In Industry, It’s About More Than Just Salary

July 24, 2013

Pondering a career in industry?  Then you need to be aware that the industry job offer may contain elements not part of offers in academia, government or non-profits; industry jobs often include a profit sharing plan.

Industry profit sharing takes two basic forms; dividends, a cash payment made to employees and share-holders based upon the performance of the company, usually on an annual basis, and equity, the actual ownership of shares of the company.  Equity in a company is granted by one of the following methods:

  • Stock grants:      A company may grant actual shares of its stock to employees.  The value of these grants is determined by the price at which the shares are traded on one of the stock exchanges.  An example: You are granted 100 shares at $5 per share. Over time if the value rises to $10 per share; the grant becomes worth $1000 after a vesting period.  Vesting is the time that you are required to hold the stock before you can sell.  If the vesting period is four years, you may sell up to 25% of your shares each year, or you can wait the four years and opt to sell all of your stocks.
  • Stock options:   If the company grants a stock option, it gives you the right to buy a specific number of shares of your company’s stock during a time and at a price that the employer specifies.  Typically this stock price is lower than market value.  As in the above example, you are granted the option to purchase 100 shares at $5 per share.  If the value rises to $10 per share, the option to you becomes worth $1000, minus the $500 you paid, or $500.  As in stock grants, a vesting period usually applies for options as well.
  • American Depository receipts (ADR’s): ADR’s are used by non-American companies whose stock trades on a foreign exchange to provide an equity vehicle for American employees.  Its value to you would be calculated in the same manner as a stock option.

Most importantly when considering a job offer, make sure to take into account the offer in its entirety, not just the salary.  The value of these other elements may comprise a significant percentage of total compensation.  In some cases, where the value of the stock has risen tremendously, many of their employees have made huge sums of money.  However in other cases, where the stock has hovered near its price at the public offering, employees have made very little.

The value that these profit sharing vehicles can add to your compensation may vary.  Make sure you connect with your Career Services Center (for NIH intramural trainees that is the OITE) to help you with the negotiation process to optimize the value of the offer you receive.

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Tips on Conducting a Job Search Anywhere

May 20, 2013

Do you need to find a job in a geographically limited area far from your current location? Maybe your significant other just found a dream job, or maybe you just always wanted to live in Seattle, WA – whatever the reason, a remote and geographically limited job search poses a distinct set of challenges that require some strategizing to overcome. Here are a few thoughts that may help from a person who recently was searching for a job in Dallas, TX, while living in Bethesda, MD.  These tips are useful in any job search, but particularly for conducting a remote search.

Begin the search early. Job options tend to be reduced when they are limited by geography. Imposing boundaries on the location means relying on fewer potential employers. The more time you allow for finding a job, the better.

Use your network. Your network should be your first resource in a remote job search. Know the histories of the people in your network, and keep up with their current locations. Ask people currently or historically linked to the area for suggested companies or connections. Some of your contacts may work for a company with an office in that location and may be willing to send out feelers on your behalf. Always ask permission before using a contact’s name or, even better, ask them to provide an introduction.

Do not limit yourself to professional contacts. Talk to friends, alumni associations, volunteer organizations, members of your religious institute, or anywhere else you may find an unexpected lead. If you are a member of a professional or volunteer organization, contact the local chapters to make some connections. Seek local people at conferences. Make your job search as widely known as possible – the more exposure the better. Conducting a secretive job search poses more of a challenge, but typically you can advertise pretty broadly without you current boss finding out.

Use job Sites. Job sites will be your friend. Most career sites filter searches to a specific area or radius around an area. Check out the state labor department for local search engines. The City of Dallas website had links to six local search engines.

Know your business. If you are looking for an academic job, search all the universities. For me, looking for a job in science policy in Dallas meant searching anywhere that might have a policy/government relations office, like non-profit organizations and universities. After finding some leads, go back to your network and look for the connections. Cold e-mails to directors or assistant directors (managers) located in offices of interest can end up in future leads or even a job.  So don’t be afraid to write them a note.  None of the offices I contacted were hiring at the time, but I continued to receive several leads from the people I contacted with in those initial cold e-mails.

Be flexible. Compromising a little on the job you are seeking may go a long way towards finding a position. As a person recently preparing for a science policy career in Washington, DC, where policy jobs are plentiful, now moving to Dallas, TX, where science policy jobs are next to non-existent, I had to broaden my search to jobs with similar skills requirements and career goals. After some considerable research, I found a job in the communications office of a local university requiring many of the same skills and tasks that I enjoyed in science policy.

To recap: start early, use your network heavily, use search engines wisely, cold call companies of interest, and use your network even more.

What are your suggestions or experiences for a remote job search?


Making the Transition to a New Position

November 26, 2012

You have a new job!  (or hope to soon).  Here are some tips to make the transition to your new position successful and as easy as possible.

First, remember that transitions are always tough.  While you are likely very excited about a new position, the transition can be overwhelming, especially if you are moving to a new location. You are closing out a chapter in your life that has likely lasted between two and five years (or more).   You are saying goodbye to friends and colleagues and disrupting an established routine—so some anxiety is totally normal.

