Even professionals who are used to negotiating multi-million dollar deals for private companies or start-up funding for new ventures find it stressful when it comes to putting a value on their own skills and experience, and negotiating for more.
Nevertheless, there are certain principles that industry experts and recruiters agree on, when it comes to negotiating compensation at a new firm. The first is that any mention of compensation should be pushed to the very end of the discussion, and only after a firm job offer is made.
You should politely and firmly deflect any questions about what sort of compensation you’re looking for until it is clear your skills match what the firm is looking for. If either side mentions a specific figure or range, it automatically creates a marker that is difficult to move away from. For instance, if you mention too high a range, it could end the discussions before you’ve even had a chance to demonstrate the full value of your skills and experience. If you mention a figure that’s too low, it opens the door for a low-ball offer or creates the impression that you do not value your skills highly enough.
Before the process even begins, you need to thoroughly research compensation ranges for similar positions. Use online sources such as Job Search Digest’s annual Private Equity Jobs Compensation Report. Or scan the hundreds of jobs listed at Job Search Digest for similar positions. Later on, you will need to link this information with your unique skills and abilities in order to justify asking for more.
Think beyond dollars and build your total compensation package. Put together a list of the perks and bonuses you might want to include, such as signing bonus, health and dental insurance, paid vacations, paid sick leave, retirement or 401k plans, tuition reimbursement, even things like flextime or remote work options. Entry-level positions at private equity or venture capital firms may be more limited in the salary ranges they offer, but may be able to offer a fair amount of flexibility in terms of other forms of compensation.
Next time we’ll talk about what to do if you receive a firm offer with the salary and compensation spelled out.
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