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salary negotiation

12/12/2019 – Salary Negotiation: Make More Money

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Jack Milligan Salary Negotiation

Written by: Connie Huber, SHRM-CP PHR

Salary negotiations have always been a part of the hiring process. However, there has been a notable shift in negotiations being the new normal for today’s job seeker. What is the driving force behind this effort? Is it due to a tight labor market or access to salary information that gives candidates more confidence to exercise their negotiating power?

According to recent research from Robert Half determined the following:

  • 55% of professionals surveyed tried to negotiate a higher salary with their last employment offer. 16 point jump from similar survey released in 2018
  • Survey of 2,800 workers with equal member of senior managers, also found that respondents from Miami, San Diego and San Francisco were most likely to ask for more pay and those from Minneapolis, Philadelphia and Cleveland were the least likely.
  • 68% of male employees tried negotiating pay compared to 45% of women
  • More professionals ages 18-34 (65%) asked for higher salaries versus those ages 35 to 54 (55%) and 55 and older (38%).
  • In a separate survey, 70% of senior managers said they expected some back and forth negotiating from candidates. More senior managers said they were open to negotiating pay (62%) and benefits and perks (59%) than a year ago.

Keynote

Jack Milligan: Career HR Guy, Founding Partner, Founder and Instructor, Author! Jack’s career has allowed him to be involved and exposed to all aspects of HR. One of his most significant accomplishment was that he hired, or was involved in the hiring, of more than 20,000 employees. Needless to say, Jack is well-versed on the subject of salary negotiations.

Jack has come to the following premise:

  • Most people DON’T negotiate – 75% of those who could, DON’T
  • Of those who DO negotiate – most do it wrong
  • Only about 10% of those who could negotiate do it right – “according to Jack”.
  • Jack’s objective is to make us comfortable with being a 10% skilled negotiator

Negotiating is an art! Key competencies are patience and courage.

  • You get better with practice
  • Negotiating salary is intensely personal
  • Most people don’t ask – 75% accept
  • Negotiating is not just for today, but also for your future

WHY, we don’t negotiate?

  • Most don’t think we have the leverage to negotiate
  • Most are happy/relieved to have an offer
  • Gender differences play a key role along generational differences
  • Most people do not ask – they accept what is offered.
  • Those who do not negotiate leave a pile of $$$ on the table

Three legitimate salary channels of negotiation and realities:

  • Ultimatum: 5% succeed, over 70% fail. Excessive in both amount and attitude; creates lasting negative impression; 30% success rate. “Thank you for the $90K offer, I need to make at least $130k to get me to move.” Candidate is very “take or leave it”.
    • Reality: Works only in seller’s market where candidate is being recruited, has highly valued skills, is currently well situated and can afford to pass on an opportunity.
  • Demand: More sincere and reasonable, states a specific amount, leaves negotiation choice up to employer, allows walk-away without counter. 30% failure rate less than half of 70% at the demand point. “Thank you for the $90k offer I want at least $100k.”
    • Reality: Works only by default. States a certain number and is demanding. Lets the employer vacate the offer with a counter which includes unnecessary risk.
  • Requestive: Ask a question, implies flexibility, creates negotiable environment, makes positive impression, requires a response. Zero risk, 91% successful in getting something tangible, 9% get peace of mind. “Thank you for the $90k offer… do you have any flexibility in the offer, or do you have any room to negotiate, or do you have any wiggle room?”.
    • Reality: Works without failure or risk. Makes a positive statement to the employer while injecting uncertainty in an employer driven process. Creates an opportunity for positive negotiations. Maximizes the offer.

Final Thoughts:

  • NEVER/EVER accept the offer when it is given. Clarify any questions you have and take some time to think about the offer.
  • All jobs are temporary in today’s workforce. Realizing this early in the process will put us in the mindset of negotiation.
  • Practice patience (patience is the key to your success), courage and planning to get better at negotiation.
  • Do not accept the offer on the spot and do not hesitate to ask questions. Always ask appropriately.
  • 91% of those who tried the negotiation channels get some tangible results.

Hiring Companies

USAA
Andrew La Vine, Real Estate Manager

USAA’S mission is to facilitate the financial security of its members, associates, and their families through provision of a full range of highly competitive financial products and services. USSA seeks to be the provider of choice for the military community. Military members are a primary focus. Over 33,000 employees provide legendary service and quality products – 4800 of those employees are in Phoenix. Jobs include Customer Service, Insurance, Banking, IT Software Developers.

