IntroductionWelcome| 00:04 | Most people start salary negotiations
once they've been given a job offer.
| | 00:09 | To be really effective, you need to start thinking
about this well before the interview process.
| | 00:15 | By taking the time to prepare, you're going to
set yourself up to get what you want and need.
| | 00:22 | I'll start by showing you how HR determines
salary offers, how to research salary ranges,
| | 00:28 | prioritize what you're going to negotiate, and how to
leverage this information to develop your pitch.
| | 00:34 | Next, we'll talk about the actual
conversation you'll have with potential employers.
| | 00:40 | This includes receiving the offer, evaluating it,
asking for clarity, and negotiating for your priorities.
| | 00:47 | We'll end with transitioning out of
your old job and into your new job,
| | 00:52 | and special considerations like how to discuss
your salary history, and how to negotiate with
| | 00:58 | your current employer.
| | 00:59 | By demystifying this process, my goal is to
instill confidence in you, so you can go into
| | 01:06 | the negotiation and be successful.
| | 01:09 | Now let's get started with
negotiating your salary.
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| Using the exercise files| 00:00 | We provided free exercise files that are
available to all lynda.com members to help you get the
| | 00:07 | most from this course.
| | 00:09 | These files include a pre-negotiation worksheet,
an offer evaluation worksheet, and a checklist.
| | 00:15 | Now let's get started.
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1. Foundations of Salary NegotiationUnderstanding how employers determine salary| 00:00 | You know understanding your worth to the market
is the first step to successful negotiations.
| | 00:06 | Knowing how salary ranges are determined will
help you to understand how to best negotiate.
| | 00:12 | Many organizations have a compensation
policy that sets rules for how employees will be
| | 00:18 | paid, how salary reviews are handled, as well
as how the company will calculate bonuses.
| | 00:24 | Employers determine this policy
based on three considerations.
| | 00:28 | The first consideration you may
think of is individual equity.
| | 00:32 | This is based on your unique
talents and potential as an individual.
| | 00:38 | Individual equity is where your advantage
lies in the negotiation process, which we
| | 00:42 | will cover later in this course.
| | 00:45 | You have to remember though, it is not what
you think you're worth, but what the employer
| | 00:49 | thinks the job position is worth. Which is why
we need to look at two other considerations.
| | 00:56 | The second consideration is internal
equity, which looks inside the company.
| | 01:00 | It is a measure of how your salary
compares to others within the same company.
| | 01:05 | So someone else in the company is making $50,000
for the job you want, then the company expects
| | 01:11 | to pay you something close to $50,000.
| | 01:14 | Likewise, a company will pay a senior
level person more than a junior level person.
| | 01:22 | Internal equity is important as you will need to
understand where you fit into the organization's hierarchy.
| | 01:28 | Third, external equity
looks outside of the company.
| | 01:32 | So if company A is paying graphic designer
$60,000, then company B is probably going to
| | 01:38 | pay something close to $60,000
for graphic designers.
| | 01:42 | However an organization can choose to pay
higher or lower for various reasons including
| | 01:48 | their geographic region, industry, or how
attractive they wish to be to potential employees.
| | 01:56 | Based on all three equities, human resources
will generally make an offer from their low
| | 02:01 | range to their mid range
for potential employees.
| | 02:05 | This gives them room to offer raises
and allows you to grow as an employee.
| | 02:10 | The first place to start your research is
with external equity, since companies will
| | 02:15 | be benchmarking against this.
| | 02:17 | In the next video, we'll discuss the methods
for determining the salary range for your
| | 02:22 | role and industry.
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| Researching salary ranges| 00:00 | It's important to prepare for negotiations ahead
of time by researching realistic salary ranges.
| | 00:07 | In fact, it's actually best to prepare
before you even interview for a job.
| | 00:13 | You want to set yourself up,
so you get your best salary.
| | 00:17 | However, if you've already been made an
offer you can still do this research.
| | 00:22 | You want to have your pre-negotiation
worksheet for this part of the course.
| | 00:27 | Begin by writing down your personal range.
| | 00:29 | What is the minimum salary you need to make
to meet your financial obligations? The low
| | 00:36 | end of your personal range will
be based on your budget needs.
| | 00:40 | The high end of your personal
range will be your ideal salary.
| | 00:45 | This is the amount of money that will
allow you to lead the lifestyle you desire.
| | 00:50 | Next, you need to have a realistic idea of what
the market actually pays; the external equity.
| | 00:57 | So how can you find out what the market
ranges are for your area of interest? I recommend
| | 01:02 | you use the same resources that HR
often uses to determine external equity.
