Salary Negotiation
Center for Career and Experiential Education
From Here To Career
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Identify critical components of effective salary negotiation
Access resources to conduct cost of living analysis and determine a target salary�
Determine the degree to which salaries are negotiable and when to address salary with a prospective employer�
Create a customized strategy to engage in an effective salary negotiation exchange with a potential employer
What You Will Learn
Table Of Contents
Topic 1: Understanding Salary
“How do you define salary?”
Salary: �Fixed compensation an employee is regularly paid by an employer for services.
Understanding Salary
Defining the term is the easy part - understanding how it is determined and your role in the process is more involved.
Salary is about more than the amount you’ll get in a paycheck.
The net value of a job depends on many factors. Benefits like health insurance, retirement plans, and education opportunities also factor into determining how valuable a job will be to you overall.
Understanding Salary
“What makes a position valuable?”
Money plays a role, but the complete answer depends largely on what is valuable to you as a person. For example, how would you rank the items below in order of importance to you?
Understanding Salary
“How is a salary determined?”
There are a number of elements that help determine the salary for a given role. Here are a few of the considerations:
Understanding Salary
Here are some other terms that will be helpful for this module:
Negotiate: � to confer with another so as to arrive at a settlement of some matter
Salary History: � the amount of money you have been paid for past employment
Market Value: � the price that buyers are willing to pay for something
Cost of Living: � the amount of money you need in order to pay for basic things such � as food, clothes, shelter, heating, and transportation in a given area
Understanding Salary
Understanding Salary
“How do salary, cost of living, and budgeting relate to each other?”
In order to know what salary you need in order to make ends meet in a given area, you need to know two things.
WHAT �SALARY �DO I NEED?
COST OF LIVING?
BUDGET?
Access Your Module Worksheet
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PRO TIP: Use the notes area of the worksheet as a place to record things you’d like to remember from this module.
Access the worksheet that accompanies this module by clicking the following link:��My Salary Negotiation Worksheet
Complete Part 1 before moving on to the next part of this module.
Lesson Check-In
Have You Completed Part 1 of Your Worksheet?
Before moving on to the next slide, you should have an open document where you can start collecting information related to this module.
Go back to the previous slide if you’d like more information about this step.
Topic 2: The Importance of Salary Negotiation
Importance Of Salary Negotiation
“Why do I need to know about salary negotiation?”
In many jobs, there is flexibility around what your salary and benefits package may be. For positions where the starting salary is flexible, the employer will often offer you the lower range of a starting salary and it’s up to you to make a case for your greater professional worth.
Importance Of Salary Negotiation
Most employers anticipate salary negotiation for new hires.
While it’s not always the case, most employers expect you to negotiate salary when offered a position. If you’re not experienced with the process, it may feel uncomfortable to present a counter-offer to your employer, but the information in this activity will help you overcome the challenge.
Doing the proper research and being thoughtful with your communication are the keys to approaching the negotiation process effectively.
Importance Of Salary Negotiation
A small annual difference in salary can make a BIG difference over the course of your career.
The lines on the graph show how two different starting salaries would change over time, each increasing 3% per year.
Note how the gap between the salaries gets w i d e r with each year.
Importance Of Salary Negotiation
Your salary and benefits package are about more than just work.
Determining the salary and benefits package that will present you with the standard of living you are seeking is one of the most important factors in long-term satisfaction - both in your professional and personal life.
Access Your Module Worksheet
Access your copy of the worksheet that accompanies this module.
Complete Part 2 before moving on to the next part of this module.
Lesson Check-In
Have You Completed Part 2 of Your Worksheet?
Before moving on to the next slide, you should have an open document where you can start collecting information related to this module.
Go back to the previous slide if you’d like more information about this step.
Topic 3: Finding Information
Finding Information
Collecting information is the key to any good salary negotiation.
In order to form a target salary for your potential position, you’ll need to know more about the following:
PRO TIP: Consider your competition and the state of the market when negotiating salary. Is employee demand in your field high or low?
