4 of the best strategies to use when negotiating for a new job offer

young professional working from home on laptop
Negotiating a job offer is all about business, so don’t shy away from asking for what you want.

  • If you’ve been given a new job offer recently, take time to consider the overall compensation package.
  • Be ready to prove your value to an employer when negotiating for higher pay or additional benefits.
  • Understand that negotiation is a compromise, so don’t take low offers personally and stand up for what you’re worth.
  • Visit the Business section of Insider for more stories.

After a year full of swift changes to our working lives, where flexibility was demanded and anxiety was handed out in generous doses, most working professionals are looking forward to brighter days ahead. In some cases, we’re looking for a brand new job that will be more fulfilling, more lucrative, and more exciting. But just as the pandemic has shifted many aspects of how various industries function, it’s also impacted hiring and onboarding.

Now more than ever, employees need to weigh the overall compensation package they’re being offered, and make sure they have a complete understanding of how office policies may shift once COVID is behind us. For example, will you still be allowed to work remotely, work a flexible schedule, or have your home internet or gym membership paid for by the company? It may be that after having spent an extended period of time working remotely or unemployed, your priorities have shifted. And to win your dream job offer, you’ll need to exercise the fine art of negotiation.

We spoke with career experts to better understand the best approach to job offer negotiation. Consider this your 101 guide.

1. Know – and own – your value

First things first: before you can go to battle for what you want in this job negotiation, you need to have a firm understanding of your value. And most importantly, you should be confident in what you bring to the table. Teresa Sabatine, an empowerment and leadership coach, says because it’s a competitive job market right now and many talented people are on the job hunt, having confidence in your abilities is a critical component of getting the gig. In other words, you’ll need to fight imposter syndrome like your job depends on it. (Because it does.)

Sabatine recommends asking yourself these questions:

  1. What have I done to drive business results in the past?
  2. How did I make an impact?
  3. What is unique about me that helped me drive those results?
  4. How does that experience and success translate to the role I am applying for now or that is on offer?

Once you have your answers, back ’em up with stats and proof. “It’s important to have that data and rely on it because when we are in actual negotiations and interviews, we can get in our heads and forget what we bring to the table,” she said. “The people negotiating with you are hoping you know what you are talking about; they want you to be good at what you do and know your value.”

2. Get clear about post-pandemic changes

One of the trickiest parts of new job offer negotiation in the current landscape is all of the unknowns. Right now, you’ll be expected to work remotely, but what happens when offices reopen? Will you be required to come in every day? Do you want to commute again? If you’ll be working from home for the foreseeable future, does the company offer a stipend for your office setup? If not, do you need one – and should you negotiate for it?

When you have an offer, it’s essential to ask specific questions about tactical aspects of the job that are pandemic-specific, according to Christine Cruzvergara, the vice president of higher education and student success at Handshake.

“Explore whether there is a difference in compensation if you’re remote – do they have a philosophy on that, and what it might mean for your pay in the future?” she recommended. “Are there benefits or flexibility that you require in the near term, such as special equipment or unconventional hours, that you want to include in your negotiation? Not only will specific answers help you understand the terms of the negotiation, but it will also make you seem detail-oriented and clear in your communication.”

3. Know your points for compromise

You’re not going to get everything you ask for in any job negotiation, but to give yourself the best shot at walking away happy, Sabatine recommends exploring what matters the most to you, what wiggle room you’re comfortable with, and pinpointing your non-negotiables. Just keep in mind that there’s much more to consider than just your paycheck.

“Businesses may be having to tighten budgets, which means they might be offering non-compensated compensation to get great talent. Maybe they have upped the equity stake you get in the company. Maybe they are offering really flexible work hours in exchange for lower compensation, or there is an option for a robust bonus structure,” she explained.

For example, if your goal was to make $150,000 annually, but a company you love is offering you $105,000 per year to work your ideal job, Sabatine suggests asking yourself what might make up the difference. If the company would offer you a four-day workweek, would that be enough?

“Is it worth that loss in compensation because it means you get to be with your kids or you get to pursue your side hustle?” she added.

