Mitch Wienick

1

• The most common elements of a compensation
  package are as follows
• Base salary
• Bonus
• Stock options
• Restricted stock
• Benefit plans
• Short-term incentives

• Long-term incentives
• Retirement plans
• Relocation
• Profit-sharing plans
• Perks
• Severance

2

• Companies typically consider the following when
  determining offers
• Your prior experience and previous compensation
  level
• Responsibilities of the position and special
  competencies required
• Industry and regional norms for this type of
  position
• Location of job and local cost of living
• Internal salary structure of company and
  associated salary policies
• Industry percentile targets
• Current business conditions
• Compensation surveys provided by independent
  sources

3

• Guidelines for the Compensation Discussion
• Try to avoid the question of compensation until
  you have an offer
• Research your market value
• Do not take an offer on the spot
• Value the entire compensation package
• Enter negotiations with understanding of your
  skills and their work
• Expect to negotiate
• Make sure the negotiation stays win-win

4

• Three Common Compensation Negotiating Situations
• If you have an okay offer You might say After
  looking over your offer fully, even though Im
  sure its very competitive, the actual salary
  figure is lower on a monthly basis by 10 than
  what Im currently making. Though the bonuses
  will help improve the situation, those are
  subject to change. Is there flexibility on the
  salary portion of the offer?
• If you have a very good offer You might say We
  are certainly very close. I was hoping for
  something more in the range of X to Y. How much
  room do we have for negotiation on the salary?
  Or you might say Its a deal, lets finalize it
  in writing.
• If you have a low offer You might say I really
  like you, the position seems to be a good match,
  and the goals of management and the companys
  organizational strategy all seem attractive. The
  only area that we need to talk about and the
  only area holding me back is the initial
  compensation offer. Quite frankly, the
  compensation is less than I expected. I am truly
  interested in the position and from my research,
  X is the approximate level for total
  compensation. The other companies I am speaking
  with are in that range. What can you do in this
  area that makes sense for both of us?

5

• Examine Alternatives
• If efforts are exhausted in the compensation
  negotiation, and the company will not move on
  its offer or has not offered a salary acceptable
  to you, but you still want the position, shift
  the conversation to the future. Discuss a 60-,
  90-, or 120-day performance review, year-end
  bonus, or a lump-sum signing bonus as ways to
  augment a starting salary.

6

• During Your Negotiations, Take Opportunities To
  Explain Why Youre Worth It.
• Dont wait for accolades from the prospective
  employer. If you think your demonstrated
  performance has been excellent, dont hesitate to
  point out your accomplishments. Enhancing your
  perceived value can go a long way in justifying
  the expectations and needs you bring to the table.

7

• Create Doubt
• One of the best leverage points in negotiating is
  to create doubt and uncertainty in the minds of
  your interviewers. If the prospective employer
  suspects that you have other job offers or that
  you may be unwilling to leave your current
  position, your self-confidence speaks loudly,
  your value is enhanced, and the combination
  creates helpful doubt during your negotiations.

8

• Establish a Deal-Breaker Position
• The well prepared executive must establish two
  things in advance the bottom line and the
  deal-breaker position. The bottom line represents
  the least attractive, but still acceptable
  agreement. If you do not establish a bottom line,
  you will not know when you have crossed the limit
  beyond which negotiations no longer make sense
  for your situation.
• After crossing that bottom line, youve entered
  into what some experts call deal-breaker
  territory where youre feeling forced to forfeit
  more than you are willing to give -- and,
  therefore, cannot come to a satisfactory
  agreement. If you have not established your
  deal-breaker issues, you are left with no
  acceptable out in the event negotiations are
  unsuccessful. You may feel compelled to agree to
  anything in order to avoid a failed negotiation
  -- a situation that will likely lead to future
  dissatisfaction.

9

• The Offer
• If the interview process goes well, your
  references support your job candidacy, and your
  negotiations are successful, your prospective
  employer will proceed to the offer state. Often
  an initial job offer will be made verbally.
  Sometimes the offer will be made over the phone,
  to you either by the recruiter, a human resources
  manager or the hiring executive.
• However, you will want your prospective employer
  to follow up with a written offer letter that
  precedes your formal acceptance of the offer. The
  written offer letter should come after a formal
  verbal offer and prior to acceptance by the
  candidate. The purpose of the offer letter is to
  outline the parameters of the position the start
  date, office location, agreed-upon compensation,
  benefits, job title, and basic position
  responsibilities.

