Evaluating the offer & salary negotiation


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Evaluating the offer & salary negotiation

  1. 1. Evaluating the Job Offer and Salary Negotiation Ryan Carty Career Consultant University of Georgia Career Center
  2. 2. Objectives  How to evaluate a job offer  Values, position, supervisor, company, office environment, salary, benefits  How to negotiate an offer  Negotiating position, timing, reasons & tips for negotiation, real life examples & tactics, case study  Q&A
  3. 3. Consider this…  When evaluating a job offer, consider:  Your Values  Your Skills  The Position  Your Supervisor  The Company  Office Environment  Salary  Benefits
  4. 4. Values
  5. 5. Skills
  6. 6. The Position  Primary Responsibilities  Based on the job description, what specific tasks would you enjoy doing?  What skills will you use in order to be successful in completing those tasks?  What tasks would you not enjoy doing?  Are there skill sets that you will need to develop in order to complete the tasks? If so, what are they?  What set goals for the position are realistic and attainable?  What goals do not seem realistic?  https://uga- csm.symplicity.com/students/index.php?mode=form&id=20316701215d794f0b3912e8b1f 56d04&s=jobs&ss=jobs
  7. 7. The Position  Intellectual Challenge  Any variety? Or will you get bored?  Will you be challenged to learn new skills to use in the future?  Training Received  Provides training and support you need to succeed?  Offer continuing education options?
  8. 8. The Position  Advancement Opportunities  Can you move up in the company?  How does this position fit into your short- and long-term goals?  Commute Time  How long? Will it be worth it?  How much will you spend on gas?  How will this affect your productivity?  Location  What do you like/dislike about the region?  What is the weather like?  Are there cultural and entertainment opportunities available?  Will your spouse/significant other be able to find a job?  Is the cost of living within your budget?
  9. 9. Your Supervisor  How long has he/she been in the position?  To whom does he/she report?  What is his/her previous work experience?  Do you work well with this person? The same goes for future colleagues  Will he/she be a mentor to you?
  10. 10. The Company  Growing versus downsizing?  Technologically innovative?  Positive reputation and image?  Profitable?  Financial stability?  High employee morale?  Record of layoffs or downsizing?  Do company values match yours? Mission statements?  Is diversity valued?  http://www.glassdoor.com/Overview/Working-at-Systems-Evolution- EI_IE382972.11,28.htm
  11. 11. Office Environment  Physical environment and working conditions?  Fast-paced versus slow?  Turnover rate?  Independent work versus teamwork?  Overtime expected?  Typical work hours?  Typical work day/week?  Required to travel? How frequently?  Number of co-workers?  Organizational structure of the office?
  12. 12. Salary  Know how much you need to survive – come up with a range, the top being the best you can hope to get and the bottom being the least you will take.  Have you considered the cost of living?  Is your base salary at the market level?  Research market salaries using resources such as:  Salary.com  Glassdoor.com  Payscale.com  Cost of living indexes  Will you receive a signing bonus? Annual bonus? Other incentives?  Will you be eligible for salary reviews and promotions? When?  Will you work on commission?
  13. 13. Benefits WHAT BENEFITS WILL YOU RECEIVE AS A PART OF YOUR JOB OFFER? ADDITIONAL BENEFITS TO CONSIDER:  Medical  Dental  Retirement programs  Stock options  Pension plans  Life insurance  Short and long-term disability  Holiday, vacation, and sick days  Relocation expenses  Equipment (computer, phone, etc.)  If travel is required, will you have a company car? Expense account?  Employee wellness support programs  Flex time  Tuition reimbursement  Professional development or other trainings  Child care
  14. 14. Negotiating Salary…What are your thoughts?
  15. 15. Debunking the Myths 1. Recruiters are uncomfortable/surprised when negotiating - Recruiters expect you to negotiate. 2. You have to discuss/list your previous salary - You have no obligation to disclose any figures no matter what the recruiter says. 3. The recruiter will dismiss me if I ask too much – Always ask for what you believe is your worth, but be realistic. Don’t ask for WAY too much.
