Jay A. Hewlin, Esq.

Overview

Identifying The Truth About Negotiations Some Negotiation Statistics Strategies for Negotiating Salary Resources Question and Answers

What is a Negotiation?

A Negotiation is a discussion between two (or more) parties in order to solve (perceived) differences (Pruitt & Carnevale, 1993).Those differences may concern different

interests in resources; moral or legal issues; strategic advantage in the market, etc.

What is a Negotiation? Communication concerning a matter(s)

for which there is a desired outcome(s).Creating opportunitiesResolving ConflictsCreating ValueDistributing ValueStructuring a DealRaising a ChildLoving a SpousePurchasing/Selling

What is a Negotiation?

Little Stevie Little Ethel The Pajama Party

Negotiation and Influence

Each of the above stories is about the power of influence by individuals who have no formal authority and are, in fact, the least “powerful” in the context.

Each situation is about how to leverage what you have available to target the interest of the other individual in order to get what you want.

You are worth more than you think!

The Importance of Negotiating Salary

Women Don’t AskStudy with Carnegie Mellon master’s degree

students:○ Men’s Salaries were 7.6% higher on average;○ 7% women negotiated vs. 57% of the men;○ The negotiation accounted for the 7.6%

difference.○ Men negotiate 2 or 3 times as often.

Why Negotiate?

If two 30 year old applicants get offers for $100,000 and one negotiates and gets $107,400, how much longer will the non-negotiating applicant have to work after 65 to make up the difference, assuming 5% raises each year? Nine years longer!

The Importance of Negotiating Salary

Most recruiters are prepared to negotiate.

Interest vs. Position The Orange Sisters: Working in Ottawa:

Interest: The underlying motivator. Your interest is why you want what you want.

Position: The surface substance of the negotiation. What you tell the other party you want out of a negotiation.

Issue Type

Distinguish between:Distributive Issues (Fixed Pie);

Integrative Issues (Common issues with different values placed); and

Compatible/Congruent (Identical Interests)

Three Fundamental Questions

Who am I?

Where am I? What is the other party’s interest?

What do I want? What is my interest? For what am I

striving?

Salary Negotiation Preparation

The initial hiring decision is about fit.

A salary negotiation is about creating value between parties who presumably want to work together.

What’s it worth? A separate conversation requiring research.

Salary Negotiation Preparation

Defer the money conversation until you have a total picture of the position and you know the company wants you;

Listen carefully to see if the interviewer brings it up indirectly;

In most cases, he or she will lead with some number, but don’t let that deter you;

Be prepared to justify a higher number.

Salary Negotiation Preparation

Prepare:Research the City/Country, the cost of living, the

particular company, it’s culture, management, and the particular person with whom you are interviewing. ○ Sources: On-line, books, alumni, fraternity

brothers or sorority sisters; etc. Know the salary range before walking into

the interview; ○ Market research, pay for similarly-situated

positions in the field. What are their competitors paying? How is that organization currently performing? Sources: Association websites; books, people who work for the company, etc.

Salary Negotiation

Think package, not just cash:Medical benefits, dental benefits, level of

responsibility, working conditions, educational reimbursement, extended health and dental insurance, likelihood of advancement, reputation in the industry; professional development, support, start date, vacation time, flexible time, bonus.

Create the value○ If you can’t get more salary, get a bigger

bonus, more vacation time, etc.

Salary Negotiation Know your “BATNA”

Best Alternative to a Negotiated Agreement

Know your Reservation Value:The lowest package you’ll take that is above

your BATNA.

Salary Negotiation

Make sure you receive a letter from the company identifying the particulars. Understand that this letter is not necessarily a contract.

Negotiation Strategies

Questions?

Resources Get Paid What You’re Worth: The Expert

Negotiators Guide to Salary and Compensation -- Pinkley & Northcraft 2003

Getting to Yes: The Secret to Successful Negotiation -- Fisher, Ury, & Patton 2003

Difficult Conversations – Stone, Patton, and Heen 2010

The Truth About Negotiations – Leigh Thompson 2008