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Accepting a Job Offer. Making an Informed Decision. Purposes of Workshop. discuss negotiation positions identify elements of an offer view sample decision matrix recognize ethics of offers. Congratulations! You’ve Got An Offer!!. Now Comes the Challenging Part. - PowerPoint PPT Presentation
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Accepting a Job Offer
Making an Informed Decision
Purposes of Workshop
discuss negotiation positions identify elements of an offer view sample decision matrix recognize ethics of offers
Congratulations!You’ve Got An Offer!!
Now Comes the Challenging Part
know your bargaining position making an informed decision savvy negotiation accepting
Strategy of Negotiation
foundation—what you do to ensure your bargaining position is as strong as possible
start working on it well before you sit down to negotiate details
builds your bargaining power makes the most of your talents, education,
job experiences, and recommendations neutralizes your limitations
Bargaining Position
strong position lots of offers, outstanding tech skills, little
competition name your price, but w/strategy you want them glad to have you, not resentful of
your demands more typical position
really want the job terrified of losing it by being too aggressive doesn’t negotiate effectively
Bargaining Power
research industry standards for compensation resources are
trade magazines salary surveys by NACE, CSO, SHRM, etc. alumni American Almanac of Jobs and Salaries Occupational Outlook Handbook www.bls.gov/oco www.rileyguide.com/salary.html www.salary.com and other Web sites
develop other job offers
Know The Market
what is the going rate for the position do your research
what positives or negatives might cause a deviation from the going rate
how much bargaining power do you have what factors are most important to you what is your best alternative plan what is the lowest salary you can accept
What Can The Employer Offer
salary signing bonus bonuses commissions moving allowance early performance
review health plan
tuition reimbursement
stock awards or options
profit sharing pension or 401(k) lifestyle issues severance package
Salary
base for figuring bonuses and raises savvy negotiating often improves an
initial offer---sometimes dramatically difficult to get same boost on the job
even w/excellent performance
Signing Bonus
offered when they can’t pay a competitive salary right away or luring someone away from a competitor
keeps departmental salary structure because they are hidden from view as not being a part of regular payroll
often payment of bonus is delayed to keep you from getting money and running
commonly paid half at 6 months and remainder at 12 months
Bonuses
best if tied to measurable criteria requirements for earning it
performance of a sales team you support reward for completing a schedule ahead of time reward for recovering a business relationship
that was lost based on customer satisfaction based on money saved through operational
streamlining finder’s fee for recruiting needed staff members tied to the number of new customers brought in
by marketing programs
Commissions
sales goals commission percentage, standards for
meeting it, and additional rewards for exceeding goals
size and location of sales territory, degree of exclusivity, and access to specific accounts
length of time to keep the territory if you meet your goals
Moving Allowance may be tax-free may include nearly all moving expenses,
including hired movers temporary living quarters sometimes costs associated with real estate
transactions may be a fixed sum usually negotiable because it is a non-
recurring cost for the company
Early Performance Review
for salary increase or promotion request a 6 month or even 3 month review
if you think you can make a significant impact that fast
Health Plan company sponsored health plans vary
widely many smaller firms have none
provisions of plan are not negotiable
expect to pay at least part of the premium yourself from pretax income
review company’s share of the premium look for at least two options to be offered by
employer
Tuition Reimbursement standard benefit that can be worth thousands usually have to take night classes classes usually have to be related to something that
benefits the company some make loans rather than tuition grants and then forgive
a part of the loan for each year you remain after concluding the education
try to arrange for any balance to be forgiven if you are laid off
may also sponsor educational opportunities informal, on-the-job training mentoring formal courses and seminars
Stock Award or Options most common and lucrative at start-up and early-stage
companies key is to argue that bigger ownership gives you more
incentive to be of extraordinary value larger, established companies are less negotiable, offer
relatively fewer shares, and are sometimes restricted to middle and upper management
not so profitable in near-term money, but over 10-15 years they can be sizable
do the math…know the number of shares offered and the and percentage of total shares
start-up shares are only valuable if and when the company goes public or is sold
ask about length of time for vesting before you can exercise options
if you’re planning on a short stay, these aren’t of much value
Profit Sharing
profit sharing form of incentive pay based on the
company’s performance you agree that a percentage of your
compensation will be based on the firm’s overall profits or profits from certain deals
Pension Profit Sharing or 401 (k)
employer contributes a certain amount to your pension plan each year usually figured as a percentage of your salary based on the company’s profitability
company sets aside a portion of your pretax income in a tax-deferred investment account
most employers match full or partial contributions in principle, money is supposed to remain until retirement
some plans allow for borrowing against it or making early withdrawals
buying a home paying your kids’ college tuition medical care
must conform to government regulation so terms are not negotiable
Lifestyle Issues
location travel schedule need to balance work and family future stability
Severance Package
negotiate for 3 months salary if your employment is terminated through no fault of your own
this should be the last area of your negotiation
