Thursday, July 26, 2012

They can't afford me......


In the employment industry, we come across “they can’t afford me” quite a lot. People describe their ideal employer as a “business owner who can afford to invest…”

Let's say an employer is offering $100k for a job - that's their budget and that's about what the market offers for that kind of job in that kind of industry in that kind of location. Let's say a candidate already makes $100k and wants at least $125k to change employers.

If you think you are worth $125k and the if job is a good fit and if you think you are good enough, negotiate a base salary of $100k with performance / contribution based-bonuses to enable you to make $125k.

Don't accept shares in the company instead of cash unless you are in a job where you can directly influence the company's share price. And, as we have seen, the share price of a company often has nothing to do with its financial performance - when the market as a whole goes down because investors are not confident enough to buy shares in anyone, the price of shares in companies with excellent financial results still suffer. Cash is king.

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