Pepperdine salary negotiation 11-17-2010

WESTLAKE VILLAGE - PASADENA - WEST LOS ANGELES - ENCINO - IRVINE

Salary NegotiationThe Neglected Competencies

“What Makes Up Salary”

November 18, 2010

WESTLAKE VILLAGE - PASADENA - WEST LOS ANGELES - ENCINO - [email protected]

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Discussion-Expectation

• Situation Analysis• Gathering Information• The Offer • Quantifying Compensation Factors• Negotiation• How to get pay equity in your current

position-getting an extra pay increase


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Women Post Job Gains -- Good and Bad News

• Women make up 49% of the managerial workforce, and in 2009, women outpaced men in top quarter of jobs in health care, financial & managerial fields. However……

• Wage gap persists: median weekly pay for women is 73% that of men¹

• Women make up 2.5% of the top earners in the Fortune 500²• Only 7% of the Fortune 1000 CEOs are female²• Women don’t negotiate³

¹Bureau of Labor Statistics²breaktheglassceiling.com³ABC News report


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Gaining the Mindset – Situation Analysis

• Have a plan• Understand the rules• Prepare well • Be realistic• Get tough• Have patience


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Gathering Information - Do Your Homework

Your Personal Salary and “Desirability” Information

• Determine the salary you want, what you need, and what you’ll settle for

• Review your accomplishments/skill set relative to the position

• Consider important factors besides money

Business Climate Information

• Understand the overall state of the economy and how that impacts the industry in which you work

• Know the overall unemployment rate and the general employment picture for the industry

• Understand the demand for industry and profession-specific knowledge and skills


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Company/Position Information

• Profitability

• Position in the business cycle (startup, growing, stable, etc)

• Title, decision-making authority, level

• Experience and capabilities requirements

• Type of work, use of skills

Hiring Manager Factors

• Urgency of the company’s need to fill the position

• Decision making authority

• Staffing Budget

• Many employers must maintain pay scale equity


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The Offer – the negotiation begins…

• Once you have successfully interviewed and received a verbal offer, clarify your understanding of the position in detail. Be enthusiastic and ask for time to consider

• Then, review the entire compensation (hard copy) package

• Evaluate all the information and compare it to your own needs and wants. Review each item, determine which are acceptable and which need to be negotiated

• Use the “Compensation Factors” worksheets to help evaluate the offer


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Compensation Factors

Your Ranking Offer Satisfaction

Base Salary 10 10 100

Bonus – Performance 8 8 64

Bonus – Signing 5 10 50

Stock 6 8 48

401K 7 9 63

Profit-Sharing Plan 6 10

Medical Benefits (Individual Coverage)

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Family Coverage Etc…


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Offer Assessment – the “Compensation Factors” worksheet

• The “Your Ranking” is a 1 to 10 ranking of the importance of that factor to you

• The “Offer” ranking is a 1 to 10 ranking of your satisfaction with that aspect of that particular offer

So, if salary is the most important, (10), and that off has the highest salary, (10) the satisfaction total would be 100

• This is a way to quantify and compare various aspects of your offers


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Compensation FactorsYour Ranking Offer Satisfaction

Base Salary

Bonus – Performance

Bonus – Signing

Stock

401K

Profit-Sharing Plan

Medical Benefits (Individual Coverage)

Family Coverage


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Dental Benefits (Individual Coverage)

Family Coverage-Dental

Vision Benefits (Individual Coverage)

Family Coverage

Health Club

Vacation & Personal Time


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Relocation (Special Course) - Package - Spousal Assistance - Other

Telecommuting

Travel Percentage

Reporting Relationship - Formal/Dotted Line


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Available Support - Informational System - Clinical Assistance - R & D

Career Development - Tuition Assistance - Professional Develop

Total Satisfaction Score XXXX


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Review the “Compensation Factors”

• Compare the results to your current job, or jobs that you’ve had in the past

• Identify the aspects of the offer that are the most important to you, and that are ranked lower in the “satisfaction” column

• Develop a strategy to communicate your goals with respect to changing the parts of the offer that are unacceptable

• This is also a way to compare multiple job offers


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Other considerations…

• Consider how the new position will effect long-term career path

• Consider job content, challenge, responsibility, success potential, fun. Do the roles match your skills?

