Negotiating a job offer including salary and compensation are probably areas that we can all use some help with. Professor Roman Sheremeta provides us with several strategies and resources to practice and use during any salary or compensation negotiation with an employer.
Negotiating has two main components: distributive and integrative. A distributive negotiation is one where parties compete over a fixed pool of value. In this case your goal is to take the largest piece of the pie possible. This results in a win-lose situation for one of the parties. In the case of salary negotiation, you should try to make sure that you are not on the losing end.
An integrative negotiation is one where there is potential for both parties’ interests to be integrated and result in a larger pie. The focus of this type of a negotiation is on the underlying interests that are often shared between parties. This will result in a win-win situation where all opportunities are exploited and nothing is ‘left on the table’.
Most job negotiations have a win-win potential!
Here are Professor Sheremeta’s tips for preparing for a job negotiation:
- Self-assessment: determine your BATNA or your best alternative to a negotiated agreement
- Assess the other party: learn as much as you can about the employes, research the employer’s BATNA
- Assess the situation
- Present yourself: provide information about your interests and priorities
- Assume that the offer is negotiable, don’t ask permission!
How do you capitalize on the win-win negotiation?
- Negotiate multiple issues simultaneously, don’t get stuck on salary
- Don’t rush the offer, build a long-run relationship
There are several other issues to consider besides salary when negotiating a job offer:
- Compensation: salary, bonus, stock/equity
- Retirement: 401k, savings plans
- Additional benefits such as: vacation, sick days, insurance, moving expenses, transportation