Presented by:Allison F. Corkey

Assistant Director/Executive Coach

February 27, 2008

The Graduate Business Career Center

Agenda

What Is Negotiable?

Preparing For Negotiation

Having an Offer in Play

Working with an Executive Recruiter

Internal Negotiation Tips

Resources

Before You Negotiate

What are your key evaluation criteria? Will opportunity support your short/long-

term objectives? Industry and company’s position within

industry Company culture Compensation Location

What is Negotiable?

Compensation and Finance Pay Bonus Signing bonus Next scheduled merit review Profit sharing Restricted Stock/ Options Moving expenses

What is Negotiable?

Other Compensation and Finance elements of package: 401K or other saving plans Medical / Dental Benefits Tuition Reimbursement Policies

Typically these are not negotiable, but you need to consider the financial impact and compare to your current situation or offer

What is Negotiable?

Lifestyle

Start date

Vacation time/Time off

Spousal assistance

Flexible work arrangements

Memberships

Car allowance

What is Negotiable?

Career

Title and level of responsibility

Specific assignments/Next assignment

Geographic location

Training

What You Need For Negotiating

Acquire Information: About the company Clear understanding of job opportunity,

responsibilities, deliverables, future potential Industry information Company background

NegotiableNon negotiable

Cost of living for job location

What You Need For Negotiating

What you bring to the table:

Experience -- related accomplishments

Education

Your market value

Track record of success

Other highlights, non-business Use negotiation matrix to be sure you are capturing your

current total compensation situation

Do I Have to Negotiate?

All negotiations involve risk

Not negotiating involves risk

Why would you want to? Offer is not consistent with your research

Desired elements are not included in the offer

Current situation/Other offer(s) with different or

better package

What To Do When Offer Is Made

Always show appreciation for the offer

Make sure you obtain the offer in writing -- avoid

negotiation without an offer letter

Review the letter for necessary information

Consider timeframe for your decision

Request any additional information to provide

complete picture of offer and opportunity

Managing the Negotiation Timeline

When you receive an offer, ask when a decision is

needed

Manage your timeline:

Negotiate for an extension if needed--but once only

Work to negotiate faster decisions from other

companies you are still waiting for if you are in a

search mode and are talking with multiple companies

Set up a time to discuss offer - in advance of your

response deadline

The Negotiation Session

Plan your session and your strategies

Role play and practice in advance

Be aware of your tone

At first session, you are discussing the offer

—you are gathering information, not

necessarily accepting during this session

The Negotiation Session (cont’t)

Always start the session with expression of

appreciation for the offer

Outline your “requests” one at a time

Start with salary, if you are negotiating on it

Consider this language:

“I am looking for a salary of $____________, “

then back up your request as to why you are

asking for that figure.

The Negotiation Session (con’t)

Consider this language as a preface to your requests:

“As I consider this offer (over the next 2 days,) I would like

to discuss your flexibility on some components of the

package.”

-This language protects you from the company assuming

you are strictly countering and have no desire to accept

the offer or certain components as it stands.

The Negotiation Session (con’t)

Wrap up session with indicating that you will be

considering their offer as it stands now (taking into

account any negotiated elements) and will get back to them

by the deadline-- then follow up on that date or before.

OR

You can choose to accept then, if you wish, asking for an

addendum to the offer letter if you have negotiated

changes to your package.

What “They” May Say

We don’t negotiate—this is our top offer

We pay market price.

Do you have other offers?

Where did you hear that?

We think the opportunity is worth the difference.

I will have to talk to someone and get back to you.

How Much Negotiation Is Too Much?

Series of counter offers

Not listening to their position and needs

Surprise! -- Adding new elements after

initial discussion

Meet my demands or I’ll walk

Accepting A Position

Write acceptance letter or sign their offer letter

After formally accepting, you are committed If you have negotiated on certain items, be sure

to get offer addendum in writing

“Reneging” should not be in your vocabulary Burning bridges at one company can come back to

haunt you

Turning Down A Company

Respond verbally to main contact whom you have had ongoing relationship, then send letter

Respond in written form to individual who signed offer letter

Notify any additional individuals who had been particularly helpful and supportive

Be positive and appreciative Mention “an opportunity that better fits my

career objectives”

Working with an Executive Recruiter

How is this process different? The search firm will have gathered all of

your compensation needs/current situation before presenting your candidacy to a client company

Be sure you have been accurate in reflecting your current situation

Negotiation process may be handled by executive search firm

Internal Negotiation Tips

Career Management

Lateral Move

Recognition for Augmented Responsibilities

Reward for Completion of graduate degree

Negotiation for Promotion

Internal Negotiation Tips: Communication

Know your company culture Gain insights by talking with others as

appropriate Remember your BATNA—if you are

going to “walk”, then you have more leverage

Strike a delicate balance

Internal Negotiation Tips: Career Management

Open the dialogue at appropriate time Set goals and objectives early for your

graduate program in conjunction with your supervisor

Prepare your opening language in your own words, something along the lines of:

“ I am pursuing my [MBA/MA-HRIR] and have made these contributions…what does this mean to the company?”

Internal Negotiation Tips: Lateral Move/Recognition

The opportunity may arise for a lateral move or increased responsibility.

Consider this language:“ I accepted my current position prior to

pursuing my [MBA/MA-HRIR] program so I would like to see my enhanced contributions reflected in my salary. As I consider this move, is there an opportunity to discuss salary adjustment?”

“…I would like to have this considered as an offer is prepared.”

Internal Negotiation Tips: Promotion/Offer

Situation for Internal Promotion Ask clarifying questions, consider this

language:

“As I consider this offer over the next couple days, is this an offer that is open to negotiation?”

Then be prepared to negotiate and lay out your expectations

Internal Negotiation Tips: Promotion/Offer

If you want to turn down internal offer—either leaving the company or staying in current role (if that is an option)

Consider this language:

“ It’s not a match for my expectations.”

Negotiation Tips Summary

Set up appointment with coach to discuss strategies when you receive offer—this is when we can help the most. We can talk in specifics

Don’t accept offer immediately Get offer in writing - don’t forget offer

addendum Express enthusiasm Don’t change after achieving objectives Think long-term

If you’ve never or rarely negotiated before: Head to the Negotiation “Gym” NOW!

1. Negotiate easy stuff in daily life

2. Negotiate 5 harder things

3. Ask for twice as much as offered

4. Ask for 3 long shots

5. Ask for too much (more than you deserve)

6. Actively court “no”

Acknowledgement: Ask For IT by Linda Babcock and Sara Laschever, 2008

Negotiation Consultation

To set up negotiation conversation:

Call the GBCC front desk at 612.624.0011 to make an

appointment when you know you will be receiving an offer.

Email in advance the negotiation matrix with the specifics

of your offer as well as your questions so that we can

focus on your priorities.

Resources

Salary websites – www.salary.com

www.jobstar.org

www.salaryexpert.com

www.vault.com

www.wetfeet.com

Cost of living calculators –

www.moving.com

www.monstermoving.com