Finish strong and leave your current job on a positive note.  Finish those last minute experiments, organize those freezer boxes, clean your personal spaces (bench, desk, etc), train other people in the group on what you do, and organize/clean/save important computer files and emails.  This always seems to take longer than you think it should, and many of us have put this off to the last minute and then scrambled to finish everything before we walk out the door.  Also, decide how many of those last minute experiments can honestly be done before you leave.  Someone else in the lab can likely perform the rest after you leave.

Make sure you take time to say goodbye to people.  Things can be chaotic as you transition, and sometimes we forget the people.  Schedule enough time to say goodbye (without over-scheduling so that you are going crazy trying to keep your social calendar in check).

If your new job requires you to move, ask the organization you are moving to for relocation help.  Even if this will just be a colleague that will point you in the right direction for good neighborhoods, childcare, restaurants, etc.  Finding a good place to live will make the transition much easier.  You can even search the alumni databases or Linkedin to find other people who are in that location to get guidance.

Make a plan for your arrival at your new job.  Some recommend a 90 day plan of what you would like to get done.  A good book on is The First 90 Days, by Michael Watkins.  Also, if you are heading to an academic appointment, you may want to read Making the Right Moves (published by HHMI), and At the Helm by Kathy Barker.  Create a summary and overview of your position, as you see it.  Then make a list of goals that you should (and can) complete in your first 30, 60, and 90 days.  In this, also mention the assumptions that you have and any required resources needed in order to make this happen.  This gives you some good guidelines and goals as you move into a new position with many other unknowns.

Build a good reputation with both your new boss and your new coworkers.  Be part of the team.  Volunteer to tackle doable projects.  Ask your co-workers on the best places for lunch and coffee (and even invite them to share in a cup of coffee with you).  Don’t try to integrate too quickly into every conversation.  Remember, these people have built a bond and you will need time to really understand all of the nuances of the relationships.

Finally, make sure to take some time for your own work-life balance.  Finding new places in the community is a great way to find a new support system, to gain friends and to make this transition less lonely.

So good luck!!!  And keep in touch…..your transition now makes a terrific success story for those coming through the ranks behind you!


Preparing to Negotiate Non-Academic Job Offers

October 22, 2012

In our last blog post we talked about negotiating for an academic job search.  This week, we will highlight tips for negotiating any non-faculty position.  Like last week, this blog post is intended to give you an overview of how to prepare for negotiations.  For more in-depth information on negotiating for non-academic job offers, view our video here.

Salary: Salary is probably the first thing on everyone’s mind when they think about negotiations.  The biggest question you have is “are they paying me fairly?”  For the most part, organizations are not trying to low-ball you.  It doesn’t make sense to pay you so far under market value, that you leave the organization faster.  That being said, they are looking to get you for the lowest amount of money they can. To make sure you feel like you are getting what you are worth you should connect with your network in similar jobs and organizations to see what salary you should be getting.  Ask these people, “I am looking at a job at organization X.  The position is described like this (insert a brief description here).  I think the salary should be $A-$B.  Do you think that is reasonable?”

Another resource for salary information is salary comparison sites:  Glassdoor.com, monster.com, and salarywizard.com are all good sites.  Be cautious though, sometimes the information is not as updated as you would like.  These sites are good places to start, but you need more information.  Understanding the cost of living changes in different areas of the country is also important.  $80K in the DC area is a lot different than $80 in Topeka.

You should always try to ask for additional salary, but be prepared to give them reasons on why you deserve more.  You may bring a particular skill set, be losing money by taking this position, or just have an understanding based on your salary research that the number they offered is too low.  They may say no to your request, but they can’t say yes if you don’t ask.

Benefits: Sometimes you can negotiate other benefits like time off.  The biggest thing here is to understand what you are worth or what you would be losing that you current employer gives you.  For example, if in your last job you had 15 days off (including some federal holidays), but the new jobs offers you 12 days.  This is now a negotiable item, either to add more days or to add more salary for the days you missed.  Also, if you have religious holidays that you need, this is the time to ask.  Industry jobs have other benefits that are negotiable such as bonuses, profit sharing and stock options. You may be able to get education payments if you need additional training.  Relocation costs are sometimes included, and if they are not you can try to negotiate them.  Moving cost span from a flat payment to full help with finding a house/childcare/packing services.

Typical non-negotiable benefits include health care benefits, other insurance benefits, flexible benefits and retirement packages.

Spousal/Partner hires: Your negotiation can also include help for a position for your other half.  We have seen this work, and not work depending on the organization.  Have a clear idea of what your partner wants to do, the types of jobs that they would like, a list of organizations that their skill sets fit into, and a current CV/resume in order to help your new employer to make the best connections.

Salary review: A good thing to do is to work out a plan that your salary will be looked at in 6 months to a year in order to see if your performance warrants a salary increase.  We know someone who did this and after six months got a $20, 000 raise.

