Are You Saying “NO” to Making More Money? Here’s How to Say “YES”!



After receiving a job offer, would you ever say: “No thanks, really, that’s enough money.  Please do NOT give me anymore.  Give it to someone else.”?  Really?

Of course not.

But guess what?  That’s what people are DOING when they don’t follow key steps for discussing pay.  Whether it’s a raise, promotion or job offer – lots of people leave money on the table.
IT HAPPENS ALL THE TIME.

How do you avoid this monumental mistake?  Simple.  Follow 6 key steps:


1. Learn what you COULD be getting

This is probably the biggest mistake people make.  They don’t take the time to learn everything that’s out there – all the rewards they could be getting.  They assume the company means something they don’t (for example, they assume they will be eligible for a raise but then are disappointed to find out they have to wait longer).  And you know what happens when you assume. 
You don’t get it.
So do your homework.  Find out what the offer should include.  For example:
  •    Bonus (how much and in what form) – any of it guaranteed for the first year?  Should it be?
  •    Equity (stock options, restricted stock, etc.)
  •    Benefits (employee portion, prescription coverage)
  •    Supplemental benefits and/or 401(k) matches
  •    Noncompetes (and other restrictive clauses); and
  •    Severance, to name a few. 

How do you find out?  Get advice from peers, friends and experts.  Ask around.
Then get answers to important questions like: How much is the job worth in the marketplace?  Will you be eligible for an increase next year?  Is the bonus amount listed the target or the max?  How much are those stock options worth and when can I exercise them?  Will I get more?  Is that noncompete clause fair?  How much severance should I be expecting?  What about relocation – am I receiving a fair package?   
Again, ask around.  Some of these questions you can discuss with your employer by asking them more about their rewards programs.  Or you can ask friends, colleagues and experts.

2.  Make a list – what you want and what you need


This is a very critical – yet often overlooked – step in the process.  Once you catalogue all the possible compensation, benefits and other contract terms available, prioritize them.  This helps with the discussion process.  Identify what tops your list and what sinks to the bottom.  Then, during the compensation discussion, revisit your list periodically.  Don’t allow yourself to be swayed by a sales pitch that offers 50,000 options (that could possibly, probably, maybe be worth something eventually) when you really wanted more guaranteed income.  If you do, you will find yourself very unhappy later.

3. Learn the rules of the game


Remember how you learned to play Candy Crush before you could advance to the next level?  Same goes for compensation.  Each company approaches compensation differently – as it should.  Finding out how your current – or potential – employer approaches compensation provides critical strategic insight that will help you determine how and what to ask for – and how much.
For example, if the company is pre-IPO, asking for options would be a wise move.  The company may have limited cash and be unable to offer much cash compensation, including 401(k) matches, relocation or benefits.  Keep this in mind when deciding how many options you want – because you won’t be receiving the other rewards that more mature companies can offer.
If the employer is a non-profit, it manages to a fixed budget.  Therefore, focus on base salary because bonuses (if any) will be minimal.  However, the benefits might be quite generous.
Where is this information?  Public companies disclose this information in their proxies and annual reports.  Some companies highlight their compensation approach on their website.  Or, you can ask peers, colleagues and other experts - even the hiring manager.  Googling the information is always possible too.

4. Change your mindset


You aren’t buying a car, so don’t approach this discussion like it is a one-time negotiation.  In fact, forget the entire notion of negotiating.  Instead, focus on building a long-term relationship with this company.  As much as possible, talk “live” (either via phone or in person).  Avoid texts and emails if possible.  Be personable.  Smile.  Make small talk.  Use good manners and watch nonverbal cues (like crossing your arms).

5. Practice

Still nervous?  Then practice.  It may seem silly but practicing you approach with a friend will help shed your nerves and gain confidence.

6. Take a “winning” approach

In essence, make a new friend. You want to keep the conversation friendly and informal.  Most importantly – LISTEN.  Don’t feel the need to talk incessantly.  Ask open-ended questions and take notes.  Never agree to anything right away.  Always ask for time to think over the offer before responding. 

And ALWAYS get the offer in writing.



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