Don't be shy when negotiating compensation
If the number you're asking for doesn't scare you, you're aiming too low.
I recently shared this post as a thread on Twitter and a post on LinkedIn but decided to also share it here since I've received a number of emails and DMs from newly laid-off folks, many of whom are interested in changing careers, including entering consulting.
I’m fortunate to have friends who seek my input in negotiating compensation when setting off on a new career path. Many of these folks are changing careers after decades in a single vertical, while others are making the leap from corporate to consulting. I wrote the post below in relation to the latter group, after counseling a close friend several weeks ago.
Being the dad of two daughters, I frequently say to myself, “I’m going to make sure they don’t fall for the BS corporate America frequently throws at women."
Seven years ago, friends—realizing I’m the overly analytical, learn all there is to learn on anything that interests me type—started asking me about marketing & branding themselves inside and outside their organizations.
They wanted options: higher pay &/or independent consulting.
I helped advise them on pay, bonus and commission structure, vested options and the like. This wasn’t particle physics, but for corporate denizens, it required a slight change of thinking ( e.g., advising someone to give some on salary for a higher % bonus or stocks.)
Don't be afraid to ask for what you know you're worth
I immediately saw an issue that irked me: All of my guy friends were comfortable asking for more money/higher % bonus/stock from their current company or new company, and they weren’t shy about asking for consulting rates In the $1,000-plus hourly range.
By contrast, NONE of my women friends—many of whom were making far more than the men—felt comfortable asking for more $$/higher %. They were undervaluing themselves, & only through my being able to show them the data based on their experience & pay did they relent & demand more.
If the amount you're asking for seems to high, it's not high enough
Recently, a close family friend started consulting after a 20-year career in tech. She asked what her hourly rate should be: Take your annual TOTAL compensation & convert to an hourly wage. Round to nearest hundred & multiply by four, I said.
“You’re either kidding or crazy,” she said. (Her salary alone was in the mid-high six figures.) “That’s too high. No one will pay me that.” I asked her to trust me, and she did. She now has more work than she has time to do. “I might have to raise my rates.”
Sorry: but I am a “told-you-so” kind of guy. So, yes, I said, "Told you!"
What I’m reading …
I’ve been reading Heather Mac Donald’s writing since the 90’s. Her writing, like her thinking, is always clear, thoughtful, accurate, and devoid of the acrimony we too often find today on both sides of the political aisle. Finished the book earlier in the month; it was good, as expected.
