You're listening to Business English Pod, the Business English podcast for professionals on the move.
You've had your first and second interviews, you've performed well, and you've been selected.
You're one of the lucky few.
You've succeeded.
You've got a job offer in hand.
But now comes one of the hardest parts of the whole process – negotiating your salary.
If you make a mistake here, all of your time and effort might be wasted.
For salary negotiation preparation, doing your research is obviously important in the internet age.
There are many websites that focus on salary information, so investigating the market is much easier than it has been in the past.
Knowledge however, is not enough.
We also need to have the confidence to broach or bring up the subject and the tools to bargain up the initial or first offer in order to reach a compromise.
You'll only get what you deserve if you ask for it.
So in today's episode, we'll focus on the skills you need to successfully talk money.
Fun Beverages International has already emailed an offer to Yala Santos for an HR manager position in one of its Brazilian business units.
Yala has written back asking to talk with the HR director, Ted, about the details.
We'll be listening to their conversation.
While you listen, try to answer the following questions.
1.
Why does Ted say he needs Yala to begin work by the suggested start date?
2.
How does Yala broach the subject of compensation?
3.
How much over the median or average market rate does Ted say fun beverages offered Yala in recognition of her skills and experience?
4.
What is the final compromise they discuss?
You've seen our suggested start date.
Is that something you can manage?
Fall recruitment season is coming up quickly, and we could really use your help.
Yes, I can definitely make it as soon as compensation is agreed.
Okay, let's talk money.
Well, just to get us going, can I ask how you arrived at your offer?
Sure.
We conducted a competitive analysis of the market leaders and took a high average.
That seems reasonable, but I think I have more to offer than the market average.
I agree.
In recognition of your skills and experience, we're offering you 10% over the median.
I see.
But don't you think the figure we're working with is a little on the low side for a senior HR manager?
In my research I've been seeing numbers closer to 15 or 20 percent above what's currently on the table.
Well, to a certain extent that might reflect the gap between national-level managers and business unit managers.
For this position.
I'm confident we're offering a competitive market rate, especially when you look at the benefits.
I agree that the benefits are great, and so are the advancement opportunities.
Considering my salary history and qualifications, though 20 over your base would enable me to accept the offer immediately.
Honestly, that's more than we have budgeted for the position, but we typically offer 6 annual raises.
With good performance you can get up to 10 or 11, so I'd say it would be possible to reach your target within a year.
Okay, can we meet halfway and discuss a number closer to 15 initially, then agree on a 10 annual increase with good performance.
That's definitely something we could consider.
I suppose the next thing to discuss then are the specific annual performance targets.
Sure.
We have very clear performance indicators and expectations for senior management right across the business.
It sounds like Yala and Ted are well on their way to reaching a compromise.
Let's examine the language they use.
As job candidates or employees in a salary negotiation, the first, and sometimes hardest, thing we need to do is actually broach the subject of compensation.
How does Yala bring up money?
First, Ted asks her if she can start in time for the fall recruitment season.
Recruitment refers to finding and hiring promising new candidates.
Fall recruitment usually takes place among upcoming graduates at university.
Can Yala make it or start by then?
Yes, but only under one condition.
Yes, I can definitely make it as soon as compensation is agreed.
Okay, let's talk money.
Well, just to get us going, can I ask how you arrived at your offer?
To keep the negotiation positive, it's important to focus on what we can do.
Yala demonstrates this kind of can-do attitude.
She can definitely start by Ted's suggested date as soon as compensation is agreed.
Next, Ted says, And Yala responds by asking him how he arrived at his offer.
The ball is now in Ted's court.
That is, the next move is for him to make.
Yala has thus followed the two basic rules of bringing up compensation.
One, be positive, and two, let the other side make the first move.
In other words, you can start the game, but try not to be the first person to mention a number.
We don't want to start too low.
Now let's review some more language we can use to broach the subject of compensation.
Before we finish, I'd like to raise the issue of compensation.
I wanted to discuss compensation and benefits with you so that I could get a clearer picture of how you arrived at your offer.
Can we talk about compensation?
How did you arrive at your offer?
I was wondering what factors were considered in coming up with this offer?
What happens next?
How does TED say fun beverages arrived at Yala's offer?
We conducted a competitive analysis of the market leaders and took a high average.
Ted is saying that, like many employers, Fun Beverages has surveyed salary levels at its leading competitors.
They have taken a high average to arrive at a base salary, or base.
That is, the basic salary for the job.
Ted is saying that the base of their company is actually higher than that of many competitors.
Notice Ted is being vague.
Like Yala, he avoids bringing up definite numbers.
How does she respond?
That seems reasonable, but I think I have more to offer than the market average.
At this point, it's important for Yala to state her reasons for why she deserves more than the base.
To do this.
She shows confidence in her ability by saying she has more to offer than the market average.
This is a clever move because Ted is likely to agree with her.
Of course he wants to hire above-average employees.
How else as candidates can we demonstrate confidence?
I am sure that my skills and experience will be a great asset to your organization.
I believe that my skills and experience place me well above the market average.
Your organization needs good people who have what it takes to help the company succeed.
I am sure I can make a strong contribution to your organization.
So Yala has said she deserves more than the market average.
Let's listen again to what Ted says in response.
I agree.
In recognition of your skills and experience, we're offering you 10% over the median.
Ted is prepared for Yala's strategy.
He says that they are already offering her 10% more than the median or average.
Now that Ted has brought up an actual number, Yala replies with some figures of her own.
I see.
But don't you think the figure we're working with is a little on the low side for a senior HR manager?
In my research, I've been seeing numbers closer to 15 or 20% above what's currently on the table.
Here, Yala is bargaining up the 10% over the base salary that Ted says he is giving her.
