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Pepperdine salary negotiation 11-17-2010

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Pepperdine   salary negotiation 11-17-2010 Pepperdine salary negotiation 11-17-2010 Presentation Transcript

  • Salary Negotiation The Neglected Competencies “What Makes Up Salary” November 18, 2010 WESTLAKE VILLAGE - PASADENA - WEST LOS ANGELES - ENCINO - IRVINE
  • Discussion-Expectation • Situation Analysis • Gathering Information • The Offer • Quantifying Compensation Factors • Negotiation • How to get pay equity in your current position-getting an extra pay increase WESTLAKE VILLAGE - PASADENA - WEST LOS ANGELES - ENCINO - IRVINE 2 bonnie99@comcast.net
  • Women Post Job Gains -- Good and Bad News • Women make up 49% of the managerial workforce, and in 2009, women outpaced men in top quarter of jobs in health care, financial & managerial fields. However…… • Wage gap persists: median weekly pay for women is 73% that of men¹ • Women make up 2.5% of the top earners in the Fortune 500² • Only 7% of the Fortune 1000 CEOs are female² • Women don’t negotiate³ ¹Bureau of Labor Statistics ²breaktheglassceiling.com ³ABC News report WESTLAKE VILLAGE - PASADENA - WEST LOS ANGELES - ENCINO - IRVINE 3 bonnie99@comcast.net View slide
  • Gaining the Mindset – Situation Analysis • Have a plan • Understand the rules • Prepare well • Be realistic • Get tough • Have patience WESTLAKE VILLAGE - PASADENA - WEST LOS ANGELES - ENCINO - IRVINE 4 bonnie99@comcast.net View slide
  • Gathering Information - Do Your Homework Your Personal Salary and “Desirability” Information • Determine the salary you want, what you need, and what you’ll settle for • Review your accomplishments/skill set relative to the position • Consider important factors besides money Business Climate Information • Understand the overall state of the economy and how that impacts the industry in which you work • Know the overall unemployment rate and the general employment picture for the industry • Understand the demand for industry and profession-specific knowledge and skills WESTLAKE VILLAGE - PASADENA - WEST LOS ANGELES - ENCINO - IRVINE 5 bonnie99@comcast.net
  • Company/Position Information • Profitability • Position in the business cycle (startup, growing, stable, etc) • Title, decision-making authority, level • Experience and capabilities requirements • Type of work, use of skills Hiring Manager Factors • Urgency of the company’s need to fill the position • Decision making authority • Staffing Budget •Many employers must maintain pay scale equity WESTLAKE VILLAGE - PASADENA - WEST LOS ANGELES - ENCINO - IRVINE 6 bonnie99@comcast.net
  • The Offer – the negotiation begins… • Once you have successfully interviewed and received a verbal offer, clarify your understanding of the position in detail. Be enthusiastic and ask for time to consider • Then, review the entire compensation (hard copy) package • Evaluate all the information and compare it to your own needs and wants. Review each item, determine which are acceptable and which need to be negotiated • Use the ―Compensation Factors‖ worksheets to help evaluate the offer WESTLAKE VILLAGE - PASADENA - WEST LOS ANGELES - ENCINO - IRVINE 7 bonnie99@comcast.net
  • Compensation Factors Your Ranking Offer Satisfaction Base Salary 10 10 100 Bonus – Performance 8 8 64 Bonus – Signing 5 10 50 Stock 6 8 48 401K 7 9 63 Profit-Sharing Plan 6 10 Medical Benefits 5 (Individual Coverage) Family Coverage Etc… WESTLAKE VILLAGE - PASADENA - WEST LOS ANGELES - ENCINO - IRVINE 8 bonnie99@comcast.net
  • Offer Assessment – the “Compensation Factors” worksheet • The ―Your Ranking‖ is a 1 to 10 ranking of the importance of that factor to you • The ―Offer‖ ranking is a 1 to 10 ranking of your satisfaction with that aspect of that particular offer So, if salary is the most important, (10), and that off has the highest salary, (10) the satisfaction total would be 100 • This is a way to quantify and compare various aspects of your offers WESTLAKE VILLAGE - PASADENA - WEST LOS ANGELES - ENCINO - IRVINE 9 bonnie99@comcast.net
