Escalation As A Negotiation Strategy

Escalation can be a highly effective negotiation strategy. Having unlimited authority in a negotiation can seem, and is, powerful, but it can be equally dangerous. If your client thinks that you have unlimited authority, he or she can read that as a green light to keep driving for more.

Before the negotiation, don’t make assumptions. Confirm that the client you are negotiating with has the authority to make decisions. If you learn that the client doesn’t have the authority, STOP negotiating, find out who does, and politely request access to the person with the power.

If you can’t get that, you will most likely be in the uncomfortable and dangerous position of being the only person in the room with the authority to make concessions. At that time or any time during the negotiation, if your client mentions that he or she must confer with someone else on a negotiation point, it often makes sense to mention that you too must confer with someone on your team.

When you are negotiating, for example, with two clients and one excuses himself or herself from the negotiating, before he or she leaves, check that the person left behind to negotiate has the full authority to continue and make decisions necessary to reach an agreement.

When you find that you must position an escalation, reinforce that you know both you and the client are working to reach agreement and your desire to work through the issues.

While your goal is to go as far as you can in a negotiation, knowing when and how to escalate can help you create Win-Win deals and protect you from entering into Win-Lose ones.

How to Present Your Work History, Education, Awards and Personal Interests on Your Resume

This is the information common to all resume formats, and the most boring. No different format, font type or size etc. makes these sections of your resume, any more exciting. They are important, but be very careful of the wording used, how and what you emphasize.

Unless you have just finished school, and have no work history to speak about, start with the education section. Additional [online?] training courses, community education programs, etc. can be combined here, with the heading, “Education and Training,” or something similar.

List your education, starting with the most recent. Highlight the degree, and major, followed by the school, especially if it is well-known. Whether you include year of graduation is a personal preference, but realize it could provide a clue to your age. However, since schools have gone online, more and more adults, over 40, are earning degrees, so dates don’t necessarily mean anything.

If you are a current student, add the above, but this time include the expected date of graduation, or even some such phrase that indicates you only have 3 credits, or 2 classes to complete, before graduating.

Don’t include high school, unless you are 18 through 20, with no college whatsoever, but did well in high school, especially coursework related to your targeted job.

Only list GPA if you graduated recently, are still in school, it’s above 3.2. Include honors regardless of when you graduated. Examples may look like:

Bachelor of Arts in English, graduated Summa Cum Laude from Northwestern University, IL

Or

Bachelor of Arts in Business Administration
American InterContinental University-online
Currently attending, will graduate 1/2012
3.7/4/0 GPA

Obviously, there are as many ways to state these, as there are degrees to state!

List work experience starting with your present or most recent job. Company name, city, state, dates you worked there, title of job, and description of your role. This can be done in countless ways, so here are some examples:

Abc Company, Inc., Madison, WI · 2006 – 2009
King of the World
Managed and oversaw all store functions. Addressed customers’ needs…
Developed marketing strategies, which increased sales 20% over previous year.

Or

ABC Company, Inc. Madison, WI 6/2006 – 4/2007
King of the World
Managed and oversaw…

Or

2008 to 2010 King of the World, ABC Company, Madison, WI
Managed and oversaw…

There are limitless ways to do this, but the most important thing to remember is, be consistent. Make sure your type fonts, sizes, spaces, etc. are the same throughout.

Other categories, such as awards, memberships, certifications, etc. can be grouped together, under a “Miscellaneous” title, or, if you have numerous certifications, for instance, you can include them on a standalone basis. Just remember, anything miscellaneous, must be relevant to the job or profession you are seeking, and not that you enjoy playing baseball. Employers don’t care about that, and assume you have a life and interests outside of work.

Will my employer know if I take a 401k loan?

Does Your Employer Know If You Take a 401(k) Loan?
Yes, your employer will know if you take a 401(k) loan because they are usually involved in the administration of the loan process. When you take a loan from your 401(k) account.

What happens if I lose my job and I have a 401k loan?
If you have a 401(k) loan and you lose your job or leave your employer for any reason, there are several potential outcomes and considerations to be aware of:

Loan Repayment Deadline:
Typically, when you leave your job, the 401(k) loan becomes due immediately or within a short period, usually 60 to 90 days. The specific timeframe may vary depending on your plan’s rules and the terms of the loan. It’s crucial to check with your plan administrator to understand the repayment deadline.

Repayment Options:
If you can repay the loan balance by the deadline, you can do so to avoid any adverse tax consequences. You may need to contact your plan administrator or follow their instructions for repayment.

If you cannot repay the loan in full by the deadline, the outstanding loan balance may be treated as a distribution. This means it becomes taxable income, subject to federal and state income taxes. Additionally, if you are under the age of 59½, you may be subject to a 10% early withdrawal penalty.