| | 01:09 | First, the Bureau of Labor
Statistics is an excellent place to start.
| | 01:14 | The BLS website allows you to search by industry
and job position, and is one of the most reliable
| | 01:20 | sources of job data.
| | 01:23 | Our first step is to locate
where to find wage information.
| | 01:27 | You'll find this under the tab Subject
Areas under the PAY & BENEFITS subsection.
| | 01:33 | You can see there are quite a few selections,
but to get the most detailed information you
| | 01:39 | want to click on Wages by Area & Occupation.
| | 01:43 | This will allow you to search wages in a
variety of ways including occupations, industries,
| | 01:49 | geography and even gender.
| | 01:52 | Let's start with occupation.
| | 01:54 | So I'll click on for over 800 occupations.
| | 01:57 | The BLS will start you out
with the major occupation groups.
| | 02:02 | You may have to explore this a bit if
you're unsure of where your title fits.
| | 02:07 | For our example, we'll use graphic designers,
which is most likely under category 27; Arts,
| | 02:14 | Design, Entertainment,
Sports and Media Occupations.
| | 02:18 | By clicking on section 27, you'll see a
full list of occupations in this category.
| | 02:25 | As we quickly scan the list, you'll
see graphic designers at 27-1024.
| | 02:31 | Let's click on it.
| | 02:33 | You can already see some great information
including national estimated hourly wages,
| | 02:39 | annual wages and the 10th
through the 90th percentile wages.
| | 02:44 | In addition, if I scroll down, I find the mean
hourly and annual wages for the top industries
| | 02:50 | including highest employment and top paying.
| | 02:53 | Finally, you get to see
employment by geography.
| | 02:57 | But for this video, we want to focus on
salary ranges for a particular industry.
| | 03:03 | You can do this by creating a
customized table, which I can click here.
| | 03:08 | You're able to create tables in a variety
of ways and for our example, we're going to
| | 03:12 | focus on one occupation
for multiple industries.
| | 03:16 | That way we can see how wages differ.
| | 03:20 | When we continue, we'll need to reselect our
occupation, graphic designer, which we know is 271024.
| | 03:29 | I'll click continue, and
then I can pick one industry.
| | 03:32 | I'll choose retail trade,
| | 03:34 | and then I'll hold down my Command key on
the Mac or Ctrl key on PC and also select
| | 03:40 | Information, then click continue.
| | 03:44 | Now I'm given a breakdown for these
industries, so I can further narrow my search.
| | 03:49 | So I'll select furniture stores, because there is
a large number of them in my metropolitan area.
| | 03:56 | And I want to compare it to my
current industry of newspaper publishers.
| | 04:01 | So again, I'll hold down the Command key on
the Mac or Ctrl key on the PC and select that.
| | 04:08 | Then I'll click continue.
| | 04:09 | I want the most recent data,
which right now is May 2011.
| | 04:14 | Then I can select which data I want to see
including hourly and annual wages, but for
| | 04:20 | now, I'll just leave this as all data types.
| | 04:23 | Finally, I can select the output, either as
an Excel spreadsheet or HTML in my browser.
| | 04:31 | We'll use HTML for our
demonstration and I'll click continue.
| | 04:35 | As you can see, there are fewer graphic
designers employed by furniture stores, but the wages
| | 04:41 | including hourly mean wage and annual mean
wage are significantly higher for those employed
| | 04:47 | in furniture stores.
| | 04:49 | The BLS only covers the US market, so if
you're looking outside of the US then you may need
| | 04:54 | to rely more on your country's standards.
| | 04:57 | Many governments gather this data
and have it available on the web.
| | 05:01 | Second, professional organizations are a good
source to benchmark salaries as they allow
| | 05:07 | you to target your industry
or role more specifically.
| | 05:12 | These organizations often publish salary
surveys of members on their websites.
| | 05:17 | If you don't know an association in your area
of expertise, weddle's.com is a great place
| | 05:23 | to find your professional organization.
| | 05:26 | Third, once you have a broad role or industry
perspective, you can visit a salary comparison
| | 05:33 | website to confirm your research.
| | 05:36 | Some of the more popular sites include
PayScale.com, Salary.com and glassdoor.com.
| | 05:44 | These sites allow you to target specific companies
whose employees have reported their salary information.
| | 05:51 | Once you've done your research, fill in the market
range salary information on the pre-negotiation
| | 05:56 | and analysis worksheet.
| | 05:58 | If your personal range and market range match up,
you'll next want to determine the negotiation
| | 06:04 | items that are most important to you,
which we'll discuss in the next video.
| | 06:10 |
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| Determining your priorities| 00:00 | Once you have a good understanding of your
ideal salary, you should then focus on other
| | 00:05 | priorities, if any, that should
be a part of the negotiation.