4. Don’t internalize the job offer negotiations

Repeat after Sabatine: Negotiating a job offer is all business. All too often, people – women especially – shy away from asking for what they really want out of a job because they don’t want to appear greedy, or as if they aren’t thankful for the opportunity. If that sounds like you, it’s time to shift that line of thinking and remember your worth and what you deserve.

“You are not lucky to be offered a job; you are talented and have something to offer in exchange for payment,” she said. “It’s important to understand the role, the market value compensation for that job, and the results you can get for that company.”

When an offer comes, state what you would like to make, then await the company’s next move. No low-balling yourself, no back-tracking, just confidence. You are worth every penny – and then some.

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A social experiment shows women may be as likely as men to accept a gender pay gap if they benefit from it

business meeting
Most women still make $0.84 on the dollar of what men earn.

  • Marlon Williams is an assistant professor of economics at the University of Dayton.
  • In a recent experiment, he found women were as likely as men to vote against closing the pay gap when they earn more money.
  • Williams hopes this research will lead people to consider how self-interest may be driving their arguments.
  • See more stories on Insider’s business page.

The big idea

Women are just as inclined as men to vote against a policy to reduce a gender pay gap if they are personally benefiting from the status quo. This is one of the main findings of my new study, which was published in January 2021 in the journal Applied Economics Letters.

I conducted a series of laboratory experiments in which I recruited participants to do a 30-question quiz. The participants knew from the start that they would be paid based on the number of questions they answered correctly. In roughly half of the sessions, the quiz was written in a way to give men an advantage. I achieved this by choosing questions that were mainly on topics that surveys show men tend to be more interested in than women, such as sports and certain movie genres. The quiz for the other half of the sessions were designed in a similar way to give women an advantage.

In the version with a male bias, men answered an average of 21 questions correctly, while women answered only 13 right. This was meant to mimic the current real-world situation in which men, on average, earn more than women. The questions were carefully chosen so that the quiz that favored women had mirrored results: The average woman answered 21 correctly, the average man just 13.

Read more: I moved to the Alaskan Bush to become a teacher after COVID-19 ruined my plans. It’s wildly expensive, but I feel at home in my village of 270 people.

Three times at different stages of the experiment participants voted to either be paid $1 for every correct answer or to give the group that was at a disadvantage a leg up. If the second payment option won the majority vote, the disadvantaged participants would get $1.25 per right answer, while those who benefited from the biased test would receive just 85 cents.

In all three votes, which had similar results, I found that women were actually more likely than men to vote against the policy that would have led to a narrowing of the pay gap when they earned more money in the quiz. On average, 96.8% of women’s votes were against the proposed corrective payment policy when they were more likely to correctly answer the questions, compared with 90.5% of the men’s votes when they had the edge.

In addition, when women were at a disadvantage, they were more likely to vote in favor of the corrective policy, with 79.5% supporting it versus 73% for the men.

While social science laboratory experiments like mine cannot fully capture every nuance, I believe my qualitative results are similar to what we would find in the real world.

Why it matters

Debate over the gender pay gap can become quite heated.

The latest data from Pew Research Center show women make $0.84 on the dollar of what men earn – a gap that hasn’t changed much in recent years.

And surveys have found that men are more likely to oppose measures to correct this gap and even question whether the gap exists in the first place. A 2019 SurveyMonkey poll showed that 46% of men believe the gender pay gap “is made up to serve a political purpose” rather than a “legitimate issue.”

My research suggests women might feel the same if the positions were reversed. Additionally, it suggests that men would also likely be equally vociferous in calling for a narrowing of the gap if they found themselves in a world where they were holding the short end of the stick.

Ideally, I hope this research will lead people to reexamine the positions they hold on issues like this one and consider how self-interest may be driving their arguments. Maybe it can lead to more understanding and increase the focus in these debates on the available evidence.

What’s next

In my current and future work, I seek to experimentally determine people’s willingness to sacrifice personal financial gains in favor of an outcome that they see as serving the common good. This involves, for example, testing how much income the average employee or executive is willing to sacrifice to reduce income inequality.

Marlon Williams, assistant professor of economics, University of Dayton

The Conversation
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Chipotle just rolled out a new accelerated job path to a 6-figure salary in less than 4 years

Chipotle PR Crew Photo
  • Chipotle announced a new starting wage and a faster promotion path to salaried management positions.
  • In less than four years, a line worker can become a “restaurateur” who earn $100,000 on average.
  • The company currently has more than 250 managerial positions open, and has a goal of filling 70% with internal hires this year.
  • See more stories on Insider’s business page.

