NEGOTIATION:WHAT ELSE IS ON THE TABLE?

Laura Francisco, VP/StrategistThe Singer Group

American Library AssociationJune 27, 2011

What we’ll cover

• What’s on the table?• Negotiations – yes you can– The Basics– Styles–When to ask– Do’s and Don’ts– Resources

• Wrap up

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Let’s play….. Family Feud!Q: What is on the table?

• Answers– Base compensation– Bonus– Incentives– Insurance premiums– Additional paid time off– Working conditions– Telecommuting– Retirement– Special projects

– Flexible hours– Car– Education reimbursement– Job development/training

opportunities– Laptop– Cell phone/ smartphone– Membership dues– Time off for volunteer

work

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COMPENSATIONBENEFITSWORK ENVIRONMENT

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What is negotiation?

Negotiate:To arrange for or bring about through conference, discussion and compromise

To persuade another to come around to your way of thinking

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Negotiation is

• Human interaction• Adapting to a situation• Art & science• PROCESS not an event

Ron Shapiro, The Power of Nice

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The mindset

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I can’t do that….. Can I?

• Yes you can!

• Even in this economy

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Running for the exits

• You have some leverage!– Many employers concerned

about top talent leaving– 31% willing to negotiate with

current employees– Half plan to leave room to negotiate with new

employees– Renewed focus on retention AND performance

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CareerBuilder Survey; 9/10

Women CAN Ask• We’re all engaged in negotiation• Women negotiate well for others• Men negotiate well for themselves (and do it

4x more often!)

Sarah Laschever, 3/10/10, presentation to ALA-APA.10

How come he (or she) got more than me?

• Why didn’t I get a raise?

• You didn’t ask!!

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Women & Men

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The “Nice” factor

• Perception: women who ask for more are “less nice.”– Men ask: proactive– Women ask: pushy

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B-EA-G-G-R-E-S-S-I-V-E!

or not

• Some strategies to avoid the backlash– Justify the request – my team leader

or immediate supervisor told me Ishould ask

– My negotiating skills are an asset to the library– Conforms to feminine stereotype but – it works

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from Harvard and Carnegie Mellon research

78¢ to the dollar

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Leaving money on the table….

• Beginning of career? Between $1 - $1.5m over a lifetime

• Changing jobs? Employer asks for previous salary

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Five minutes can cost you…• Thousands and

thousands• 40-yr old accepting

$70,000 instead of $77,000 – $381,000 less in 25 years

*invested at 3% interest

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Five minutes can cost you…

• Job offered at $40,000• Counter with $43,000

• Manager: “That’s only $57 more/week”• You: “EXACTLY.”

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HERE’S HOW

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The basics

• Knowledge is power• Have something you’re willing to give up• Out of the box

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Do your homework

• Pre-negotiations:– Understand the other side– Understand the big picture: what’s the end result

you are trying to achieve?– Identify gaps– Quantify• Find the boundaries – low and high

– Re-prioritize

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Start with Style: What is yours?

Accommodating Collaborating

Avoiding Competing

Compromising

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Conc

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Concern for self-interest (substantive outcome)

Roger J. Volkema, The Negotiation Toolkit.

Negotiations

• Prepare: research, study, stockpile knowledge• Probe: Ask questions, you’ll get answers• Propose: try to not go first. When you do, make a

strong, reasonable offer. Be prepared to change it.• Listen: Nature has given men one tongue but two

ears, that we may hears from others twice as much as we speak.Epictetus

Shapiro

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Techniques: PreparationP.A.I.D.S.• Precedents• Alternatives• Interests• Deadlines• Strengths & Weaknesses ____Highest goal/Walk awayStrategy, team

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Techniques: Probing

• What is important to them? What else?• Hypothesize• Answer questions with questions• Tell me more

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Techniques: Propose

• Try not to make the first offer• Never immediately accept the first offer• Set your aspirations high• Defer to their expertise• Turn discussions into offers• Force a counteroffer

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Focus

• Specific accomplishments and results• Salary range and justification• Understanding of what’s important to the

library• Come prepared• Have other options in mind

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Salary Data

• ALA-APA Library Salary Database - $50 one-month subscription– Key library positions and descriptions– Geographic data cuts– Library type/size– Range of salary data

• PLA-PLDS Statistical Report - $250 annually– Entry librarian and Director– Budget, number of employees, population area

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Salary Data

• Other library surveys (Allen Co., IN)• Bureau of Labor Statistics – updated periodically by

geographic area – and free!– Just released: May

2010 Occupational Employment and Wages report focused on Librarians (other positions included as well)

• Non-profit or governmental surveys prepared locally – usually very low cost

• Beware salary.com, payscale.com, etc., and hearsay (“My friend at the University said…..”)29

Silence is Golden

• Ask an opening, open-ended question– How do you feel about my proposal?

• Then, be quiet!• Discomfort makes us chatty• Chatty sometimes ends up being the

kiss of death in negotiations as you may give away any foothold you had

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Relax

• Anxiety makes it WAY worse• Average of 7.5% lower for

initial offers• Can the drama• Find a cure for apologitis: “I’m sorry to ask this

right now but…” “I feel bad coming to you with this but…..” These equate to saying:“Don’t give me what I’m asking for.”

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Brooks and Schweitzer, Wharton School

Encountering difficulty?

