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Dallas Ford Principal Alpha Scouts, LLC

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Salary Negotiations: In this Economy?

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Salary Negotiations: What in the @#$% are you thinking?

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Key Learnings
1. 2. 3. 4. Understanding negotiating fact and fiction Increase knowledge of negotiation how-tos Gain understanding of negotiating etiquette Establish confidence in negotiating a complete salary and benefits package.
a. Attempt to establish YOUR value in the eyes of the employer rather than hoping they like you. b. Being realistic in negotiation requests c. When to compromise and when to walk away

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Facts and Fiction

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Fiction

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Fiction
1. 2. 3. 4. 5. 6. 7. College students shouldnt negotiate. Compensation is a sensitive subject. You should discuss compensation up front. Large companies have set salary ranges leaving no room to negotiate. Smaller companies cannot afford larger salaries. Employers care about your financial situation. Employers dont care about their financial situation.

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Facts

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Job Outlook 2009 Special Report

Overall, employers are expecting to maintain their college hiring for 2009.
An October 2009 poll confirmed that hiring is flat with 2008, which had a 16 percent increase over the previous year. 2010 is projected to be down 6.9%.

Trend data indicates that the number of students in the U.S. graduating with degrees in the technical fields is not increasing to meet long-term demand. Industries vary as does the situation for public vs. private companies.

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Translation
Baby boomers are retiring. There are not enough college graduates to replace them. Companies still need qualified new employees just not at the record levels of the past few years.

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Negotiation Strategies

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What is Negotiable?
Salary Non-salary Compensation
signing bonus; performance bonus; profit-sharing, deferred compensation; severance package, stock options

Relocation Expenses
House-hunting, temporary living allowance, closing costs, travel expenses, spouse job-hunting/reemployment expenses

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What is Negotiable?
Benefits
Vacation days, personal days, sick days, insurance (medical, dental, vision, life, disability), vehicle allowance, professional training, continuing education, professional memberships /conference attendance, product discounts, clothing allowance, short-term loans

Job-Specific
Frequency of performance reviews, job title/role/duties, location/office, telecommuting, work hours and flexibility, starting date, performance standards/goals

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Negotiation Top 10
1. Do your research! The greatest tool in any negotiation is information.
Employment websites such as AgCareers and CareerBuilder have salary information. CNN Money cost of living calculator (see resources) MU Destination Survey and Agriculture College Survey (see resources) Industry specific information, such as IFT.org, for Food Science backgrounds or ASABE for Engineers. Career Services Offices
Stephanie Chipman and Meredith Shaw

Past Graduates Pick up the phone CAFNR Mentor Program

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Resources
MU Destination Survey
http://enrollment.missouri.edu/Reports_and_Data/destination_study.php

Agriculture College Survey

http://www.cafnr.missouir.edu/career-services/salary-results.xls

Cost of Living Calculator

http://cgi.money.cnn.com/tools/costofliving/costofliving.html

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Negotiation Top 10
1. 2. Do your research! The greatest tool in any negotiation is information. Delay salary and benefit negotiations for as long as possible. The greatest negotiation leverage happens between the time of the original offer and when you make a decision. Dont negotiate at the time of the initial job offer. Just do it. If you dont ask, you dont get what you want! Ask for a higher salary within acceptable limits than you are willing to accept. Negotiate base salary first, and then move on to other elements of the job offer.

3. 4. 5.

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Negotiation Top 10
6. When presenting a counter proposal to the employer, be sure and include a few items that are expendable. 7. Even if all salary issues are "off the table," there are still numerous other benefits you can negotiate. 8. Never stop selling yourself and your capabilities. 9. Be prepared for any of a number of possible reactions to your counter proposal. 10. Be willing to walk away from negotiations.

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Remember your Integrity

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Remember your Integrity

If you have no intention of accepting the company's offer, don't waste your time or the company's by entering into negotiation. If you have multiple job offers, don't put the companies into a bidding war for your services; select your best fit and go get it. Don't enter negotiations with the wrong attitude.
Arrogance is not a qualification.

Never make demands.

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Remember your Integrity

If you counter an initial offer and the company meets your request, be prepared to say yes. Never go back on your word. Never attempt to renegotiate after you accept an offer.

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But How Do I Handle

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What kind of salary are you looking for?

Responses: Until you've decided you definitely want me, and I've decided I could definitely make an impact here, I feel any discussion of salary is premature. I'll gladly come to that but could you first help me to understand what this job involves. If you don't mind, I would rather address the salary question after I've had a chance to learn more about this position.

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What kind of salary are you looking for?

If you find yourself having to give an answer, give a salary range.
I'm looking for a salary in the $45K to $55K range. My research indicates the salary range for this position, in this industry and region, is between $45K and $55K.

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What Other Scenarios?

What if I accept a job from Caterpillar and later get a job offer from Deere?
Options? A. Back out on the Cat offer to take the Deere offer. B. Pass on the Deere offer because you have already given your word to Cat. C. Back out on Cat to take Deere, both companies talk and question your ethics. Both rescind their job offers.

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Recap

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Key Learnings
1. 2. 3. 4. Understanding negotiating fact and fiction Increase knowledge of negotiation how-tos Gain understanding of negotiating etiquette Establish confidence in negotiating a complete salary and benefits package
a. Attempt to establish YOUR value in the eyes of the employer rather than hoping they like you. b. Being realistic in negotiation requests. c. When to compromise and when to walk away.

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Find something that you love so much that you would do it for free, and then do that job so well that you get paid for it. - Orion Samuelson