| | 00:10 | These priorities may include bonuses,
relocation cost, flexible schedules, parking, vacation
| | 00:17 | time, professional development, and many more.
| | 00:20 | To determine what options are
available, begin by doing some basic research.
| | 00:26 | The information should be readily available
on many organization's websites. Knowing what
| | 00:31 | the company offers puts
you in a better position.
| | 00:34 | Although the company is less likely to
negotiate on standard offerings, like health care, or
| | 00:40 | retirement, they may be more willing to work with
items that provide personal balance and or growth.
| | 00:47 | Think creatively about your options so
that it provides you maximum value.
| | 00:52 | For instance, if time off is a priority and
they can't meet your salary requirements,
| | 00:58 | would they be willing to give
you two weeks extra vacation?
| | 01:02 | Or if professional growth is your priority,
would they be willing to pay for conference
| | 01:06 | attendance twice a year?
| | 01:09 | These both affect your bottom
line but just in different ways.
| | 01:13 | Once you know the options and understand your
priorities, check off the ones that are important
| | 01:19 | to you on the pre-negotiation worksheet, and
rank them according to importance; one being
| | 01:25 | the most important.
| | 01:26 | This way if they're not able to come up in
salary, you will have something to fall back
| | 01:31 | on in the negotiation process.
| | 01:33 | Now that you know your priorities and
the salary range, you'll next want to
| | 01:38 | put it all together into an
effective negotiation story or pitch.
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| Focusing on your strengths| 00:00 | Starting from a position of strength is
important in the negotiation process.
| | 00:05 | This is where your individual equity comes
into play. Remember, for human resources to
| | 00:12 | be able to offer you more, they must have a
reason based on your current talents, and
| | 00:17 | how they contribute to the organization.
| | 00:20 | On your pre-renegotiation worksheet, write
down the skills, knowledge and qualification,
| | 00:27 | the employer seeks.
| | 00:28 | Next, write down the examples you
shared during the hiring process.
| | 00:31 | This may include examples that appeared on your
resume or that were discussed during your interview.
| | 00:38 | In the next column, you will want to indicate
whether you exceed, meet, or do not meet the
| | 00:43 | employer's expectations.
| | 00:45 | First, focus on the places where you exceed
the expectations. These will be the leverage
| | 00:51 | points for your story.
| | 00:53 | You'll lead the
conversation with these points.
| | 00:57 | Second, examine where you meet expectations.
| | 01:00 | You don't want to lead or begin the
negotiation discussion with these points, however you
| | 01:05 | should be prepared to answer any questions
the employer may have or give examples.
| | 01:11 | Finally, for any do not meet expectations,
you should be prepared to discuss these in
| | 01:17 | a positive manner.
| | 01:19 | You can describe these as opportunities for
professional growth, or you can share your
| | 01:23 | plans become proficient.
| | 01:26 | Once you've identified your strengths and
experience, you will want to tie this to your
| | 01:30 | salary and benefit needs by writing a
negotiation story, which we'll cover next.
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| Writing your negotiation story| 00:00 | A negotiation story is the pitch that gives HR,
the ability to offer you a better salary
| | 00:07 | and or additional benefits.
| | 00:10 | The story should illustrate the value and
impact of your past accomplishments, the overall
| | 00:16 | value you'll bring to the
company, and your needs.
| | 00:20 | Plan your story well beforehand, because you
may not have the time to gather your thoughts
| | 00:24 | once you're in the middle of negotiations.
| | 00:27 | Remember to tailor the language of
your story to your industry and role.
| | 00:32 | Start by focusing on the places,
where you exceed expectations.
| | 00:36 | These will be the
leverage points for your story.
| | 00:39 | You'll lead the
conversation with these points.
| | 00:43 | As you describe the areas where you exceed
expectations, you'll want to ask for the things
| | 00:48 | you identified in your worksheet.
| | 00:50 | You want to tie your strengths to your
priorities as it gives HR a compelling reason to meet
| | 00:56 | your needs. For example, I could start out the
conversation by highlighting my strengths.
| | 01:02 | I'm really excited about this offer and the
ability to contribute to the organization.
| | 01:07 | I'm bringing five years of experience and
my professional network. To really solidify
| | 01:12 | me comimg to the organization, I'd
like to see the salary going to 75,000.
| | 01:17 | Also, in my previous company, I had four
weeks of vacation, which is important for me as
| | 01:23 | my family lives out of state.
| | 01:25 | If we can come to terms on these two
issues, I could accept the position today.
| | 01:31 | It's important to rehearse your story, so
that you're at your best in the conversation.
| | 01:36 | Find a friend or contact in the industry
and have them play the part of the employer.
| | 01:41 | Once you have it down, you'll be able to
go into the negotiations more confidently.