She uses a negative question to be diplomatic.
Don't you think it's a little on the low side?
Then she refers to her salary research.
She says she has seen numbers 15 or 20 higher than the one on the table.
That is the one currently being offered.
Let's review some more expressions for bargaining up.
In my research, I've been seeing numbers closer to 15% or 20% above what's currently on the table.
Don't you think that might be a little on the low side?
The offer seems a little low, but I am really excited about the job.
An offer 10 or 15% higher than this one would give me something to seriously consider.
In addition to the phrases we have just heard, another effective strategy is to use silence.
Simply nod, say, uh-huh, and wait for the person sitting across the table to reply.
Often the more the other side is talking, the better you are doing.
How does Ted reply to Yala's attempt to bargain up the base salary?
He stays firm.
Well, to a certain extent that might reflect the gap between national-level managers and business unit managers.
For this position.
I'm confident we're offering a competitive market rate, especially when you look at the benefits.
First, Ted implies that there might be an error in Yala's research.
The gap or difference in salaries that Yala is seeing might just reflect or represent the difference between local business unit HR managers and country-level HR managers.
Yala is applying for a local business unit job.
Next, Ted shows confidence in his offer.
He's confident they're offering a competitive market rate, especially when you look at or consider the benefits.
Staying firm is a useful negotiation skill for both employer and candidate.
Let's look at some more useful language.
First let's study some phrases you can use as an employer.
We're confident that this is a competitive market rate.
That's as high as we can go.
To be honest, that range is outside of our budget.
Now, what can you say to stay firm as a candidate?
I'm confident that I'm asking for a fair price.
That's as low as I can go.
I'm not prepared to accept less.
So Ted is staying firm with his offer.
How does Yala choose to respond?
She uses very positive language to make her case.
I agree that the benefits are great and so are the advancement opportunities.
Considering my salary history and qualifications, though 20 over your base would enable me to accept the offer immediately.
When negotiating compensation, it's often important to be very clear that we are not just motivated by money.
We should make positive statements about the job and why we think it's a good opportunity.
In this spirit, Yala agrees with Ted that the position represents a great chance for her.
She discusses the benefits and also the advancement or promotion opportunities.
Notice that Yala avoids saying if.
She does not say, if you give me 20% over your base, I will accept the offer immediately.
If can also mean if not, so if always includes the possibility of failure.
Instead of if, Yala says, 20% over your base would enable me to accept immediately.
Enable to is much more positive and confident.
It emphasises what we can do and doesn't suggest any possibility of failure.
Now listen to more examples of positive language that we can use in making offers and counter-offers.
I agree that the benefits and advancement opportunities are great.
Some upward movement on the salary would allow me to consider the offer seriously.
An offer 20% higher than what's on the table would enable me to sign the contract immediately.
In these examples would allow me to work similarly to, would enable me to to keep a positive emphasis.
What does Ted think about Yala's proposal?
He says that honestly it's a little more than they have budgeted for the position.
But he brings up annual raises or increases in salary.
Typical raises are 6%.
With good performance, Yala can expect 10% or more.
So it would be possible to reach her target of 20% over the base within a year.
In other words, he is offering her 10% now and 10% a year later.
Ted finally appears to have made a concession, that is, to give up something in order to reach an agreement.
Listen to Yala's response.
Okay, can we meet halfway and discuss a number closer to 15 initially, then agree on a 10 annual increase with good performance.
This exchange represents the key moment in the negotiation, for which the previous discussion was merely preparation.
Having first made a counter-offer of 20 over the base, Yala is now asking to meet halfway with Ted at 15.
In addition, she keeps the concession that Ted has already made, 10% annual performance increases.
Ted responds positively to Yala's suggestion.
That's definitely something we could consider.
Now let's study phrases that are helpful in reaching a compromise.
Why don't we meet halfway?
That's something we could seriously consider.
That's getting closer to a figure that I can really accept.
We've both made concessions.
I think this is a good offer.
We're really excited to have you on board.
I'm looking forward to working here.
How does the dialogue finish?
Yala asks Ted to discuss specific annual performance targets for her annual raise.
She doesn't want to accept the job only to find later that these targets are unrealistic.
Ted assures her however, that they have clear performance expectations and indicators, that is, clear measurements for performance.
Yala and Ted are talking specifics and moving closer to a final agreement.
Now let's practice some of what we've learned.
First, practice positive language.
Imagine you are negotiating your salary with an employer.
Use would allow me to and would enable me to to make your case.
For example, if you hear After the beep, you can say something like I'm excited about this opportunity.
An offer of 5% over your base would enable me to start the job immediately.
Now you try it.
10% over your base.
Consider the position seriously.
Annual raises of 15% with good performance.
Accept the offer right away.
Here are some example answers.
Bear in mind that there are many possible correct responses.
Example answer.
This is a great opportunity.
An offer of 10% over your base salary would allow me to consider the position seriously.
Example answer.
I'm very excited about this job.
Annual raises of 15% with good performance would enable me to accept the offer right away.
Now you'll hear a series of sentences with a verb blanked out or replaced with a beep.
Repeat the whole sentence saying the missing word.
For example, if you hear... You'll say... After each response, we'll play the correct answer.
Before we finish, I'd like to raise the of compensation.
Answer.
Before we finish, I'd like to raise the issue of compensation.
I'm sure that my experience will be a great to your organization.
Answer.
I'm sure that my experience will be a great asset to your organisation.
I'm not prepared to... Less.
Answer.
I'm not prepared to accept less.
Why don't we meet way?
Answer.
Why don't we meet halfway?
That's all for this episode on salary negotiation.
We've studied how to broach the subject of compensation demonstrate confidence, stay firm, use a positive approach and reach a compromise.
Thanks for listening and see you next time.