Current openings include customer service representative, entry-level adjuster, real estate processor, Java Software Engineer and Risk Compliance. Benefits are robust and cater to its employees. For more openings and information go online to the website to apply.

U-Haul
Alex Taylor, Corporate Recruiter

U-Haul was founded in 1945. U-Haul trucks and trailers can be rented anywhere in the US and Canada. Nationwide, U-Haul has 32,000 employees. The company has the largest truck fleet in the world; 20,000 independent dealers and over 1,900 company-owned centers.

Current openings include positions in every field. Contact center: customer service and sales; Corporate; accounting and project planners; Field: retail sales and customer service agents; and IT: software infrastructure software engineer. Benefits include medical, dental, vision and prescription. The company also emphasizes the health of its employees with its Healthier U program. For additional details visit U-Haul.

Resource

Career Connectors Academy
Landi Carfi, Brighton College, V.P. Corporate Training

Career Connectors is proud to partner with Brighton College to form Career Connectors Academy. The Academy offers a wide variety of accredited online college programs, along with many professional development classes. The focus is on quality and affordability. There are a number of online certificate programs such as IT, Business Management, Paralegal, Medical Assistant, Legal Nurse Consultant, and Online Professional Development classes.

All programs are on-line allowing students to study at their own pace. Career Connectors is offering no cost IT certifications at no cost to qualified people. Interested professionals must mention Career Connectors when talking to Brighton College Staff to receive the discounted tuition rate. Check out the website for further information.

Closing

Jessica Pierce closed the meeting by thanking Highlands Church and their volunteers. Happy Holiday wishes went to all! See the Event Schedule for information on upcoming 2020 events.

9/26/17 – Salary Negotiation-Make More Money

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Salary NegotiationWritten by  Shweta Shrivastav

Keynote Speaker

Jack Milligan SPHR, GPHR, SHRM-SCP

Jack has a BS in Labor Economics and an MA in Organizational Behavior. He has been in the field of HR for almost 50 years. He has been part of the hiring process of nearly 20,000 candidates. He has seen both sides of the negotiation process. He has recruited for various companies as well as helped job seekers negotiate efficiently. His book “Make More Money” which came out earlier this year, is available on Amazon and has a wealth of information for job seekers.

“All jobs are different and all jobs are temporary.”

Average job tenure is 3.75 years. If you think about this, it means all jobs are basically “temp” jobs. If the job seeker approaches the job search from this mindset, they will have more courage. Courage and patience are the tenets of a successful salary negotiation process.

Nearly 75% of job seekers do not negotiate their salary when joining a new role and only 25% do. Out of this 25%, only 10% of the people do it correctly.

There might be various reasons to why job seekers don’t negotiate a job offer.

  1. They might think they don’t have a leverage
  2. They might be relieved to have an offer
  3. Gender differences – Men are more likely to negotiate than women

Your package has a cumulative effect on your long-term financial well-being. You are losing 100’s and 1000’s of dollars if you don’t negotiate. Your upward mobility depends on the package you accept. Most salary packages have wiggle room, don’t settle for less.

During the employment process, the employer is in charge until they make an offer. As soon as the candidate receives an offer, the tables are turned. There is only one simple rule to salary negotiation: Never ever accept a job offer as it is.

Here are three legitimate ways to negotiate salary. The first two ways have a relatively high degree of failure.

  1. Ultimatum: (!) Might work for someone who is a passive candidate, well situated and well rewarded. Ex: “Thank you for the $90K offer, it is going to take $130K to get me to move!”
  2. Demand: (.) More sincere and reasonable in amount and attitude. Willing to walk away if the demand is not met. Ex: “Thank you for the $90K offer, I need at least $100k.”
  3. Requestive: (?) Asks a question, implies flexibility. Creates a positive environment for negotiations. Ex: Do you have any room to negotiate/is there any flexibility?

Employers never rescind an offer just because a job seeker asks if there is any room to negotiate. This Requestive Channel Negotiation (RCN) has a success rate of 91%. Even if you are in the 9% who get to hear a “no”,  the “no” comes along with a polite, almost apologetic explanation. There is no downside to this method, just a great chance of success. Even if the answer is negative, you still have the original offer.

RCN does not work for all kinds of jobs. There are two types of jobs – rated and ranged.

Rated jobs are those jobs which have fixed hourly, weekly or monthly rates. Irrespective of the qualification and intelligence of the candidate the rates are fixed so there is no room to negotiate. Ex: Teachers, many Healthcare professionals, fast food restaurant workers. 40% of the jobs are rated jobs.

