Job Hunting in Biotech Part 3 Negotiating.ppt

1

Job Hunting in the Biotech Industry:

Interviewing and Compensation Negotiation Skills

Prepared by Bill Lindstaedt

Presenter: Bill Lindstaedt, MS

Office of Career and Professional Development

[email protected]

Job Hunting in Biotech: Interviewing and Negotiating Skills

2

•  Talking about compensation during the interview

•  What to say at the time of the job offer

•  Typical job offer content

•  Negotiation content: What might I ask for after

the offer ?

•  Negotiation process: How do I ask for it?

Agenda – Compensation Negotiation

2

Job Hunting in the Biotech Industry:

Interviewing and Compensation Negotiation Skills

Prepared by Bill Lindstaedt

Job Hunting in Biotech: Interviewing and Negotiating Skills

3

Talking about compensation

during the interview

•  The dreaded interview question: “So if we

were to move forward to the job offer stage,

what would be your salary requirements?”

•  Best scenario: This never comes up!

•  Second best: Don’t quote an actual figure

•  Third best: Quote a range based on your

research

Job Hunting in Biotech: Interviewing and Negotiating Skills

4

Talking about compensation

during the interview

Initial response: “I am very interested in this position

(state why), and if we were to move forward to an

offer, I simply hope that an offer will be made for a

salary amount that is competitive for my

background and experience.”

If pressed to name a figure: “Well, for me, the most

important thing is to be able to accept a position

where I can (name factors that are important to

you) and these issues are more critical to me than

the exact salary figure. But from what research I

have been able to do, it seems like salaries are

falling in the mid-to-upper 90’s for a position like

this, with a major employer and for someone with

my general background.

3

Job Hunting in the Biotech Industry:

Interviewing and Compensation Negotiation Skills

Prepared by Bill Lindstaedt

Job Hunting in Biotech: Interviewing and Negotiating Skills

5

What to say when the

job offer is made

•  Usually the company calls you

•  Listen carefully

•  Express enthusiasm and appreciation

•  Then simply ask for everything in writing

•  Important! Do not accept the offer or any

terms during this phone call

•  Important! If it’s clear that something

important is missing, don’t ask about it

during this phone call

Job Hunting in Biotech: Interviewing and Negotiating Skills

6

What to say when the

job offer is made

“Well, this is really great news. I also felt like there was a

great potential fit when I was visiting (X company

name) last week, and I really appreciate everything

you’ve done to coordinate this process so far…”

“…Would it be possible to send everything you’ve just

described to me in a quick email? It would be really

helpful if I could take a look at all of the details

together, and then I’ll be able to organize any

questions I might have and I’ll respond by (specific

day), as you requested.”

4

Job Hunting in the Biotech Industry:

Interviewing and Compensation Negotiation Skills

Prepared by Bill Lindstaedt

Job Hunting in Biotech: Interviewing and Negotiating Skills

7

Job offer content

Specified in a typical entry-level job offer letter:

•  Job title and classification

•  Start date

•  Supervisor

•  Salary

•  Signing bonus

•  Stock option or grant, if pre-IPO company

•  Benefits – overview

•  Healthcare

•  Vacation

•  Retirement investment plan

•  Relocation package

Job Hunting in Biotech: Interviewing and Negotiating Skills

8

How do entry-level industry salaries work?

•  Range within classification

•  Target for starting point within range

•  “Equity issues”

•  Benchmarking within industries

•  Tight brackets: If offered $80,000 you won’t get

$120,000 for the same job at that company or

elsewhere

•  Employers are not “out to get you”

•  Why not ask? Often 3-7% increase is possible!

Job offer content

5

Job Hunting in the Biotech Industry:

Interviewing and Compensation Negotiation Skills

Prepared by Bill Lindstaedt

Job Hunting in Biotech: Interviewing and Negotiating Skills

9

How do stock offers work?

•  Option to purchase stock? Or stock grant?

•  Vesting over a period of years,

typically 25% over 4

•  Questions to ask:

•  What is the strike price?

•  How many shares outstanding?

•  What is the probable IPO or buyout timeline?

Job offer content

Job Hunting in Biotech: Interviewing and Negotiating Skills

10

How do cash bonuses work?

•  Taxable income

•  May include moving expense bonuses

•  Questions to ask:

•  When is it being given to you?

•  Is it tied to length of stay at the company?

•  Is there an acceptance deadline attached to the bonus offer?

(“exploding” bonus)

Job offer content

6

Job Hunting in the Biotech Industry:

Interviewing and Compensation Negotiation Skills

Prepared by Bill Lindstaedt

Job Hunting in Biotech: Interviewing and Negotiating Skills

11

•  Job title and classification (rarely)

•  Start date

•  Supervisor

•  Salary

•  Signing bonus

•  Stock option or grant, if pre-IPO company

•  Benefits

•  Healthcare

•  Vacation

•  Retirement investment plan

•  Relocation package

•  What else do you need?

Negotiation content – what might

be negotiable?

Job Hunting in Biotech: Interviewing and Negotiating Skills

12

Negotiation process:

How do I ask for it?

OVERVIEW

•  Call on phone, if possible and practical

•  Negotiation begins with the person who signed

the job offer letter

•  Start positive – mention how much you like

some aspect of position

7

Job Hunting in the Biotech Industry:

Interviewing and Compensation Negotiation Skills

Prepared by Bill Lindstaedt

Job Hunting in Biotech: Interviewing and Negotiating Skills

13

Negotiation process:

How do I ask for it?

