Tips for Negotiating Salary

Presented by:Emily Ferraro & Valerie KielmovitchCareer Services

Career Services(386) 226-6054 ▪ careers@erau.edu ▪ http://careers.erau.edu

Overview• What is a job offer?• Negotiating Basics• Conducting Research• Salary Talk• The Job Offer• The Negotiation Process/Counter-Proposal• Accepting the Offer

What is a job offer?Not just the amount of salary the employer extends

• “Job Offer” is a comprehensive package:• Health and retirement benefits• Vacation time• Sign-on bonus• Relocation assistance• Performance evaluations• Stock options• Professional development options• Travel requirements• Tuition reimbursement• Flexibility of work schedule• Telecommute options• Immigration paperwork

Negotiating Basics• When to negotiate

• Negotiate only when you feel you are not being offered what you and the job are worth

• Don’t negotiate just for the sake of it• Do not negotiate until an offer is made• Recent grad/not too much room for negotiation

• Know your strengths• As a new grad you have more negotiating power if:

You have relevant work experience (internship or summer job) You have technical expertise that is highly sought-after You have a graduate degree in an area of expertise You have a written job from another employer that

offers a higher salary (use only if you have not already accepted) You have campus involvement/project experience/thesis expertise You have completed research and published

Conducting Salary Research• Things you need to consider:

• Your worth• Your budget• The industry of the employer• The geographic location• How much recent grads are getting paid• How much other similar positions are posting for• The position, company, competition• The economic climate

Conducting Salary Research • For comprehensive salary data:

• www.salary.com (Salary Wizard)• www.careerbliss.com (Self reporting system)• http://homefair.com (Salary Calculator)• http://college.wsj.com• JobStar ( www.jobstar.org )• Salary Survey of the National Association of Colleges &

Employers• Salary Success: Know What You’re Worth and Get It• The Bureau of Labor Statistics• US News & World Report• Business Week • Professional Associations, Trade Journals, Business Magazines• Newspaper and online job listings

Salary Talk Basics• You want to put off the salary talk as long as

possible

• The first one to talk salary loses negotiating power

• Talking about salary early can also make you look more focused on money than the position

• Entry-level candidates want to let the employer bring up the salary first. Once you have had the opportunity to demonstrate your qualifications, you’ll be in a better situation to discuss your salary requirements

The Salary Question:

The Application• Sometimes employers will ask for the following on

the application:• Salary requirement -how much you expect

to get paid• Salary history- how much were you paid in

the past

• Used by employers as a screening device

Possible application responses

Possible application responses

Request Possible response

Your Salary Requirement

Provide your salary requirement Provide a wide salary range State that you “expect competitive or fair compensation” Express your salary flexibility State that you would prefer to discuss salary in an

interview Give your salary history instead Ignore the salary request

Whenever possible

Do not provide your salary history or salary requirement prior to an offer so you may maintain your power as long as possible.

Retrieved from www.quintcareers.com

The Salary Question:

During the Interview:• If asked for your salary requirement during an

interview you can:• Express expectation to be paid in line with

market conditions and your experience level

• Let the employer know you prefer to wait to discuss salary until you have both determined you are the right person for the position

• Ask for what their expected salary range is

• Provide a salary range

Salary Negotiation Tips• Until you receive a job offer-there is nothing to

negotiate

• If you don’t provide a salary requirement some employers may not consider you for the position

• Do your research in advance and have a pre-determined salary range in mind

• Never lie to an employer about your salary history

• Act professionally

• Inquire about company policies regarding raises

The Job Offer• You have been offered the job, now what?

• No matter how good the offer sounds, take sometime to think it over-it is customary to ask for 24-48 hours to think an offer over

• Thank the interviewer for the offer and express your interest in the company and position but ask for time to evaluate the offer

• Think about your expectations, find similar salaries and do your research

Beginning the Negotiation Process• What if the job offer is less than what you had

hoped for? Now it’s time to move to the negotiation stage…• Ask for a higher salary and provide reasons why

Reasons should be benefits to the employer NOT because you need more money to pay your bills

• Always ask, never demand for more money

• Use humble language: “Hope”

• Never say “Want”, “Expect”, “Require” , “Demand”

• Provide a salary range higher than you are willing to accept to

allow room for negotiation from the employer

The Counter Proposal• Counter Proposal

• Can be done in person, on the phone, or by email• An employer may ask for a written counter proposal letter• Use your best judgment• It is up to you to demonstrate why you are a value to the

company and why you are worth the added investment

• If salary cannot be negotiated (you receive a“firm offer”), consider negotiating other aspects

of your benefits package such as:• Change in evaluation period, sign-on bonus, vacation

time, relocation, company laptop or cell phone (if it’sneeded in your position), stock options, etc.

The Counter Proposal Cont.

• Example:“I am extremely excited about your job offer. I think your company

is a good fit for me and the Systems Engineering position would be

a wonderful opportunity. However, I am hoping we can

discuss the current salary offer. I have conducted some research

on salary for a similar position in this area and based on my

educational background as well as internship experience I am

hoping for a salary range between $54,000-$58,000. Please let me

know if you can help me with this.”

Don’t forget…• Throughout the negotiation process make sure to continue to

sell your skills and experiences

• Never make demands, keep the tone conversational instead of demanding

• Do not keep counter-offers going for multiple rounds; after your initial counter proposal you should avoid making additional demands-remember your offer could still be rescinded

• If you have no true intentions of accepting the job offer then do not start the negotiation process-do not waste yours or the company’s time• Ask yourself: If they accept my requests, am I prepared

to accept the position?

Source: www.quintcareers.com/printable/salary_counter_proposal.html

The Waiting Game• Now the ball is back on the employer’s court-and

you will wait for a response• The employer will get back to you and either

agree to your requests or give you a counter offer-you may ask for more time to evaluate your new offer

Accepting the Offer• After you and the employer come to an agreement,

be sure to get the details in writing

• Ask for an official letter of offer or contract; this will guarantee that:• Your boss will not later forget what you have

agreed upon• New management will know what agreements

were made when you were hired

• Once you accept an offer and all negotiations haveceased you should also stop/withdraw from all other interviewing

Mistakes to Avoid

Try not doing the following:

Settling/not negotiating Revealing how much you would accept Focusing on need/greed rather than value Weak research or negotiation preparation Making a salary pitch too early Accepting a job offer too quickly Declining a job offer too quickly Asking for too many changes in counteroffer Taking salary negotiations personally Not asking for final offer in writing

Source: www.quintcareers.com

Salary Negotiations Summary• The first person to mention salary loses

negotiating power

• Have a fair range in mind – be able to justify your requirements

• Have reasonable expectations based on the industry, position, geographic location, and experience

• If you don’t ask, you won’t receive

• You can always try to negotiate other benefits

• Don’t be too pushy – they can rescind the offer

Salary Negotiation Tool• Use websites such as NACE to find salary research

and information:

Resources• www.quintcareers.com

• http://ezinearticles.com

• www.resume-help.org

• http://susanireland.com

• www.collegejournal.com

• http://career-advice.monster.com

• www.1st-writer.com

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