Negotiation for Business Students

COLLEGE OF BUSINESS ADMINISTRATION

CBA CAREER MANAGEMENT SERVICES

Statistics

Basics

Strategies

What to Say When…

Tips

Other Components

Things to Remember

Overview

Negotiation Statistics

8 out of 10 employers say they are willing to negotiate salary with job applicants, but only 1/3 of applicants feel comfortable negotiating

“A 22 year old who secures a $2,000 increase in annual salary at his or her first job will, because of the compounding effects of years of raises to follow, most likely generate an extra $150,000 in extra income over a 40-year period.” (Clark, 1999)

Negotiation Statistics

By not negotiating a first salary, an individual stands to lose more than $500,000 by age 60—and men are more than four times as likely as women to negotiate a first salary.

Women who consistently negotiate their salary increases earn at least $1 million more during their careers than women who don’t (Babcock and Laschever).

Negotiation Statistics

When do you discuss salary?

Only after you have been offered the job.

Negotiation Basics

Make sure to find salary information for comparable jobs, before interviewing.

Negotiation Basics

Don’t comment right away.

Give them a chance to state whether it is flexible.

Negotiation Basics

ALWAYS…

Ask for a day or so to think it over.

Negotiation Basics

Do your Research (before the interview)

Know your Priorities

Build a Rapport and Stay Professional

Negotiation Strategies

Find objective criteria

Research pay levels for similar positions – look at companies of similar size in same industry

Add extra value (education, training, special skills)

Do your Research

State needs up front – don’t nickel and dime at the end.

Look for items that will not create fairness issues with other employees.

Know your Priorities

• Consider pay for performance - bonuses or stock options.

• Frame issues in terms of value to the company or what you offer them, NOT why you need it. Ex. They DO NOT care about your car and house payments!

Know your Priorities

Preserve relationship at all times.

DO NOT negotiate until after you have the offer!!!!

DO NOT be too aggressive or give ultimatums.

Be congenial and show interest.

DO NOT ask for the moon!

Build a Rapport and Stay Professional

“What salary are you looking for?“

“What salary are you currently making?”

“Congratulations! We are happy to extend and offer of $xx,xxx to you.”

What to Say When…

“What salary are you looking for?”

Strategy: Address the issue without offering information.

“What salary are you currently making?”

Strategy: Delay the topic!

“Congratulations! We are happy to extend and offer of %xx,xxx to you.”

Strategy: Get back to them.

What to Say When…

Remember to look at the entire package, not just salary dollars.

If still too low, clarify the job responsibilities and restate how you can benefit the organization.

If there is no room to move on salary, perhaps they can offer signing bonus, annual bonus, earlier salary review, more vacation time, etc.

Beware of asking for too much!

Tips

Base Pay

Annual Bonus

Incentive Pay

Medical/Dental Benefits

Car/Travel Expenses

Educational Benefits

Retirement Programs

Dependent Day Care & Medical Reimbursement Accounts

Additional items could include: on site health club, day care, schools, dry cleaning, concierge, etc.

Vacation Time

Other Leave Time

Flex-Time

Expense Accounts

Technology Allowance

Clothing/Parking

Life/Disability/Care Insurance

Stock Options/ Employee Ownership

Other Components

Be aware of your interests, needs, career goals, and alternatives.

It might be better to take a job with a lower starting salary but higher potential for advancement or in a growth industry than just to take a job with the highest pay.

Things to Remember

Assume the offer is negotiable.

Know your own market value.

Be honest, if you have more than one offer on the table…let them know.

Things to Remember

Questions…Dawn Lazar

Assistant Director

Accounting

dawn.lazar@fiu.edu

Sammi Rosin

Assistant Director

Marketing, Mgt, IB, HR, MIS

sammi.rosin@fiu.edu

Elise Rodriguez

Associate Director

MBA/MS

rodriel@fiu.edu

http://businesscareers.fiu.eduhttp://businesscareers.fiu.edu