D(esign) Playbook - People

Recruiting - Negotiating

Personal Statement: Negotiation is a wide and fascinating discipline. In this context I am sharing relative to its application towards determining compensation. It is a touchy topic, and as always, I welcome the chance to learn more and discuss experiences with anyone

Keys to Negotiating:

Help the recruiter, help them - There is a unique opportunity at the moment during the recruitment track. Much like any point of commerce (at least between two parties) there are primarily three potentialities i.) party A gains significant benefit at the expense of party B’s considerations ii.) party B gains significant benefit at the expense of party A’s considerations or iii.) there is an mutually beneficial arrangement agreed to, providing benefit to both parties. In the example of a job recruitment the applicant could be under-valued, could negotiate an exorbitant compensation that is not commensurate, or option iii.) a mutually beneficial and well aligned compensation can be agreed to. At this early stage I have come to sharing with the recruiting contact that they are in a unique position where at the moment they know the general leveling and compensation strategy and ranges of the team I am may be joining. Undoubtedly in the future I will come to have more information regarding these norms (note* there are more specifics including employment rights and ethical/behavioral standards that can make the follow discussion more complex). I ask the recruiter to please help me make certain that I do not come in “undervalued” relative to my peers and to the greater compensation structure within the firm. All the hard work could be compromised at during this stage if there is any incentive for the recruiter to allow an agreement of this type to be executed, though it likely wouldn’t come to be realized/compromised until 6 months or further into the applicant’s service to the firm.

That compensation form field - Any firm who requires a numerical value to input in the application submission system for “desired/required compensation” raises a flag in my mind. That doesn’t mean I may not choose to input a value here, but my preference to submit “let’s have a conversation about this” into a field requesting this type of information.

Determine your numbers - Two numbers that you need to have determined honestly for yourself are your “must have” number and your “target” number.

Market standards & costs of living - I recommend trying to support your “target” number based on well researched data including i.) compensation rates national for the sector/role you are seeking ii.) cost of living in the market you would be serving in (or living in, this is a somewhat rare scenario where you may be traveling on regular/weekly basis to a locality where you serve vs. where you will reside) iii.) your experience levels iv.) any information about the compensation strata of the firm you are joining that you can either document or they will acknowledge

Calculate an hourly (all-in) - If you have never had a temp/hourly position, find the opportunity at some point to calculate what your “needed” rate would be in order to compensate for benefits that are usually included in an FTE/associate role (including insurance, vacation, sick pay, 401k/retirement, bonus, fica/medicare/taxes, etc). Working through this exercise will not only help you prepare for this potentiality, but will also give you an extended framework by which you might better compare FTE/associate offerings.

Leaders, leveling matters - An appeal here to leaders and managers. Having a thoughtful level plan is important. Actually executing and having a fair compensation strata is even more important. I understand the sentiment of many large firms to give a wide berth in terms of empowering their managers with the tools to “get the talent they need in a timely manner.” Meaning that few absolute rules about relative compensations may exist. Instead the standard may be to allow the flexibility to do what they choose and the lack of transparency with associates to potentially communicate the quality of the comparative reality. I understand the utility of this scenario, but I caution, and would suggest that the more we are able to base compensation on the actual work expectation and responsibility of roles vs prior compensation history or years of experience, the better framework we build to promote positive team cohesion and create positive incentivization towards growth and promotion. *Note I do believe there may be space for compensation multipliers based on education levels, certifications, etc but this should be carefully considered not to counteract or override the focus on responsibilities.

Below is an example of such a draft framework (values are not real or used by any firm currently):

Citations/Learn More:

*Last updated 4/25/2020, please note this is for the purpose of allowing me to document and evolve my thoughts, experiences, and approach. I’d very much appreciate the opportunity to learn from you sharing yours. Reach out to me at jaydubois@gmail.com or @jaydubois