Ranged jobs are those where the compensation is not fixed. Big companies have a range of all roles where they have set a minimum, a maximum and a midpoint of the salary range. Smaller, more entrepreneurial companies don’t have such detailed compensation structure but they still have a range.

The chance of success of salary negotiation is highly unlikely in rated jobs. One should still give it a try. Ranged jobs have a high chance of successful salary negotiation.

So, how is it done?

  1. The offer: The employer/recruiter contacts you with an offer.
  2. Inject some ambiguity: Thank them for the offer and probe for clarity. Ask for some time to consider all alternatives. Employers don’t take ambiguity well. At this point, they were looking forward to closing the position as soon as possible. Since you asked for time, they are already thinking you would join immediately if they come up with a higher salary package.
  3. Create your NISL: Get clear on what you want to negotiate and create your Negotiating Items Shortlist. Basic compensation should be last on your NISL. If you are a senior executive, base pay should be the second last thing, after security pay. Ex: I am coming to you with 10 years of experience. I used to get 4 weeks of paid vacation at my last employer but your company is offering only 2 weeks. Would you consider giving me 4 weeks of paid vacation?
  4. Call back: and pose your question about wiggle room. There are two probabilities, one they will ask what do you have in mind and negotiate or the second, they will say no. If no, you get a reason why.
  5. Negotiate for tomorrow: Asking for an accelerated/half yearly performance review is also something you can ask for in case the employer says that they don’t have flexibility in the package right now. This way you end up getting a raise sooner than the usual one-year appraisal.

Even if you get a no for an answer, you will have peace of mind since you tried.

Hiring Companies

Codigo Connect

Paul Quinn, VP

Codigo Connect provides services in Technical professional development, Recruitment and Project based work. Currently, they roles such as Python Developer, Business Center Rep, Java Developer, Tax Accountant, Sales Professional and Machine Learning Engineer open. Job seekers can send their updated resumes to careers@codigoconnect.com for consideration. Codigo Connect is also offering a referral bonus of $500.

Here is a list of their open positions.

Northern Trust

Leo Ibarra, VP, Recruiting Manager

Tom Barnella, Recruiting Consultant

Northern Trust is a Financial corporation which provides asset management, asset servicing and banking services to individuals and companies. They take pride in providing work-life balance, professional development and diagonal movement to their employees. Some of their open positions include Technical Coordinator, Team Lead, Investment Performance Analyst, Bank Loan Trade Analyst, HR Admin Assistant, Risk Analytics Consultant and Associate Economist. For a list of their open roles please click here.

State Farm

DeAnne Prigmore, Recruiter

DeAnne has been working at State Farm for the last 20 years. She credits the development opportunities available at State Farm as the reason for her long tenure. State Farm offers great pay, time off, work-life balance, and training opportunities.

DeAnne invited job seekers to visit the retail space under State Farm’s Marina Heights office to get a feel for the company. There is free two hour parking for visitors.

Check out their open roles here, including Attorney, Claim Associate, Java Developer and iOS Developer.

Vanguard

Ralph Kimbrough, Sr. Recruiter

Vanguard offers great work-life balance, growth and retirement investment plans to its employees. They are a big name in investment and every $9 out of $10 invested is invested through Vanguard. They have openings from entry-level to managerial level positions including Wealth Financial Advisor, Internal Sales Consultant, Brokerage Operations Manager, Advanced Analytics Specialist, and Editor. Find out more here.

Resources

Coder Camps

Jason Jones, Sr. Admissions Advisor

Coder Camps offers 12-week boot camps in various software technologies. They have a Coder for life program which means any student is able to come back anytime after they have completed their course to take up any other courses for free.

They are a provider under the WIOA act and for those not eligible for the WIOA act, they have the option of payment plans if needed.

Students have the option of taking either on-campus or online course. Check out their course offerings here.

Closing

Jessica graciously thanked all company representatives, job seekers and volunteers for their time and participation.

The next event is at the Phoenix location on Wednesday, October 4th. Please register here.

Please find the list of all upcoming events here.

 

3/16/17 – Salary Negotiation – Make More Money

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Salary NegotiationWritten by Michelle Soracco

Keynote Speaker

Jack Milligan, SPHR, GPHR, SHRM-SCP @LMAAZ

Jack has been in the HR world for many years, including being the VP of HR in Los Angeles, wondering why he felt the need to be VP of HR.  Known to many as “The HR Guy,” he’s been part of the hiring process for 20,000+ people.  His book, “Make More Money,” came out a few months ago.  You can purchase it here on Amazon.