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2. The Negotiation ConversationReviewing the offer| 00:00 | You've got the offer, but
what do you say and do next?
| | 00:04 | It can be very tempting to say yes right away
when you've been searching for a while.
| | 00:09 | But you actually want to take the
time to review the offer carefully.
| | 00:14 | Listening is the most important step. Getting
the full information on the offer allows you
| | 00:20 | to prioritize what you'll ask for.
| | 00:22 | Let the employer know you are really excited
about the offer, and you'd like to take some
| | 00:27 | time to review it in detail.
| | 00:29 | It's appropriate to ask the employer for the
offer in writing and get a timeline for getting
| | 00:34 | back to them. This gives you breathing room for
the next step, reviewing the offer in detail.
| | 00:41 | For example, if I was made an offer for a
new job, I might say, "Fantastic! I am really
| | 00:47 | excited about the offer!
| | 00:48 | I would like to take the time to think
through all the details of the offer, would it be
| | 00:53 | possible to get this in writing, and
when do you need to hear back from me?"
| | 00:57 | Or I might say, "This is great! I
am really excited about the offer.
| | 01:01 | I'd like to confirm the offer with my
partner before accepting. Would it be possible to
| | 01:07 | get this offer in writing and when
do you need to hear back from me?"
| | 01:11 | It will be tempting to focus on just the
salary, but you need to review in detail the
| | 01:17 | benefits including health, retirement, over time,
flexible working hours, commuter discounts and others.
| | 01:25 | To keep you on track with your priorities,
you will want to compare the offer to your
| | 01:30 | pre-negotiation sheet to
ensure it fits your needs.
| | 01:34 | Then you should ask clarifying questions.
It is better to clarify prior to asking for
| | 01:39 | additional salary or benefits.
| | 01:43 | Your questions will depend on your priorities.
| | 01:46 | For instance, if you discuss flex time,
clarify what that means to both of you.
| | 01:51 | Does that mean working Monday through Thursday,
for 40 hours and having Friday off, or does
| | 01:57 | it mean coming into work from 7 to 3, so that
you can pick up the kids from school? Your
| | 02:03 | goal is to get a mutual understanding.
| | 02:06 | In your analysis, if you notice something
that was offered in a conversation, but it's
| | 02:11 | not in the written offer you will
want to request that be added.
| | 02:15 | Finally, compare the offer to your current job,
and additional offers from other companies
| | 02:20 | you may have received.
| | 02:22 | You want to be as objective as possible in
your comparison, as the danger is that you
| | 02:27 | make a decision based on
emotion and not best fit.
| | 02:32 | Compare the benefits, life choices, and work
culture of the organizations that you're considering.
| | 02:38 | We've provided a
worksheet to help you do this.
| | 02:42 | Once you've compared your priorities to the
offer, you are ready to go into the actual
| | 02:46 | negotiation talks.
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| Negotiating: Having the conversation| 00:00 | The actual negotiation should be viewed
as collaboration and not a competition.
| | 00:06 | You're working on a business transaction that
will benefit both parties. Schedule a time
| | 00:11 | when you're at your best and focus to
confidently go into the negotiation.
| | 00:16 | You will want to do this over the phone and
not by email. They can better ascertain your
| | 00:21 | intentions and you can also hear if there's a
hesitation in their voice about any request.
| | 00:28 | This will allow you to come across in a
positive vibe and you'll be more likely to get what
| | 00:32 | you're asking for.
| | 00:35 | Start the conversation with enthusiasm about
the opportunity and that you're looking forward
| | 00:39 | to starting work.
| | 00:41 | However, first you'd like to discuss the
details of the offer. Remind them of the value you
| | 00:47 | are bringing to the organization.
| | 00:49 | Remember, that they can justify an increase
on merit, skills, or qualifications, and not
| | 00:55 | your personal needs.
| | 00:57 | Your story from the pre-negotiation
sheets is what you should be using here.
| | 01:02 | The next item to bring up is the salary research from
the pre-negotiation sheet and your preferred salary.
| | 01:09 | You want to do so in a
confident and agreeable manner.
| | 01:13 | If they can't move up on the salary, let them
know you understand the situation, and move
| | 01:18 | to your other options.
| | 01:20 | They may be more likely
to give into other areas.
| | 01:24 | If you can't get increase in salary or other
options, be sure to ask how salary reviews
| | 01:29 | are handled for outstanding performers.
| | 01:32 | Knowing an increase can be expected may
make it easier to accept less money.
| | 01:37 | Finally, ask for the negotiated offer to be
sent to you in writing and also express your
| | 01:43 | enthusiasm again, leaving the conversation
with both of you feeling good as you should.
