Salary Negotiation Is Scary

Salary negotiation is scary.

But there’s a major reason why you need to push past the fear.

It’s called the law of compound interest. This refers to the ability of an asset to generate earnings that are then reinvested or remain invested with the goal of generating their own earnings. In other words, compounding refers to generating earnings from previous earnings.

Einstein called this the “8th wonder of the world”.

Now, let’s look at an example of why this is important:

Pam and Sam are starting at a new investment banking company in the same job position.

Pam negotiates her salary and ends up making $ 65,000 / year.

Sam doesn’t negotiate his salary and ends up making $ 59,000 / year.

After 5 years, Pam has made $ 325,000 and Sam $ 295,000.

That’s a $ 30,000 difference in 5 years and a $ 6,000 difference — per YEAR!

And that’s just the simple subtraction.

If we take the total sum of earnings over that 20 year period, by playing...

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Making Less Money than 100% Of People Like You!

Are international students getting screwed at the offer stage? Yes and No.

I help international students master the job hunt. The BIG BANG comes at the end when my clients don't have to be alone during offer negotiation.

Situation: Offered $70k, $72k LESS than the median.

Problem: Identified with client that JOB TITLE does NOT match responsibilities. Here, NOT a case of intentional malice, but definitely a low-ball based on playing games with the job title.

SOLUTION: Stage the discussion. Don't go right to salary. I stay behind the scenes guiding client while they:

1) Get agreement on job description (JD). We'll draft the JD, not wait for the firm to do that. DONE.

2) Share market data on comp for the agreed title. We'll not "say" we need more money. Point out the difference and engage. Big shift in salary will ensue.

Having a coach is not only investing in yourself, not only avoiding isolation. It's often about adding 5-figures to your annual salary.

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