Let us never negotiate out of fear. But let us never fear to negotiate.

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• Let us never negotiate out of fear. But let us
  never fear to negotiate.
• --John F. Kennedy

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Salary Negotiations

• Why Negotiate?

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Six Reasons Why You Should Negotiate, from
idealist.org

• Its okay to ask for what youre worth.
• The first offer is often not the best possible
  one.
• A higher starting salary means higher raises (in
  this or future jobs).
• Salary is not the only part of a compensation
  package that you can negotiate.
• Asking for a more competitive salary/benefits
  package does not suggest that you only care about
  money, or that you do not care about the mission
  of the organization.
• Negotiating shows that you are confident in and
  can advocate for yourself and your abilities

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Basics

• Determine the benchmarks for the position
• Assess your Bargaining Power
• Determine your Priorities
• Identify What is Negotiable
• Develop a Negotiating Strategy
• Negotiation Approaches
• Negotiation and Gender

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Determining Benchmarks

• What Is Benchmarking?
• Researching and comparing the broader job
  markets standards for compensation, title,
  responsibilities, and perks based on the
  position, your skill set and qualifications.
• -- Negotiating Your Salary Perks, WetFeet

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Determining Benchmarks

• Research Salary Surveys
• Opm.gov
• Bureau of Labor Statistics
• Jobstar.com
• Vault.com
• The Riley Guide
• Salary.com
• cbsalary.com (calculator tool by region/state)

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Determining Benchmarks

• FES Statistics, Class of 2009
• SALARIES BY DEGREE (US) Masters
• MEAN
• 1 degree n34 52,931
• Joint degree n11 75,318
• Total n45 58,404

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Determining Benchmarks

• FES Statistics, Class of 2009
• SALARIES BY SECTOR (US) Masters
• MEAN
• Non-Profit/NGO 53,708
• Private (bus/consult/law) 72,319
• Gov/Public 54,502
• Academic (k-university) 57,000

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Determining Benchmarks

• GS 9, typical starting salary for Masters degree,
  Jan 2009, from opm.gov
• Step 1, Atlanta 49,581
• Step 1, Boston 51,871
• Step 1, Seattle 50,628

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Determining Benchmarks

• Other Sources of Information
• Trade Magazines
• Human Resources Websites (for employer and
  competitor salaries and benefits)
• Local Cost of Living Data
• Recent Alums

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Assess your Bargaining Power

• Stronger Items
• You were strongly recommended
• There are few other candidates
• There are several valued FESers in the
  organization already
• The employer is concerned about you taking a job
  elsewhere
• You have very relevant education, skills and
  experience
• You have several offers and are not worried
• You have strongly sold your value to employer

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Assess your Bargaining Power

• Weaker Items
• There are many candidates
• You have little relevant experience/education
• Your calls are not returned or are taken by an
  assistant
• Youre feeling desperate
• You learned about job through a job posting
• Youve left it to employer to assess your value
  rather than strongly selling yourself

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Assess your Bargaining Power

• Note on Entry Level Positions and Bargaining
  Power
• While some degree of negotiation is appropriate
  for any positionit is better to approach
  negotiations for an entry-level position with
  limited expectations and a shorter list of must
  haves. idealist.org

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Determine Your Priorities

• What really matters to you for your satisfaction
  in this career move? What are your goals?
• Sample Priorities List
• Location 35
• Salary 20
• Orgs commitment to social justice 20
• Rapport with supervisor and colleagues 10
• Opportunity of this career move 10
• Benefits 5

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Identify What Is Negotiable

• Tuition Reimbursement
• Professional Development Opportunities
• Profit-Sharing and 401(k) Programs
• Health Insurance
• Work Schedule/Flex-time
• Vacation Time
• Severance Pay
• Local Travel
• Housing

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Identify What Is Negotiable

• Title
• Responsibilities and Opportunities
• Salary
• Signing Bonus
• Moving Allowance
• Performance-Based Bonuses and Commissions
• Review Date
• Stock Options

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Develop a Negotiating Strategy

• Self-knowledgeto sell yourself, position
  yourself with more bargaining power and increase
  value of position
• Increase the value of you in the position
• Effective Presentationgive yourself immediate
  credibility, add bargaining power

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Develop a Negotiating Strategy

• Be enthusiastic and connect personally
• Dont ask for no as an answer (i.e. Is there any
  chance you can go higher than 40,000? Instead
  try Wouldnt you agree its important to be
  competitive? Based on my research, 45,000 is an
  average starting rate.
• Connect with the decision-maker

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Develop a Negotiating StrategyConnect with
Decision-Maker Negotiations in Different Sized
Companies

• Medium-sized Company
• Usually starts with HR managermay be screening
  phone call to check for competence, honesty and
  appropriateness to position.
• Likely that you will then be passed on to
  reporting manager.
• Offer likely to be made by reporting manager who
  you can negotiate with directly.

