Salary Negotiation for Business Students
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Negotiation for Business Students COLLEGE OF BUSINESS ADMINISTRATION CBA CAREER MANAGEMENT SERVICES
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Transcript of Salary Negotiation for Business Students
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
Sammi Rosin
Assistant Director
Marketing, Mgt, IB, HR, MIS
Elise Rodriguez
Associate Director
MBA/MS
http://businesscareers.fiu.eduhttp://businesscareers.fiu.edu