10

• Accepting an Offer
• After receiving the offer letter, verbally
  confirm your acceptance of the offer, and then
  follow up with a brief written confirmation
  letter which reiterates salary, start date, and
  position title. Express your appreciation for the
  offer and state that you are looking forward to
  joining the organization. If applicable, specify
  when you will meet additional conditions of
  employment, such as completing a medical exam or
  sending required documents.

11

• Declining an Offer
• If you decline an offer you should also send a
  well-written letter thanking the employer for
  their efforts in recruiting you and for the
  offer. Explain that you are either accepting a
  different offer which better matches your needs
  and desires at this time or you are continuing to
  pursue your search to find a better fit for you.
  Try to keep the door open for future associations
  with the company, expressing your appreciation of
  the opportunity to interview.

12

• As You Get Ready To Start In A New Role, Here Are
  Seven Tips For Getting Off To A Fast And
  Successful Start.
• Tip 1 Use the time before entry
• Tip 2 Position yourself for early learning
• Tip 3 Garner early wins
• Tip 4 Create a framework for meaningful
  improvements
• Tip 5 Build successful coalitions
• Tip 6 Create a personal vision of the
  organizations future
• Tip 7 Manage yourself

13

• There Are A Number Of Key Factors Associated With
  Success In Your New Position. These Include
• Getting oriented
• Laying the foundation
• Securing early wins
• Learning
• Visioning
• Coalition building
• Self-awareness and style

14

• There are a number of guidelines for learning
  that are worth noting
• Dont attempt to learn anything right away.
• Avoid the temptation to focus on symptoms rather
  than root causes of problems.
• Dont try to learn the politics and the culture
  of the organization separate from dealing with
  the operations.
• Balance your own agenda with those of others.
  Responding to what others want you to do will
  undoubtedly influence what you learn and when.
• Develop a group of trusted advisors and mentors
  who have different perspectives and learning
  styles than you do and who can be important
  resources as you move up the learning curve.
• Learn as much as you can in the first three
  months because during this period you only have a
  small vested interest in what took place before
  you arrived, you can view the organization
  through relatively objective eyes, and you can
  ask naïve questions without losing credibility.
• Be proactive about finding problems by immersing
  yourself into the environment, seeking to
  identify and cultivate good sources of
  information, and building internal and external
  relationship networks to support intelligence
  gathering.
• Learn with a predisposed mindset. That is,
  formulate some early beliefs about the business
  based on some research, analysis, and expert
  opinion that help focus your learning.
• Listen actively by asking insightful questions,
  probing perceptively, and confirming your
  comprehension of what others are saying to you.
• Cultivate awareness by using every interaction as
  a way to extract useful knowledge. Develop the
  ability to recognize verbal and non-verbal cues.
• Identify diversified sources of knowledge. These
  sources include customers, distributors, vendors,
  professional service suppliers, and employees.

15

• After 90 Days Ask Yourself
• What do I think about my fit in the situation?
• What do I believe so far?
• If I could do one thing to improve this
  organization, what is it?
• Am I excited, happy, confident so far? Why, or
  why not?
• What has bothered me so far? Of what I have seen
  and heard, what disturbs me most?
• Who has had positive and negative impacts on me
  so far? Why?
• What are the pluses and minuses of each of my
  direct reports?
• If I could wave a magic wand, what would I do to
  increase my impact here?

16

• Forming a Network of Advisors and
  CoachesFinding people who are both competent,
  trustworthy, and provide the right mix of
  expertise and personal chemistry. Regarding
  competence, the key questions to ask include
• Have they provided the sort of help I need to
  others?
• What do others say about their competence?
• How often have they dealt with the kind of
  situation I face?
• What is their analysis of my situation?
• Are their arguments clear and well thought
  through?
• Are they able to focus on the key elements of a
  difficult problem and clearly summarize their
  view?
• Are their ideas well considered and thoughtful?
• Regarding trustworthiness, will this person keep
  what I say confidential? Will he fulfill promises
  and be available when needed? Have I heard or
  sensed anything that suggests I cannot trust him
  or her?