Module 7 Career Assignment: Negotiating Compensation

585314_Dartmouth Career Decks_111419 Professional Certificate in Applied Data Science  Salary Negotiation  Professional Certificate in Applied Data Science Facilitator Notes:​ Welcome to this week’s Module! Today, we will be talking about salary negotiation.  Before we get started… 2 Write 3-5 STAR stories Practice STAR stories Draft 3 – 5 follow-up questions (30 min) Rehearse pitch for interviewing (30 min) Draft 3 – 5 follow-up questions (30 min) Professional Certificate in Applied Data Science Checking In: Homework 3 You will be able to: Answer the question “What are your salary expectations?” Effectively respond when you receive an offer Determine what’s most important to you Negotiate your offer for a mutually beneficial outcome Professional Certificate in Applied Data Science Learning Outcomes 4 What Are You Looking for in Base Salary? An Early Conversation… You are called by ….Potential Responses Networking Contact Internal Recruiter Search Firm Contact Hiring Manager NOTE:   It is illegal in some states to ask salary history “I consider it confidential.”I haven’t had a chance to look at the market value for the job you describe.  Would you explain the general compensation structure and the range you’ve been asked to work within? As I am not actively seeking right now, I am interested in learning more about the opportunity before we discuss compensation. Adapted from Patricia Buchek, MBACWP Presentation 2.15 Professional Certificate in Applied Data Science 5 What Are You Looking for in Base Salary? You initiate contact…Potential Responses Networking Contact Internal Recruiter Search Firm Contact Hiring Manager I’ve done some preliminary research and it looks as if there is a base salary range of $110 to $130 for work at this level. What are your insights? I’ve been working in a different role, so it’s not comparable. Redirect… and I am extremely interested in this data scientist position and will bring xyz skills to it. Adapted from Patricia Buchek, MBACWP Presentation 2.15 Professional Certificate in Applied Data Science . 6 During the Interview Process Get as much information as possible about all the factors important to you The work, your development, the manager, how it fits with your goals Observe the culture How do people interact with one another?  Is it a place you could see yourself? How are you feeling during the interview process? Wait to bring up questions of flexibility, benefits, compensation . 7 What Are Your Salary Expectations? You Are The Candidate…. Talking toPotential Responses/Questions HR Manager Hiring ManagerWhat makes the most sense for you within your structure? I’d like to come in at a competitive level and situated to succeed in the short -and long-term. For the work I’ve done in the past… Will you please propose a package that you think makes sense, given our conversation so far? From your perspective, what parameters do we need to work with? Adapted from Patricia Buchek, MBACWP Presentation 2.15 Professional Certificate in Applied Data Science 8 Potential for Negotiation (not exhaustive) MonetaryNon-Monetary Base Salary Signing Bonus Performance Bonus Relocation Equity/Stocks Location Work at Home Early promotion/with salary discussion Visa Job hunting resources/partner Temporary remote arrangement Additional house-hunting Training/development 9 Congratulations – We Want You! Thank you! Listen. Carefully. ”I will need time to review the offer and will follow up with you after I receive it.” Ask clarifying questions, if needed Do not say yes immediately 10 Negotiation Power Relevance (how relevant are you to the job) Differentiation (how well have you differentiated yourself from the competition) Among well defined targets… Negotiation Power Among well defined targets… Professional Certificate in Applied Data Science 11 Salary Negotiation Considerations What are your minimum requirements? Prioritize. What creative ways might you address the interests of both you and the employer? What is your Best Alternative to a Negotiated Agreement (BATNA)? Who are you negotiating with and what is the best way to communicate?  PREPARATION IS CRITICAL Source: Professor Jared Curhan MIT Thought Leader Series interview 5.16.17 Facilitator Notes: We will discuss these in more detail. Some important points: you will want to practice what you want to say to get comfortable. And, stop talking after you say it and listen. This can be hard to do when you are nervous or feel there is a lot at stake. You want to balance assertiveness with empathy. You also want make it clear you are truly interested in the opportunity and they can get you. Source: Professor Jared Curhan ,MIT Thought Leader Series interview 5.16.17 12 1) What Are Your Minimum Requirements? Meets ExpectationsNeeds ClarificationDiscussion or Improvement/Prioritized PositionPerformance Metrics Flexible Work Hours CultureBenefitsBase Salary  Opportunity for DevelopmentSign On Bonus Professional Certificate in Applied Data Science 13 2) What Creative Ways Might You Address the Interests of Both You and the Employer? Your Interest$15K more in base pay; due to your skills and experience Employer's InterestMaintaining salary equity on the team; offered you top $ Possible SolutionsBring you in at low end of next salary range? Early review - possibility of promotion & salary increase? Or…. Is increase in your base what’s most important? Would a sign-on bonus or increase to sign-on work? Professional Certificate in Applied Data Science 14 3) IMPORTANT: Know Your Best Alternative to a Negotiated Agreement (BATNA) Before Negotiating List all alternatives to the current negotiation Evaluate the value of each alternative Select the alternative that provides you with the most value (BATNA) Determine the lowest value deal you would accept Source: https://corporatefinanceinstitute.com/resources/knowledge/deals/what-is-batna/ PREPARATION IS CRITICAL 15 4) Communication: Who? How? HR often extends offers Understand who has power to influence what outcome Recommend negotiating face-to-face/video conferencing Email for confirming information discussed, if needed 16 Salary Information Resources Websites Glassdoor Indeed.com Salary.com TransparentCareer Cost-of-Living   Economist Intelligence Unit ($)  Sperling’s Best Places, CNN (U.S.)  