Speaker 1: Welcome to Talent OnTap. This week we are talking about salary negotiation.

Speaker 2: And I'm excited to talk about this, Brendan, because there's so much conversation about fair pay, equal pay, how to negotiate, how negotiation differs between gender. I mean, there's a ton there.

Speaker 1: A lot to get into. We went to our Insights team here at LinkedIn to understand what candidates out there, job seekers care about most. And let me give you a little bit of statistics here. So out of a list of probably 10 to 15 different areas that may be important to someone in their job search, the number one thing was? Comp. Compensation. All right. Compensation. Second most important thing was career opportunity, which is really, really interesting. And then we went on to ask the question of around 7,000 people or so, when you're leaving a company, why do you leave? The third most important on there was? Comp. Compensation. So it's clearly very important for people, and it's the most important thing when people are looking for a new job.

Speaker 2: All right. So as a recruiter, how do you enter the salary negotiation process? And does it differ depending on who's across the table from you? What do you do as a recruiter first?

Speaker 1: Well, from the very beginning, I want to understand what's most important to you. Because my feeling is, and I have enough relationship built early on in the process and throughout the process for you to truly share with me what's most important. Like, you know, just don't give me a canned answer, really what is most important to you?

Speaker 2: Be it long-term equity, cash, variable pay, real upside.

Speaker 1: I mean, one just in general, what's most important. Like money aside, what's most important? What do you really care about? So whatever it is. So job, purpose, comp, career. Pull no punches. Tell me what's most important for you. What are you going to say yes to right away? All right. And then on the compensation front, when we get to that, a lot of pre-closing, really understanding what someone's expectations are. Because my feeling is, by the time you get to the end of the process, when the preparation's done properly, when there's a connection, when people are being open and transparent and truly saying what the job can offer and you let me know really what's most important to you, the closing of the deal, the sort of consummation of that deal should be more of a formality. Like, it should not be a struggle. But oftentimes, because it's a difficult topic that perhaps candidates don't want to bring up proactively, maybe recruiters don't handle thoroughly or early enough, you know, oftentimes you see it breaking down in the closing process.

Speaker 2: All right. So part of this episode in dialogue with you and I today is about salary negotiation. And so we had a conversation walking over here today about that and say, like, there's this first lob over the table, and then what? So what is that dance? Can you describe for the audience the typical dance and how you guide your BFF, you know, into this dance? Because this is touchy. This is a big deal.

Speaker 1: Yep. I love the dance. I love the dance. I know you do. Either side, it's one of my favorite parts of my job. So I would say in maybe the world today and definitely the world we're coming out of, I think we're entering into a new world of transparency. We can get into that. So sort of looking backwards or today, what I would advise is always negotiate.

Speaker 2: Always negotiate. So let's break this down. So you've got three components to negotiate against, right? So benefits packages are pretty standard. You're not going to negotiate that. But you've got base pay, you've got a bonus opportunity perhaps. Most companies do nowadays. And then you might have a long-term incentive plan like equity. Do you negotiate all three? How far? You know, or just leverage one? I mean, what does that dance start like and what is reasonable? Because as a candidate, you don't want to start the dance wrong either, right? So how do you balance that in the conversation?

Speaker 1: You've got to go back to what's really most important to you. What's going to make you happy? Okay. You can get all the money in the world and be miserable, and that's not a good equation.

Speaker 2: That's not a good job.

Speaker 1: So get clear on that and keep that front of mind. And then on compensation, you need to know you've got to live. You need to make sure your standard of living is maintained and you're okay. You're not going to put yourself in a rough financial spot. And then really think of those components. What is most important to you? I mean, I see a lot of people, you know, hey, I really need 5K more. Really? Do you really need 5K more? Are you missing an opportunity to maybe ask for some more equity where that could turn into 10 times 5K? So I think you've really got to be thoughtful. My personal advice would be always, always, always take equity or any type of wealth-generating mechanism. A multiplier. A multiplier. You're foolish not to. And you won't win every time in the long term, but I would advise that, you know, definitely in the world we live in. I think that's at the heart of compensation in these parts. But you've got to get clear because, you know, at times I see things break down and I often ask people, are you sure you want to walk away? If you said this was an opportunity of a lifetime for you, are you sure you want to walk away for that amount of money?

Speaker 2: Right. Now, equity is different in the UK, obviously, with tax treatment. So cash is king. Sometimes equity is not really well understood. So it doesn't get the value. Yeah. Right. So you're going to have to pull on these different levers. And one thing that you and I were chatting about is that every candidate needs to counter offer. Like, you might throw the first salvo over the table and say, here's the jobs ADK, here's a 20% bonus, boom, there you go. And you want to hear that counter, correct? Does every recruiter expect that counter?

Speaker 1: I think a recruiter worth their salt surely does. And I would, I mean, on the recruiting side of things, I use silence and pauses to really Oh, I hate the silence. make sure we can solicit the right responses. And as a candidate, you know, don't be afraid to, one, be very, very, very clear. Use your own pauses. I'm not happy with the offer. And don't talk. Whoever talks first loses. I know. And then they'll probably say, okay, what are you going to say? I would be really, you know, always remind them if you're in that position, I'm excited about the opportunity. I'm excited to work with you. You know, that component of this I'm thrilled about. I'm not happy with the offer. Pause. Let them, let them lean in.

Speaker 2: Let them come back and encounter you without you offering anything. That is always the best bet too.

Speaker 1: Yeah. And I mean, sort of get over yourself a little bit. Don't ask for the sun, moon, and stars. Be reasonable. But, you know, tell them what you want. All right. And say, you know, a lot of times you're in a position of leverage there because they've recruited you. They want you. Right? I mean, they're leaning in, making you an offer of employment. So, you know, you always have some leverage there and, you know, be smart about it. Ask them for what you want. And oftentimes say, hey, you know, if we can do this, I'll sign this right now.