Chapter 158

The Negotiation Preparation System

2 min read

Phase 1: Intelligence Gathering (10 hours)

Market Rate Research:

The Compensation Data Stack: 1. Glassdoor/Indeed: General ranges 2. Levels.fyi: Tech-specific data 3. Salary.com: Geographic adjustments 4. LinkedIn Insights: Real peer data 5. Recruiter Intel: Current market pulse 6. Network Conversations: Actual numbers

Alex's Research Failure: - Looked at one source (Glassdoor) - Used national average, not local - Ignored total compensation - Didn't account for his specialization - Result: Anchored 25% too low

Nina's Research Success: - Gathered 15 data points - Talked to 5 recruiters - Connected with 3 people in similar roles - Built compensation model - Result: Knew exact market value

The Total Compensation Map: Base salary is just one component: - Base salary (60-70% of total) - Bonus/variable (10-30%) - Equity/RSUs (0-40%) - Benefits value (5-10%) - Perks/allowances (2-5%)

Nina's Total Comp Analysis: - Base: $150,000 - Bonus: $30,000 (20%) - RSUs: $40,000/year - Benefits premium: $8,000 - Total: $228,000

Phase 2: Value Documentation (5 hours)

The Achievement Portfolio:

Don't rely on memory during negotiation. Build a comprehensive portfolio:

Quantified Accomplishments: - Revenue generated/saved - Efficiency improvements - Team/project impact - Innovation delivered - Problems solved

Nina's Value Portfolio: 1. Revenue Impact: Led product launch generating $4.2M ARR 2. Cost Savings: Automated processes saving $350K annually 3. Team Building: Hired and trained 5-person team 4. Innovation: Patented algorithm improving efficiency 40% 5. Leadership: Mentored 8 junior engineers

The STAR Story Bank: Prepare 7-10 stories demonstrating value: - Situation: Context and challenge - Task: Your responsibility - Action: What you specifically did - Result: Quantified business impact

External Validation: - Performance reviews - Peer testimonials - Customer feedback - Industry recognition - Media coverage

Phase 3: Strategy Development (3 hours)

The Negotiation Range Matrix:

| Component | Walk-Away | Target | Stretch | |-----------|-----------|---------|----------| | Base Salary | $140K | $165K | $180K | | Bonus | 15% | 20% | 25% | | Equity | $20K | $40K | $60K | | Sign-on | $10K | $25K | $40K | | Other | Standard | Premium | Custom |

BATNA Development: Best Alternative to Negotiated Agreement - Current role retention - Other opportunities - Consulting options - Geographic alternatives

Nina's BATNA: - Current job at $130K - Competing offer at $155K - Consulting at $150/hour - Remote role at $145K - Strong position to negotiate

The Concession Strategy: Plan trades, not giveaways: - If base is firm, push bonus - Trade sign-on for equity - Accept lower base for remote work - Exchange PTO for development budget

Phase 4: Tactical Preparation (2 hours)

The Negotiation Script Framework:

Opening Anchor: "Based on my research and the value I bring, I'm targeting a total compensation package in the range of $X to $Y, with base salary of $Z."

Value Reinforcement: "As we discussed, my experience in [specific area] directly addresses your need for [business priority]. At [previous company], I [specific achievement with metrics]."

Collaborative Framing: "I'm confident we can find a package that reflects the value I'll bring while working within your parameters. What flexibility do you have on [specific component]?"

The Psychological Preparation: - Practice with trusted advisor - Record yourself negotiating - Prepare for common objections - Visualize success - Plan emotional regulation