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Finding Information
Where can I go to research information?
Researching employment and salary information can feel overwhelming, but it is easier if you take it in steps. Start with the following to help simplify your research:
PRO TIP: If you feel overwhelmed at the start, begin by simply exploring the sites listed above to learn about the types of information they can provide.
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Finding Information
What information can you find on different sites?
BLS
CareerOneStop
GlassDoor
Site type: Government��Rich with data and stats.
Best to use to find out salary ranges for a given position in a specific area.
Site type: Government��Lots of accessible info with some light data and stats.
Best to use to find out more about a field that interests you.
Site type:�Privately owned��User provided information.
Best to use to find out salary ranges and read about people’s experiences with companies.
Site type: �Privately owned, social network��User and company provided information.
Best to use to find out basic information about companies and the people that work for them.
Finding Information
Getting started on the BLS website
The Bureau of Labor Statistics website is rich with data and information. Consider starting on the career exploration page to get a sense of the range of information you can discover on the site.
PRO TIP: Looking for a specific term on a page with lots of information? Use the (cmd+f or ctrl+f) shortcut to bring up the find-in-page search in your browser.
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Suggested steps:
Finding Information
“What factors determine my professional worth?”
Know Your Worth
Salary Ranges
Benefits
Location
Here some of the questions you should try to answer to have a better sense for your professional worth before entering the negotiation process:
Finding Information
“How do I find out about salary ranges for my position?”
Variables like location, candidate experience, and type of degree can all impact the salary ranges for the type of position you’re considering. The US Bureau of Labor Statistics is an excellent resource for finding out more about salary ranges for your potential field.
Know Your Worth
Salary Ranges
Benefits
Location
Finding Information
“How do I determine the benefits for a position?”
Your first stop for reviewing the benefits for a potential position should be the company’s website. Many employers have a Human Resources section of their site with detailed information about the benefits they offer their employees. In general, contacting the HR representative for the company is the best way to access specific information about the employer’s benefits package.
Know Your Worth
Salary Ranges
Benefits
Location
Finding Information
“How do I find out more about my location?”
Know Your Worth
Salary Ranges
Benefits
Location
Cost of Living Index: �An economic value that can be used to compare the price of goods and services in different locations.
Finding Information
Run the numbers!
Know Your Worth
Salary Ranges
Benefits
Location
C O S T O F L I V I N G I N D E X C O M P A R I S O N
Providence
New York
Boston
170
255
209
Providence is about 20% less expensive to live in than Boston, and about 35% less expensive to live in than New York.
Finding Information
Run the numbers!
Know Your Worth
Salary Ranges
Benefits
Location
Salary averages for the same position vary based on the location you are working in.
The annual wage for a chemical engineer can vary over $40,000 per year for the same position and level of experience, based on location alone.
Finding Information
Salary Negotiation Best Practices
Access Your Module Worksheet
Access your copy of the worksheet that accompanies this module.
Complete Part 3 before moving on to the next part of this module.
Lesson Check-In
Have You Completed Part 3 of Your Worksheet?
Before moving on to the next slide, you should have an open document where you can start collecting information related to this module.
Go back to the previous slide if you’d like more information about this step.
Topic 4: Building a Strategy
Building Your Strategy
“How do I build a strategy for negotiating a salary?”
Building a strong strategy for salary negotiation involves doing research and thinking critically. In the following slides we present elements that go into building a strategy for negotiation in the following areas:
Gathering Information
Communication
Timing
Professional worth
Position information
Employer information
Scanning your network
Being on target with tone and message
Identifying the right time to negotiate salary
Building Your Strategy
“How do I know my professional worth?”
In the same way that a product’s value is influenced by supply and demand, your value to a company as an employee depends on similar factors.
If you know your field of work, experience, and degree level, you should be able to research an estimate for your professional worth. As previously discussed, this range will change based on geographic area.
Sites like Glassdoor and BLS are good starting places to seek out these estimates.
Gather Information
Communication
Timing
PRO TIP: When determining your target salary focus on the value of your skills, experience, and abilities.
