Salary Negotiation for Industry - Tufts Universityase.tufts.edu/commhealth/documents/alumniCHAMP... · 2018-02-01 · MakingThe Job Search Basics Webinar Series from Bio Careers Connections

Lauren CelanoFounder and CEO

[email protected]

www.propelcareers.com

Salary Negotiation for Industry

Making Connections that Fuel Innovation!

Outline What is important to you? How to find salary information? What is your salary range Components of an offer What is negotiable? Tips for negotiation Closing thoughts

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Offer and Job Start Timelines Offer is usually given via phone by HR or Hiring Manager

You can ask for the offer to be sent in writing (i.e. email)

Some companies prefer to finalize the offer before formally writing an official offer letter that you sign

When you receive an offer, you can always ask for a day or two to review the details before committing yes or no

Time to decide upon an offer: as short as 48 hours

You can sometimes ask for an extension

Offer acceptance to start date: typically 2‐4 weeks

3Confidential; Not for Distribution. January 6, 2018


What is Important to you? Identify what is important to you in an offer/job. Salary is not always the most important consideration. Other considerations can also be negotiated:

Salary (base or total compensation?)

Vacation

Title

Flexibility

Location

Other?

How would you rank these in importance to you?

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Identifying Salary Information

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Salary Information – Other Sources University Career Centers Contacts at the organization that you want to work at Industry Associations Such as the American Chemical Society. The ACS has a

yearly salary survey that their members can access

Confidential; Not for Distribution. January 6, 2018 6


Informational Interviewing

Particular Job Organization Career Progression Career Entry

Responsibilities Day to Day Like Dislike Growth potential Skills needed Salary Range

Culture Work

Environment Management

Style Growth

Potential Personality Fit Skills needed Skills valued

Growth Opportunities

Career Path Skills to Develop

How to get in a role

Networking Experience

required Skills needed Skills one can

learn Best way to enter

field



Components of an Offer



Offers have many components Base Salary Bonus Profit Sharing (depends upon company) Equity Long term incentive (options, stock, equity) Sign on Bonus (depends upon company) 401K Job Title Vacation time Reporting Structure Health Insurance Life Insurance Holidays

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Other potential benefits Relocation (depends upon company) Mortgage assistance (depends upon company) Tuition reimbursement Transportation allowance (T pass or parking) Gym membership Adoption assistance Eldercare assistance Legal Assistance Membership(s) to relevant organizations Cell Phone (depends upon role) Expense Account for business related activities (depends upon role usually

business related) Company credit card (depends upon role, usually business related)

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Health Insurance Options Stipend for coverage

. i.e. $600.month, employee buys what they want

Company Coverage

Employee typically pays for some portion of coverage, i.e. 30% of monthly

premium – i.e. $100/month. Cost increases for family coverage, compared to

individual coverage.

Sometimes companies cover all cost

Sometimes companies also cover deductible

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Vacation and Personal Time Two weeks vacation is standard for many companies; Some have three weeks

Companies rarely have 4 weeks of vacation as a start.

Sometimes employees can accrue vacation for length of work i.e. at 5 years, you gain an extra week.

Some companies close between Xmas and New Years – i.e an extra week of vaca

Sometimes vacation carries over from year to year. Sometimes it runs out at the end of the year (take it or leave it…) Sometimes a week can be carried over to another year.

Sometimes vacation accrues. 1 day/month or you may get it all at once.

5 days of personal time seems to be standard (same as sick time). Personal time usually does not carry over

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Evaluate Total Package… not just base salary

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Total Package Base Salary: $60,000 Bonus: 20%: $12,000

Total Potential Compensation: $72,000

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What is Negotiable?



What is negotiable

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Make a list of everything you want to:

• negotiate

• have questions about

Have concrete numbers that you are looking for

• (i.e. salary #, start date, etc)

Have your “minimum number” established that you need to hit, i.e. $60,000.

Keep in mind a salary range: i.e. $60,000‐70,000


Preparing to negotiate

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Depends upon the organization

Some negotiate, others do not

Be careful in your approach


How to Negotiate



List of Items to NegotiateSend to HR before you speak with them

Dear Lisa,

Thank you for the offer. I am thrilled for the opportunity to be a part of the team. After reviewing the offer, I have a few questions that I would like to talk with you about. These include the base salary, bonus structure, health insurance plans, equity allocation, start date, and 401K. Would you be available to speak more tomorrow between 2‐4pm?

With kind regards,

Take care,

Lauren

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Approach Start by showing your enthusiasm

Ask your questions

Wrap up with your enthusiasm for the company / role

Remember – you don’t always have to negotiate

Companies will learn a lot about your communication

style by how you negotiate

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Soft NegotiationTalent: I accept the offer, and am thrilled to join XX

COMPANY. I was hoping for a little higher base salary, is

there any room for negotiation?