The original job offer will likely be by phone or email, as will most of your negotiations.  Get the final deal in writing!  Nothing is final until it is written down and signed by all parties.


Preparing to Negotiate an Academic Job Offer

October 9, 2012

If you have been following our Calendar for Career Success, October is the month to prepare yourself to negotiate a job offer.  Because the preparation for negotiating an academic position versus a non-academic position is so divergent, we are going to cover them in separate blog posts.  This week, we will give a brief overview of how to prepare for negotiating academic job offerings.  For more in-depth information, watch the videocast or view the slides from the latest OITE workshop on negotiating an academic job offer.

As you prepare to interview for academic jobs, it is important that you are preparing to negotiate an offer for those positions as well.  Often times the initial negotiation occurs verbally during or shortly after your interview(s).  You may be asked to provide information regarding your needs before the institution is willing to make you an offer.  Thus, it is important that you do your homework and be prepared to know what is reasonable.

Research what a typical offer looks like.   On-line databases can be a good place to start, but you need “real-world” data as well.  Many state universities publish salaries of current faculty.  Also, the Association of American Medical Colleges salary surveys are great resources for knowing your worth.   For those at the NIH, the OITE has the AAMC book that we welcome you to come in and use.  If you are outside the NIH, check to see if your institution has an online subscription to the AAMC web site.  Then you will need to determine your three salary numbers:  Ideal, acceptable and unacceptable.

Understand all the components of an offers. Is your salary is for a 9-month of 12-month appointment? Most 9-month salaries are paid over 12 months, but the duties associated with that salary (e.g. teaching), might only be for 9 months of the year.  You will want to ask if there are realistic ways to find support for the summer months to supplement that salary?  Is it a base salary with the possibility of bonuses?  Will the salary be fully supported by the university?  If not, how much will you be expected to provide from grants and when?  What about insurance (health, life, disability, etc.), retirement plans, sick days, vacations, holidays?  Almost all Universities have a standard benefits package, but you will want to know the details of that package to know if you will need supplement it on your own if it does not meet your needs. Read the rest of this entry »


The ABC’s of Negotiating

June 29, 2010

dollar signsCongratulations! You made it through several interviews successfully and just received a call with an offer. Now what? Do people still negotiate in this tough job market? Should you negotiate with your new employer? And if so, how do you begin the negotiation process?

To be sure, people are still negotiating in this market, some quite successfully. Some trainees have expressed to me that they fear negotiating will drive the employer to rescind the offer. I would contend that being made an offer puts you in a position of power, but there are still some missteps you can take if you’re not adequately prepared. For example, you can turn the employer off completely and possibly change her mind about your candidacy if you request something outrageous in your salary or package. Generally speaking, you will need to do some homework before engaging in a negotiation.

Here are some pointers I can offer as you begin to think through this process.

A = Assess the value of the job in the marketplace.

To get a sense of the value of the job you have been offered, do some research and find out what the baseline salary is for similar positions in the same geographic location. While there are many websites out there that generate salary data, I still prefer to use one of the oldest on the web, http://www.salary.com. I like using Salary.com because you can search for salary data by zip code AND by job title. You can get very close to the specifics of the job you have been offered by clicking on job titles and viewing job descriptions in pop-up windows. These will include educational and experiential levels to help you determine the closest match to the job you were offered. The other reason I like this site is that it will give you a range of salaries, including the mean and median, for the position and geographic region you specify.

B = Bargain.

Once you have a sense of the salary level you can shoot for, it’s time for you to bargain! It is difficult to negotiate as soon as you get the offer, so I often counsel trainees to take the call, be gracious and excited, and then ask to call back at a later time that day or the next time. This way, you can collect your thoughts and get your ducks in a row.

In addition to knowing the salary level of the position you were offered, it is also important to be armed with details of why YOU are the best person for the job before you call the employer to negotiate. What is it about your background and/or experience that makes you uniquely qualified for this job? That is the information you will want to present when you are negotiating for a higher salary.

Language you could potentially use to negotiate is as follows:

“Hello, Dr. X! Thank you for getting back in touch with me yesterday. I was so pleased to hear the news of the offer, but there are a few details I would like to discuss with you. Given the fact that I bring X, Y, and Z to this position, I am looking for a salary in the X range.”

At this point, just stop talking. You don’t need to hem and haw about whether you’d still take the job if the offer didn’t change, etc. Just give the employer a chance to respond. Chances are great that she will not be able to give you an answer without checking with others first. If the salary is hard and fast for that particular position, she might share that with you immediately. Either way, you will be given the opportunity to respond once the employer gets an answer re: the higher salary you requested, or when the employer tells you that the salary will not change.

C = Close the deal.

Once the negotiation has ended and you and the employer have come to an agreement on the specifics of your offer, get the details IN WRITING as soon as possible. I have worked with a few trainees who neglected to get their negotiated package in writing and subsequently lost some of the perks they had successfully negotiated for.

If you would like to discuss your situation in more detail, consider meeting with a career counselor in OITE. Practicing this discussion will strengthen your negotiation skills—and may even increase the likelihood that you will get what you negotiate for.