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Building Your Strategy
“How do I find out more about my position?”
The best starting place is the job posting itself. If the company has their own online job board, be sure to read the description for the position as it is listed there - not just a summary of the description on an aggregate site. Pay special attention to anything related to salary or benefits in the description itself.
In some cases - especially at public institutions - the description may include information about a “grade level” or something similar. In this case, it is likely that a public document is available on the web, showing the salary range for each grade level for that employer.
PRO TIP: When thinking about the salary you would like for a given employer, factor in your professional and personal priorities.
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Gather Information
Communication
Timing
Building Your Strategy
“How do I find out more about my employer?”
PRO TIP: Remember that you may have the option to negotiate salary and benefits, not just salary alone.
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Gather Information
Communication
Timing
Beyond the job posting itself, you should spend time researching any information the company provides on their HR page regarding pay and benefits. If such a page does not exist, you could consider reaching out to your hiring contact or the company HR department to inquire about general benefits information.
While it isn’t always an option, having a personal connection who has worked for the employer is one of your best avenues for getting candid information about the salary and benefits practices of an employer.
Building Your Strategy
Scanning your network
Is there anyone in your network that can connect you with someone who has first-hand knowledge of the industry and companies you’re applying to?
Gather Information
Communication
Timing
PRO TIP: Explore the professional networking site, LinkedIn as a way to research companies and connect with people in your network.
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Building Your Strategy
Communication is KEY in any negotiation
What are the communication elements that will help you achieve your desired outcome in your salary negotiation?
PRO TIP: Maintain a professional demeanor when negotiating salary. Don’t be demanding, rude, or angry.
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Gather Information
Communication
Timing
Building Your Strategy
What is an example of effective language in a salary negotiation?
Dear Ms. Williams,
Thank you for your offer of a position at your company. I’m excited at the prospect of joining your team. Your company’s philosophy and the outstanding work you do is precisely the type of environment I’m looking forward to helping succeed, and I believe I’d be a valuable contributor to your team. Thank you also for sharing the salary and benefits offer with me.
While I’m excited to receive the offer, I’d like to explore the possibility of negotiating salary and benefits for this position. I feel that a salary in the range of $52,000 - $58,000 is appropriate. This is based on my three previous years of experience in the field, my professional certification level, and professional skill set. Please let me know if you’d like me to provide any additional material to support my proposal.
I’m greatly looking forward speaking again and excited about the possibility of coming on board. Thank you again for your time.
Sincerely,�Inez Sousa
Gather Information
Communication
Timing
Building Your Strategy
“What is leverage and how can I use it?”
Leverage is the bargaining advantage you have in a salary situation. It is helpful to know what factors can give you, as the candidate, more leverage.
Gather Information
Communication
Timing
PRO TIP: Negotiate value of total compensation and benefits, not just pay rate.
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Building Your Strategy
“When is the right time to negotiate my salary and benefits?”
Research information about the company’s salary practices before the interview and pay attention to any information the employer offers during your interview process.
The best time for most candidates to negotiate salary is after the employer first offers them a position with salary and benefit details. This works in your favor as it gives you a starting place, and it is after they have decided that you are the best candidate for the position.
PRO TIP: Don’t talk salary too early, especially at the first interview. The employer will usually introduce salary to the conversation.
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Gather Information
Communication
Timing
Access Your Module Worksheet
Access your copy of the worksheet that accompanies this module.
Complete Part 4 before moving on to the next part of this module.
Lesson Check-In
Have You Completed Part 4 of Your Worksheet?
Before moving on to the next slide, you should have an open document where you can start collecting information related to this module.
Go back to the previous slide if you’d like more information about this step.
Review
Review
“What can I do with my completed worksheet?”
Congrats! All the hard work is done :)
You’ve finished the Salary Negotiation module.�
We hope this information was helpful on your journey to set and achieve your college and career goals!
If you’re interested in exploring the other modules in this series, please visit the CCEE Professional Development Module home page.
End Of Module