Taxes and Penalties:
If the loan amount becomes taxable income, you’ll receive a Form 1099-R from your former employer or plan administrator, indicating the distribution. You’ll need to report this income on your tax return.

You may also be required to pay the 10% early withdrawal penalty if you’re under 59½ unless you meet an exception, such as being disabled or using the funds for certain qualified medical expenses.

Impact on Retirement Savings:
Losing a job and having a 401(k) loan treated as a distribution can significantly impact your retirement savings, as the distributed funds are no longer invested in your retirement account.

Consider Future Contributions:
If you find new employment, you may have the option to roll over the distributed funds into a new employer’s retirement plan or into an Individual Retirement Account (IRA) within 60 days to avoid immediate taxation and penalties. However, this depends on the rules of your new employer’s plan and IRS regulations.

Can you take a 401k loan from a previous employer?
You generally cannot take a 401(k) loan from a previous employer’s retirement plan if you are no longer employed by that company. Once you leave an employer, you typically lose the ability to take out a new loan from their 401(k) plan.

Who keeps track of 401k?
Several parties are involved in keeping track of your 401(k) account:

You, the Account Holder:
As the 401(k) account holder, you are responsible for keeping track of your contributions, investment choices, and overall account activity. You should receive regular statements and updates from your plan administrator or financial institution.

Plan Administrator:
Your employer typically selects a plan administrator to oversee the 401(k) plan. The plan administrator is responsible for managing the plan’s day-to-day operations, including processing contributions, investments, and distributions. They provide account statements, information about investment options, and other plan-related communications to participants.

Custodian or Financial Institution:
The assets within your 401(k) account are held and managed by a custodian or financial institution. They are responsible for executing investment transactions, maintaining records of your investments, and providing you with account statements.

Investment Providers:
Within your 401(k) plan, you have the option to choose from various investment options, such as mutual funds, index funds, or other investment vehicles. These investment providers manage the underlying investments you select and provide information on fund performance and options.

Government Agencies:
Regulatory bodies, such as the U.S. Department of Labor (DOL) and the Internal Revenue Service (IRS) in the United States, oversee and regulate 401(k) plans. They set rules and guidelines to ensure compliance with tax and retirement plan regulations.

Third-Party Administrators (TPAs):
Some employers use third-party administrators to help manage the administrative tasks of their 401(k) plans. TPAs may assist with record-keeping, compliance testing, and other administrative functions.

How long does it take for employer to approve 401k loan?
The processing time for the approval of a 401(k) loan can vary depending on your employer’s plan and the administrative procedures they have in place. In many cases, the approval process for a 401(k) loan can take anywhere from a few days to a few weeks. Here is a general overview of the typical timeline:

Application Submission: You will need to submit a loan application to your employer’s HR department or plan administrator. This application may include details such as the loan amount, purpose of the loan, and repayment terms.

Review and Verification: Your employer or plan administrator will review your loan application to ensure it complies with the plan’s rules and IRS regulations. They may also verify your account balance and employment status.

Approval: Once your application is reviewed and approved, your employer will typically provide you with loan documents specifying the terms and conditions of the loan, including the interest rate and repayment schedule.

Loan Disbursement: After you’ve signed the loan documents, the plan administrator will initiate the disbursement of the loan funds to you. This process can take a few days.

How soon can i take out a 401k loan after paying one off?
The rules regarding how soon you can take out a new 401(k) loan after paying off an existing one can vary depending on your employer’s plan. The Internal Revenue Service (IRS) doesn’t specify a waiting period for taking out a new 401(k) loan, but your employer’s plan may have its own policies and restrictions. Here are some factors to consider:

Plan Rules: Check with your employer or plan administrator to understand the specific rules of your 401(k) plan. Some plans may allow you to take out a new loan immediately after paying off an existing one, while others may have waiting periods.

Number of Loans: Some plans restrict the number of loans you can have outstanding at any given time. You may need to pay off your existing loan before you can take out a new one, regardless of the waiting period.

Repayment Period: If you’ve recently paid off a 401(k) loan, the plan may require you to wait a certain period before you can take out a new loan. This waiting period can vary from plan to plan and may range from a few days to several months.

Loan Amount: Plans often have rules about the maximum loan amount you can have outstanding at any time. If you’ve paid off a loan but still have a significant outstanding balance due to the plan’s limits, you may need to wait until your account balance increases before taking out a new loan.

Loan Purpose: The purpose of the loan may also affect your ability to take out a new one. Some plans may restrict loans for specific purposes or may have different rules for different types of loans.