Salary Negotiation – Make More Money

Negotiation doesn’t work for every job.  Rated jobs, about 25% of job offers, have a specific rate attached, such as trades/unions, nursing, government, teaching and contract work.  The salary stated is what you get, take it or leave it. However, ranged jobs, about 75% of job offers, have a sophisticated salary structure, so there is flexibility in the range.  Requestive Channel Negotiation (RCN) works well for almost everyone if the job is ranged.

According to Jack, most people with ranged job offers don’t negotiate at all before accepting the job because they’re so relieved to have work and/or think that they have no leverage.  Jack’s premise is that the job offer stage is the best time to negotiate, as long as you do it properly.  There are three legitimate ways to negotiate: ultimatum, demand and requestive.  If you are in more of a position of power (because someone is trying to lure you away from your current job that you like, for example), ultimatum or demand may work for you, but the chances still aren’t in your favor.  RCN has the best chance of success because it never hurts to ask–politely!  That means asking a question, not making a statement or giving an ultimatum.  With practice, courage and patience, you’ll maximize your offer, giving you peace of mind that you’ve gotten the best offer–even if they tell you there is no room to negotiate.  There is no risk involved; Jack has never met anyone who used RCN and a company withdrew their job offer because of it.

How does one negotiate a better job offer?  The only rule: NEVER say yes to an initial offer.  The employer wants closure, not to look at Candidate #2, or worse yet, go through the recruitment process again (expensive, time consuming, and the work is piling up).  Negotiation steps:

1) Be very very clear about the entire job offer and its benefits and perks.
2) Validate your enthusiasm for the position and understanding of the job offer.
3) Introduce ambiguity by asking for time (usually 1-3 days) to consider the alternatives.  You’re not lying to the employer–you always have alternatives, even if the only one is not taking the job.
4) When you call back after 1-3 days, once again validate your interest in the job and request (not demand) everything on your negotiating items short list (NISL).  When you ask a question, you’ll get either a yes or no answer and a reason if the answer is no.

Note:  91% of candidates who use RCN get something tangible for their efforts, but if the employer says something like having multiple candidates that could replace you, consider that a red flag and move on – the job/company won’t get any better once you get there.

Hiring Companies

Basis.ed

Jennifer Gordievsky, University Relations Manager @BASISedCareers

BASIS.ed is committed to closing the global achievement gap and redefining education.  They are the leading school network in the country, with three schools ranked in the top six of all high schools in the US (U.S. News and Reports). They are hiring for positions at their K – 12 school sites nationwide, and the central office located in Scottsdale:  accounting, design, marketing, communications, law and teaching are some of the available positions.  If you are passionate about education, click here for career opportunities.

EDMC

Mark Pierce, Talent Acquisition Manager @EDMCCareers

EDMC has four brands: The Art Institute, Argosy University, South University and Brown Mackie College.  One of their best benefits is tuition reimbursement.  They are hiring Admission Representatives, Financial Aid Counselors, and Adjunct Instructors, among other positions.  For more information and to apply, click here.

Career Evolutions

Christian Kaijser, Managing Director @disrupt2evolve

“Lead with your persona, follow with the documents.”  If you haven’t seen Christian change from punk to professional during a presentation, it is truly impressive.   A few open positions: Financial Analyst, Senior Global Accounting Manager, Sales Executive, Product Manager, Digital Marketing Specialist, WordPress Developer, Salesforce Developer, Controller in Bend, OR, Chief Strategy Officer in Los Angeles, Content Strategists, and MS Access Developer.  Visit Career Evolutions positions  for current openings.

Freedom Financial Network

John Hasna, Director of Talent Acquisition, @FreedomFamily

Freedom Financial Network is a debt consulting company that provides financial solutions and services to enable consumers to achieve financial freedom.  Their 3 AZ locations have 1300 employees, and have hired 200 of the 1000 individuals they want to hire this year. They are in the process of building a new campus in Tempe and were recently named as a Phoenix Business Journal “Best Places to Work” Winner. Open positions in Tempe include Java Developers, Product Managers, Corporate Trainer, Compliance Manager, Business Intelligence Analyst, Negotiations Debt Settlement Specialist, Inside Sales Reps and Software Developer. They are willing to train for the necessary skills, as long as the culture fits.

Resources

New Horizons Learning Center, @nhphoenix

Zack Hiscock, Vice President of Learning and Development

“We are the best.” –Zack Hiscock, when asked about what should go in the blog.  I can confirm they’re good; I took one of their Excel classes and learned a lot.

