4 ms·
One of my coaching clients is a founder of a large SV tech company. I love their salary negotiation method. They have a top end in mind and will give the pers
by ada1981 8y ago
One of my coaching clients is a founder of a large SV tech company.
I love their salary negotiation method.
They have a top end in mind and will give the person the job if they agree on anything up to the amount.
They leave room for negotiation as some people need to feel like they negotiated well.
If you don’t negotiate your pay up to 100% the preset amount, after you accept the job they just tell you they are paying you more (the 100%).
Both people are happy in this set up.
- venantius 8y agoThis is an amazing way to run a company. I love it.
- phinnaeus 8y agoWhat real incentive do they have to go all the way up to 100% on behalf of the employee? If they ended up at 90% they could probably add 5% and get a very similar result (employee happiness).
- ada1981 8y agoThey want people to be paid what they are worth to them in that role regardless how well they negotiate - it’s an investment in the culture. The incentive is to create an actual loving and supportive culture which they believe pays off. They also feel like it’s the right thing to do given their values. They are one of the top rated corporate cultures in the world and recently valued at around $2B 10 years in.
- modwilliam 8y agoMaybe less resentment if employees compare salaries
- tom_mellior 8y agoSo no matter what happens during the "negotiation", the end result is always predetermined? They could just cut the silly game and come out and say what they are going to pay.
- travisjungroth 8y agoThe comment stated why they do this and it's a real reason: some people want to negotiate. They're happier being offered 100 and negotiating up to 110 vs being offered 110 outright. This may be the tipping point of accepting or not.
- ada1981 8y agoYes, exactly this. Some candidates would reject the offer if they weren’t given the experience of negotiating more for themselves. This strategy emerged over hundreds or thousands of hires as the founders came from bigger companies before this one.
- ada1981 8y agoI had the same question. And he said that for some people they will be unhappy or even reject the offer if they don’t get the experience of negotiating up. It’s perhaps not rational, but humans aren’t always rational. So building that irrationality into your strategy is a rational thing to do ;) It’s unclear if employees / candidates know this at all, which is why I didn’t name the company.