Once you are to the point that you are ready to talk about money, you need to know what you are doing so you get what you are worth. In addition, you need to know the fine line between getting what you are worth and not being insulting.
Since most people seldom face a personal negotiating experience, it should come as no surprise that few of us are real experts at negotiating for ourselves. While they may be excellent company negotiators, we have seen many strong people leave serious money on the table when it came to negotiating their own package.
Now, the fi rst thing you need to decide… is when to start a negotiation process. Some people mistakenly think negotiation is a continuous selling situation that occurs throughout their interviews. However, before you ever attempt to negotiate, you have to make sure that the employer is “sold on you.” Once an offer has been presented, you can’t negotiate unless there is some hope you can get the employer to offer new terms. You need to sense this on an individual basis. That’s where negotiations begin.
What to negotiate:
Coming to grips with what should be negotiated is, of course, different for everyone. Not too long ago we handled a marketing executive from Kellogg in Michigan. His primary goal was to have his family move to a new area that met outdoor lifestyle requirements, and he started by suggesting to us that a 20 percent reduction in income would be acceptable.
However, after a three-month search, he accepted a top position in Boca Raton. When we fi nished helping with his negotiations, his compensation ended up 15% higher, and he received a signing bonus, as well.Another executive was with J & J. He wanted out of the major corporate environment. He left his large company career behind when he landed with a venture capital group. His assignment was to oversee ventures that the fi rm funded by serving as acting CEO. He was to complete the initial setup, find a permanent CEO, and then move on to another assignment, but remain on the board.
Based in Castle Pines, Colorado, he will handle two ventures simultaneously for six-month periods—eight over two years. His base of $200,000 was a decrease, but if just one fi rm goes public, his equity benefi t will be in the many millions.
Needless to say, the fi nal staging of his executive level negotiations didn’t just happen. In the discussion that follows, the basics of our system are outlined in the most simple terms. If you don’t have success, shift from the “present” and focus on the future: a review after six months, a better title, an automatic increase after time. These are easier things to get.