Career Connectors has partnered with New Horizons as their only WIOA-funded school.  New Horizons is an international training organization that serves the needs of top companies to help individuals enhance their current skills and go to the next level in their career.  They offer courses in IT, Office Mgmt, Healthcare Records and Management, Project/Production Mgmt Certifications. Classes are conducted live in a classroom, live online and self-paced online courses, depending on the student’s needs.

Closing

Jessica graciously thanked all of the day’s speakers, volunteers and job seekers for participating. She encouraged job seekers to take advantage of the many Career Connector services like having your resume reviewed, a free professional portrait and visit all of the other services and hiring companies.  She also encouraged everyone to view the career blog, which is up and running and has a lot of good career advice.

Next event in Gilbert, Tuesday, March 28th: “Think Like a Hiring Manager and Land the Job.” Register here.

7/26/16 – Salary Negotiation – Make More Money

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Jessica Pierce opened the event by thanking everyone in attendance for coming.  She then highlighted today’s announcement of a partnership between Career Connectors and Goodwill of Arizona.

Jack and Tricia Milligan
Jack and Tricia Milligan

Keynote

Jack Milligan returned to share his knowledge about the anatomy of a job offer.  Jack began is career studying engineering, however, during his second course, decided to learn more about business and other ventures.  Today he offered numerous techniques of salary negotiations that most people overlook entirely. These included:

Jack assessed we can make more money by employing his tactics/techniques.  He proposed three promises – If you have the patience to use requestive channel negotiations, you can:

  • Maximize the offer
  • Have Peace of Mind
  • Experience little or no Risk in the process
  • Most offers are not maximized
    Statistics
    • 75% do not ask for more compensation when they receive an offer
    • Most don’t believe they have leverage and accept whatever is offered
    • Most of the 25% that ask for more money, do so incorrectly, based on Jack’s assessment
    Types of Negotiation
    • Ultimatum: 5% of all seekers use this tactic and they drive their own bargain based on uniquely favorable position
    • Demand: 10% of all seekers use this tactic. These job seekers are willing to walk-away without a counter-offer. An example: “Thank you for the offer of $90K offer. I need at least $100K”
    • Requestive: 10% of all seekers use this tactic. Jack assessed this tactic as the low or no risk approach. An example: “Thank you for the $90K offer; is there any wiggle room in that number?”; Notice the “?” at the end of the sentence? Any time your request ends with the question mark, it is assessed as having little down-side risk per Jack
    Requestive Channel Negotiations (RCN) does not work on all jobs. For example:
    • Rated (rated pay a certain, well-established wage); and
    • Ranged (range is set by historical job payment structure)
    o The Employment Process is controlled by the employer- up until the offer
    o The Anatomy of the Offer
     Jack’s Rule: “Never, ever accept the first offer….”
     Do two things instead:
    • Listen actively (make certain you are clear on the employment offer’s terms and conditions; if not, probe for clarity)
    • Validate your interest about the Employment Offer with the company (Jack stated this action is very important to ensure the company knows you are interested)
    Then, Play the “A (alternative)” card to give you magic time / consideration of the offer time
    o Recall, 75% take offers immediately
    o Employers want you accept and set a start date ….immediately
    • Note: You have alternatives to immediate offer acceptance, including “no, thank you”
    o Jack advises that if a company does not allow you time to consider the offer, the company may not be worth working for.
    • Once you have requested and received “time to consider the offer”, you are introducing ambiguity into the company’s hiring process.
    o Next, create your “NISL” (Negotiating in Short List) including:
     Base pay, cash incentives and overall compensation package information
    • Once you have developed the NISL and call back the prospective employer at the appointed time (which should have been agreed to when you asked for your “A-time”)
    o First, revalidate your interest in the position / company
     Note: Your stated interest in the position up front typically relieves concern the employer may have resulting from the delay (that is, your “A-time”)
    Jack’s other associated side notes:
    • A verbal offer is typically very acceptable
    • If you prefer to have an Employment Agreement, the process will be elongated, since the Agreement will include specific details, terms and conditions (that are likely to follow an iterative development cycle before all parties “agree”)
    • We Arizonans reside in an “At-Will state (this means either party can terminate employment at any time)”, so receipt of an offer letter may not be extremely valuable
    o Second, ask the question: “Do you have any flexibility built into the offer/wiggle room/room to negotiate?”
     Note sentence ends in a “?” mark.
    o The Employer may reply with: “What did you have in mind?”
     Jack commented: 9% of job seekers who use RCN receive nothing; 91% receive a positive change
    • Jack summarized the process he described above with the following:
    o If you exercise patience, have courage and trust in this process and do so “while starting at the highest (compensation) point possible”, you may see a 5-10% increase in the offer
    • Jack closed with “Have fun!!!”