  16. 16. Debunking the Myths 4. You have to suck up to get the job – HR managers are more impressed by people who are confident and know their self-worth. Most people don’t do it, so you’ll be a step ahead of the rest. 5. The economy is really tough right now – That’s not your fault! Everyone is affected by the economy. Still ask to be paid your worth. 6. The recruiters don’t need you – Recruiters hate losing good candidates to competing companies.
  17. 17. When Should You Negotiate? You may have a strong negotiating position if:  Your skills, experiences, and education are worth more than the offered amount  The pay range for the position is less than the industry average  The cost of living is higher in the area where the job is and the salary offer does not reflect that. Check the U.S. Census Bureau (www.census.gov).  You have multiple offers with similar salary and benefits packages  You can sell how you will be an asset to the company
  18. 18. What Should You Negotiate?  Relocation expenses  Vacation/sick time  Telecommuting options  Salary reviews  Alternate work hours (flex time)  Start date
  19. 19. The Science and the Art of Negotiating  Your approach is a Science  Know your self-worth  Research the desired position  Your tactics/techniques are an Art  Try to delay  Give an amount higher than you would accept  Know what you have to leverage.  Negotiate other factors  Inquire about performance evaluations  Be professional
  20. 20. Why YOU? Know your self-worth and personal brand: 1. Skills & Knowledge – what makes you unique? 2. Education – do you have an advanced degree? 3. Past performance (quantifiable results, accomplishments) and how that can be leveraged for your success at the new company 4. Your plans for the company 5. Multiple job offers from other companies
  21. 21. Research Research Research!  Resources: Payscale.com, salary.com, and glassdoor.com  Find a salary range (Ex: $40,000-$70,000) that other people in similar positions are getting paid.  Know Expectations: If salary base + commission, find out exactly what the expectations are in order to achieve a bonus.  Finally, Be PREPARED to ask. This is a mutually beneficial challenge/opportunity to get what you deserve. View this as an investment for the company.
  22. 22. Negotiating Tips: Do’s and Dont’s  http://www.youtube.com/watch?v=1sNR1OWE5Mo  1:00
  23. 23. Negotiating Tips: Do’s Here are some tips that will assist you with successful negotiation:  Be confident – if you don’t believe you’re worth more money, the company won’t believe it. Make eye contact!  Be positive – don’t forget what you DO like about the offer  Be professional – do not burn bridges; keep in mind that you may end up working with these people  Be honest – companies may know what other companies are offering so do not falsify information  Be ethical – do not accept an offer and then continue interviewing for others  Be bold – if you don’t ask for it, you’ll never get it  Be flexible – you may not get everything you want  Don’t be greedy – know when to stop
  24. 24. Negotiating Tips: Don’ts  Don’t be impatient. Try to delay!  Don’t Be Nervous  Don’t give an exact salary amount that you expect to receive  Don’t be lazy or nervous  Don’t cover your mouth  Don’t be overly aggressive, or too adversarial.  Don’t sound unsure of yourself  Don’t apologize  Don’t give amounts of other salary offers. Rather, say you have other offers and you’d rather not disclose the exact salary amount.  Don’t undervalue yourself  Don’t push so hard, that your real reasons for wanting the job come into question.
  25. 25. Examples of Tactics 1. Try to delay. 2. Give an amount higher than you would accept. 3. Know what you have to leverage. 4. Negotiate other factors. 5. Inquire about performance evaluations. 6. Be professional.
  26. 26. Role Play!  I need TWO volunteers
  27. 27. Situation: Early in the interview process, you are asked the question: What salary are you seeking? How do you respond? Tactic: Try to delay. Employer: What are you looking for in terms of salary? You: I am willing to negotiate; what is most important to me is whether or not the job is a good fit for me & the company. I would really rather wait & discuss salary until we determine whether or not I am the best person for this position. Employer: Well, we are trying to get an idea of what candidates are expecting. You: May I ask what you have budgeted for the position? (gage what they are thinking) Employer: We are still working that out. In the meantime, it would help if you would give us your salary expectations. You: Based on the research I have done on the going market rate for this type of position, the salary could be anywhere from $50,000 to $60,000, depending on the specifics of the job, the location, & the total compensation package. Employer: We will get back to you with the final offer.
