Diversity MBA Magazine - Summer 2008 - (Page 52)

Negotiation: The Ar t of Persuasion or Zero Sum Game? Michael Payne, associate director of the Fred V. Keenan MBA Career Resource Center at the University of Southern California’s Marshall School of Business (and an MBA himself), says, “Graduating students and recent graduates typically get an offer including a salary package, and they often times wonder if there’s any way for them to negotiate a higher salary or something closer to their expectations. “ Payne says many students seek his advice at this stage. He cautions them to carefully think, research, and plan a strategy before entering into any form of negotiation. “Typically, we recommend that they ask something like, ‘Is there any flexibility in the salary offer?’” he says. “This provides the company with the opportunity to come back and respond with a question, a new number, or simply an answer of, ‘Unfortunately, we have no flexibility.’” He notes that he prefers this strategy, because “it’s very easy for the negotiation to become mired in a particular number, and if the company finds that number completely out of the ballpark, it becomes ‘your’ number, and it can be difficult to back away from it.“ Further, many students are faced with the conundrum of dealing with a company that asks them to state their expected salary. Although it’s usually considered preferable to let the other party reveal his or her hand (in this case, salary offer) first, some firms insist on the interviewee stating a number up front. “When this happens,” Payne says, “the best approach is to respond with the average for the school for that graduating class. Those numbers are generally available to students and companies. It’s easy to justify school averages, because they’re relevant for your direct peer group in a particular job market. If you can get more precise information on salary averages for your group for a specific field, especially if you’re entering a higher paying field such as investment banking or strategic management consulting, it would be even better. There are also many on-line tools, such as www.salary. com.” But, Payne cautions, “People should absolutely not have discussions about their personal financial needs. Sometimes companies will ask for salary history, but if you make it too personalized and use your expenses as a rationale for a salary, you’ll have a difficult time rationalizing why that is the going rate for the market. “ Gregory G. White, senior consultant for Watson Wyatt Worldwide, a global management consulting concern focused on financial and human capital management, says, “The most important quality in negotiation is asking questions and listening, because by asking the right questions, people will expose or divulge exactly what they’re looking to accomplish, which will help you focus on the issue instead of the words. Going deeper than that, you can focus on what’s behind the words, as opposed to the words themselves.” White feels this strategy can be applied to everything from going to dinner with a friend, to salary negotiation, to handling multi-milliondollar deals. In salary negotiation, he highlights the importance of doing one’s homework, understanding the market for the position, and especially understanding the big picture. “Recognize that salary is a piece of the package that can include many components, including the salary itself, benefits, time off, sign-on bonuses, year-end bonuses, 401Ks, and other factors,” he notes. “Understand your company’s compensation philosophy; some companies value things differently, such as a higher w w w. d ive r s it y mb a ma g a z in e. c o m …people get caught defending positions they don’t really care about without understanding what the other person really wants to accomplish. http://www.salary.com http://www.salary.com http://www.diversitymbamagazine.com

Table of Contents Feed for the Digital Edition of Diversity MBA Magazine - Summer 2008

Diversity MBA Magazine - Summer 2008 Contents Letters to the Editor In Your Own Hands Editor's View Find Your Power Voice Business Briefs Off the Shelf The Fourth Annual Top 100 Under 50 Diverse Corporate Executives Negotiation: The Art of Persuasion or Zero Sum Game? Career Planning for Tomorrow's Hispanic Workforce Who's Who In Diversity Entrepreneur Profile: Anita Santiago: Doing It Her Way Businesses that Keep On Giving Rising Sun Going Global: Will An International Assignment Benefit Your Career Work-Life Balance and the C-Suite: An Oxymoron? A Call to Save Travel: Off the Beaten Path - Chile Drawing the Line – Latin Art Exhibit The New Taste of Latin Cuisine American Sabor: Exhibit Highlights Latino Influence in Pop Music Crafting Specialized Business Degrees Latest MBA Salary Suggests MBA Is A Safe Haven Gadgets & Gizmos Gone Phishing – How Scammers Mine Private Data From Web Surfers Advertiser's Index The Meaning of Sanctuary

Diversity MBA Magazine - Summer 2008

For optimal viewing of this digital publication, please enable JavaScript and then refresh the page. If you would like to try to load the digital publication without using Flash Player detection, please click here.