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From the Boards: Start-Up Opportunity Without Salary Increase
by Michael Chaffers

A Monster.com member writes:

"My old manager has left, joined a start-up and wants me to work for her. I want to do it, except that I suspect that she will not offer me more compensation -- even though it would be a promotion. She knows this would be a great way for me to gain experience and a chance to get away from my current manager, who is stifling me. How do I handle this?"

The Employee Advocate responds:

"You have two tasks to accomplish. First, you have to divide your desire to continue your working relationship with your old manager (and get away from working with your current one) from the substantive problem of how you ought to be compensated. So, separate those conversations. Begin by being open about your excitement about working for her at this start-up, and the opportunity for growth and development. Say that another important interest of yours is to be compensated fairly for the work you do. Then, when you talk about compensation, avoid the inclination to haggle.

"You and your boss have to mutually agree on a reasonable compensation package that satisfies both your needs and goals and the company's. Therefore, you should approach this issue as joint problem-solvers with the task of crafting a fair and appropriate package. This will undoubtedly require you to first gather data that shows what a reasonable compensation package would be, and then share your findings. Such data would include examining the market (what are other people in similar positions getting), industry custom (what perks are typical for this job) and the established practices of the company. Assuming that this information indicates that you should be compensated more than you are now, you can have a discussion about what form that compensation should take. Many start-up companies are cash-poor and therefore will likely offer you stock options instead of a higher salary. Once again, make sure that the package of options offered to you is reasonable, compared to what other people in similar positions and with similar experience get at other start-ups.

"Finally, do not let the compensation negotiation ruin your working relationship with your boss. Once you know you are being treated fairly, you do not have to push for the last dollar. You can always accept a little less and know that over the long-term you will benefit more from your experience at this new job."


Ask the Negotiation Coach


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