The Money has to be right (for both of us)

Many of us often make the mistake of not setting our basement on acceptable salary before we begin our search.  Commonly, folks assume that if they made 140K in their previous career position they MUST make at least 140K and often 10-20K more in their next opportunity.  That’s a mighty large chunk of change for doing nothing but making a decision to move into a new setting with a new opportunity.  The “basement” or lowest salary figure provides the foundation for “painting your picture”.  If you know your minimum, then you open the door to creative review of what you would like to do next.

Salary is a tricky thing.  While it is necessary to allowing us to live and thrive, it is not the only or most important indicator for career satisfaction.  I recently spent some time with a talented colleague.  She was struggling with what to do with her career search.  After a very difficult exit from her previous position, she was struggling with her accomplishments from her previous post as well as how to tie them into her current career search.  We started with setting a basement (lower than she had originally anticipated).  Then we talked about her passions, skills and things that held the strongest interest for her.  Setting a basement allowed her to look more deeply at what she really wanted to do next.  Her previous job in technology allowed for a much higher than typical salary but it did NOT provide her the satisfaction or excitement she had been seeking.  Essentially, she was dramatically limiting herself by setting up salary requirements as THE indicator for which career opportunities she would pursue.  The final conclusion was that she genuinely had a passion for non-profit causes.  Accepting that the salary would be lower than in a corporate setting as an IT Executive, she realized that her personal and professional satisfaction was not tied to salary but to an opportunity that would resonate with her philanthropic motives.

Industry will impact salary, but so too will size.  Start-ups are a personal passion of mine but I’ve long since recognized that salary (exclusive of stock options, ownership, and other compensation) would never be at the level of my average career salary range.  However, the joy of working in a start-up or entrepreneurial environment greatly outweighs a lower salary.  And, in my experience, success in a start-up setting can net you higher overall compensation over time without harming the company.

The objective is to ensure that you understand 1) what you need to satisfy your financial objectives and 2) what the company can comfortable bear and feel good about (i.e. value proposition you deliver to the company) before you begin to negotiate.  I’ve watched far too many people pass up brilliant opportunities because the salary was short their previous salary or torpedo a career by demanding more money too early in their tenure because they “undernegotiated” their need (i.e. they did not know their basement and set themselves up for dissatisfaction or personal financial risk).