  • Compensation Factors Your Ranking Offer Satisfaction Base Salary Bonus – Performance Bonus – Signing Stock 401K Profit-Sharing Plan Medical Benefits (Individual Coverage) Family Coverage WESTLAKE VILLAGE - PASADENA - WEST LOS ANGELES - ENCINO - IRVINE 10 bonnie99@comcast.net
  • Your Ranking Offer Satisfaction Dental Benefits (Individual Coverage) Family Coverage- Dental Vision Benefits (Individual Coverage) Family Coverage Health Club Vacation & Personal Time WESTLAKE VILLAGE - PASADENA - WEST LOS ANGELES - ENCINO - IRVINE 11 bonnie99@comcast.net
  • Your Ranking Offer Satisfaction Relocation (Special Course) - Package - Spousal Assistance - Other Telecommuting Travel Percentage Reporting Relationship - Formal/Dotted Line WESTLAKE VILLAGE - PASADENA - WEST LOS ANGELES - ENCINO - IRVINE 12 bonnie99@comcast.net
  • Your Ranking Offer Satisfaction Available Support - Informational System - Clinical Assistance -R&D Career Development - Tuition Assistance - Professional Develop Total Satisfaction Score XXXX WESTLAKE VILLAGE - PASADENA - WEST LOS ANGELES - ENCINO - IRVINE 13 bonnie99@comcast.net
  • Review the “Compensation Factors” • Compare the results to your current job, or jobs that you’ve had in the past • Identify the aspects of the offer that are the most important to you, and that are ranked lower in the ―satisfaction‖ column • Develop a strategy to communicate your goals with respect to changing the parts of the offer that are unacceptable • This is also a way to compare multiple job offers WESTLAKE VILLAGE - PASADENA - WEST LOS ANGELES - ENCINO - IRVINE 14 bonnie99@comcast.net
  • Other considerations… • Consider how the new position will effect long-term career path • Consider job content, challenge, responsibility, success potential, fun. Do the roles match your skills? • Are you joining the best company, size, future, history, values and reporting alignment • Lifestyle issues—Intangibles • Compensation package review - complete WESTLAKE VILLAGE - PASADENA - WEST LOS ANGELES - ENCINO - IRVINE 15 bonnie99@comcast.net
  • • Surveys state that women are uncomfortable with the word ―negotiation‖ – understand that being aware of this puts you at a competitive advantage WESTLAKE VILLAGE - PASADENA - WEST LOS ANGELES - ENCINO - IRVINE 16 bonnie99@comcast.net
  • The Negotiation • Maintain a ―win-win‖ attitude. Frame each issue as a joint search for mutual agreement • Focus on the skill set you bring. Be confident. • Start high and work toward a middle ground • Keep your requests reasonable. Be willing to ―give in‖ on areas not important to you. • Be creative-look for ways beyond salary to boost your income or gain intrinsic value WESTLAKE VILLAGE - PASADENA - WEST LOS ANGELES - ENCINO - IRVINE 17 bonnie99@comcast.net
  • Steps to Winning Your Asking Price • Know your minimum acceptable salary • Estimate the company’s maximum price • Work toward a middle ground • Check out the entire compensation package • Are you talking to the person who will be making the offer • Do you know your salary band? WESTLAKE VILLAGE - PASADENA - WEST LOS ANGELES - ENCINO - IRVINE 18 bonnie99@comcast.net
  • Explore Creative Solutions • How can the structure of this package be changed? • How can we change the offer other than compensation? • How do you organize the discussions after the initial discussion? WESTLAKE VILLAGE - PASADENA - WEST LOS ANGELES - ENCINO - IRVINE 19 bonnie99@comcast.net
  • Tips to Success • Adopt a negotiating style that reflects who you are • See each aspect of the situation as an opportunity to negotiate (ask for something different)- you won’t get anything unless you ask for it • Negotiate for yourself as if you were negotiating for some else (be your own agent) • Be firm, flexible and trust your gut WESTLAKE VILLAGE - PASADENA - WEST LOS ANGELES - ENCINO - IRVINE 20 bonnie99@comcast.net
