Developing a Pitch to an Employer
Reviewing and Negotiating the Offer
Reviewing the offer
After a long job search, it can be tempting to say yes right away. However, one should review an offer very carefully before taking a position. By understanding the full information, one can prioritize what they’ll ask for. It is appropriate to ask the employer for the offer in writing, and take it home to review it in detail, but be sure to ask for a timeline to get back to them.
During the review, do not focus solely on the salary. Other benefits including health insurance, retirement, overtime, flexible working hours, commuter discounts, etc., will require a keen eye as well. This is an appropriate time to compare the offer to the pre-negotiation sheet to see how well they align.
After reviewing, make sure to clarify anything that is unclear, for example, if flex time is offered, clarify what that means to both you and the employer. Additionally, if something was offered in conversation and is not written down, make sure that is added in the written offer.
The Conversation
Negotiation is a business transaction to benefit both parties and should be viewed as collaboration, not a competition. It is important to be confident when entering a negotiation and to always do it over the phone or in person, NEVER via email.
During the conversation:
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Be enthusiastic and positive about the opportunity
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Approach the negotiation in a confident and agreeable manner
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Discuss the details of the offer
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Remind the employer of the value you bring to the organization
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Use your story from the pre-negotiation sheet
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Discuss salary research and your preferred salary
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Inquire how salary reviews are handled for outstanding performers
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Ask for the final negotiated offer to be sent to you in writing
Determine Your Priorities
After determining an ideal salary based on external equity and personal needs, focus on other priorities to be included as part of the negotiation. These may include:
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Bonuses (signing, yearly)
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Relocation cost
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Flexible schedules
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Parking
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Vacation time
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Professional development
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Insurance package
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401K plus matching contributions
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Daycare services
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Maternity leave
These should be ranked according to importance on a pre-negotiation worksheet.
Most of the above information should be available on an organization’s website. Researching these will put one at an advantage when negotiation begins. For example, if a company cannot meet your salary requirements, would they be willing to offer extra weeks of vacation or conference funding.
Focus On Your Strengths
On a pre-negotiation worksheet, write down the skills, knowledge, and qualifications the employer seeks and examples of where you exceed, meet, or do not meet the employer’s expectations. One can leverage their position during negotiations by focusing on the places where they exceed the expectations. Places in which one does not meet expectations can be highlighted as opportunities for professional growth.
Human resources require a reason to be able to offer an interviewee more, so focus on individual equity i.e. one’s talents and how they will contribute to the organization.
The Pitch
Plan a negotiation story well before the interview that includes:
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The value and impact of past accomplishments
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The overall value you bring to the company
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Personal and professional needs
The actual pitch should:
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Use the language of the industry and your role within that industry
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Focus on the places where you exceed expectations
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Use the places where you exceed to ask for the things you’ve identified in the pre-negotiation worksheet
Be sure to rehearse the pitch and practice with a friend or contact in the industry.
Salary Setting and Negotiation
Salary negotiation is a useful technique that many young professionals don't do out of fear and lack of skills. A recent survey by salary.com showed that only 37% of people always negotiate their salaries, while 18% never negotiate.
Most of us are simply happy to receive an offer, never mind demanding the salary we know we deserve. However, settling for a lower salary than what we are worth can have major financial consequences, both in the short-term and long-term. What might start by simply earning less can turn into resentfulness and dissatisfaction.
This page is designed to give jobseekers the confidence to negotiate for their priorities, including:
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Understanding how employers determine salary
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Researching salary ranges
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Developing a pitch to an employer
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Reviewing and negotiating the offer
Understanding How Employers Determine Salary
Researching Salary Ranges
To prepare for negotiations, one should research typical salary ranges in their given field before they interview for a job. A pre-negotiation worksheet can be useful during this time in order to determine:
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Personal range i.e. the minimum salary one would need to meet financial obligations (low range)
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Ideal range i.e. the salary that would allow one to live the life they desire (high range)
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Realistic range i.e. the salary the market actually pays (external equity)
Useful websites to determine external equity of your field of interest
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Bureau of Labor Statistics (BLS)
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The BLS s one of the most reliable sources of job data and is used by many HR managers. Simply go to the PAY & BENEFITS subsection under Subject Areas, and click on Wages by Area & Occupation
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Side note: ONLY covers the US market
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Professional Organizations
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O*NET
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Glassdoor
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Salary comparison websites like payscale.com and salary.com
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Sperling's Best Places
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CNN Money
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Educate to Career
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NACE
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GoinGlobal
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MyWorldAbroad
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Uniworld Online
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Careerspots
After researching salary ranges, make sure that personal range and market range are aligned.
The most important step to successful negotiations is understanding one’s worth in the market. However, one should also understand how a company chooses its employees’ salaries in order to determine the best negotiation tactics. Most organizations have a compensation policy that:
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Dictates how employees are paid
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Establishes the guidelines of salary reviews
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Determines how employee bonuses are calculated
The compensation policy is based on three considerations:
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Individual equity
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Internal equity
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External equity
Internal Equity
Individual equity is the unique talent and abilities one brings to an organization. It is based on one’s credentials and the value they will bring to a company, and is a negotiators strongest vantage point. However, individual equity is not necessarily determined by how much one thinks their individual talent is worth but rather what a company determines the job position to be worth.
Internal Equity
Internal equity is the measure of how a potential employee’s salary compares to others of the same position within the company. Thus, a company will expect to pay a new hire a similar salary to what they are paying current employees of the same job title. On the other hand, internal equity is a marker of where one fits within an organization’s hierarchy. For example, a company will pay a senior level employee more than they will a junior level employee.
External Equity
External equity refers to the pay trends of a job title amongst various organizations. So, if UC Berkeley pays their International Student Advisor $43,000, then University of San Francisco is probably going to pay something close to $43,000 for International Student Advisors. However, an organization can choose to pay higher or lower based on:
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Geographic location
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Reputation
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Attractiveness to potential employees
Human resources generally makes a low-range to mid-range offer based on the three equities. Jobseekers should start their research at external equity, as this is the usual benchmark for companies.
Resource
The above information was found at:
The video is titled: "Negotiating Your Salary" and is taught by Valeria Sutton