-- Negotiating Your Salary Perks, WetFeet
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Develop a Negotiating StrategyConnect with
Decision-Maker

• Large Company
• Usually starts with HR manager
• May go to hiring manager, who may make the offer
  and negotiate with you.
• For lower level positions, however, HR manager
  may make the offer and do the negotiating with
  you. In this case, you should try everything you
  can do to get your resume to the reporting
  manager, who can be an allyincreases your
  bargaining power.
• If negotiating with HR manager, you can still
  discuss potentially negotiable areas. After
  youve pushed in all areas, try to negotiate for
  an early performance review.

-- Negotiating Your Salary Perks, WetFeet
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Develop a Negotiating StrategyConnect with
Decision-Maker

• Small Company
• Jobs commonly posted directly by decision-maker
• Decision-maker may be owner or senior staff
• Hiring manager may handle the whole
  processinterview, offer, negotiation
• Less formalized, more opportunity to connect
  personally

-- Negotiating Your Salary Perks, WetFeet
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Develop a Negotiating Strategy

• Explore everything an employer can offer
• Benchmark all aspects of an offer
• Know how to discuss salary history intelligently
• Continue to interview elsewhere
• Be selective re what you negotiate on, i.e.
  review priorities
• Dont name the salary first

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Develop a Negotiating StrategyNaming Your Salary

• The person who gives the first number sets the
  starting point. But if that's you, you lose. If
  you request a salary higher than the range for
  the job, the interviewer will tell you you're
  high, and you've just lost money. If you request
  a salary lower than the range, the interviewer
  will say nothing, and you've just lost money.
• -- Penelope Trunk, Brazen Careerist, The Answer
  to the Toughest Interview Question

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DEVELOP A NEGOTIATING STRATEGYDont Name the
Salary First

• The salary discussion and other negotiations
  should ideally begin when an offer is given
• If asked during an interview, try the following
  responses to avoid giving a number

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DEVELOP A NEGOTIATING STRATEGYDont Name the
Salary First

• What salary range are you looking for?
• "Let's talk about the job requirements and
  expectations first, so I can get a better sense
  of what you need."
• -- Penelope Trunk, Brazen Careerist, The Answer
  to the Toughest Interview Question

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DEVELOP A NEGOTIATING STRATEGYDont Name the
Salary First

• I need to know what salary you want in order to
  make you an offer. Can you tell me a range?
• "I'd appreciate it if you could make me an offer
  based on whatever you have budgeted for this
  position and we can go from there."
• -- Penelope Trunk, Brazen Careerist, The Answer
  to the Toughest Interview Question

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DEVELOP A NEGOTIATING STRATEGYDont Name the
Salary First

• What are you expecting to make in terms of
  salary?
• Have you established a range for the position?"

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Develop a Negotiating StrategyWhat are your
salary requirements?

• My requirements are negotiable, depending on the
  responsibilities of the position.
• Salary is negotiable.
• My salary requirements are negotiable and
  flexible. (but do this only if you are, indeed,
  flexible)

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Develop a Negotiating StrategyWhat is your
salary history?

• As Im just completing my masters degree, I have
  a new set of qualifications, experience and level
  of expertise, so dont have comparable salary
  history data.then move on to your benchmarking
  figures
• State your salary history (if applicable) or
  desired salary in a broad enough range so as not
  to knock yourself out of the running or set the
  offer lower than what the organization expected
  to pay.

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What Salary Should you Expect?
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Develop a Negotiating StrategyFactors to
Consider in Determining Your Living Wage

• Housing
• Clothing
• Food
• Automobile/Transportation
• Insurance
• Medical/Health
• Support for other family members/pets
• Bills Debts
• Taxes
• Savings/Retirement
• Discretionary
• Cost of Living in New Location

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Develop a Negotiating StrategyDetermine Your
Living Wage

• BOTTOM Living on ramen and popcorn with 20 mile
  bicycle commute from tent
• TOP 2 weeks in Europe every year, new hybrid,
  shopping at Whole Foods, puppy
• Living Wage Somewhere in between.
• Compare Living Wage with Benchmarks

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Develop a Negotiating Strategy Walk-Away Point

• The point at which you move on to the next
  opportunity.
• Is your living wage your walk-away point? The
  bottom of your benchmarked figure? Is the point
  higher? Lower?
• Is point firmly in mind?

