Mastering Job Offer Negotiation: Strategies and Tips
Learn valuable insights on negotiating a job offer from top-tier MBA graduate salary statistics to the importance of BATNA (Best Alternative to Negotiated Agreement). Discover practical tips and strategies to empower yourself during the negotiation process and maximize your earning potential. Understand the cost of not negotiating and explore alternatives to make informed decisions. Get ready to enhance your negotiation skills and secure the best deal for yourself.
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Presentation Transcript
NEGOTIATING A JOB OFFER Elizabeth Umphress, PhD
Todays Agenda Basic Negotiation Concepts Creating a Points Schedule Negotiating a Job Offer
The Choice to Negotiate Among top tier MBA graduates, starting salaries of men are 7.6% higher than those of women. % of men who negotiate? 57% % of women who negotiate? 7% Average salary increase that results from negotiation? 7.4%
The cost of not negotiating By age 65 = $3.2M 780 By age 65 = $1.9M In starting salary, that s 32 years more work I hope you like your job!! 680 By age 65 = $728,356 580 480 1% raise differential? $190,000 negotiated annually? $149,000 If an additional .5% raise is Cumulative difference of one time decision not to negotiate? $107,972 380 280 180 $100K $107.6K 80 30 40 65
BATNA Best Alternative To Negotiated Agreement What was your BATNA? Why is BATNA so important? BATNA = POWER Planning BATNA BATNA BATNA TIPS Never reveal signal. Don t lie. Constant improvement is key. What is your opponent s BATNA? BATNA TIPS Never reveal signal. Don t lie. Constant improvement is key. What is your opponent s BATNA? http://3.bp.blogspot.com/-UeERE_N5wKA/Tc5MPPY2fmI/AAAAAAAAAOg/0v7cfWJwh6I/s320/shhh.jpg
What are my alternatives? My current car Taking the bus Best deal at another dealership Buying a car Salary Negotiation My current salary Best offer from another company Retirement Supplier Relationships Status quo deal Best deal from another supplier Change to manufacturing process
Best Alternative = BATNA My current car Taking the bus Best deal at another dealership Buying a car Salary Negotiation My current salary Best offer from another company Retirement BATNA Supplier Relationships Status quo deal Best deal from another supplier Change to manufacturing process
BANTA determines Reservation Point My current car Taking the bus Best deal at another dealership Buying a car Salary Negotiation My current salary Best offer from another company Retirement Walk away if you can t beat this. Supplier Relationships Status quo deal Best deal from another supplier Change to manufacturing process
Whats your target? TARGET TIPS -Do your research and refer to it. -Set aggressive goals, don t act aggressively. -Set specific goals. -Realistic (high but not embarrassing) As high as you can go without embarrassing yourself in front of a respected third party -Fisher Ury and Patton
Creating a Points Schedule List all of the issues included in an outcome e.g., everything included in a job Order the list according to what s most and least important Remove anything you don t care about at all Assign percentage values to each issue based on your interests Location (30%), type of work (20%), salary (15%) Allocate points based on those percentages 10
Sample Points Schedule Issue Points Possible Texas A&M Points City 300 250 Colleagues 200 200 Commute 170 0 Research Support 150 150 Distance from Family 100 80 Salary 80 80 1000 Reservation Point = 760 11
Negotiating a Job Offer: During the Interview Think about the best way to present yourself Frame disadvantages as advantages Don t start negotiating until you have received the offer Don t talk bad about current company/ UW Ask them specific questions about their company
Negotiating a Job Offer: Getting the Offer Do not immediately agree to the offer Thank you! I will take some time to review it. Get the offer in writing Be enthusiastic and gracious
Negotiating a Job Offer: Preparation Do your homework Determine BATNA, RP & Target Research employer s BATNA Wage structure, standard package, insurance, recent problems and needs, what they want in a candidate
Negotiating a Job Offer: You Get the Offer Assume that their offer is negotiable, don t ask Assess their ability to negotiate I have some questions who should I speak to about 8 of 10 recruiters willing to negotiate; 1/3 of applicants feel comfortable negotiating
Negotiating a Job Offer: During the Negotiation Imagine that you are negotiating for someone else Tell them exactly what needs to be done for you to agree Be sure to use fairness justification Prepare responses to various situations, PRACTICE Employer agrees immediately Employer makes a low-ball offer Employer makes one small concession Employer makes a reasonable offer
Negotiating a Job Offer: Post-Offer: Now what? Don t negotiate if not interested Exploding offer Consider it & inform other companies about it Don t create a bidding war Know when to stop (2 times back and forth) The other side is not responsive Reciprocal concessions are becoming miniscule They say ENOUGH Choose your offer!
Contact me with questions: eu4@uw.edu THANK YOU!
