The document provides guidance on negotiating salary offers. Some key points include: - Do research to determine your fair market value range and know your minimum acceptable salary. - Wait until you have a job offer to discuss salary so the employer is invested in hiring you. - Let the employer make the first salary offer so they feel like the seller. Counter with your researched fair market value range. - Negotiate for benefits like insurance, vacation days, bonuses in addition to salary to maximize compensation. Get any agreement in writing.

1. NEGOTIATING THE OFFER
DON’T LEAVE MONEY
ON THE TABLE!

2. Three Basic Principles
• Labor is an intangible
• Salary relates to level of responsibility
• Employees must make the company more
money that they cost
Ok, now what?

3. Consider This
• The million dollar blunder
– Incorrectly negotiating will cost many dollars
over your lifetime
• The issue of quality that you will bring
• The vicious cycle and the virtuous cycle
– Vicious: overworked, underpaid, and
undervalued – maybe an adequate employee
– Virtuous: negotiated top dollar and achieves
success, well paid for her efforts

4. Consider This2
• Both sides should applaud the outcome
– Employees feel they are worth something
– Employers feel they hired someone of quality
• Tangible vs Intangible
– Labor is intangible
– Cost of labor is a range
– No guarantee how good the labor will be
• Universal Hiring Principle: Make Me a Buck
– They will hire you if you make them more
than you cost

5. When to Discuss Money
• Ever bought something you can’t afford?
• The issue of “budget bending”
– Budget
• The illusion of controlling finances
– Judgit
• We buy something we can’t afford because it will
pay for itself
– Fudjit
• We’ll shuffle things around if there is something
we really want

6. When to Discuss Money
• The best time to discuss money is when
the other person is in the judgit stage
• Wait until a job offer has been made
– When they ask your previous salary they are
screening you. Don’t get screened out!
– He’s now decided you are the best candidate
– He’s now willing to be flexible
http://salarynegotiations.com/step1.htm

7. When to Discuss Money
• How do I put off the discussion?
– “I’m sure we come to a salary agreement if I’m the
right person for the job. Let’s first agree on whether I
am.”
– “Salary? Well, so far the job seems to have the right
amount of responsibility for me and I’m sure you pay
a fair salary, don’t you?”
– “Let’s hold off on salary talk until you get to know
me. What other areas should we discuss now?”
– “Are you offering me the job?”
www.youtube.com/watch?v=-qNGc-q_mhw

8. When to Discuss Money
• The Pre-emptive Strike
– You bring it up!
• “By the way, Mr. Employer, I know it’s too
early to discuss compensation in detail,
but I wonder if you can give me a rough
idea of the range you were thinking of for
this position? . . . Thank you. I’m
confident that if I’m the right person for
the job we can find a salary that works.”

9. Who Goes First
• If you go first
– Too high? Risk = the job and your dignity
– Too low? Risk = the job and money
– Just right? You’ll always wonder…
• If the employer goes first
– He becomes the seller
– It’s his job to tell you

10. Pressure To Go First –
Stay on Track
• “I’m sure you have something budgeted for this
position.”
• “I have some idea of the market, but let’s start
with your range.”
• “I’m paid very fairly for my responsibilities and I
expect a fair salary with respect to my
responsibilities here.”
• “Don’t worry about salary. I know I have to
make you more than I cost. Let’s make sure the
fit is right.”
• “What did you have in mind?”

11. Your First Response
• Repeat the offer with a contemplative tone
• Have a look of concern
• Shuffle your feet
• Count to 30 and think…
– Calculate what the offer means
– Compare offer with your expectations
– Your pause should bring you an immediate raise!
• Respond with the truth
http://salarynegotiations.com/step3.htm

12. Responding With Truth
• Choices
– “Sounds Great.”, “Sounds Acceptable.”,
“Sounds Disappointing.”
• Make sure you did your homework!
– You must be comparing the offer with your
homework, not your previous salary.
– www.salary.com, www.worknet.wisconsin.gov
– Determine your fair market value
• But how?

13. Your Fair Market Value
• Not an exact number, but a range
• Three Pieces
– Objectively Researched Value (ORV$)
• Present
– Individual Value (IV$)
• Past
– Risk-factor Dollars (Rf$)
• Future
Market Value = ORV$ + IV$ + Rf$

14. Fair Market Value Explained
• ORV$
– Information that is currently published
– This year’s average earning range
• IV$
– An assessment of the strengths of your past
work record
– Entry level, seasoned?
• Rf$
– What you are willing to make based on the
success of your contributions

15. Calculating Fair Market Value –
ORV$ (What is the range?)
• Find out what the market is paying
– Internet
– Library
– Printed information
– Person to person research
• Rely on job descriptions rather than titles
• Review the ranges that exist
• Calculate honestly where you fall in that
range of experience

16. Calculating Fair Market Value –
IV$ (What is your place in the range?)
• How well or how poorly do you perform
compared to the next person?
• Do you bring positive or negative value?
– Well known?
– Special expertise?
• Adjust accordingly
– May need to adjust up or down depending on
your situation
– Be honest with yourself

17. Calculating Fair Market Value –
Rf$ (What is your value-added?)
• You need to prove you will earn the
company MORE than you will cost!
– How will you MAKE them money?
– How will you SAVE them money?
– Prove you are worth at least 3X your salary
– Pay attention to what is said during the
interview

18. Your Researched Response
• By now you should know:
– The highest value you are worth
– The lowest you will accept
• Counter their offer with your research
– Too high
– Too low
– Just right
http://salarynegotiations.com/step4.htm

19. Your Response – Too High
• If the company overpays you they will
eventually feel ripped off and eventually resent
you
• Now you can’t get another job without a pay cut
• You can’t get promoted because you are being
over paid
• You might be in over your head
• “Well, that’s a very good offer. I take it as an
indication of your belief in me…Let’s get the
benefits clear and I think we can make the
deal.”

