Presentation on theme: "Negotiating Your Compensation Package. Agenda Negotiating – what it is and isn’t Compensation – any wiggle room? Other Benefits – getting more? Work-life."— Presentation transcript:
Negotiating Your Compensation Package
Agenda Negotiating – what it is and isn’t Compensation – any wiggle room? Other Benefits – getting more? Work-life Balance issues Q & A
Negotiating – what it is and isn’t Negotiating is simply a discussion between two parties to a satisfactory conclusion. It is based on reaching a mutual agreement of issues in good faith, not a confrontational circumstance. Negotiating a position with a company is not simply about salary – it is about working towards the best total package you can get. It isn’t about ultimatums and personal greed. If it is, the likelihood of negotiating anything beyond a first offer is nil.
Negotiating – what it is and isn’t Negotiating is riding on the backs of others in receiving a fair deal. It should be “objective” as opposed to “subjective”. Hockey players have agents, you don’t. You must be your own “agent” in negotiating your best possible deal. What do they base it on? – statistics and comparatives. So should you.
Negotiating – It Starts at the Interview When interviewing use “Action” Verbs” that speak to your accomplishments. Use language that indicates you’re already on the job. Such phrases as “we” instead of “I” when asked about how you would handle a certain situation. Specific examples of your skill sets contributes to your value. Situation – Action – Result (S-A-R) Call upon these highlights when negotiating your package. “When we interviewed I indicated…
Compensation – Any wiggle room? Most employers have a set range they’re prepared to offer. Often they will not divulge the range, so you can assume it is in the middle. Eg. Salary range is $55,000 - $65,000 – offer $60,000. Consider the following questions you need to ask yourself: –What is the lowest salary you’re prepared to accept? –What are others in a similar role with similar education getting paid? –What makes you worth a higher salary?
Negotiating – Do’s and Don'ts Do’s Use statistical data to state your case. Our office publishes a survey conducted every summer on starting salaries of grads in various majors. Use it. Make your pitch objective. It isn’t just about “me”, it’s about the position. “According to the Grad Survey conducted by the Career Services office, grads Technology Commercialization were earning an average of $62,500 per year”. If you’re wanting to be at the higher end of the range, ask the question “What would it take to get to the higher end of the range?”
Negotiating – Do’s and Don'ts Do’s Consider if a push for a higher salary could in fact diminish other compensation offers. Is there a car allowance, earned days off, higher than industry vacation days, parking, etc.? Sometimes you have to accept it is what it is. If there is no wiggle room, ask what the policy is on performance evaluation, probationary timelines, and compensation review.
Negotiating – Do’s and Don'ts Don’ts Don’t say “My friend is earning $X, therefore that’s what I should be paid”. Don’t present your case in a threatening manner. “Well company Y says they’ll pay me $X, but I’d rather work for you so will you match it?” Don’tDon’t answer the question “What are your salary expectations?” Say you have a range based on surveys, but it would depend on the total package. Don’t negotiate or accept an offer over the telephone. Don’t delay in getting back to them. Abide by the timeline established and don’t push an ultimatum at the deadline date.
The Negotiating Process There may be two ways that negotiations occur: 1.In a second interview where details of working for the organization are discussed. 2.A formal Offer Letter would be presented outlining the terms and conditions of employment. These two formats would elicit a different strategy:
The Negotiating Process The Second Interview: Have several questions ready to ask about your total compensation package if they are not addressed. These would include: –Overtime beyond a reasonable work week –In lieu-of; extra days off based on banked hours (EDO or DDO) –Consideration working towards a designation – extra time off, costs of exams, mentorship program, etc. –Vacation allotment, use it or lose it policy? –Benefits package – Alberta Health Care premiums paid by employer? Partial premiums paid by employee? When do you qualify? –Probationary period and salary review –Work-life balance – are they flexible in your work hours? –Are there stock options available? When are you vested? Matching RRSP contributions?
The Negotiating Process The Offer Letter: The offer letter typically outlines the terms and conditions of your employment. It will not likely be as detailed as some of the questions I posed to you, but will frame the basic parameters of employment. How to manage the offer letter: –Immediately acknowledge receipt of the letter and your interest in the position. –If the time frame for the response is a concern, contact the employer to explain why, and ask if they are flexible in their response time. –Read through the letter and make notes that address the questions previously. Once you’ve completed your questions, contact the person who signed the letter to review your questions. You may ask for a personal meeting to address your questions.
Managing Expectations Salaries are usually indicative of performance and experience, not the initials behind your name. Your degree is the starting point, not the finishing point of your worth in an organization. Earn your salary, don’t expect it. With some limitations, employers reward hard work. Prove yourself and good things will happen. Rewards are not always measured in salary / compensation. By demonstrating a can-do mindset, you may be the person selected to travel to attend a business meeting, etc.