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| A sample negotiation conversation| 00:00 | Now let's take a look at a
sample salary negotiation.
| | 00:04 | This is just a scenario to give
an idea of a simple negotiation.
| | 00:09 | You should note, the language used in this
might not be appropriate to your industry or role.
| | 00:16 | This video is meant to demonstrate the
conversational style and give and take of a negotiation.
| | 00:22 | Male Speaker: Hi! Amy, it's
good to hear from you again.
| | 00:26 | Amy: Hi! Really good to
hear from you again too.
| | 00:28 | Male Speaker: Well good, did
you some time review the offer?
| | 00:31 | Amy: Yes, thank you. I did.
| | 00:33 | I wanted to let you know that I'm really excited
about the opportunity to work at Kinetico and
| | 00:38 | I'm really looking forward to
contributing as the IT project manager.
| | 00:42 | As you know, I've taken the past few days
to review the details of the offer, and I'd
| | 00:46 | just like to clarify a few
things with you before signing.
| | 00:50 | Male Speaker: Oh, okay great! I
can answer any of your questions.
| | 00:53 | We are really excited
about you joining the company.
| | 00:55 | Amy: Thank you! I am
looking forward to it too.
| | 00:58 | As you know, I bring six years of experience
in the insurance industry, managing CRM off
| | 01:04 | shore software teams, which will allow me to
make an immediate impact on the CRM project.
| | 01:09 | I've been doing a little bit of research on
the salaries for this region, and the industry,
| | 01:15 | and I would like to see a salary,
at $85,000. Would that be possible?
| | 01:19 | Male Speaker: Well, based on our budget this
year and the fact that we came in at a higher
| | 01:25 | level than expected for this position, I can
tell you that we are not going to be able
| | 01:29 | to move on the salary at
this point in time.
| | 01:32 | Amy: Hmm.
| | 01:34 | Male Speaker: However, we do offer a competitive
benefits package, which translates to thousands
| | 01:39 | of dollars in compensation. Have you been
able to look over that benefits package?
| | 01:44 | Amy: Yes, I did review the
benefits. It's an excellent package.
| | 01:49 | I'm a little bit disappointed
that the salary is not negotiable,
| | 01:53 | but I understand the budgetary constraints
and the position you're in right now.
| | 01:57 | Perhaps, we can look at how I can best position
myself to obtain a salary increase in the near future.
| | 02:03 | Can you tell me a little bit
about your salary review process?
| | 02:07 | Male Speaker: Yes, of course! Here at Kinetico
supervisors do assessments annually, and depending
| | 02:13 | on the review and your supervisor's
recommendation, we could increase your salary at that time.
| | 02:18 | Amy: That sounds promising.
| | 02:20 | However I do think I'm bringing new ideas,
and rich experience from my previous job,
| | 02:25 | that will allow me to make some
significant contributions very quickly.
| | 02:29 | Do you think we would be able to
move up my assessment to six months?
| | 02:33 | Male Speaker: I'll tell you what.
| | 02:35 | Let me check with the hiring manager, but I do think
this is something that's very much a possibility.
| | 02:39 | Amy: Great! I'd also like to discuss the vacation
days, which is currently two weeks. My current
| | 02:47 | company gives me three weeks of
vacation and I'm really hoping to keep that.
| | 02:51 | Male Speaker: Okay! I know that we can work
with you to get extra time off. What if we
| | 02:55 | added another weeks vacation to the offer?
| | 02:58 | Amy: That would be excellent! I really
appreciate you moving on the extra vacation time as my
| | 03:03 | family is in another state and it's going
to allow me to spend more time with them.
| | 03:08 | I have one more item I'd like to clarify.
| | 03:11 | In my interview with Suzanne, she really
emphasized the importance that the company places on
| | 03:15 | keeping up with the current industry trends,
and staying competitive in the marketplace.
| | 03:20 | Male Speaker: Mhmm.
Amy: That's very important to me as well.
| | 03:23 | My former company paid me to attend two major
industry conferences per year. Would Kinetico
| | 03:28 | be willing to do the same?
| | 03:30 | Male Speaker: Hmm. This is something that
a supervisor needs to allocate from their
| | 03:34 | annual budget. Unfortunately, Amy, I can't
give you any answer on this question until
| | 03:39 | I speak with her first.
| | 03:40 | Amy: Okay, I understand. I do want you to
know and also let Suzanne know, I'm really
| | 03:45 | excited about this opportunity.
| | 03:47 | If you're able to add the conference attendance,
the extra week's vacation, and a six-month
| | 03:53 | assessment to the written offer,
I'd be happy to sign immediately.
| | 03:56 | Male Speaker: Well, let me look into getting answers
for these questions and we'll be in touch soon.
| | 04:01 | Amy: That sounds great! I
will talk to you soon.
| | 04:03 | Male Speaker: Great! All right, talk
to you soon Amy.
| | 04:05 | Amy: Thank you!
