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![The Value Mindset
Specialized
MBA Thinking Part 1
Skills
• Pre MBA Salary: $35K
• Post MBA Salary: $75K
• MBA cost: $30K
• Return $: $40K
• ROI*: 33%
Market Masters
Demand Value Degree MBA Thinking Part 2
• Have student loans to pay
• Opportunity cost of not working
for 2 years
Confidence
Page 4 Notes: Return on Investment - ROI = [(Payback - Investment)/Investment)]*100](https://image.slidesharecdn.com/tla2012april18-mjm-negotiationv-2-120424215712-phpapp02/85/Tla-2012-april_18-mjm-negotiation-v-2-4-320.jpg)
Tla 2012 april_18.mjm.negotiation v.2
- 1. Salary Negotiation: YesYou Can! Mike Millard Director of Research Austin Ventures 18 April 2012
- 2. Agenda i. Background ii. The Value Mindset iii.What is the hiring manager thinking? iv. Process i. Do your homework! ii. What’s on the table iii. The offer range iv. Closing the negotiation v. Mike’s Tips vi. Q&A Page 2
- 3. Background I’ve had afew opportunities to negotiate salary… Manager Analyst Strategy Venture Capital IN MN CO TX 1990 1991 1995 1997 1999 2001 2003 2008+ Fundraiser Grad Assistant Strategy Technology Commercialization IL IL TX TX …as well a hire a few librarians along the way. Page 3
- 4. The Value Mindset Specialized MBA Thinking Part 1 Skills • Pre MBA Salary: $35K • Post MBA Salary: $75K • MBA cost: $30K • Return $: $40K • ROI*: 33% Market Masters Demand Value Degree MBA Thinking Part 2 • Have student loans to pay • Opportunity cost of not working for 2 years Confidence Page 4 Notes: Return on Investment - ROI = [(Payback - Investment)/Investment)]*100
- 5. What is thehiring manager thinking? I want to find reasons to hire this person. Has this person done their homework? Can this person work with the team? I have a million other things to get done. I wonder how the negotiations will go? I want to fill this Can I work with this person? position ASAP. Page 5
- 6. Process: Do yourhomework! Company Hiring Position • Revenue/EBITDA; # of employees • Exact responsibilities • Product or service offerings • Comparable positions • Segments/Divisions • Scale and scope of job • Structure/Culture/Raises • Advancement paths • Locations • How long has the job been open • History and current news run • Desired fill date • 10K, 10Q • Previous people in job (where are they now) • Website – know the name of the CEO • Reporting structure • Review open positions • Budget allocation for department/unit • Vault.com and LinkedIn Market Competitors • Size • Competitive landscape • Growth • Key players • Key technologies • Market leaders • Dynamics and trends • Positions available at other companies • Value chain or network • Mergers and acquisitions • Barriers to entry • Market share of competitors relative to co. • Key Success Factors • Competing product offerings • Deltas (what’s changing) • Geographic differences Page 6
- 7. Process: What’s onthe table? What’s on the table • Salary • Bonus • Travel • Benefits • Parking • Gym memberships • Lockers Everything! • Vacation days • Personal days • Conference attendance • Professional development • Start date • Vacation accrual • Options • Vesting schedule • Certifications • Community Days Page 7
- 8. Process: The OfferRange* You $40K Walk Away Value** What’s on the table Opening Value $60K Hiring manager $60K Walk Away Value** What’s on the table Opening Value $40K Notes: *Offer Range: Adapted from Practical Negotiating: Tools, Tactics and Page 8 Techniques by Tom Gosselin ** Walk away value is an unacceptable offer
- 9. Process: Closing theNegotiation 1. Thank them for your time. 2. Inquire about process and next steps. 3. Set expectation timeline. 4. Get it in writing. Email is good - signed letter is better. 5. Send thank you email detailing next steps and timeline ASAP. 6. Send handwritten note the next day. Page 9
- 10. Mike’s Tips If the hiring manager asks… You might say… • “What is your current salary?” • “My salary from my previous job correlates to the value it was worth to that employer. Let’s find a fair market value for this position.” • “How much do you want to make?” • “I’d like to make the fair market value for my skills. Would you like to make an offer?” • “There is nothing I can do. The salary is • “I understand. Let’s talk about vacation posted. It is what it is.” days, professional development, benefits, etc. to come to a fair market value for my skills.” • “Can you tell me a range of where you • “I’m not sure I have enough insight at this think this position is worth.” time into your organization to tell you a range. Can you provide some guidance based on my skill sets?” Page 10
- 11. Resources 1. Smart Questions:The Essential Strategy for Successful Managers by Dorothy Leeds 2. Practical Negotiating: Tools, Tactics and Techniques by Tom Gosselin 3. Getting to Yes: Negotiating Agreement Without Giving In by Roger Fisher and William Ury 4. The Seven Triggers to Yes by Russell H. Hill 5. www.vault.com 6. www.linkedin.com Page 11
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