• Are you joining the best company, size, future, history, values and reporting alignment

• Lifestyle issues—Intangibles• Compensation package review - complete


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• Surveys state that women are uncomfortable with the word “negotiation” – understand that being aware of this puts you at a competitive advantage


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The Negotiation

• Maintain a “win-win” attitude. Frame each issue as a joint search for mutual agreement

• Focus on the skill set you bring. Be confident.• Start high and work toward a middle ground• Keep your requests reasonable. Be willing to “give in” on

areas not important to you. • Be creative-look for ways beyond salary to boost your

income or gain intrinsic value


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Steps to Winning Your Asking Price

• Know your minimum acceptable salary• Estimate the company’s maximum price• Work toward a middle ground• Check out the entire compensation package• Are you talking to the person who will be making

the offer• Do you know your salary band?


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Explore Creative Solutions

• How can the structure of this package be changed?• How can we change the offer other than

compensation?• How do you organize the discussions after the initial

discussion?


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Tips to Success

• Adopt a negotiating style that reflects who you are• See each aspect of the situation as an opportunity to

negotiate (ask for something different)- you won’t get anything unless you ask for it

• Negotiate for yourself as if you were negotiating for some else (be your own agent)

• Be firm, flexible and trust your gut


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More Tips to Success

• Never divulge your current earnings• Delay salary and benefit discussions until you have

the offer in hand• Once you have the offer, ask for more • Never say “thank you” and accept the day you

receive the offer• Be comfortable saying “no” – know your walk-away• Always have an updated Resume


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What if You Are In a Job That You Like -- How Do You Increase Your Salary?

• Know the value of each aspect and the total worth of what your earning• Determine how well you’re paid relative to others in your field

(careerjournal.com – professional assoc.)• Discuss your salary band with who you report to• Put a strategy in place prior to your review to focus discussion on salary• Know when raises are decided (3rd quarter)• Communicate your value • Position a plan with your boss to quantify with his/her direction how to

bring your salary up


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Still not successful? Up the Ante

• Communicate your needs to other management• Get a competing job offer. Share the specific details with

your boss• Let the company know you are willing to jump ship• Be firm and flexible-trust your gut• Understand company limitations and have patience• Suggest creative alternatives to meet your needs• Reinforce your value to the company – not a time for

modesty• Gain agreement to review your situation with management

within a specific time frame


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Follow-Up

• Put your proposed plans in writing, copy your manager (dual ownership)

• Review your proposed plans with management on a specific time frame

• Everyone needs a mentor – two levels up


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Discussion Topics

• Situation Analysis• Gathering Information• The Offer • Quantifying Compensation Factors• Negotiation• How to get pay equity in your current

position-getting an extra pay increase


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$75,615

Mean base salary

$12,756

Mean signing bonus

$14,500Mean other guaranteed

compensation

2009 MBA Employment Statistics at Pepperdine

(28% of job accepting graduates receiving

signing bonus)


2009 MBA Internship Statistics at Pepperdine

10 wksAvg.

internship length

$763/wkMean

internship compensation

45%Paid

internships


2009 graduating students accepting jobs in the following functional areas:


2009 graduating students accepting jobs in the following industries:


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Haas MBA Alumni Salary Survey

Bio/Pharma Consulting CPG/RetailEnergy/ Environ

Financial Srvc Non-Profit Real Estate Technology

Base Salary 01-04 $136,500 $145,000 $110,750 $130,000 $120,000 $107,000 $122,500 $130,000

Base Salary 97-00 $162,150 $163,500 $129,000 $145,000 $160,000 $115,000 $125,000 $144,250

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

$160,000

$180,000

Base Salary by Industry and Graduation Year


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ASK!!!!!!!

Documents

Pepperdine salary negotiation 11-17-2010