JOB SUCCESS SKILLSJOB SUCCESS SKILLS

SALARY NEGOTIATION

Objective

• At the conclusion of this lesson, the student will be able to determine the most effective method for the successful discussion of salary requirements for a desired position.

2

3

PRE-TESTPRE-TEST Question # 1Question # 1

1. There are _____stages of employer thinking.

A.) Four

B.) Two

C.) Three

Question #2

•

4

2. When should the topic of salary be discussed?

A.) Right away

B.) Within the first ten minutes

C.) Delay as long as possible

Question #3

• What should you do when an offer is made and you feel it is unacceptable?

• A Laugh at them

• B Decline the offer and end the interview

• C Thank the employer for the offer, but remain

non-committal 5

6

WHAT IS THE EMPLOYER WHAT IS THE EMPLOYER THINKING?THINKING?

There are 3 Stages of Employer Thinking:

STAGE 1 - BUDGET

STAGE 2 - FUDGIT

STAGE 3 - JUDGIT

7

STAGE 1 - BUDGETSTAGE 1 - BUDGET

• Most rigid stage as the company tries to live within its means.

• Occurs when employers first talk to you.

• Employer is looking to spend as little as possible.

• Never reveal salary

requirements in Budgit stage,

you could be screened out.

8

STAGE 2 - FUDGITSTAGE 2 - FUDGIT

• Employer is willing to shuffle expenses if needed.

• Employer thinks that maybe they will be able to meet your potential salary request.

• Maybe is the key word as hiring is rarely done during this stage.

9

STAGE 3 - JUDGITSTAGE 3 - JUDGIT

• Employer sees you as an asset to the business.

• Employer makes an offer in line with their expectations.

10

2 PRINCIPLES FOR 2 PRINCIPLES FOR NEGOTIATING SALARY:NEGOTIATING SALARY:

• Delay any discussion of salary as long as possible.

• Know what you are worth in the marketplace.

11

WHEN DOES SALARY WHEN DOES SALARY NEGOTIATION BEGIN?NEGOTIATION BEGIN?

Salary negotiation can begin…….

• Before the interview

• Early in the interview

• During the interview

12

SALARY NEGOTIATION SALARY NEGOTIATION BEFOREBEFORE THE INTERVIEW THE INTERVIEW

For example…………• If you are asked for salary requirements in a

want ad or job posting.• If you receive a salary-screening phone call.

How do you respond?

13

OPTIONS FOR RESPONDINGOPTIONS FOR RESPONDING

• Avoid the salary issue altogether.

• Say your salary requirement is negotiable.

• Politely ask what salary range they are considering for the position.

14

SALARY NEGOTIATION SALARY NEGOTIATION EARLY EARLY IN THE INTERVIEWIN THE INTERVIEW

At times the employer will attempt to engage you in a discussion of compensation early in the

interview process.

When this is the case, you have

three options…….

15

OPTIONSOPTIONS

1. Delaying Tactics - “I would like to put off salary discussions until we are both sure I am right for the job.”

2. Nonspecific Response – “As long as you pay a fair market value, we will have no problem.”

3. Throw it Back to Employer – What would a person with my background, skills, and qualifications typically earn in this position?”

16

SALARY NEGOTIATIONSALARY NEGOTIATION DURINGDURING THE INTERVIEW THE INTERVIEW

There are four (4) possibilities when salary is raised during the interview.

1. The salary range is acceptable.

2. Only the top of the salary range is acceptable.

3. The entire salary range is unacceptable.

4. The interviewer does not give a salary range.

17

SALARY RANGE IS SALARY RANGE IS ACCEPTABLEACCEPTABLE

Thank the employer for the offer, but be

non-committal.

“I really appreciate the confidence you have in making this offer to me. I want to bring my

talents and skills to work for this organization. Those figures you mentioned are within my

expected starting range, depending on the entire salary and benefits package.”

18

ONLY TOP OF RANGE IS ONLY TOP OF RANGE IS ACCEPTABLEACCEPTABLE

Thank the employer for the offer, but be

non-committal.“Thank you so much for asking me to be a part of your

team. I know my unique mix of skills and abilities will be a great benefit to the organization. Based upon my research and what I’ve been discussing with other companies, I would have to say that only the upper end of that salary range would be

acceptable.”

19

ENTIRE SALARY RANGE IS ENTIRE SALARY RANGE IS UNACCEPTABLEUNACCEPTABLE

Thank the employer for the offer, but be

non-committal.“Thank you so much for the offer. I want to bring my

skills and talents to your organization. The other companies I am currently speaking with , however,

are considering me at a salary somewhat higher than that range. Of course, money is only one element, and

I will be evaluating each overall package.”

20

NO SALARY RANGE IS NO SALARY RANGE IS OFFEREDOFFERED

When interviewer doesn’t give you a specific salary offer and keeps pushing you for your salary

expectations.

“From my research, $XX,XXX is around the base level for salary for this type of position.

Considering my enthusiasm and my general success in the things I set out to do, I believe I’m worth mid-range, say $XX,XXX. What can you

do in that area?”

21

WHEN TO NEGOTIATE WHEN TO NEGOTIATE SALARYSALARY

• When the employer is ready to make an offer.

• When the employer has made an offer.

22

KNOW YOUR MARKET KNOW YOUR MARKET VALUEVALUE

Base your salary negotiations on your

market value.

• Determine your value to the employer.

• Know how you will contribute to the profitability of the company.

23

HOW TO DETERMINE YOUR HOW TO DETERMINE YOUR MARKET VALUEMARKET VALUE

• Look up salary surveys in your field.• Ask other people in your field or profession.• Check the internet for salary information.• Use your network.

24

FINAL THOUGHTSFINAL THOUGHTS

• Please be careful and

be patient.• Look at the entire package, not just the salary.• Be prepared to negotiate.• Always be polite and professional – salary

offers are not personal.• Ask for the complete job offer in writing.

Pre – Test Answers#1

• There are ____stages of employer thinking.

25

3, BudgitFudgit Judgit

#2

• When should the topic of salary be discussed?

26

C The topic should be delayed as long as possible.

#3

• What should you do when an offer is made and you feel it is unacceptable?

27

C Thank the employer for the

offer, but remain non-

committal

28

POST-TESTPOST-TEST

1. There are five (5) stages of employer thinking.2. In the Budget stage, the employer is trying live

within its means.3. You should “talk” salary as early as possible in

the negotiation process.4. Salary negotiation can begin before, early, or at

the interview.5. If you receive a salary screening phone call you

should avoid the salary issue altogether.

29

POST-TEST POST-TEST continuedcontinued

6. You have three options when an employer attempts to negotiate salary early in the interview.

7. If the offered salary range is acceptable you should automatically commit to the offer.

8. You can no longer negotiate salary after the employer has made you an offer.

9. You should always negotiate salary based on your market value.

10. You can determine your market value by asking other people in your field or profession.

30

POST-TEST ANSWERSPOST-TEST ANSWERS

1. FALSE 6. TRUE

2. TRUE 7. FALSE

3. FALSE 8. FALSE

4. TRUE 9. TRUE

5. TRUE 10. TRUE

31

ASSIGNMENTASSIGNMENT

After viewing the video linked in the earlier slide, use the following web address to

determine your value in the marketplace for at least two (2) jobs/careers in your field of interest. Print your results for use at a later

time.

www.salary.com/