Negotiation
by Kim Molee,
Carnegie Mellon University
How to Evaluate and Negotiate a Job Offer
Dream Title…
Jennifer A. Morano
Executive Vice President
Major Nursery, Inc.
Cincinnati Ohio 45150
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
Your opinion matters
Assess a potential offer based on what is
important to YOU.
 Some examples include:
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Salary
Location
Opportunity for advancement
Flexibility of schedule
Culture/co-workers
Travel
Vacation
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 business reason 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
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.
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.
Approach
 Planning is Key - Start with the end in mind
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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 not personal. Present your goals, rationales and alternatives in
business terms (your value to the company), not in terms of your lifestyle
goals.
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)
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.
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Benefits
Challenge
Competition
Flexibility
Helping Others
Independence
Location
Low Stress Level
Making Decisions
Mental Stimulation
Opportunities to Advance
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Personal Growth
Physical Work Environment
Prestige
Public Contact
Recognition
Responsibility
Salary
Stability
Supervisory Style
Teamwork
Variety
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.
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.
Things To Ask For When
Negotiating a Job Offer
 Higher base salary (if
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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
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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
Some Executives can even
negotiate:
 An exit strategy--for example, 6 mos. salary after
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termination.
Automobile leases
Financial planning assistance
Insurance benefits after termination
Child care
CPA/Tax assistance
Wardrobe allowance—WHAT???!!
FACTOR
Company Reputation/Stability
Co-workers/Project Team
Health Insurance
Job Responsibilities
Location
Opportunity for Advancement
Overtime
Paid Vacation
Pension/Retirement
Relocation
Salary
Signing Bonus
Stock Options
Supervisor
Training/Professional Development
Travel
Tuition Reimbursement
OFFER A
OFFER B
OFFER C
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.
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?
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!
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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.
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.
Final Thoughts
 Negotiation is not mandatory but it is acceptable. Remember,
negotiation is not a 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.
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
Resources:
Salary Negotiation Websites
 Occupational Outlook Handbook - provides
career and salary information for approximately
250 occupations
http://www.bls.gov/oco/
 Quintessential Careers - provides a variety of
resources and links for job seekers including
resources on the web about salary negotiation
http://www.quintcareers.com/salary_negotiation.html
 JobStar Central - provides links to over 300
salary surveys and tips on salary negotiation
http://www.jobstar.org/tools/salary/index.cfm
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.
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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/costoflivin
g.html
 Salary.com Cost of Living Wizard
http://swz.salary.com/CostOfLivingWizard/layoutscripts/coll_start.asp
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)
The End!