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Salary Negotiation
Salary Negotiation
                                 Fall 2006




                AGENDA
•   Goal of Salary Negotiation
•   Preparation
•   Calculating Your Worth
•   “The Offer”
•   Counter Offers
•   Conclusion/Q&A
Salary Negotiation
                                 Fall 2006




      The Goal of Negotiation
• To reach an agreement that will maximize
  your potential earnings and provide for the
  employers needs
• To create a win-win situation with an
  employer with whom you can have a long
  term relationship
Salary Negotiation
            Fall 2006




Preparation
Salary Negotiation
                                        Fall 2006




Preparing for Salary Negotiation
• What you need to know before you begin
  salary negotiations
  – Know your market value – what are comparable salaries
    and positions
  – What do similar positions in the industry pay in your
    geographic region
  – How much do current employees earn.
  – Where do you fit in the organization- is this an entry
    level, management or an executive position
Salary Negotiation
                                       Fall 2006




Preparing for Salary Negotiation
• Factors that impact supply and demand –
  THE COMPETITION!
  – What is current in the industry - targeting local
    and national trends
  – Identity employers who compete for the best
    candidates and offer top salaries and superior
    benefits packages
Salary Negotiation
              Fall 2006




Calculating Your
     Worth
Salary Negotiation
                                         Fall 2006




 Places to Search for Information
• Professional associations   • Online resources –
  – membership surveys          www.salary.com,
• Recruiters and executive      www,careerjournal.com,
  search firms                  www.hotjobs.com
• Monthly government labor    • Former and current
  reviews/ The Bureau of        employees
  Labor Statistics            • Your network – friends,
• Forbes, The Wall Street       colleagues, information
  Journal, Business Week,       interviews
  Fortune Magazine
Salary Negotiation
                                          Fall 2006




  Total Compensation Packages
Benefits can equal 20%-30% of your total compensation
package. What’s included:
  •   Bonuses                 •   Education rebates
  •   Signing bonus           •   Cost of living raises
  •   Flexible schedules      •   Parking
  •   Profit sharing          •   Company car
  •   Retirement package      •   Cell phone/Blackberry
  •   Insurance               •   Child care
  •   Stock options           •   Maternity leave
  •   Timely advancement      •   Relocation costs
  •   Vacation time           •   Health Care Insurance
Salary Negotiation
            Fall 2006




“The Offer”
Salary Negotiation
                                          Fall 2006




                    “The Offer”
Things to remember:
• Most companies make fair and realistic salary offers
• It is not in their best interest to make “low ball” offers
• They want to hire the best candidate for the job
• High employee turnover is an added expense to the
  bottom line for the employer
• Translation = the “Offer” should be good!
Salary Negotiation
                                    Fall 2006




                 “The Offer”
• Anticipate objections to higher salary offers
• Be clear about your own value
• Be confident in your abilities, skills,
  professional experience and education
• Develop rebuttals to anticipate employers
  possible “excuses” for not wanting to raise
  salary levels
Salary Negotiation
                                        Fall 2006




      Discussing Salary History
• Postpone this discussion as long as possible
• Discuss salary in future terms….
  – “If I was to stay in my current positions the value
    of my compensation package would be…”
  – “I would consider a salary range of…”
Salary Negotiation
                                Fall 2006




             Negotiations
• Remember is not about winning, but about
  establishing mutual interests and goals
• Know where you can compromise
• Identity your possible competition
• Logically reiterate why you should be
  compensated at a greater level
Salary Negotiation
             Fall 2006




Counter Offers
Salary Negotiation
                                            Fall 2006




                 Counter Offers
Counter offers are offers from your current employers to
remain after you have announced intention to leave
• Investigate and determine      • They may feel desperate to
  your employer’s motivation       finish a project but may not
• Is it all about money?           be loyal to you and made
• Will the underlying issues       the offer
  that motivated you to move     • Do you really want to work
  be changing?                     for someone who only
• Know that your loyalty will      increased your salary
                                   because you were leaving?
  now be suspect and an
  attitude of negativity about   • Take this offer as a
  your choice to leave may         complement and move on
  be present
Salary Negotiation
                            Fall 2006