OVERVIEW

•  Then a transition/agenda statement: “I have two

items to discuss after reading over the job offer

letter that you sent.”

•  Then mention leverage:

•  Best leverage - competing offer

•  Better-than-nothing leverage…stats or

competing interviews or anecdotal

information

•  Last resort leverage: your own needs

Job Hunting in Biotech: Interviewing and Negotiating Skills

14

Negotiation process:

How do I ask for it?

OVERVIEW

•  Then ask for what you want in general terms,

not specific number!

•  End encouragingly

•  Summarize

•  Express appreciation and thank the other person

for the extra effort

8

Job Hunting in the Biotech Industry:

Interviewing and Compensation Negotiation Skills

Prepared by Bill Lindstaedt

Job Hunting in Biotech: Interviewing and Negotiating Skills

15

Negotiation process:

How do I ask for it?

How to have the conversation

•  Step 1: Decide if you will likely accept the job

•  Be confident: If you want to accept the

position, it’s normal to ask for something

•  Be honest with yourself about your purpose

•  Does the company need to convince you to

say yes?

•  Are you already certain about accepting the

job and you just want to take care of yourself

in the best way? That’s ok!

•  Do not negotiate to boost your ego!

Job Hunting in Biotech: Interviewing and Negotiating Skills

16

Negotiation process:

How do I ask for it?

How to have the conversation

•  Step 2: Prepare

•  Review job offer letter

•  Prioritize questions and requests

•  Write out discussion bullets for major

requests

•  Practice out loud

9

Job Hunting in the Biotech Industry:

Interviewing and Compensation Negotiation Skills

Prepared by Bill Lindstaedt

Job Hunting in Biotech: Interviewing and Negotiating Skills

17

Negotiation process:

How do I ask for it?

How to have the conversation

•  Step 2: Prepare (example below)

•  A list of prioritized items might look like:

•  Start date – one month vs two weeks?

Clarify?

•  Salary – target was $90k vs $86k, was

hoping to start at $90k based on

benchmark data

•  Signing bonus – request $4k for car and

rent to bring total up to original target for

first year

•  Ask for explanation of stock plan

Job Hunting in Biotech: Interviewing and Negotiating Skills

18

Negotiation process:

How do I ask for it?

How to have the conversation

•  Step 3: Initiate negotiation discussion and

requests.

•  Start positive:

•  “First of all, I wanted to say again how

thrilled I am to have received this offer…”

10

Job Hunting in the Biotech Industry:

Interviewing and Compensation Negotiation Skills

Prepared by Bill Lindstaedt

Job Hunting in Biotech: Interviewing and Negotiating Skills

19

Negotiation process:

How do I ask for it?

How to have the conversation

•  Step 3: Initiate negotiation discussion and

requests.

•  Transition statement:

•  “…I do have a number of questions. These

questions run the gamut from salary issues, to start

date.”

OR

•  “…I’ve outlined two main points, along with a couple

of clarification questions, concerning the items

presented in the email you sent to me.”

•  “…Is this a good time to discuss these, should we set

a time later, or do you prefer to do this by email?”

Job Hunting in Biotech: Interviewing and Negotiating Skills

20

Negotiation process:

How do I ask for it?

How to have the conversation

•  Step 3: Initiate negotiation discussion and

requests.

•  Mention leverage and ask for what you want:

•  “…Well, my first question is about the salary. The

letter you sent specified a salary of $90,000. I’ve

done some information gathering online and

through colleagues in similar positions, and it

seems as if the going rate for this sort of position,

in the Bay Area and for someone with my

background, is more in the range of the mid-90’s.

Is there any flexibility in the salary level for this

position that might bring it closer to this level?”

11

Job Hunting in the Biotech Industry:

Interviewing and Compensation Negotiation Skills

Prepared by Bill Lindstaedt

Job Hunting in Biotech: Interviewing and Negotiating Skills

21

Negotiation process:

How do I ask for it?

How to have the conversation

Step 3: Initiate negotiation discussion and requests.

•  End encouragingly. Summarize. Express appreciation:

•  “…I understand now why we are locked into the start

date and that it needs to remain as it is in the letter

you sent. And…I really appreciate your willingness to

check on the flexibility around salary for this position,

especially since (some reference to earlier

conversation) I know it requires circling back to Bob to

check on equity issues within the group. I’ll be

prepared to respond quickly when I hear back from

you…I’m really excited about wrapping this up too and

appreciate your help in getting together the

information that I need to finalize my decision. Is there

anything else you need from me at this point?”

Job Hunting in Biotech: Interviewing and Negotiating Skills

22

Negotiation process:

How do I ask for it?

How to have the conversation

•  Step 4. Wait for counter-offer.

•  Always ask for final agreement in writing

•  Wait for counter-offer email

•  Generally…one major exchange for entry-level

jobs

•  Accept the counter offer or politely turn it down

12

Job Hunting in the Biotech Industry:

Interviewing and Compensation Negotiation Skills

Prepared by Bill Lindstaedt

Job Hunting in Biotech: Interviewing and Negotiating Skills

23

Wrap up:

Principles to follow throughout

•  Maintain the relationship

•  Open and close each step with appreciation and

enthusiasm.

•  Negotiate with integrity.

•  Balance satisfaction with relationship issues.

•  Avoid miscommunication when negotiating

•  Clarify it in conversation, then get it in writing or

write it yourself.

Job Hunting in Biotech: Interviewing and Negotiating Skills

24