Male Speaker: Thank you.
| | 04:07 | Amy: Bye!
Male Speaker: Bye!
| | 04:09 | This is just one example of
how this could play out.
| | 04:12 | The language used will depend
on your industry and role.
| | 04:16 | You notice, in this scenario the person gave HR
a reason why they deserved the extra salary,
| | 04:23 | and why they needed their other priorities.
| | 04:25 | They kept the conversation positive.
| | 04:28 | They clarified their other options,
and asked for it all in writing.
| | 04:32 | Remember, negotiations are
conversations of give-and-take.
| | 04:38 | In this scenario, you can see keeping an open
attitude and creating a positive conversation
| | 04:44 | is a good strategy for success.
| | 04:47 |
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3. Special ConsiderationsNegotiating at your current job| 00:00 | Even when you're currently in a job position, you
may still have the power to negotiate your salary.
| | 00:06 | Remember, employers want to retain you.
| | 00:09 | For the most part, there are things you can
negotiate no matter what industry you're in.
| | 00:15 | There are two options that you can use.
| | 00:17 | The first option is to negotiate
during your performance review.
| | 00:21 | Often this comes once a year when you sit
down with the supervisor and assess your prior
| | 00:26 | year's performance.
| | 00:27 | However, you might want to start the
conversation earlier than the scheduled review.
| | 00:32 | The second option is to
request an equity review.
| | 00:36 | An equity review is a review that
you request from your employer.
| | 00:41 | Often times, when you've been in a position
for a longer period of time, your position
| | 00:46 | may have changed or you've obtained new skills or
degrees that are not reflected in your current salary.
| | 00:52 | In this case, you can request to
review your position with HR.
| | 00:57 | A good HR team is going to say yes to that
review because they're going to want to make
| | 01:02 | sure they are in line with internal equity.
| | 01:06 | Preparation for both types of review is
just as important as it is with a new offer.
| | 01:11 | Keep a file of successful projects,
additional work, new skills, and contributions you've
| | 01:18 | made to the bottom-line of the organization.
| | 01:22 | Review this file to develop and practice
the story that shows the impact you've had.
| | 01:27 | Come prepared with the research you've done
to determine competitive salary ranges for
| | 01:32 | your role, industry, and geographic region.
| | 01:35 | These numbers will help to
support your request for an increase.
| | 01:40 | Based on this research, you
should have a figure in mind.
| | 01:43 | This way, if your employer states that raises
are standard across the board, you can come
| | 01:48 | back with your story and
research on why you deserve more.
| | 01:52 | Remember, there's usually
room for special cases.
| | 01:56 | If you've done a great job, the employer will
want to stay competitive, ensuring they don't
| | 02:01 | lose you to another organization.
| | 02:03 | However, there may be cases where they
are not able to accommodate your request.
| | 02:09 | You'll want to maintain good relations,
but also show your disappointment.
| | 02:13 | At this point, there are
two things you can do.
| | 02:16 | First, you can negotiate for other benefits
like flexible time or further education.
| | 02:22 | Second, you can negotiate a
timeline to achieve an increased salary.
| | 02:27 | Outline with your boss the steps
you need to take to get there.
| | 02:32 | Once you've confirmed those
expectations, get it in writing.
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| Discussing your salary history and expectations| 00:00 | In the screening interview or during the
application process, the employer may have asked you for
| | 00:05 | your salary history or what
your expected salary is.
| | 00:09 | Requests for salary history are
not a part of the negotiation.
| | 00:13 | However, I'm going to talk about
how to handle it in the future.
| | 00:17 | Why do employers ask in the first place? They
may be gleaning information from salary history.
| | 00:23 | If you have shown steady increases over
time, this shows that you're dependable.
| | 00:28 | If you have rapid growth in salary, this could
indicate to HR that you are a strong performer,
| | 00:34 | or it could be a red flag if
there is anything questionable.
| | 00:39 | If they require salary
history, you need to be honest.
| | 00:43 | It's easy for potential
employers to verify this information.
| | 00:47 | If your salary history has been low in the
past, they may come in with a lower offer,
| | 00:52 | but it will still be within a
salary bound for that position.
