1	Salary Negotiation (Getting the Best Offer) May 27, 2006 John Clements Consultants, Inc.
2	Employment Market Two (2) dimensions of employment market: From where employees are lost. From where potential employees are sourced or recruited.
3	Employment Market Types of Industry Players Local Multinational
4	Employment Market Industry Category Manufacturing Consumer Technology Pharmaceutical Telecom Insurance Information Technology Banking Retail BPO/Call Center Others
5	Employment Market
6	Salary Structure Salary Structure is: Policy document defining the company’s affordability to pay. Salary data are culled from the salary market of the industry. Salary structure is designed to be competitive, in order to attract the best candidates from the employment market, and retain the best talents in the organization.
7	Salary Negotiation Possible Scenarios: Scenario 1 You like the compensation package - The company likes you; Scenario 2 You don’t like the compensation package - The company likes you;
8	Salary Negotiation Possible Scenarios Scenario 3 You like the compensation package - The company does not like you; Scenario 4 You don’t like the compensation package - The company does not like you.
9	Compensation Package Determinants: Base salary is not the sole determinant for concluding that the offer is not acceptable. Look at it, from the point of view of “Total Compensation Package”. How many months guaranteed? Is there a Performance Bonus Scheme? What is the company policy on PBS?
10	Compensation Package Determinants: What are the details of the benefits package? Is there tax shield? What about long-term compensation scheme such as shares of stock or stock options? What are the non-financial components of compensation?
11	Base Salary Comparison
12	Example: 70/30 Tax Shield
13	Performance Bonus Scheme
14	Performance Bonus Scheme PBS Eligibility*
15	Vacation and Sick Leave Benefits
16	Vacation and Sick Leave Benefits Policy on Vacation/Sick Leave Benefits*
17	Hospitalization Benefits Average Annual Premium Rate
18	Hospitalization Benefits Benefits Coverage*
19	Life Insurance Life Insurance Coverage*
20	Total Compensation Base Salary Benefits Vacation and Sick Leave Hospitalization Outpatient Life Insurance Accident Insurance Rice Subsidy
21	Total Compensation Benefits (cont’d) Meal Allowance Clothing/Uniform Educational Assistance Transportation Allowance Housing Program Loan Facility Car Program Retirement
22	Total Compensation Short-Term Incentive Scheme Performance Bonus Profit Sharing Commissions Long-Term Incentive Scheme Shares of Stock Stock Options
23	Non-Financial Compensation Consists of the satisfaction or fulfillment that a person receives from the job itself, or from the psychological and/or physical environment in which the person works.
24	Non-Financial Compensation THE JOB Interesting Duties Opportunity for Recognition Feeling of Achievement Career Advancement Challenges THE ENVIRONMENT Sound Policies Competent Supervision Congenial Co-workers Conducive Working Condition
25	Salary Negotiation The ability to leverage on one’s competencies and qualifications in order to get the best employment offer; The ability of being competitive in the employment market, and therefore negotiate for best employment terms.
26