bring it up as a conjecture, e.g. what if…
get the deal in writing in case your manager is laid off
Determine Negotiating Priorities
use these to evaluate offers quality of learning opportunity rapport w/your supervisor respect for your colleagues workplace atmosphere
intense or relaxed competitive or mutually supportive chaotic or organized work alone or part of a group or combination of
two socializing or being more private
More Priorities to Consider
other forms of compensation benefits such as health
insurance perks, e.g. international travel recognition, e.g. speaking
opportunities company’s prestige importance or value of what
the organization produces
More Priorities to Consider
vacation and time-off policies usually paid time computed by formula based on time with the
company may also be allowed extra time without pay don’t make it first on your list of demands or you look like
you’re not enthused about your job flexibility of the work schedule
8 am to 6pm is most common schedule permission to work from home two or three days per week may be better off proving yourself first and then negotiating
flexibility may be able to negotiate comp time, generally an hour off for
each hour of overtime ask about cashing in unused comp time at the end of the year,
but make sure you document your time well
More Priorities to Consider
career-advancement opportunities location commuting distance and related
considerations, e.g. availability of public transportation or parking
on-site facilities, e.g. fitness, child-care centers
Using a Decision Matrix
helps stay focused on the factors of most importance to you
identifies your main negotiating points
recognizes when you should decline an offer
Creating a Decision Matrix
list the factors that matter most to you
assign each a relative weight out of a total weight of 100
rate how strong the offer is on each factor on a 0 to 10 scale
multiply the weight for each factor by the rating you gave
add up the results for each factor
Negotiation Tactics
what you do to achieve the best outcome considering your bargaining position
You’re Not Buying a Car!! resist the classic sense of negotiation
where they offer, you counter, they counter your counter, and so on
determine your bottom line in advance and wait for the offer if they offer more than your bottom line, great if they offer less than your bottom line, then
walk away or reveal your bottom line and see if they can
meet it lay your cards on the table to avoid
aggravating the employer
Always Negotiate With The Decision Maker
they know more about the job they are more concerned about losing you they have more latitude in taking in special
circumstances they are more creative
flexible hours extra vacation days signing bonus company-furnished laptop
Avoid Pushing Too Far
your deal will be resented you invite over-scrutiny and criticism you have to live in the climate you create
Ask Yourself Questions
do you care enough about it to meet expectations is the money, recognition, or intrinsic value rewarding
enough are the expectations realistic will you be happy there in six months are there enough challenges and learning
opportunities to keep the job fresh over time are you intrigued by the ongoing responsibilities or
just solving the initial problem do you commonly fall prey to the grass is always
greener syndrome do you stick to what you start how well do you fit into the company’s culture
Never Name The Salary First
too high and you risk scaring away the employer
too low and you shortchange yourself or devalue the position
Don’t Ask For It All
a long list looks like you’re a high maintenance employee
concentrate on the 2 or 3 things that matter the most to you
consider the other options only as part of your decision matrix for evaluating offers
End of Negotiation Signals
final words that signal the end “I just can’t go beyond what I’ve agreed
to already” “I think your expectations are beyond
what we can do” “Please consider this our final offer”
continued pushing will cause alienation and negative outcomes
Immobile Barriers To Negotiation
union contract terms policies set by the board of directors,
such as formulas for determining pay policies set by management, such as
not providing allowances group-hire decisions, such as
internships the pay level or your peers or the
person you would report to
Offers May Have Strings Attached
pass a physical examination document your citizenship or immigration
status obtain a security clearance undergo a thorough background
investigation , in which your credit history, police records, and travel history might be examined
verify your academic credentials provide proof of your past employment,
salary, or military service
Ethics to Consider
delaying a decision declining an offer reneging on an offer accepting an offer
Delaying a Decision
be reasonable, but you can usually get more time to decide
if negotiations have been verbal, ask to receive the terms in writing
ask for a few days to consider the offer
clarify a few points if more time needed
Declining A Job Offer
act decisively; don’t string them along further
call or email a thank you for the manager’s time and efforts
graciousness means you won’t burn any bridges
Reneging On An Offer you accept an offer, quit your current job
and your partner quits theirs, sell your house then the company backs out…how does that feel?
employer has terminated discussions with other candidates and does many other things
it’s disrespectful to the company and lacks integrity
it’s dishonest avoid this problem by careful planning
about your ideal position
Ethics Of Accepting A Job Offer get it in writing on company letterhead and signed by hiring
manager title and major responsibilities starting date person you will report to salary other forms of compensation, i.e. bonuses, commissions and
details stock options, dates they will be granted, the vesting schedule perks, e.g. moving allowance, tuition reimbursement, extra
vacation time, flextime, early salary review, other special arrangements agreed upon
written offer is a contract once it is signed by you if they are reluctant to write it, you do it and submit it file a signed final copy in a safe place stop interviewing and notifying any pending companies
Congratulations!You’re Hired!
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