Ask HN: Need salary negotiation advice
After spending a couple of years at my first job out of grad school, I applied to Google at my friend's suggestion (he currently works there). The interviews went well, and the recruiter called today to say that things are moving to the "compensation committee" stage. I accepted my first (and to date, only) job offer several years back without any negotiations, so I have no experience negotiating whatsoever.
What struck me as weird was that the recruiter wanted me to fill out a data sheet listing my salary, previous salary increase, previous bonuses, expected future bonuses, all stock/options grant info, etc. Is this the norm? My friends who were hired straight out of school naturally didn't have to fill this out, though some of my friends say the salary inquiries are normal when applying to new jobs.
Will filling this out impact the negotiations at all? I didn't really have a plan other than asking for my current salary + 20%, and seeing where they would meet me in the middle.
Thanks!
Never take into consideration your current salary when you're the first to give the number. Search the company, the job or/and the area on http://www.glassdoor.com/ and use those averages plus 10% (more/less depending on how bad you want the job, how much risk you tolerate, how well you did on the interviews and how much experience do you have in the field).
Pick a number to which you will be 100% happy to do the work for and use it as your "must have" number, from there consider perks, bonuses, stock etc as nice extras but not part of the must have.
Start as high as you can because that sets your baseline. From there consider that it is a lot easier to get more $ by changing jobs than by merit raises..
My personal pet-peeve, for some reason companies have a problem increasing the pay of top engineers at a rate equivalent to their productivity. (Something that sales people always get)
And finally... always, always always remember: if it is not on paper, it does not count!
I was naive (or inexperienced) enough to take the word of my boss when he said that the firm will match an offer I had with another firm. One year later, I am working with the same firm for 80% less than what I could have been earning.
I was given all sorts of reasons under the sun for not increasing my pay. Looking back, I should have got it in writing.
1. Never, ever, give out information about previous compensation. Always attempt to deflect that with "I don't feel comfortable talking about that yet" (and get the conversation back to what you can do for them.) If they insist (and you are not prepared to walk) give them a really high estimate ("I was thinking roughly <highest you could think of> to <that + 25%>")
2. Always let them make an offer first
3. Remember that their budget isn't a problem, if they decided they really want you, on the scale of Google your salary is merely a rounding error on the budget.
4. PRACTICE! I mean, get a friend you trust to do a role-play of the various tactics the recruiters use to low-ball you and practice the conversation _at least_ 5 times.
Make sure you negotiate on "in hand pay." Insist on better "in hand pay," that ways they end up negotiating on your terms.
My advice to you is to come in high. IF you come in at current salary plus 20%, that doesnt leave much room to get more than 20% (this also depends on your salary). Create what is called a "BATNA". Basically your best alternative. Always keep that in mind. So you come in high and start to slowly work your way down heading towards the point when you walk away from the offer. My guess is that point is below your current salary. Aim high and keep your numbers consistent when you decrease. Goodluck.
Highly. Filling out that form eliminates negotiation completely. You're giving up your informational advantage and letting them set your salary.
> I didn't really have a plan other than asking for my current salary + 20%
Quite frankly, you're worth more than that.
Here's a few questions that I advocate my friends ask themselves during their job searches.
1. How much do I need to make?
What's your budget? How much do you need to make month to month to survive? Okay, that's the base line. You can't earn less than that or else, by definition, you aren't earning enough to get by.
What are your savings goals? How much do you want to save month to month? Add that to the baseline.
How much more do you want to make? How much mad money do you want each month that you can consciously spend on whatever you want?
Add those together. That's a pretty good indicator of how much you want to make to be happy. Now, it may be that this number (x) is less than what you're already making (y). If so, congratulations, you're in a great position, but that doesn't mean you don't deserve more money.
2. What's industry compensation?
For the job title you're interviewing for, what's industry compensation like nationwide? How about locally?
Use salary search sites, informational interviews, and beers with people working in your industry to figure out about how much these types of positions pay. It may end up being more than your x + 20% estimate.
3. What's company compensation like?
Do you know anyone who works at the company? It's google, so you probably do. Can you find out what someone starting at this title makes to start? What's the work load like? What are the other perks?
4. Aside from cash, what do you want?
Google has nice swag, but is there anything you need that you can ask for outside of cash?
Maybe you want more vacation time. Maybe you want to work from home 1 week each month. Ask yourself 'What would make this job awesome to me.' Then ask for that.
5. Additional Resources
Here's two articles that can help with this decision.
The first is 'The Business' by rands: http://ka1.us/dgX6
It's a great overview of figuring out how much you're worth and getting them to agree.
The second is an article I wrote at the start of March about negotiation: http://ka1.us/fxki
My article goes into a bit more depth on identifying how much you're worth and asking for it.
I hope these help! Congratulations on the job offer!
Though I've definitely heard good things about what a Facebook counteroffer does to an existing Google offer :-)
No seriously, offers don't expire if you communicate with them.
If it's Google -- They took a lot longer than 5 days to decide they want you, you can tell them it will take you longer than 5 days to evaluate their offer.