  • More Tips to Success • Never divulge your current earnings • Delay salary and benefit discussions until you have the offer in hand • Once you have the offer, ask for more • Never say ―thank you‖ and accept the day you receive the offer • Be comfortable saying ―no‖ – know your walk-away • Always have an updated Resume WESTLAKE VILLAGE - PASADENA - WEST LOS ANGELES - ENCINO - IRVINE 21 bonnie99@comcast.net
  • What if You Are In a Job That You Like -- How Do You Increase Your Salary? • Know the value of each aspect and the total worth of what your earning • Determine how well you’re paid relative to others in your field (careerjournal.com – professional assoc.) • Discuss your salary band with who you report to • Put a strategy in place prior to your review to focus discussion on salary • Know when raises are decided (3rd quarter) • Communicate your value • Position a plan with your boss to quantify with his/her direction how to bring your salary up WESTLAKE VILLAGE - PASADENA - WEST LOS ANGELES - ENCINO - IRVINE 22 bonnie99@comcast.net
  • Still not successful? Up the Ante • Communicate your needs to other management • Get a competing job offer. Share the specific details with your boss • Let the company know you are willing to jump ship • Be firm and flexible-trust your gut • Understand company limitations and have patience • Suggest creative alternatives to meet your needs • Reinforce your value to the company – not a time for modesty • Gain agreement to review your situation with management within a specific time frame WESTLAKE VILLAGE - PASADENA - WEST LOS ANGELES - ENCINO - IRVINE 23 bonnie99@comcast.net
  • Follow-Up • Put your proposed plans in writing, copy your manager (dual ownership) • Review your proposed plans with management on a specific time frame • Everyone needs a mentor – two levels up WESTLAKE VILLAGE - PASADENA - WEST LOS ANGELES - ENCINO - IRVINE 24 bonnie99@comcast.net
  • Discussion Topics • Situation Analysis • Gathering Information • The Offer • Quantifying Compensation Factors • Negotiation • How to get pay equity in your current position-getting an extra pay increase WESTLAKE VILLAGE - PASADENA - WEST LOS ANGELES - ENCINO - IRVINE 25 bonnie99@comcast.net
  • WESTLAKE VILLAGE - PASADENA - WEST LOS ANGELES - ENCINO - IRVINE 26 bonnie99@comcast.net
  • 2009 MBA Employment Statistics at Pepperdine $75,615 $12,756 $14,500 Mean other Mean base Mean signing guaranteed salary bonus compensation (28% of job accepting graduates receiving signing bonus) WESTLAKE VILLAGE - PASADENA - WEST LOS ANGELES - ENCINO - IRVINE
  • 2009 MBA Internship Statistics at Pepperdine 10 wks $763/wk 45% Avg. Mean Paid internship internship internships length compensation WESTLAKE VILLAGE - PASADENA - WEST LOS ANGELES - ENCINO - IRVINE
  • 2009 graduating students accepting jobs in the following functional areas: WESTLAKE VILLAGE - PASADENA - WEST LOS ANGELES - ENCINO - IRVINE
  • 2009 graduating students accepting jobs in the following industries: WESTLAKE VILLAGE - PASADENA - WEST LOS ANGELES - ENCINO - IRVINE
  • Haas MBA Alumni Salary Survey Base Salary by Industry and Graduation Year $180,000 $160,000 $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $0 Energy/ Financial Bio/Pharma Consulting CPG/Retail Non-Profit Real Estate Technology Environ Srvc Base Salary 01-04 $136,500 $145,000 $110,750 $130,000 $120,000 $107,000 $122,500 $130,000 Base Salary 97-00 $162,150 $163,500 $129,000 $145,000 $160,000 $115,000 $125,000 $144,250 WESTLAKE VILLAGE - PASADENA - WEST LOS ANGELES - ENCINO - IRVINE 31 bonnie99@comcast.net
  • ASK!!!!!!! WESTLAKE VILLAGE - PASADENA - WEST LOS ANGELES - ENCINO - IRVINE 32 bonnie99@comcast.net