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You Get An Offer, What Next?
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Negotiation Approaches

• You should negotiate from a position of
  strengthnot need or greed.
• -- Dynamic Salary Negotiations, Ron and Caryl
  Krannich

• Response based on benchmarking (According to the
  salary surveys Ive read)
• Response based on employers needs (As weve
  discussed, I have extensive experience in the
  areas related to the position, and over and above
  can bring expertise in x)
• Response based on creative alternatives (I
  realize this offer is based on company-wide
  salary-standards, which is very fair. However,
  Im confident that I will make a significant
  contribution in a short time. Would you consider
  a salary review in 3 months?)
• -- Negotiating Your Salary Perks, WetFeet

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Negotiation Approaches

• Response designed to create tension (I am looking
  at several opportunities)
• Response designed to reduce tension (I hope Im
  not being unrealistic about what you can doIm
  very interested in the position and hope to reach
  an agreement that seems fair to you and takes
  into account what I bring to the job)
• Avoid the counterproposal (I was really hoping
  for x) and focusing on your needs (you should
  know what you need, but dont have to share all
  the details)

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Negotiation ApproachesResponses to Avoid

• Runaway Ego (I dont need this job, so if you
  dont make it worth my while)
• Showing Off (I really dont need the money, I
  just like the work.)
• Patronizing Manner (Have you read my resume? Do
  you know Im from Yale?)
• Showing Your Cards (After a great offer saying
  Oh I thought it was going to be much lower!)
• Late-Breaking Demands (Bring up prior commitments
  early in process, not at the end)
• -- Negotiating Your Salary Perks, WetFeet

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NEGOTIATION APPROACHES Leveraging one offer
against another

• You get an offer from Organization A right away,
  but you really want to work for Organization B.
• You can contact Organization B and let them know
  that youre really interested in their position,
  but that youve received another offer. Tell them
  your timeline (when you need to either accept or
  decline the first offer), reiterate your interest
  in their position, and ask if theyll be able to
  let you know their decision in time for you to
  evaluate both positions.
• idealist.org

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NEGOTIATION APPROACHESNuance and Win-Win

• Some job seekers end up creating a situation that
  is more confrontational than it really needs to
  be. Negotiation is a nuanced art it is never an
  ultimatumBeware of your tone and the language
  you usebe sure to begin with mutual respect, an
  awareness of other perspectives, and an
  understanding that the end result isnt victory
  or defeat, but an agreement that allows both
  sides to come away satisfied.
• idealist.org

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Negotiation ApproachesThe Power of Silence

• So, we think your resume looks good and the team
  is excited to work with you. Our current
  thinking is that it might make sense to start you
  off at an annual salary of 50,000
• Good Response? Silence.
• Employer may rephrase as a direct question to
  which you can then open negotiations on.
• Employer may be more uncomfortable than you are
  with silence, and may be compelled to speak up
  and up the previous offer.
• Demonstrates that employer cannot assume a
  dominating role.
• Tip If uncomfortable with silence or eye contact
  at this point, look thoughtfully at your
  materials.
• -- Negotiating Your Salary Perks, WetFeet

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Negotiation ApproachesTake Time to Think Over
Offer When Negotiating is Through

• Ask for the offer in writing (buys you a few
  days)may not be a contract, but a summary of
  salary and benefits in writing.
• Tell the employer how much time youd like to
  consider offer (This is fantastic, and Im
  extremely interested. Id like a few days to
  consider the offer, and will get back to you on
  Wednesday.)

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Negotiation and Gender

• In surveys, 2.5 times more women than men said
  they feel "a great deal of apprehension" about
  negotiating.
• Men initiate negotiations about four times as
  often as women.
• When asked to pick metaphors for the process of
  negotiating, men picked "winning a ballgame" and
  a "wrestling match," while women picked "going to
  the dentist."
• Women will pay as much as 1,353 to avoid
  negotiating the price of a car, which may help
  explain why 63 percent of Saturn car buyers are
  women.
• Women are more pessimistic about the how much is
  available when they do negotiate and so they
  typically ask for and get less when they do
  negotiateon average, 30 percent less than men.
• --Women Dont Ask Negotiation and the Gender
  Divide

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Negotiation and GenderAnother Take

• I think the reason women do poorly in
  negotiations is that women assume you should ask
  for what you want, but men know thats not how
  the game is played. Men know that you need to be
  aware of what you want, but thats not
  necessarily what you ask for.
• --Try this Dont ask for what you want when you
  negotiate, Penelope Trunk

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Negotiation and GenderAn Analogous Indirect
Approach

• The agency you are negotiating with has offered
  you 45,000, but you are shooting for 50,000.
• Instead of directly asking for more money, you
  might remind them of a unique skill you bring to
  the tablesomething not in the job description
  but useful to them, such as advanced GIS.
• You know they dont allow a moving allowance, but
  you bring it up anyway. Then you bring up
  sign-on bonuses, and dental insurance.
• Unprompted, the HR rep offers you 2,500 more in
  your starting salary after telling you he cant
  offer dental or a moving allowance.
• Now youre half way to your salary goal and you
  havent even asked for it.

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And Remember

• There isnt one right way to negotiate. While
  there are a number of steps you can take before
  the negotiation (wait for an offer, research
  benefits, prioritize which elements of an offer
  are most important to you), there isnt a
  foolproof script to follow.
• -- idealist.org