met or exceeded

Make sure above information is included in the Job Offer


Manage Counter Offers

Try not to counter more than once to avoid looking greedy or indecisive

Once you’ve gotten an initial offer and have discussed alternatives, then present your formal counter offer

– If you need any additional information to make your decision (e.g. copy of the company’s benefits handbook) ask for it

– If you need time plan your counter offer before responding,

Tell employer you’d like to think over the offer overnight and discuss it with your significant other (plus friends, and former co-workers)

Tell him/her you’ll get back with your response the next morning

Should more questions come up overnight, get them answered before presenting your counter offer


Get Final Job Offer Get the final Job Offer in writing on company stationery

and make sure it is signed and dated

Read the entire document

Verify that all the items you negotiated are included in the Job Offer as agreed

Assess the total value of the package before deciding to accept or reject the offer

– Be willing to reject the job if the salary and other compensation don’t meet your needs (financial, personal, etc.)

Only sign, date, and return it when you are satisfied it is correct and meets your needs


Remember

In Negotiations, FEAR (False Evidence Appearing

Real) is you greatest enemy

You can kill off possibilities before the employer

gets a chance

All they can do is say No but they might say YES

or do much better than their initial offer

Go for it!

VISUALIZE, ACT, BELIEVE!

Salary Negotiation Exercise

Break into Groups of 2 and take turns answering the

below questions

– What would you do if you’re asked about your Salary

expectations early in a job interview?

– If your last job,

Your salary was $55K/year

You got an annual performance bonus of $5K based on meeting your

objectives

You could work at home 3 days a week

Your benefits package was worth $12K

– Suppose you were offered a salary of $52K? Do your best to

negotiate the best compensation package possible?



ResourcesWebsites

– Search free web salary survey sites for your baseline salary for job you’re seeking

www.payscale.com (most accurate)

www.salary.com (somewhat inflated)

www.cbsalary.com (a bit low)

– Salary Negotiation and Job Offer Tools & Resources (Great Information)

www.quintcareers.com/salary_negotiation.html

– Salary and Benefits Information

http://career-advice.monster.com/salary-benefits/home.aspx

– Go Back to Work with the Best Deal

http://career-advice.monster.com/salary-negotiation/Get-Back-to-Work-with-the-Best-Deal/home.aspx

http://www.payscale.com/

http://www.salary.com/

http://www.cbsalary.com/

http://www.quintcareers.com/salary_negotiation.html


























Thank You!


Contact Information

Phone: 813-924-8404

Email: [email protected]

Website: www.trainingtamer.com

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