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If you ask for “a little higher salary” have a number in

mind, in case they ask what are you looking for.


Negotiation Tips – Salary

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Offer is $50,000; You are looking for $60,000Scenario 1:

Talent: I am thrilled for the opportunity to join XX Company. Based upon my research, I am looking for a salary of $60,000. Do you have room to increase the salary?

HR: We cannot do $60,000, but we can increase the salary to $55,000

Talent: Think about: Are you willing to accept at this #?


Negotiation Tips – Sign on Bonus

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Offer is $50,000; You are looking for $60,000

Scenario 2:


HR: We cannot increase the base salary due to our salary structure

Talent: Do you have the option for a $5,000 sign on bonus so that the base salary does not change, but total compensation becomes $55,000 for the first year?


Negotiation Tips – Early Performance Review

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Offer is $50,000; You are looking for $60,000

Scenario 3:


HR: We cannot increase the base salary due to our salary structure

Talent: Do you have the option for a 6 month review instead of a year review so that my performance, salary and contribution to the team could be reevaluated at this time?


Negotiation Tips – Equity with a Startup

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Talent: I am thrilled for the opportunity to join XX Company. I

know money is precious for a startup, so instead of asking for

more salary, would you be able to offer more equity? I really

believe in the company and feel that I can contribute to the

growth. Additional equity increases my alignment with the

company and my reward when the company is successful.

If you get equity as part of the offer at a company that is not

public, ask what % of the total equity do the shares represent


Negotiation Tips – Start Date

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Start Date in offer: August 1, you prefer September 1, but you have flexibility

Talent: Thank you for the offer to join XX Company. In

terms of the start date, August 1st is a little hectic for

me, but I understand how important this date is for the

project. If I could make August 1st work, do you have

flexibility on the base salary to increase this to $60,000?

If so, I will make this happen.


Negotiation Tips – Bonus and Total Comp

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Your total compensation target: $60,000

Current Offer: Base Salary $50,000. Target Bonus: 20% (potential bonus $10K). Total Comp Potential: $60,000

Talent: Thank you for the offer to join XX Company. In terms of the bonus, over the past three years? What is the target % that the bonus has been paid out for each year?

HR Person: Actually, for the past three years, the target % was actually above what we anticipated. We ended up paying out 22% on average for each year.

This gives the talent an indication that a bonus payout

at or above target is highly likely.


Negotiation Tips – Bonus and Total Comp

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Your total compensation target: $60,000

Current Offer: Base Salary $50,000. Target Bonus: 20% (total potential bonus $10K)

Talent: Thank you for the offer to join XX Company. In terms of the bonus,

over the past three years? What target % has the bonus been paid out for

each year?

HR Person: Actually, for the past three years, the target % was only 5%.

This gives the talent an indication that a bonus payout at 20% is probably not likely. Therefore, negotiating for a higher base salary may be

worthwhile.


Negotiation Tips – Vacation

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Sometimes additional vacation can be negotiated

i.e. Three weeks from two weeks

or for certain religious holidays

If you have a trip planned soon after joining, let the HR person

know before you join so that it can be worked into the schedule,

especially if you are on an accrual basis for vacation time.


When to walk away

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If you Decline an Offer

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Communicate promptly to the hiring manager / HR person

Stay professional

Phone call is best, but email is also an option


Closing Thoughts



Closing Thoughts

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Don’t be combative or too firm.

Look at the long term potential for the role.

Many companies benchmark salary data.

Companies have pulled offers if….

people negotiate without a basis for their rationale

people are too confrontational

Approach the conversation calmly and be prepared.

Show your enthusiasm for the offer and role.


Additional Closing Thoughts

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Larger companies usually benchmark their salaries against

“industry norm”.

Not all companies negotiate an offer

Look at the long term value of a role

growth, responsibility, career potential, etc

this may be more important than initial compensation

Making Connections that Fuel Innovation! The Job Search Basics Webinar Series from Bio Careers

Contact Details – Connect with Propel

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Internships

Coaching:Resume,

LinkedIn, Job Search, etc

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Lauren Celano

Founder and CEO

Propel Careers

cell: 215‐370‐2285

email: [email protected]

Twitter: @Propel_CareersFacebook: Propel Careers LinkedIn: Propel CareersWeb: www.propelcareers.com

Documents

Salary Negotiation for Industry - Tufts Universityase.tufts.edu/commhealth/documents/alumniCHAMP... · 2018-02-01 · MakingThe Job Search Basics Webinar Series from Bio Careers Connections