NEGOTIATIONS

Women in NAAAP! (WIN!) Conference

Presented by Kim M. Tran

June 4, 2011

Negotiations: Why does it matter?

Men are four times more likelythan women to ask for a salaryraise.

-- Recent NPR Story

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Negotiations: Why does it matter?

Men (still) make more than womenfor same job.

– The U.S. Bureau of labor Statistics states in a July 2009 report “In 2008, women who were full-time wage and salary workers had median weekly earnings of $638, or about 80 percent of the $798 median for their male counterparts."

http://www.bls.gov/cps/cpswom2008.pdf

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Negotiations: Why does it matter?

Women leave $1M and $1.5M onthe table in lost earnings.

-- Linda Babcock, Economist, Carnegie Mellon

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Perception Matters

Women asking for the same raise as men were perceived as aggressive

-- Video survey conducted by Carnegie Mellon

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Perception Matters

Psychological Business Academic Theoretical Today’s Focus -- Professional Experience

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Background

Employment law attorney – Negotiated contracts, settlements– Participated in lots of mediations – Litigated hundreds of cases

Human Resources Manager – Investigate claims of discrimination, misconduct

Pro Tem Judge – Preside over small claims court matters

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Toughest Negotiations

Becoming a shareholder – one of the first Vietnamese American woman in Seattle

Multi-million dollar settlement in discrimination lawsuit

Client paying out-of-pocket – Business faced bankruptcy depending on litigation outcome

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Types of negotiations

Personal life– Buying a house – Used car purchase– Craigslist purchase

Work – Negotiating your own salary, raise, etc. – Difficult boss or co-worker – Negotiating a contract for your employer or

company

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What does negotiations mean?

Resolve conflict Advance your goals

– Higher salary – Work conditions – Close a deal

Advance your company’s goals Advance your client’s goals

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Tips for Personal & Professional Negotiations

One – Identify Deal-Breakers (Yours and Theirs)

Two – Understand Bargaining Position

Three – Find Comparators

Four – Listen

Five – Memorialize It!

Six – Practice

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One: Deal-breakers & Giveaways

Identify what you want out of the transaction– New job: consider salary + bonuses, other perks

Identify your giveaways- make those appear to be your deal-breakers

Recognize your value Be prepared to walk away

– When you say you have given your “final and best”

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One: Deal-breakers & Giveaways

Identify what THEY want out of the transaction – They may be just as eager to close a transaction – Your boss wants you to stay

Present alternatives Consider long-term consequences of short-

term concessions

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Two: Understand the Relative Bargaining Positions

You: independent, small business Them: Big multi-national corporation Bargaining position: Depends on the

transaction – do not be intimidated Do not assume that they have a lot of other

choices Do not rush to concede your rate

– Can always under-promise & over deliver

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Two: Understand the Relative Bargaining Positions

Are you speaking to the final decision-maker?

Do you have the authority to accept changes to the agreement?

Be careful about negotiating for a future relationship.

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Three: Find Comparators

In general – Your comparators must be realistic – written

documents are persuasive – Due diligence on the other side

Salary or Contract Negotiations– Build your network so that you know what other

professionals charge/make

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Three: Find Comparators

Buying a home – How much are other homes on the block? – How are the other homes the same or different?

Business deal – Use experts!

Craigslist transaction – Can you find the same item on CL or Ebay or

Amazon

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Four: Listen

Repeat and parrot their position Listen to what the other side says they want Listen to what your boss/company really

wants out of the deal

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Four: Listen

Ask open-ended questions instead of cross examining

What are the hurdles? – The other side has a demanding boss– The other side can negotiate quantity, but not

price

Problem solve and brainstorm alternatives

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Five: Memorialize it!

Key Contents: – Date– Amount– Description– Signatures of all parties

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Five: Memorialize it!

– Example: On June 4,2011, I, K. Tran, agreed to purchase the King Size Oak Bed Frame, from J. Nguyen, in the amount of one-thousand dollars ($1,000) to be paid in cash on or before June 7, 2011.

Signed ___________ on date _________ Signed ___________ on date _________

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Five: Memorialize it!

Memorandum of Understanding Employment Contract Email Confirmation Scribble on Receipt Contract READ: Strikethrough, cross-out & correct

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Six: Practice

Find a colleague and make your pitch Use your professional network Craigslist transaction = opportunity to

practice – Bargain, Bargain, Bargain

Script out the first few phrases: – Is this salary firm or is there flexibility?

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Negotiations

The money belongs in your pocket,

not left on the table.

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