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$tart $mart
Salary Negotiation
Objective
To help you
learn salary
research and
negotiation
skills and get
paid fairly
$tart $mart Topics
• Understand the personal consequences of
the wage gap
• Develop a “bare-bones” budget
• Benchmark compensation packages
• Target your personal compensation package
• Negotiate to be paid fairly
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Three Key Points
• What the wage gap means to you personally
• How the wage gap happens
• Why the wage gap happens
What: The Gender Wage Gap
• Women earn, on average, 77 cents for every
dollar men earn; that’s a 23-percent gap
• The average African-American woman earns 69
cents for every dollar a man earns
• The average Latina earns 57 cents for every
dollar a man earns
• Just one year out of college, women working full
time earned 82 percent of what their male
counterparts earned (AAUW’s Graduating to a
Pay Gap report)
What: Gender Wage Gap
• Your starting salary is the baseline for future
salary increases.
• The higher your starting salary, the higher
future increases will be—and your bonuses
and Social Security benefits too!
• It’s also where you begin to lose that million
dollars over your working life.
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How does this happen: Some Math
• Pick a starting salary…
• Lets compute!
Stereotypes about Men
“He’s going places.”
“He’s management material.”
“He has a family to support.”
“He’s a hard-charging,
team player!”
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Stereotypes for Women
“She’s pregnant and won’t
be coming back or will
only work part time.”
“She’ll miss a lot of work
with sick kids.”
“She’s steady, but not
management material.”
Gender Bias + Stereotyping = Wage
Discrimination
Wage discrimination is illegal, but women
do not act because they may be unaware, or the
small inequities they face often do not seem
worth the aggravation, risk, or expense of
lawsuits.
Why don’t we act when we face discrimination?
We all share the same expenses
Rent
Utilities
School loans
Food costs
Transportation
Insurance
Clothing
Child care
Entertainment
And women tend to live longer and
need more money for retirement
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Next step - Benchmarking
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Use the following web sites:
www.wageproject.org
www.salary.com
www.paycheckcity.com
www.saltmoney.org
Benchmarking Your Salary
Step 1: Determine the right job title
Step 2: Know the salary range for the job where you plan
to work
Step 3: Determine your target salary
Step 4: Benchmarking benefits
Step 5: Research the area where you will be working
Step 6: Develop a budget to calculate your minimum
acceptable salary
Know the Market Conditions Where You Want to Work
Research the local economy.
• Business sections of local papers online
• Business publications, if available
• Local chamber of commerce
Questions to ask
• Is business expanding in this local economy?
• Is my field vulnerable?
• Who is the competition?
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Salary Negotiation
Two most important principles:
1. Salary negotiation begins only after you have
received a job offer.
2. Know what you are worth and be prepared to
justify it in the salary discussion.
The 3 T’s of Salary Negotiation
Tone
Be Positive
Be Persuasive
Be Flexible
And always LISTEN carefully!
The 3 T’s of Salary Negotiation
Tactics
Try not to be the first to name a salary figure.
State your current salary ONLY if applicable.
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Tactics for Avoiding Salary Negotiation
BEFORE You Receive an Offer
• Employer: “Are you willing to accept the
advertised salary?”
• Employer: “What would it take for you to
accept this job?”
• Employer: “If you were to receive a job offer
from us, would you accept it?”
How would you respond to these?
Tactics to Avoid Being the First to Name a
Figure AFTER You’ve Received an Offer
Employer: “So what do you want for a salary?”
Possible replies?
Again, avoid naming a figure until the
interviewer offers a salary figure. Possible
replies??
Why is this important?
Negotiations: Starting Salary Offer
Listen to the employer’s exact words
•
•
“Here’s my offer …”
starts the process.
“Here’s our only offer … ” ends it … maybe!
Remember, if they offer you the job, they want
you!
•
•
Test the waters, see what happens.
Your starting salary is too important to accept the first offer immediately.
How does the amount fit your benchmarking? Is it
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Below your minimum acceptable salary?
Above minimum but below target?
Meeting your target salary?
Above your target salary?
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Tactics for Negotiation
Aim high and be realistic.
• Find a correlation between your aspirations and your
research results.
Anticipate the employer’s needs.
• Base your negotiation on your competitive market value.
• Talk about yourself in the employer’s terms, not yours.
• Explain how your experience fits into their performance
goals, products, and conditions.
• Show how you will contribute to the employer’s mission.
• State how you will contribute to the employer’s company
from day one.
Tips
Sell yourself.
•
•
Don’t assume the employer remembers all of your résumé.
Don’t assume the interviewer has translated your experiences into
your value to the company.
• Stress your work ethic.
• You are your best advocate.
Anticipate objections.
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Script your responses to anticipated objections.
Listen closely, think, and anticipate.
Don’t get personal.
•
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The employer doesn’t care about your student loans and expenses.
Be careful with “oversharing.”
Benefits
After you have received an acceptable
salary, negotiate your benefits.
To do
• Refer to your list of benefits from salary.com.
• Check to see if the employer offers each benefit.
• Ask if the employer offers other benefits.
• Ask about the financial support for each benefit
offered.
• Add up the value of offered benefits to see if they
compare to your benchmarking work.
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Benefits, continued
What might make an unacceptable offer more acceptable?
Monetary
Salary, Promised increases, Yearly bonuses,
Signing bonuses, Profit sharing, Stock options
Near-Monetary
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Health insurance
Retirement plan/contributions
Overtime pay
Company car
Travel awards
Relocation assistance
Expense coverage
Dental or optical insurance
On-site free child care
Benefit Options
Non-Monetary
• Title
• Training and education
• Promised review dates
• Travel assignments
• Home equipment usage
• Extra week of vacation
Balance-sheet approach about accepting a job
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List reasons for accepting
List reasons against accepting
Take your time
Be creative, but remember that benefits have
to benefit you!
• Hold off your decision until you see the entire
compensation package.
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Salary Negotiation: Final Thoughts
When the offer is made, ask questions that have not yet been
answered:
• What are the promotional opportunities of this position to
what position or level?
• How and when will my performance be reviewed?
• Will this include a salary review?
• What kind of salary progression would be expected in the
first three to five years?
Never blindly accept at the time of the original offer.
Ask for time to consider the entire compensation package.
Be prepared to negotiate in person or in writing, because many
companies depend on e-mail. Get help with your responses
depending upon your strengths.
Be sure to get the complete job offer in writing and READ it!
TIME FOR A
BREAK
• Pay attention to your resume
• Focus on your employer as well
as your own performance
• Take care of your financial
health
It pays to do this work!
Remember your starting salary
will determine the base for the
rest of your working life!
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In today’s Economy, you may be inclined to take any
job just to have a job!
Ask for and receive a fair and equitable salary and
$tart $mart
For FREE one-on-one help with budgeting
or other financial needs contact
Powercat Financial Counseling
www.ksu.edu/pfc
For FREE help with interviewing, resumes
and your job search contact
Career and Employment Services
www.ksu.edu/ces
This presentation has been brought to you by the
WAGE Project and AAUW
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