How to Prepare for a Compensation Negotiation with Start Up Strategy
There’s considerable work to be done when it comes time to prepare for your compensation negotiation. It’s not hard work though, just work.
BABY STEPS
Review your current job description.
If you, like most employees, have taken on new duties, make a list of them and update your job description.
Ask yourself whether your current duties fit your old title.
Often the answer is “no,” your duties fit the title of the position I’d like to be promoted to or hired to fill with a new employer
That promotional opportunity is your new goal.
Go to a site like payscale.com, order a report from 81cents.com or seek information from others in your industry to determine what the market is paying for the job you’re actually doing.
Write down the following
Your job description, including the title that best suits your current duties
The range of salaries and benefits people like you report earning and the range of salaries and benefits companies like your own are currently paying
Three or more possible promotion, benefit, and raise scenarios. These might include:
The highest compensation package you could possibly rationalize
.A compensation package better than you actually want (because you need room to negotiate)
The compensation package you’d be satisfied with
Your bottom line compensation package
Ask yourself what your employer’s and your superiors’ interests are
their desires, needs, fears, preferences and priorities
their mission and their values
the people who they have to please
OPENING OFFER OR FIRST COUNTER
ELEMENTS
Base salary
Equity/Profit Sharing
Company/Individual Performance Bonuses
Promotions/Titles/Duties/ Support Staff /Career Trajectory/ Delegation /Travel (more or less)
Client facing opportunities
Continuing education
Assistance with client/business development
Benefits
Putting numbers and terms on the table
FIRST NUMBERS OR COUNTERS
___________________
FIRST CONCESSION W/ REASON/S: _________________________
SECOND CONCESSION W/ REASONS: ______________________
BOTTOM LINE W/ REASONS: ______________________________
STARTUP QUESTIONS AND STRATEGIES
QUESTIONS
Capital investment, forecast of raising further funds, projections on growth, revenue, costs, year when business will become profitable
What does the startup see as the challenges of 2020 and for 2021 (you’ll eventually want to say how you can be part of the answer to those challenges)
What does the startup see as the best answer to the problems, best way to seize the opportunities, best way to improve relations with customers/clients, best allocation of resources and job duties in my group, team, area, etc.
PITCH FOR PAYING YOU YOUR MARKET VALUE
Monetize your contribution to driving revenues, reducing costs, retaining/gaining business, raising the profile of the company, managing staff, strategic planning, etc.
PITCH TO THE DECIDERS’ INTEREST:
What their individual interests are as well as the company interests
How you can satisfy those interests
How can you align yourself with their interests
PTICH TO THE STAKEHOLDERS’ INTERESTS
Venture capitalists funding the venture
Management, C-suite, founders
CRAFT YOUR PITCH LEADING WITH THE BENEFIT TO YOUR NEGOTIATION PARTNER
Their interests (needs, desires, fears, preferences, priorities, values, mission, attitudes toward the future)
Stakeholders - the people with both visible and shadow power
Your contributions to opportunities to be seized and challenges to be met
LIST ANTICIPATED PUSH-BACKS & PREPARE RESPONSES
so you won’t be caught flat footed when you get a push back