Thank You and Good Luck




   Professional Career Services
         (410) 290-1934
   www.careerservices.jhu.edu

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Salary negotiation

  • 2. Salary Negotiation Fall 2006 AGENDA • Goal of Salary Negotiation • Preparation • Calculating Your Worth • “The Offer” • Counter Offers • Conclusion/Q&A
  • 3. Salary Negotiation Fall 2006 The Goal of Negotiation • To reach an agreement that will maximize your potential earnings and provide for the employers needs • To create a win-win situation with an employer with whom you can have a long term relationship
  • 4. Salary Negotiation Fall 2006 Preparation
  • 5. Salary Negotiation Fall 2006 Preparing for Salary Negotiation • What you need to know before you begin salary negotiations – Know your market value – what are comparable salaries and positions – What do similar positions in the industry pay in your geographic region – How much do current employees earn. – Where do you fit in the organization- is this an entry level, management or an executive position
  • 6. Salary Negotiation Fall 2006 Preparing for Salary Negotiation • Factors that impact supply and demand – THE COMPETITION! – What is current in the industry - targeting local and national trends – Identity employers who compete for the best candidates and offer top salaries and superior benefits packages
  • 7. Salary Negotiation Fall 2006 Calculating Your Worth
  • 8. Salary Negotiation Fall 2006 Places to Search for Information • Professional associations • Online resources – – membership surveys www.salary.com, • Recruiters and executive www,careerjournal.com, search firms www.hotjobs.com • Monthly government labor • Former and current reviews/ The Bureau of employees Labor Statistics • Your network – friends, • Forbes, The Wall Street colleagues, information Journal, Business Week, interviews Fortune Magazine
  • 9. Salary Negotiation Fall 2006 Total Compensation Packages Benefits can equal 20%-30% of your total compensation package. What’s included: • Bonuses • Education rebates • Signing bonus • Cost of living raises • Flexible schedules • Parking • Profit sharing • Company car • Retirement package • Cell phone/Blackberry • Insurance • Child care • Stock options • Maternity leave • Timely advancement • Relocation costs • Vacation time • Health Care Insurance
  • 10. Salary Negotiation Fall 2006 “The Offer”
  • 11. Salary Negotiation Fall 2006 “The Offer” Things to remember: • Most companies make fair and realistic salary offers • It is not in their best interest to make “low ball” offers • They want to hire the best candidate for the job • High employee turnover is an added expense to the bottom line for the employer • Translation = the “Offer” should be good!
  • 12. Salary Negotiation Fall 2006 “The Offer” • Anticipate objections to higher salary offers • Be clear about your own value • Be confident in your abilities, skills, professional experience and education • Develop rebuttals to anticipate employers possible “excuses” for not wanting to raise salary levels
  • 13. Salary Negotiation Fall 2006 Discussing Salary History • Postpone this discussion as long as possible • Discuss salary in future terms…. – “If I was to stay in my current positions the value of my compensation package would be…” – “I would consider a salary range of…”
  • 14. Salary Negotiation Fall 2006 Negotiations • Remember is not about winning, but about establishing mutual interests and goals • Know where you can compromise • Identity your possible competition • Logically reiterate why you should be compensated at a greater level
  • 15. Salary Negotiation Fall 2006 Counter Offers
  • 16. Salary Negotiation Fall 2006 Counter Offers Counter offers are offers from your current employers to remain after you have announced intention to leave • Investigate and determine • They may feel desperate to your employer’s motivation finish a project but may not • Is it all about money? be loyal to you and made • Will the underlying issues the offer that motivated you to move • Do you really want to work be changing? for someone who only • Know that your loyalty will increased your salary because you were leaving? now be suspect and an attitude of negativity about • Take this offer as a your choice to leave may complement and move on be present
  • 17. Salary Negotiation Fall 2006 Thank You and Good Luck Professional Career Services (410) 290-1934 www.careerservices.jhu.edu