20. Your Response – Too Low
• Try to increase it: “$___. I appreciate
your offer and I’d love to work here. I’m
sure you want to pay me a compensation
that is fair and will keep me committed
and productive, isn’t that right?”
• From my research I estimate that
positions like this for someone with my
qualifications pays in the range of X to Y.

21. Your Response – Too Low2
• Give a range slightly higher than you found (i.e.
found $35-38k, state $37-40k)
• The interviewer will respond
• Negotiate and talk. Keep mutuality in mind and
try to find a common ground.
• Continuing to talk can increase their respect for
you. Don’t worry!
• Keep going back to your research.
Jill Story…

22. Your Response – Too Low3
• Don’t say no in the room
– Make the employer sweat it out
– You still have an offer to consider – but make
sure that it will stay on the table
– Set an agreed upon time to get back together
to talk

23. Your Response – Just Right
• Unlikely
– But if it happens… “Your research matches
mine exactly. I think that’s a perfect starting
point. Since I expect to learn fast, work
hard, and become very productive for you,
I’d like to discuss scheduling a tentative
raise to $X in 6 months.”

24. Clinch and Deal Some More!
Bennies and Perks
• First agree on take- – Professional
home pay Memberships
– Vacation and Personal
• Bennies: Days
– Salary Reviews – Relocation Expenses
– Sales Compensation – Other
– Performance Bonuses • Christmas Bonus
– Insurance • Matching Funds
– Cars and Expense • FSA
Accounts • Free Parking
• Pension, etc

25. Bennies and Perks-Salary Reviews
• The higher the base, the higher the raise
since it’s usually a percentage of the base
– Consider: timing, basis, percentage
• Determine if salary increases are based on
COLA, demonstrated worth, or are just a
mechanical procedure
• Determine how long you need to prove
your worth and then double it

26. Bennies and Perks – Sales Comp
• Learn what the commission rates are and
try to increase them
• Understand how and when they pay out
• Negotiate both rate and duration of
payment
• Be clear about what happens when you
leave the company
• Get it in writing

27. Bennies and Perks –
Performance Bonuses
• Work to set up a bonus structure that is a
workable one
• Use a measurable criteria
• Do your research
• “Let’s consider setting up a special bonus
to encourage excellent performance. Can
you think of one?”
– Profit sharing
– Stock Options

28. Bennies and Perks - Insurance
• One of the most common
• Ask to see the plan
– Coverage
– Deductibles
– Co-pays
– Premiums
– When does it start and end?
• Ask employer to cover you after you leave

29. Bennies and Perks-
Cars and Expense Accounts
• Discuss travel and mileage allowances or
getting a company car
• Talk to your accountant
• Discuss expense accounts and what is
considered customary and what the
exceptions are

30. Bennies and Perks-
Professional Memberships/Licenses
• Explain how your membership would
benefit them
• Determine if you will be given time off to
attend meetings, conferences, and
seminars

31. Bennies and Perks – Time Off
• If you can’t increase the money, perhaps you
can reduce your work time!
• Ask what their policies are for vacation, sick
time, and personal days.
• Frame requests in terms of how they will help
you be more productive.
• “I tend to throw myself so entirely into my work
that I need a few breaks during the year to
recharge. I’d like X weeks’ vacation.”

32. Bennies and Perks - Relocation
• Usually common if you are an executive
• Can happen if an employer wants you
badly enough
• Things to ask for:
– Moving fees, closing costs, broker’s fees,
mortgage penalties, transportation costs,
appliances, and lodging.

33. Now What?! After the Negotiation
• DON’T TAKE THE JOB – YET
• Make no decisions in the heat of the
moment (i.e. shopping while hungry)
• Stay enthusiastic
• Ask for offer in writing
• Find out when they need to know
• But how?

34. Considering the Offer
• “This sounds terrific! I think we’ve really
got a solid match here. Would you jot this
all down so we’re clear? I’ll get back to
you as soon as you need to know. When
do you need to know?
• “We’re done! I can’t wait to get started. I
will need to look this over to make sure
we haven’t forgotten anything. When do
you want my final confirmation?

35. In Conclusion
• Do your research
• Be honest and realistic
• Discuss salary in the judgit stage when
there is an offer on the table
• Let the employer go first
• Take your time
• Don’t give up and don’t cave in!

36. References
• Negotiating Your Salary: How To Make
$1000 a Minute by Jack Chapman
• http://salarynegotiations.com/