Hi Reader,

Today we're diving into one of the most common points people give ground before they even realize it: early compensation questions.

The tactics here aren't complicated. But we’ve seen in our client work that when the pressure's on, even the most experienced and senior professionals start second-guessing the basics.

Be careful with early compensation questions

Sharing your preferred salary number will never help you, except in very rare edge cases.

Imagine that negotiations are like a game of cards, and the cards in your hand are your leverage. Your preferred salary number is a powerful card, and it’s hard to win the game by revealing it. The company has their own cards too, such as the “true max budget for this role” card, and they will never proactively reveal their cards either.

Note that in many US states, companies are mandated by law to share their salary range on job postings. These salary ranges are not truthful, as most companies follow the letter of the law but not the spirit of the law.

So if you share your number first, it will either:

• fall below the top of their budget. And they may agree to it, but you’ve now left money on the table, because the company knows that you’d be open to accepting less than what they’ve budgeted for.
• fall above the top of their budget. This introduces risk that they think you’re entitled, can’t afford you, or feel that you’re too far apart that you won’t be happy in the role even if you did accept. You’re a higher flight risk if you’re unhappy in the role, and companies want to hire people who will be there for the long term.

Some more reasons why sharing a number first is risky

• Limits your bargaining power: If you share your number upfront, you may be limiting your bargaining power later in the negotiation process. Once you’ve disclosed your desired salary, the company may be less willing to negotiate higher than that figure.
• Lack of information: You may not have all the information you need to make an informed decision about your desired compensation until later in the interview process. By sharing a number upfront, you risk locking yourself into an end result based on incomplete information.
• Perception of being inflexible: If you share a number upfront, especially if it ends up being far above their budget, you may be perceived as inflexible or difficult to work with. This might not be the case, but perception can be just as important as reality in the hiring and negotiation process.
• Different compensation structures: Different companies may have different compensation structures, including stock options versus shares, vesting periods and cliffs, stock buyback windows, various bonus types, commission-based pay, and more. Sharing a number doesn’t necessarily capture these complexities, so you may be missing opportunities later to arrive at creative solutions that will make the offer worth accepting.

On that note, sharing a range is very similar to sharing a number, because when you share a range, you’re implying the bottom of your range is an acceptable amount to you. So we recommend not sharing a range either.

What to say instead when asked for your number or range

If you’re asked for a number or range early on, tactfully deflect sharing it and instead say something like: “Thank you for asking! I’m currently focused on exploring that this is a mutually good fit. I’m confident we can align on compensation.”

There are many ways you can phrase deflections, and much of it depends on your unique circumstances, whether you’re in between jobs or currently working, the company culture, the demeanor of the recruiter, if you were referred, whether you have an existing relationship with the hiring manager or someone from the team, and more.

You can book a free call with us to get specific tips for your situation.

Best,

Gerta & Alex​
​Founders, YourNegotiations.com

P.S. Are you job searching or have upcoming negotiations?

Book a free call with us, where we’ll learn more about your situation, offer some free tips, and explore if we’re a good fit to work together: https://calendly.com/alexhapki/call​

P.P.S. Know someone interested in negotiations?

Send them our way and we’ll thank you with $250 for each person who becomes a client. No cap.

A quick intro or an email to alex@yournegotiations.com works.