For a more indepth account, look for his latest book, “Make More Money: The Fine Art of Asking…Most Don’t”

Hiring Companies

Wells Fargo

James Anderson, Site Leader

Wells Fargo is #1 in Loan origination and has locations in Chandler, Tempe and Phoenix.  Wells Fargo culture embraces diversity and community contributions.  Current openings locally include Inbound Sales Specialist and Mortgage Consultants.

Dignity Health

Sandra Vincent, VP HR

Sandra observed that the job search is all about networking, talking to people, attending Career Connectors and utilizing LinkedIn.  Dignity Health has several large medical centers in the area in addition to a large IT facility in Phoenix.  Sandra shared the Dignity Health culture and its importance amongst its 56,000 employees (~3,000 in AZ) via Dignity’s Mission, Values and Vision.  Sandra noted IT positions can be supported remotely, so do not limit yourself to AZ when searching on the Dignity site.  See Dignity’s website to set job alerts and interact with the online chat staff that can answer your questions.

Kelly Engineering Services

John Dorney, Talent Solutions Consultant

Kelly focuses on workforce solutions by working directly with the customers as “talent supply chain management” to fill customer’s needs.  Employment options include contract, contract-to-hire, and special placement.  Kelly employees are “W2” with benefits.  John noted his company has Engineering, Supply Chain, Legal, Finance/Accounting, Marketing and IT opportunities.

Isagenix

Luke Haden, Sr. Corporate Recruiter

Luke’s advice was to KWYK (Know Who You Know).  People who join a company through referral get in the door faster and have longer tenures at the company.  Luke also suggested each of us set up job alerts on Indeed.  Once you find a potential position, use LinkedIn to KWYK.  Execute a LinkedIn search for your existing 1st level connections and ask for their referral help, before you submit the job application.  Always cross-reference before you apply!  You never know who you may know that can help you from the inside of a target company.

Isagenix International has quadrupled in growth in the last 5 years and is approaching $4B revenue.  Luke noted Isagenix has a huge network and  IT professionals should investigate opportunities.  Isagenix has a new ATS and dedicated Recruiters to support the “high priority” needs of this very fast growing company.

Resources

New Horizons Computer Learning Center

Zack Hiscock, Vice President of Training

Zack discussed the Workforce Innovation & Opportunity Act (WIOA) grant through AZ@Work and suggested we visit AZ@Work to learn more about this grant!

New Horizons has 90 locations in the United States.  They help job seekers through Job Placement Assistance.  New Horizons wants all to prepare for the respective exam and to give the tools you need to succeed.  They have many IT-related certificate programs and GI Bill programs.

Closing

Jessica reminded us to take the DISC Assessment at no cost through Top Talent Consulting.  She thanked all the volunteers, the host church (Central Christian), and announced record attendance for Gilbert of 159!  All participants were urged to complete the Evaluation for today’s event.  There are 2014 Book of Lists available at no cost, courtesy of the Phoenix Business Journal.

The next event will be in Phoenix August 3, where Michael Seaver will present “Developing and Living Your Personal Brand”.

 

4/6/16 – Salary Negotiation – Make More Money

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Written by: Connie Huber PHR SHRM-CP

DO YOU NEGOTIATE INITIAL EMPLOYMENT OFFERS?

If you don’t negotiate, you are not alone. According to a recent study completed by CareerBuilder, it was determined that 49% of job candidates never negotiate initial job offers.
Did you know not only are you financially limiting yourself currently but also long term? In their paper “Who Asks and Who Receives in Salary Negotiation,” researchers Michelle Marks and Crystal Harold found that employees who negotiated their salary boosted their annual pay an average of $5,000. According to Marks and Harold, assuming a 5% average annual pay increase over a 40-year career, a 25-year old who negotiated a starting salary of $55,000 will earn $634,000 more than a non-negotiator who accepted an initial offer of $50,000.
In addition to the financial impact on your career, there are impressive reasons to pursue negotiating during the hiring process. The Huffington Post shared in its post “5 Reasons Why You Should Negotiate Your Salary Every Time.” As noted previously, negotiating your salary gets you a lot more income over time; negotiating your salary helps to close the pay gap; negotiating your salary shows an employer that you know your value; and you’ll never get what you want unless you ask.