General Labor Market Information ​ Classmates, colleagues in data science, associations​ Talking with search firms Professional Certificate in Applied Data Science v 17 What Have We Learned? How to: Answer the question “What are your salary expectations?” Effectively respond when you receive an offer Determine what’s most important to you Negotiate your offer for a mutually beneficial outcome 18 Homework Create a list and prioritize what is important to you in your next position (30 min)   Research salary data for positions of interest (60 min) Practice a mock negotiating discussion with coach, classmate, friend (30 min) Final Career Coaching Meeting How can I help you as you plan your next step? What additional information/feedback/help would be useful? Wrap up your coaching relationship Thank you! Professional Certificate in Applied Data Science 21 Career Services Information: Salary Negotiation Key Learnings You will be able to: • Answer the question, “What are your salary expectations?” • Effectively respond after an offer has been made. • Learn the likely levers to negotiate. • Determine what’s most important. • Negotiate offer for a mutually beneficial outcome. When salary conversation is initiated by someone… • You may answer or not, as a response is not required or necessary at this stage. • Ask the person reaching out to provide more information first. When you initiate salary conversation… • Be prepared to share a range and be able to back up your answer with research. • Anchoring: The first offer or salary number mentioned at the beginning of a negotiation will become the anchor or reference point for the rest of the negotiations. - You should only share a range you are very confident in. Salary Discussion- During Interview(s) • Gather information around all important compensation factors i.e. function/role, leadership, career goals. • Observe culture: - How do people interact with one another? - Is it a place you could see yourself? - How are you feeling during the interview process? - Wait to bring up questions of flexibility, benefits, compensation. Items Generally Negotiable • Position: - Title. - Location. - Department/Group. • Compensation: - Base Salary. - Signing Bonus. - Performance Bonus. - Relocation. • Deferred Compensation: - Equity (possibly). - Timing (unlikely). - Vesting (unlikely). Items Generally Not Negotiable • Benefits: - 401K Plan / Retirement Plan. - Insurances (health/dental). - Insurances (disability). • Confidentiality and Inventions: - Definition of confidential. - Definition of invention. - Non-compete agreement. Congrats – an offer has been made! • Say thank you. • Listen to all details carefully. • Ask clarifying questions. • Do not say, ‘Yes’, immediately. • Emphasize the need to review the offer and that you will initiate follow up. When the formal process begins… • Initiator: - HR contact. - Hiring Manager. - Internal Recruiter. - Search Firm Contact. • Intent: - To ensure expectations are mutual / aligned. - Avoid being disrespectful of either party. Considerations 1. What are your minimum requirements? Then, prioritize. 2. What creative ways might you address the interests of both you and the employer? 3. What is your Best Alternative to a Negotiated Agreement (BATNA)? 4. Who are you negotiating with and what is the best way to communicate? • Consider minimum requirements. • What creative ways might you address the interests of both you and the employer? • IMPORTANT: Know your Best Alternative to a Negotiated Agreement (BATNA) before negotiating. - List all alternatives to the current negotiation. - Evaluate the value of each alternative. - Select the alternative that provides you with the most value (BATNA). - Determine the lowest value deal you would accept. • Communication. - Who? » HR often extends offers . » Understand who has power to influence what outcome . - How? » Negotiate face-to-face/video conferencing . » Use email for confirming information discussed, if needed. Resources One Way to Organize Your Wants/Needs: Negotiation Power Chart: Relevance (how relevant are you to the job) Differentiation (how well have you differentiated yourself from the competition) Negotiation Power Among well defined targets... A m on g w el l d efi ne d ta rg et s. .. Meets Expectations Needs Clarification Discussion or Improvement/ Prioritized ... ... ... ... ... ... ... ... ... Salary Information: • Websites: - Glassdoor - Indeed.com - Salary.com - TransparentCareer.com General Labor Market Information: • Classmates, colleagues in data science, associations. • Talking with search firms. Cost-of-Living: • Economist Intelligence Unit (fee). • Sperling’s Best Places, CNN (U.S.). • Create a list and prioritize what is important to you in