• Don’t take it personally. Don’t get personal• Be prepared; have a strategy• Take a time-out. Slow down, cool off.• Learn to tack – don’t sail into the wind!– Understand their pressures– Acknowledge their concerns– Could they reconsider in 6 months?– Let them save face

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Encountering Difficulty?Negotiators are people first– Emotions, values, different

background – Put yourself in their shoes; understand

their point of view– Don’t deduce their intentions from

your fears– Don’t blame them for the problems– Get them involved in the process– Face saving: make your proposals

consistent with their values

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Practice• Practice with peers/colleagues – practice

different styles• Practice in real life – retail, hotel/airline

upgrades• Start `em young: the Girl Scouts now have the

“Win-Win badge!

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Talking points• Shouldn’t have to choose between paying

fair salaries and buying books• Starting salaries for X (position) are x%

higher than librarians who also have bachelor’s degrees

• Who will take the place of retiring librarians?

• Can’t live on love alone!• Libraries work because library workers make

them work!• Today’s librarian is a tech savvy, info expert

who can enrich the learning process of any library user – from pre-school to grad student to retiree!

From Advocating for Better Salaries and Pay Equity Toolkit ala-apa.org

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IT’S ALL IN THE TIMING…

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Timing is Everything

• Assume it’s ALL negotiable• Ask for enough – women typically

ask for 30% less than men!• When are you asking? What’s going

on around you? Promotion or performance review?

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Negotiations – the Dance• Taking a new job:– Research/prep

• Don’t give a range - $45,000 - $50,000 – they know you’ll take the $45,000

– Once job is offered, evaluate the whole package• Base and alternative compensation• Benefits/Perks

– Counter offer – “Is there any flexibility?”• Practice• Be confident and succinct• Know your value and worth38

Negotiations – the Dance• Asking for a Pay Raise:– Doing a great job does not mean an automatic

raise– Understand your worth/value and build a case– But I don’t like to talk about money…..

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What about this economy? • Libraries are:

– Restructuring and reorganizing– Cutting positions and hours– Freezing or cutting pay– Focusing on retention of key talent

• Even so:– Crucial to look after your career during these times– Still, make sure timing is right (context)– Have a plan, be specific and clear– Make it about you, not anyone else– Be prepared to wait– Stay positive: evaluate next move

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Negotiations still work

Even in this economy….• Sample of newly hired employees in various

industries• Those who chose to negotiate increased starting

salaries by $5,000 on average• Creative ideas:– Develop cross-training programs– Mentoring programs– Skills-for-pay– May put off raise but will build justification

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• Prepare yourself with a positive outlook

• Counteroffer, if necessary• Be confident!• Make it about YOU.

• Come at negotiations with a “hot shot” attitude

• Damage relationships for short term gains

• Be submissive• Ask for more just because

someone else gets more.

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Additional Singer Group Resources

Other Resources• www.Vault.com – data, information and reports to help

negotiate your best offer• The Power of Nice, Ronald Shapiro• The Negotiation Took Kit, Roger Volkema• “Women Don’t Ask: Negotiation and the Gender Divide,”

Sarah Laschever, presentation to Women’s Center at Northwestern University.

• http://www.shenegotiates.com/• Alison Wood Brooks, Maurice Schweitzer (2011),

Can Nervous Nelly negotiate? How anxiety causes negotiators to make low first offers, exit early, and earn less profit, Organizational Behavior and Human Decision Processes, 115, 43-54

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The Singer Group, Inc.No matter what the next level is for your organization, The Singer Group can help you reach it – with more ease and momentum and faster results.

As HR & OD consultants committed to innovation in the field, we work with organizations in the public, social and private sectors to bridge the gaps between where they are now and where they want to be. We develop forward-thinking strategies that optimize every aspect of human resources and organizational development.

Simply put, we reach deep to access your organization’s hidden potential and help you develop the ways and means to realize it.

This presentation was conducted by Laura Francisco, VP/Strategist. For more information about The Singer Group please visit our website at www.singergrp.com.

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The Singer Group, Inc.• Managing Change: Improving your organization’s

flexibility in adapting to a changing business environment

• Creating an Effective Organization: Developing and operating the most effective organization to achieve your mission and objectives

• Developing People and Performance: Giving employees the opportunity and support they need to perform at optimal levels

• Designing Compensation Systems: Assuring that pay attracts, motivates and retains the best people for your organization

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Library Client ListAkron-Summit County Public Library, OHAnne Arundel Public Library, MDBaltimore County Public Library, MDCarnegie Library of Pittsburgh, PACaroline County Public Library, MDCarroll County Public Library, MDCecil County Public Library, MDColumbus Metropolitan Library, OHCharles County Public Library, MDDistrict of Columbia Public Library, DCDurham Public Library, NCEastern Shore Regional Library Assoc., MDRuth Enlow Library of Garrett County, MDGwinnett County Public Library, GAHarford County Public Library, MDIndianapolis-Marion County Public LibraryInfopeople, CAIowa Library AssociationJohnson County Library, KSKent County Public Library, MDLaramie County Library System, WYLoyola/Notre Dame Library System, MDMetropolitan NY Council of Libraries, NYMishawaka-Penn-Harris Public Library, IN

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Missouri Library AssociationMonroe County Public Library, INNorth Carolina Library AssociationNorthwest Library District, OHOklahoma Department of LibrariesPennsylvania Commonwealth of LibrariesPeoria Public Librar, ILPioneer Library System (OK)Public Library Association (PLA)Queensborough Public Library, NYRochester Hills County Public Library, MISacramento Public Library, CASno-Isle Regional Library System, WASomerset County Public Library, MDSouthern Maryland Regional Library AssociationSt. Mary’s County Public LibraryTalbot County Public Library, MDTippecanoe County Public Library, INTulsa City-County Public Library, OKUpper Hudson Library System, NYYolo County Library, CAWashington County Free Library, MDWhatcom County Library System, WAWicomico County Public Library, MD