Don't Undervalue Yourself

Today, in 5 Minutes or Less ⏱️

In this newsletter, you’ll discover why negotiating a job offer is a test of your leadership, how to research and value your worth, and the essential steps to take when a formal offer is on the table.

Proof of Your Power 🔋  

A study from the Harvard Business School found that candidates who negotiated their offers increased their total compensation by an average of 7.4%, and an additional study by the same school found that those who asked for more money were perceived as more competent. Having a negotiation game demonstrates your capacity to lead with conviction.

A Better Way to Think About Negotiation 🤝🏽

I want to share a personal story that taught me a powerful lesson about negotiating job offers. Early in my career, I was offered a dream job at a well-known tech company. I was so excited about the product, the brand, and the team that I accepted the first offer they gave me, even though the base salary was a significant cut from my previous role. My mindset was that I was "not in it for the money"; I was in it for the opportunity to lead others researching and designing customer centered exciting new products and services.

The offer I accepted, despite its lower salary, included a substantial grant of stock options. At the time, I didn't fully grasp their value. I just saw it as part of the package. Years later, that equity proved to be far more valuable than the initial salary. It was a happy accident that I ended up in a great financial position despite my reluctance to negotiate. 

As creatives, we're often drawn to projects that feed our passion, not our wallets. While I got lucky this time, it could have easily gone the other way.

Negotiating a job offer isn't a betrayal of your values. It's a way to show you can lead with conviction and ensure you and your team are valued for the work you do.

Your Game Plan for a Top Job Offer ♟️♟️

Define Your Non-Negotiables: Before you start negotiating define the absolute minimum you're willing to accept. To figure this out, understand your expenses or "run rate" and then add a buffer for your desired lifestyle and savings goals. This buffer, whether it's 10% or 20% more, gives you room to negotiate without compromising on your core needs and ensures you won't accept a deal that undervalues you.

Know Your Worth: Research salary ranges for comparable roles at similar companies using sites like Glassdoor, Levels.fyi, and Salary.com. Leverage your network to get insights on compensation structures. Understand a startup company might offer lower salary but higher equity, while an established company may offer the opposite. 

Embrace the "Total Compensation Package": A job offer is more than just a base salary. It might include short-term incentives (STIs) like a sign on bonus, and long-term incentives (LTIs) like stock options and RSUs. Don’t be put off if the salary is not what you hoped, explore the total compensation and see what is negotiable, for example an additional number of vacation days, upgrades for class of travel, quality of hotel. If you are having to move or apply for a visa what level of support for things like relocation costs, tax filing, mortgage support, visas for yourself and your family. Then there are other perks including free or discounted food, team entertainment, vehicle allowances, severance packages, concierge facility, further education, coaching budgets etc. A portion of your earnings potential often lies in these incentives, so don’t be afraid to ask. 

Want to improve your communication and negotiation skills? Even if it's not in your job description, I'd suggest checking out these two articles. They completely changed my perspective when I transitioned from a mature tech company to a startup. After reading them, I felt empowered to accurately position my value, and the negotiation process left me feeling truly satisfied and welcomed by my new team

• How Not to Bomb Your Offer Negotiation By Haseeb Qureshi, Managing Partner at Dragonfly Capital 

• 15 Rules for Negotiating a Job Offer  by Deepak Malhotra Professor of Business Administration at Harvard Business School

Know When to Walk Away: If an offer doesn't meet your needs and expectations, be prepared to decline it. It's better to walk away from a bad deal than to accept a role that undervalues you.

The Short Of It 💥 

Negotiating a job offer isn't about being greedy; it's a critical test of your leadership and your ability to advocate for yourself. By reframing the conversation around total compensation and doing your research, you empower yourself to make strategic choices that align with your long-term goals. Don't settle. View the offer as the starting point of a conversation and be prepared to advocate for your worth and your teams once you are on board.

What's the most valuable lesson you've learned from a past negotiation? 

Is there a specific part of your career goals you'd like to work on? I’d be happy to discuss it with you, just send me a direct message or an email to [email protected].

That's it for this week!

With ❤️ from Sally

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