Date: 11/15/2010 Copyright 2003 by Training Tamer Inc. Page: 1
Salary Negotiations
Training Tamer
Helping People
Learn & Soar Dream
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Goal of Salary Negotiations:
Always Aim To Increase Your Salary!
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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
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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?
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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.
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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
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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
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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
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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.
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”
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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
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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
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$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
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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
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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
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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!
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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
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Negotiate Benefits (2)
Ask for additional vacation or sick time paid by company
Whatever else you can dream up
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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
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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
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Negotiate Perks
Use of company vehicle
Membership in country club
Whatever else may be available to staff at
your level
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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
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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
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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
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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
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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?
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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
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Thank You!
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Contact Information
Phone: 813-924-8404
Email: [email protected]
Website: www.trainingtamer.com
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