Key Concepts:
- Compensation Negotiation
- Salary Expectations vs. Previous Earnings
- Negotiation Power (Skills & Proof)
- Openness to Salary Range
Compensation Negotiation Strategy
The core argument is that when asked about salary expectations, it's more advantageous to disclose your previous compensation rather than stating a desired salary. This approach provides a concrete starting point for negotiation while maintaining flexibility.
Disclosing Previous Compensation
Instead of stating an "expected salary," the recommended approach is to say something like, "In my last three years/last year/last job, my compensation was approximately $100,000 for doing the same work." This provides a factual basis for the discussion.
Openness to Salary Range
After disclosing previous compensation, it's crucial to express openness to a salary range. For example, "I'm open to 90, I'm open to 110." This indicates willingness to negotiate and prevents you from being locked into a specific number.
Negotiation Power: Skills and Proof
The speaker emphasizes that negotiation power doesn't stem from previous earnings but from your skills, experience, and ability to demonstrate your value to the potential employer. "Your negotiation power comes from here and here and how you prove yourself." This highlights the importance of showcasing your capabilities during the interview process.
Addressing Concerns About Disclosing Earnings
The speaker anticipates the objection that some individuals may not want to disclose their previous earnings. The response is dismissive: "Who cares?" The rationale is that your negotiation strength lies in your abilities, not your past salary.
Distinction Between Expected Salary and Previous Earnings
The key distinction is that you are not providing an "expected salary" but rather a factual account of what you were "used to earning." This subtle difference frames the discussion around your market value based on past performance.
Conclusion
The main takeaway is that disclosing previous compensation, coupled with openness to a salary range, is a strategic approach to salary negotiation. It provides a concrete starting point while emphasizing that your true negotiation power lies in your skills and ability to demonstrate your value to the employer.
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