Keynote

SALARY NEGOTIATION-MAKE MORE MONEY

Jack Milligan SPHR GPHR, @LMAAZ

Jack’s expertise in salary negotiation is supported by his impressive professional endeavors in human resources. He has been the organization’s representative spearheading those negotiations on a number of occasions for different employers.

THE EMPLOYMENT PROCESS
Jack reminded us that while many things in our professional lives have changed, the employment process has remained the same. The process begins with the employer creating a vacancy followed by the employer posting/advertising/networking, screening, interviewing, selecting a short list for secondary interviews, performing due diligence in conducting references, making an offer, and the employer and new employee living happily every after.
But do the employer and new employee live happily every after? Sadly, the answer is no. Today’s workforce has evolved to all jobs being viewed as temp jobs and not forever as in the past.

NEGOTIATING IS AN ART
• You can get better at it with practice.
• Negotiating your salary is intensely personal.
• You are served best by maximizing your offer.
• People don’t ask, they accept.
• It never hurts to ask.
• You begin to negotiate when you get the offer.
• Remember there is no failure in negotiating.

WHY CANDIDATES REFUSE TO NEGOTIATE
• Most don’t think they have leverage.
• Most are so “hippy-dippy happy” to have an offer.
• Most people don’t ask for more… they accept what is offered.

IN FACT
• 75% of people who could negotiate their offers, don’t. They accept what is offered.
• Of the 25% who do not negotiate, most of them do it wrong.
• 3 legitimate channels of salary negotiations.
Ultimatum 9%.
Demand 10%.
Requestive 10%.
The main difference between the 3 channels is how reasonable the candidate is in negotiating.
• Jack shared he has worked with 25,000 candidates that have been requestive in asking for what he/she wants for salary.
• Only about 10% of job seekers getting job offers who could negotiate go into the requestive channel.

IT NEVER HURTS TO ASK
• As we all know there are good ways and bad in getting what we want.
• There is an ART of “APPROPRIATELY ASKING.”
Avoid ultimatums and demands.
• You should be making REQUESTS!
• As a reminder, you will not lose the job when asking in a requestive manner.

REQUESTIVE CHANNEL NEGOTIATION (RCN)
• Does not work on all jobs.
• Jobs are classified as either rated or ranged. Hourly/nonexempt jobs are rated while exempt are classified in salary/ranges.
• Most jobs have a range.
• As a reference point, there are 310 million people in America and 150 million in the labor market. Most workers are employed in jobs that have a range.

3 LEGITIMATE CHANNELS OF SALARY NEGOTIATION
• Ultimatum: (!) 5% of candidates use this channel and 70% fail at doing so. This channel is excessive in both amount and attitude; creates lasting
negative impression and has about a 30% success rate. An example would be “Thank you for the $90K offer, it is going to take $120K to get me to move”!
• Demand: (.) Is more sincere and reasonable in amount and attitude. States a specific amount, leaves negotiation choice up to the employer, allows walk-away without counter. 70% are successful. “Thank you for the $90K offer, I need at least $100K.”
• Requestive: (?) Asks a question, implies flexibility, creates negotiable environment, makes positive impression, requires a response. Zero risk. 91% successful in getting something tangible. 9% get at least peace of mind. “Thank you for the $90K offer, do you have any flexibility in that offer?” You are asking for room to negotiate and/or wiggle room.

Jack shared many more tips about how to appropriately negotiate your job offer. He conveyed that it never hurts to ask, and asking is the only way to maximize your compensation.

HIRING COMPANIES

Banner Health
Shaun Gustafson, Executive Recruiter

Banner Health is one of the largest private employers in the area and growing very quickly. Banner is nonprofit and committed to its mission “To make a difference in people’s lives through excellent patient care.” Its values and core behaviors define the culture of Banner Health and how these values are demonstrated through actions and behaviors. The values include “people above all, excellence, and results”. Banner’s total rewards program includes competitive salaries, great medical insurance, 401K and growth opportunities.

In addition to the traditional needs for doctors, nurses, therapists and pharmacists, there are openings for employee relations consultants, recruiters, risk management professionals, database analysts, IT security consultants, pr/communications staff, contracts administrators, chaplain, practice manager, and financial analysts. To apply, explore their website.

Northwestern Mutual
Jessica Bowles, Director of Recruitment & Selection

Northwestern Mutual has 3 offices in the Phoenix area: Biltmore, Chandler and Tucson. Northwestern is known as the “policy owners’ company”. The company began in 1857 in Milwaukee, Wisconsin with offices in all 50 states. The array of financial products offered at Northwestern Mutual includes mutual funds, disability insurances annuities and life insurance. It is an industry leader with the highest awarded ratings from all four major agencies. Northwestern Mutual’s mission is to “impact lives with great purpose”.

