Negotiation—it's a word that can make even the bravest of souls tremble. We've all been there, gathering bits and pieces of advice from countless resources, only to find ourselves winging it when the time comes. But fear not! This guide is here to help you navigate the treacherous waters of negotiation with confidence and finesse.
So grab your coffee ☕ and let's dive in!
1️⃣ Do Your Market Research 📚
Knowledge is power, my friend! Start by understanding what the market pays for your role. Websites like Glassdoor, LinkedIn Salaries, Levels.fyi, and H1bdata.info are your secret weapons. Don't forget to explore your target company's competitors too.
2️⃣ Identify Your Range 🎯
Now, let's pinpoint your target range. Aim for around 70% of the role's salary range, give or take 5%. For example, if the range is 15 lakhs to 30 lakhs , your sweet spot would be around 21 lakhs to 25 lakhs. This becomes your opening bid—go claim what's rightfully yours!
3️⃣ Choose Your Approach 🎯
You've got three options: base salary, bonus, and equity. Plan A should focus on your top priority among these three. Plans B and C should be designed to hit your target range while considering the other options.
4️⃣ Set Your MAO (Minimum Acceptable Offer) 👌
Determine the minimum compensation you'll accept and stick to it. If the company won't meet your MAO, it's time to walk away. Get advice from a trusted friend or partner to stay objective during the negotiation process.
5️⃣ Start the Conversation Early 🗣️
If possible, bring up the topic during the first interview. If the salary ranges aren't in the same ballpark, it's better to know early and save your time. But if they align, you'll understand clearly and can prepare accordingly.
6️⃣ Don't Reveal Your Number, Ask for Theirs ❓
When asked about your salary expectations, be sly like a fox 🦊. Instead of revealing your number, turn the tables and ask for their range first. Be flexible, emphasize the importance of finding a great fit, and let them share their figures.
7️⃣ Confirm Alignment on the Range 🤝
If they disclose their range, fantastic! Make sure it aligns with your expectations. But if they keep pushing for your range, confidently state the range you identified in step 2. Be open to negotiation if it's a perfect fit.
8️⃣ Wait for the Offer ⏳
Now, the waiting game begins. When the offer arrives, compare it with your Plan A. Express gratitude for their generosity and mention that you're considering roles in the X-Y range. Ask if there's any room to bridge the gap.
9️⃣ Congrats or Plan B 🎉
If they meet your target range, congratulations! You've hit the jackpot. But if not, appreciate their flexibility and propose Plan B as an alternative. Maybe a boost in bonus can make up for the difference?
🔟 Acceptance or Plan C 💼
If they accept your Plan B offer, fantastic news! But if not, it's time to unleash Plan C. Be respectful of their constraints on base salary and bonus, but emphasize the need for your compensation to reflect your value and market standards.
1️⃣1️⃣ Back It Up with Data 📊
If you've reached Plan C, it's pitch time! Back up your case with real data. Mention the market rates you discovered during your research. Highlight the value you've brought to previous roles. Prove why the return on investment (ROI) you generate is worth every penny.
1️⃣2️⃣ The Double Nope Rule 🙅♂️🙅♀️
In salary negotiations, I swear by the "Double Nope" rule. Give two "No's" before making a final decision. Plan A to Plan B is your first "No." Plan B to Plan C is the second. At that point, the company is likely to present its final offer. It's up to you to accept or decline.
💡 Negotiation Mistakes to Avoid 💡
✖️ Don't spill the beans about your compensation expectations before they make an offer. Keep it mysterious and maintain the upper hand.
✖️ Avoid mentioning that you plan to compare offers before receiving one. Timing is key, and premature comparisons can give the wrong impression.
✖️ Hold off on expressing excitement to join until you've negotiated a package you're happy with. Stay focused on the negotiation before letting the excitement take over.
✖️ Leaving some money on the table can be okay, but don't make premature promises. Show interest without committing too soon.
✖️ Avoid telling a company they're overvalued. Instead, focus on the potential upside and frame your equity ask as conviction in the long-term.
Decoding Employer's Negotiation Tactics: What it Means for You 🤝
So, you've received a job offer from a startup, and now it's time to navigate the delicate art of negotiation. But wait! Before you jump into haggling for the best deal, let's dive into the employer's perspective and unravel what it means for you. 🧐
1️⃣ Grasping the Value of Equity 💸
Employers stress the importance of understanding the potential worth of equity being offered. It's like playing the stock market 📈 — you need the right info to make an informed decision. Ask for details like the number of shares, recent valuation, and outstanding shares. Crunch those numbers and assess both the best and worst-case scenarios. Remember, it's not about the value today but what it could be worth in 2 to 10 years. 🎢
2️⃣ The Nitty-Gritty of Negotiation 🤝
Here's a curveball: Employers argue against too much negotiation. They believe it rewards smooth-talkers rather than those with the right skills. Negotiation might work in the business world 📊, but at a startup, they want talent that shines through expertise, not negotiation prowess.
So, be open to discussing salary and equity without pushing for extensive back-and-forth. 🗣️
3️⃣ The Bigger Compensation Picture 💼
Startup salaries might not always be the fattest stacks of cash 💰. But hold your horses!
Consider the entire compensation package. Think about the value of equity, benefits, work culture, growth opportunities, and the company's vision. It's like piecing together a puzzle 🧩. Look beyond the dollar signs and weigh the startup's potential for success and your personal growth within the company. 🌱
4️⃣ Levels and Fairness 📏
To keep things fair, some employers establish salary levels. Everyone at the same level gets paid the same amount, but there's room for growth. It's like climbing a career ladder 🧗♀️, with each rung offering new opportunities.
Understanding this approach helps you envision your future at the company and how you can climb the ranks. 🚀
And there you have it—your ultimate guide to negotiating a raise like a pro! 💪✨ Remember, credit goes to Austin Belcak for inspiring this newsletter with his insightful Twitter post. Thanks, Austin, for empowering individuals to achieve their true earning potential! Now, go out there and rock those negotiations! Best of luck! 🌟💼
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