| | 00:56 | At this point, you need to be prepared with
your story of where you exceed the position
| | 01:01 | requirements to come in at the higher rate.
| | 01:04 | However, if your past salary is above what
they may be offering, you should say that
| | 01:09 | you're willing to negotiate.
| | 01:12 | Be prepared with other
options to bring to the table.
| | 01:16 | If they ask during the screening interview
what your expected salary is, you'll want to
| | 01:20 | push back and turn the
conversation around on them.
| | 01:24 | You should say, "Based on my qualifications and
skills, I would expect a competitive salary.
| | 01:30 | What salary were you
thinking for, for this position?"
| | 01:33 | However, they may push for the answers.
| | 01:36 | If they do, you should be prepared
with your research on expected salaries.
| | 01:42 | Based on this information, you need to state a
range that falls within the industry standards,
| | 01:47 | but also takes into
consideration your abilities.
| | 01:52 | Remember that they want the best person for the job and
want to offer salary that's appropriate for the market.
| | 01:58 | If you've done your research and have a
compelling story, you should get an offer that makes
| | 02:03 | you happy no matter how
you handle this question.
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| Understanding equity compensation| 00:00 | If you're interested in working for a startup
organization, equity may come into your negotiation.
| | 00:07 | Equity compensation is a complicated subject.
| | 00:10 | I'm going to share with you a few definitions
and several resources for more information.
| | 00:16 | Equity is non-cash compensation in the form
of interest or ownership in the company.
| | 00:22 | The company assumes that equity contributes
to their long-term growth strategy, and helps
| | 00:27 | them retain employees.
| | 00:30 | The second term is stock, which is
a partial ownership in a company.
| | 00:34 | There are two types of
stocks: common and preferred.
| | 00:38 | If a company is sold, preferred stockholders
will get paid first and then if there is anything
| | 00:44 | left over, the common stock is paid out.
| | 00:47 | Unless you're an executive level or an investor,
you're not going to be offered preferred stock.
| | 00:53 | Most equity offers contain common stock.
| | 00:56 | The company may also offer
you stock as an option.
| | 01:00 | This means that you'll be able to purchase
the stock at a future date at a fixed price.
| | 01:06 | Stock options are often
partnered with vesting conditions.
| | 01:10 | Vesting means that you gain control
over the stock after a period of time.
| | 01:15 | This usually is around three to five years.
| | 01:17 | During the vesting period,
employees cannot transfer or sell stocks.
| | 01:23 | There also maybe vesting conditions which
may include continued employment and meeting
| | 01:28 | performance goals.
| | 01:30 | If the vesting terms are not outlined
in the offer, ask for more details.
| | 01:35 | Another term you should be
familiar with is dilution.
| | 01:39 | Companies raise new money by issuing stocks.
| | 01:42 | But this causes the previous stock
issued to lose value and become diluted.
| | 01:48 | Negotiate for the most equity upfront as
your stocks will most likely dilute over time.
| | 01:56 | Startups often think of compensation as the
total package of the salary, plus stocks.
| | 02:02 | However, you need to remember your
bottom line in the negotiation.
| | 02:06 | Remember, no matter what equity offers an employer
may make you, you have to make your minimum salary.
| | 02:14 | Equity compensation can be
difficult to understand.
| | 02:17 | Here are a few online resources that have
more information on equity compensation.
| | 02:23 | Investopedia is a good resource for defining
financial terms and goodwinfoundersworkbench.com
| | 02:30 | specializes in startups, in
technology, and life sciences.
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4. After the NegotiationLeaving your old job on good terms| 00:00 | Once you have accepted the offer, you might find
yourself needing to resign from your current job.
| | 00:06 | Your resignation should be like any other business
transaction to ensure you don't burn any bridges.
| | 00:12 | Be courteous throughout the process as you
never know when you'll run into these people
| | 00:16 | in a professional environment
or need a future reference.
| | 00:21 | First, you want to consider timing.
| | 00:24 | It's important to understand what the industry
standards are for the length of time or notice
| | 00:29 | you should give your employer.
| | 00:31 | Most commonly it's two weeks, however it may be
longer for more senior positions, or industries
| | 00:37 | like higher education.
| | 00:39 | Something you should also consider when timing
your notification is that some companies have
| | 00:43 | a policy of immediate termination.
| | 00:46 | This means you may be escorted from the
building. Be sure to know the company's policies so
| | 00:51 | that you are not surprised.
| | 00:53 | Second, consider format.
| | 00:55 | The ideal situation will be to give notice in
person along with a letter of resignation.
| | 01:02 | Keep this professional and to the point.