  28. 28. Situation: You’re offered a salary that is lower than expected. Tactic: Give them an amount that is higher than what you would accept. Employer: We are offering you a salary of $45,000. You: First, I would like to thank you for the offer; however, this amount is a bit lower than I expected. I’d like to ask what flexibility there is in the position. (pause) Employer: A little. What amount did you have in mind? You: I was hoping the salary would be $50,000. Employer: Well, that is higher than we can manage. We can’t do $50,000, but we can do $47,500. You: I can agree to that. Thank you for your willingness to be flexible.
  29. 29. Situation: You’re offered a salary of $55,000 for a Financial Advisor position, but you would like to negotiate for a higher figure. Tactic: Know what you have to leverage. Employer: We would like to offer you a salary of $55,000. What do you think? You: Your company has offered an annual salary of $55,000; however, based on information that I have researched on salary.com, the average salary for Financial Advisors in this area is above $60,000. I believe this salary is more corresponding with the experience & knowledge that I will bring into your team. I should also mention that I was offered this same amount in my previous job. With that said, though, salary is not my only motivation. There are other factors that I am taking into consideration, but I do have other companies that have offered more than $60,000. I am very interested in this position & company, so would you be willing to increase my starting salary? Employer: I will discuss this with my team and call you back (break). It’s clear that you have done your homework. After our discussion, we’ve decided that we can offer you a salary of $61,000. Does this work for you?
  30. 30. Situation: You’re offered a salary that is too low. You have asked for more, but the employer says no. Tactic: Negotiate other factors You: I’m very excited to work for Company XYZ and I am confident that I will bring a great deal of value to the job. I appreciate the offer at $45,000, but I was really expecting to be in the $50,000 range based on my experience and past performance, as well as offers recently extended to me by other companies. While salary is not my only motivation for working here, would it be possible to look at a salary of $50,000 for this position? Employer: The company is not in a position at this time to offer a higher initial salary. You: I understand. Are there other areas for negotiation such as start date or a flexible work schedule that would make up for the lower salary? Employer: Yes, you will have the option of working 8:00-5:00 or 9:00-6:00, and there are also several flex options during the summer that will be available to you. We can work with you on that.
  31. 31. Situation: You have tried every tactic to negotiate, but the employer will not budge. You’ve decided to accept the lower offer anyway. Tactic: Inquire about performance evaluations. Employer: We are offering you a salary of $50,000 and that is our final offer. Take it or leave it. You: Thank you for considering a negotiation. I have decided to accept this offer because I believe this position and company are both a great fit for my personality and career goals; however, in the future, will there be performance evaluations that will impact my salary? Employer: Yes, every year all employees are evaluated and raises are distributed accordingly.
  32. 32. Situation: You have tried every tactic and the employer will not budge. You have decided to reject the offer. Tactic: Be professional. Employer: We are offering you a salary of $50,000 and that is our final offer. Take it or leave it. You: Thank you for considering a negotiation. After much thought, I have decided to decline this offer. I very much appreciate the opportunity to work for Company XYZ, but at this time I don’t feel that this position is the best fit for me. Thank you again for your consideration.
  33. 33. Case Study  THE SITUATION: You graduated 3 months ago with a degree in finance. You had an unpaid internship with a major bank in Atlanta for 3 months. Your GPA is 3.4. You've applied for a position in a personal banking training program with a small bank in rural Georgia. You have determined that the average salary for someone with the position's title and location is $39,000. You have heard through contacts that this bank has one slot available and has had several applicants. You are offered $34,000, but you will receive 401k matching up to 15%. There will be roughly 20% travel (within driving distance) and full medical benefits.  Do you accept the offer? Decline? Negotiate? Why or why not?
  34. 34. Questions?
  35. 35. Resources  Evaluating a Job Offer, UD Society of Women Engineers & Mary Yin & Bryanne Grainger of DuPont  Evaluating & Negotiating a Job Offer, School of Management, Boston University  Career Center, University of South Carolina  Interviewpenguin.com  UGA Career Center http://career.uga.edu/multimedia/AfterAthens2013.pdf  www.iwillteachyoutoberich.com
  36. 36. UGA Career Center  To make an appointment, call 706-542-3375  Walk-In Hours: M-F 12PM-2PM  www.career.uga.edu  2nd Floor, Clark Howell Hall, Athens, GA 30602