The culture and workplace maintains a supportive team environment, capable and encouraging leadership, personal values aligning with company values, active commitment to community and a client-focused, “do what’s right” philosophy.
Current opportunities in the Phoenix area include marketing assistant, administrative assistant, recruiter, campus recruiter, financial representative/advisor and assistant financial representative. Northwestern Mutual likes to get referrals! For an opportunity with Northwestern Mutual, please start here.

Modern Industries
Patrick Frazier, HR Manager

Modern Industries is a private company and has been held by the same family for two generations. The organization is a manufacturing facility specializing in the Aerospace, Semi-conductor and Medical Industries. Modern is a family-oriented workplace that understands the importance of open communication, flexibility and good work/life balance.

Benefits are generous for the company’s employees. They include major medical, dental, vision, company paid short and long term disability insurance, as well as, life insurance; 401K and paid time off.

Current opportunities include manufacturing cost accountant, production control scheduler, commodity manager-metals, cmm inspector/programmer, visual inspector & packager, chemical technician, anodizer, cnc mill operator, cnc lathe operator and brush plater. If interested, visit Modern Industries’ website employment tab.

 

Resources

Arizona@Work, City of Phoenix
Waleed Alani, Employment Specialist

Waleed shared with the group the latest unemployment statistics. There are currently approximately 68,428 available jobs in the Phoenix area. The numbers are down a little due to the quickly approaching summer months and election. Opportunities include retail, hotel management, project management and nurses. Some of the top skills being requested are bilinqual, quality assurance, IT networking, quality control and IT networking project management. A sampling of hiring employers include Banner Health, Honor Health, CVS Health, Dignity Health, Pizza Hut, United Healthcare, Bank of America, Well Fargo and Oracle.

Waleed enlightened us with the different skill development packages offered by the City of Phoenix. Those include seminars available to the public; Level 1 Package-Skills Match the Job Market; and Level 2 Package-Research Pathways to Higher Wages. Phoenix Workforce Connection Seminars include: Arizona Workforce Connection (AJC), How to Create a Winning Resume, Perfecting Your Interviewing Skills, Mock Interview Lab, Understanding LinkedIn, Leveraging LinkedIn, 21st Century Job Search Seminar, and Job Clubs. Level 1 Package; Skills Match the Job Market is for 3 days and 3 hours. The 3-day sessions are focused on ways to jumpstart your job search. Topics discussed are Social Skills, Creating and Implementing a Job Search Plan, Interviewing, and Long Term Career Management. The 3-hour session emphasizes Employability. The Level 2 Package; Research Ways to Higher Wages is a 2 day seminar. Attendees will obtain a better awareness of their career and personal skills along with a discussion of skill gaps and training options. For more details on the Skills Development Packages, reach out to Waleed at 602-255-4628 or waleed.alani@phoenix.gov.  If interested in a job with the state of Arizona or City of Phoenix please go to Arizona Job Connection.

Canyon State Institute
Sheri Carparelli, President/CEO

Sheri is responsible for establishing Canyon State Institute and developing it to an outstanding education venue in the Phoenix area. Canyon State Institute has locations in Phoenix and Chandler. Various certification programs are offered through Canyon State Institute that allow professionals to increase their marketability, increase success when employed, stay competitive in a changing job market, and experience growth opportunities with high demand certifications. Some of the benefits of attending CSI are small classes (limited to 6 for most programs), short term (4-16 weeks in length), graduates are encouraged to audit classes while studying to pass national exam, instructor-led only classes and career and business development specific to the labor market. Certification programs include varied IT certifications, Project Management, CCMA, ASQ Lean Six Sigma Green Belt and SHRM Professional in Human Resources. Canyon State Institute offers job placement assistance through Career Advisors available at the Career Service Center. A number of financial options are offered for students such as Arizona@Work, Trade Act Agreement (TAA), GI Bill approval, Partnership with Western International University and Mountain America Credit Union. Call 602-266-6630 for a tour or visit them at the CSI website.

Closing

Jessica Pierce, Executive Director, closed the meeting by thanking North Phoenix Baptist Church and the volunteers. The next Career Connectors meeting will be in Scottsdale on Thursday, April 14, 2016 and features Lisa Phalen as speaker for the topic “Identifying the Best Career for You.” For additional information on this event and future events, please visit our event schedule.