Executive Compensation Negotiation: Are you doing it correctly?
Compensation: One of the largest reasons for entering into negotiations with a potential new employer is an advance in one’s own financial situation. With that in mind, one of the largest things on a person’s mind going in is quite simply how much money they are being offered. In general, one of the first things you should do before an interval is to figure out what you are worth, and how much the company should be paying for you.
One of the other major factors to consider is the potential for future advancement. If the company offering you a job is a lower wage but has far more opportunities for advancing your career, it may be advantageous to take them up on the offer. A good example would be someone moving from a much larger company to a startup that has the potential to expand rapidly if successful. In this case, it pays to be one of the first people with access to the company, for those lucrative stock options.
Happiness is also a major factor that people tend to forget about in their pursuit of gainful employment. Are you happy? What might make you happier? A new job does not guarantee happiness. Many people who make a decent wage would happily take a lower income job to be happier if they could do so without compromising their current situation. This is one of the factors that are hard to get a solid grasp on and takes quite a bit of soul searching.
It pays to be skeptical. Do your research on a company before you even consider stepping into their office. One of the most important things to have in an interview is leverage and could be the difference between taking just any job and taking the right job for you. Odds are there are many people who would just take any job that might fall into their lap, instead of carefully selecting their options through a careful vetting process. This concerns the 3 other steps, as compensation, the ability for advancement, and happiness all come from the proper selection and deliberation when choosing a company to work for.
Executive compensation doesn’t mean just the money that you are being paid but takes into consideration many different factors that aren’t always obvious to everyone. Negotiating for proper compensation is a tug of war that takes research, acuity, proper evaluation skills, and most of all, patience, to win.