| | 01:04 | Even if you're leaving a bad situation
this is not the time to air your grievances.
| | 01:10 | You simply need to state that you're leaving your
current position to pursue other opportunities.
| | 01:15 | However, if you're leaving in good
term's you may want write in more detail.
| | 01:20 | In the first paragraph, state your intention
of leaving the organization and a specific date
| | 01:25 | of your departure.
| | 01:27 | In the second paragraph, give your reason
for leaving, such as career advancement and
| | 01:31 | then remind them of your contributions.
| | 01:34 | In your final, paragraph leave on a positive
note by thanking them for the opportunity
| | 01:39 | to work for the organization.
| | 01:41 | Finally, consider your transition. Depending on
your industry standards, submit your resignation
| | 01:48 | letter to your direct supervisor with a
copy to your human resources office.
| | 01:54 | If by chance, your employer gives you a
counter offer, carefully consider this option.
| | 01:59 | However, it is generally
not a good idea to accept.
| | 02:02 | They might concede to a higher salary and
better benefits but these are often rash decisions
| | 02:08 | to retain an employee and won't
necessarily solve longer-term issues.
| | 02:13 | If you have done your research up front the
decision to leave should be your best decision.
| | 02:18 | Also, you may need to tie up loose ends.
| | 02:21 | For example, you may have unfinished projects,
which you need to delegate, unused benefits
| | 02:26 | like vacation, or retirement
questions, which you need to negotiate.
| | 02:31 | Remember to get contact information from
colleagues that you want to keep in touch with or add
| | 02:36 | them to your LinkedIn network.
| | 02:39 | When your employer comes to terms with your
resignation, you may be asked for an exit
| | 02:43 | interview and I recommend you do so to
maintain good relations with your former employer.
| | 02:49 | Once you have given your resignation, you
will want to stay in touch and also prepare
| | 02:53 | to start your new position.
| | 02:56 | In the next video, we'll
discuss some steps to success.
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| Starting the new job| 00:00 | Once you've accepted your offer and given
your resignation, you should prepare for your
| | 00:05 | new position and prepare to stay in
contact with your old colleagues.
| | 00:10 | Prior to starting your new position, plan
your route to work so that you can be on time.
| | 00:16 | Also, do some research on
appropriate dress for this work environment.
| | 00:20 | Schedule a meeting with your boss
if she has not already done so.
| | 00:24 | Come prepared with questions about the
general expectations of the company, high priority
| | 00:29 | projects, and how you'll be
assessed in the first three months.
| | 00:33 | In addition to these meetings,
continue your research.
| | 00:36 | Although, you did some before your interview,
this doesn't mean you know enough to be successful.
| | 00:43 | Examine old projects, learn office politics, and
assess the mission-critical goals of the organization.
| | 00:51 | You can then set appropriate goals for
your first three months on the job.
| | 00:56 | Once you've settled into your new job,
remember to contact your old colleagues to give them
| | 01:01 | updated contact information.
| | 01:04 | Continue to keep them as
a part of your network.
| | 01:06 | You never know when you'll be job
hunting, and need professional advice.
| | 01:11 | You should be off to a great start.
| | 01:13 | In the final chapter, I'll discuss
special situations that may be relevant to you.
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ConclusionAdditional resources| 00:00 | We've only discussed the specifics
of understanding salary negotiation.
| | 00:05 | To increase your comfort level in negotiation
overall, there are many resources you can
| | 00:10 | take advantage of.
| | 00:12 | First, I recommend Lisa Gates
course Negotiation Fundamentals.
| | 00:17 | Lisa demonstrates the skills and power communicators
used to achieve mutual benefit at the negotiation table.
| | 00:25 | She focuses on techniques you can use to
become more comfortable with the process.
| | 00:30 | Second, I recommend you read Richard
Shell's Bargaining for Advantage.
| | 00:35 | This book provides an assessment of your
negotiation IQ as well as addressing online negotiations
| | 00:42 | including email and instant messaging.
| | 00:44 | A book called Getting to YES is based on the
work of the Harvard Negotiation Project, and
| | 00:50 | deals with all level of communication, and
gives real life examples of negotiations where
| | 00:56 | you can see the give-and-
take of each situation.
| | 01:01 | For good quick tips, to keep up on current
trends, to know that it is okay to negotiate,
| | 01:06 | look at articles in The Wall
Street Journal and Fortune Magazine.
| | 01:10 | You shouldn't be afraid to negotiate.
| | 01:12 | It's expected in every
industry, even nonprofits.
| | 01:17 | This is about advocating for yourself.
| | 01:19 | Remember, by negotiating, you set
yourself up for future success.
| | 01:25 |
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