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.
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.
- 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.
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.
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.
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.
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.