Chipotle has some aggressive expansion plans in the works, with 200 restaurants slated to open in 2021.

In order to staff them all, the company aims to hire 20,000 new employees and is offering a higher minimum wage, along with an accelerated path to a six-figure career.

The burrito chain needs a small army of managers for all those new (and existing) restaurants to run smoothly, so it is shortening the timeline to less than 4 years for employees to rise through the ranks to become “Restaurateurs” who have an average compensation of $100,000.

“Chipotle is committed to providing industry-leading benefits and accelerated growth opportunities, and we hope to attract even more talent by showcasing the potential income that can be achieved in a few short years,” said Chipotle’s chief diversity, inclusion and people officer, Marissa Andrada, in a statement.

The company’s latest sustainability report outlines the career path as starting with Crew Member, advancing through Kitchen and Service Managers, up to Apprentice, then General Manager, followed by Restaurateur.

An earlier release said that Chipotle’s general managers “often” started out with the company as line-level crew members.

There are currently more than 250 open managerial positions across the US listed on Chipotle’s jobs website, and the company says it would like to fill at least 70% of those positions with internally promoted candidates. Last year, nearly eight in ten apprentice managers were promoted from within the company.

Employees who refer a successful applicant for apprentice or general manager positions are eligible for a $750 bonus, compared with the $200 bonus for crew-member hires.

In addition to prior restaurant experience, a job listing for a general manager position in Baltimore says applicants should have financial and staffing management knowledge, as well as a creative approach to marketing in the local community.

“They understand what it takes to run a strong business, hire and train great people, and grow our company,” the listing says.

Benefits include financial bonuses and up to $5,250 in annual tuition assistance for select educational credentials.

Read the original article on Business Insider

The CEO of a company you’ve probably never heard of earned $211 million in compensation last year – and the title of highest-paid chief executive, according to a new ranking

Paycom CEO Chad Richison
Paycom founder and CEO Chad Richison

  • Paycom founder and CEO Chad Richison was the highest compensated CEO in 2020, the New York Times reported.
  • The company provides cloud-based HR management software to 31,000 employers.
  • Since going public in 2014, the stock has vastly outperformed the S&P’s index of software companies.
  • See more stories on Insider’s business page.

Jeff Bezos may be the world’s wealthiest man, but his $1.7 million pay package from Amazon was nowhere close to making the list of the highest compensated CEOs in 2020.

The top spot on the New York Times’ list of industry titans, which includes the likes of GE, Netflix, and JPMorgan Chase, goes to a cloud-based HR management software provider based in Oklahoma City called Paycom.

CEO Chad Richison’s compensation package topped out at $211 million in 2020.

Richison founded Paycom in 1998, pioneering the employee self-service approach to HR management, which paved the way for things like enrolling in benefits or checking your pay stub from your phone.

The company now serves 31,000 clients with roughly 5 million individual profiles, mostly among mid-sized businesses with up to 5,000 employees.

Read more: HR was built on bias. Now it’s facing an evolution.

As it turns out, Richison won’t see the vast majority of this year’s compensation package for several more years, as the stock-based award is part of a long-term incentive plan detailed in the the company’s 2021 proxy statement.

In fact, Richison’s actual pay for 2020 will come out more in the range of $20 million if Paycom’s share price doesn’t hit certain targets.

That’s still a pretty high number, but a look at the company’s recent performance would suggest Richison is doing a good job as CEO. The company’s stock has outperformed S&P’s index of software companies by a shattering margin, with 26% annual returns since 2017.

Paycom seems to buck the narrative of wealthy CEOs being rewarded despite business being battered by the pandemic, with several awards for management and worker satisfaction, including one from Glassdoor for leadership during the COVID-19 crisis.

With this compensation package, the board is showing it wants Richison to keep it up.

In order for Richison to receive the full long-term incentive worth about $175 million, Paycom’s stock would have to climb from its current $400 value to $1,000 over the next six years and $1,750 over the next ten.

Richison’s award structure “requires significant value creation for them before he can realize any value from the grant,” Jason Clark, chair of Paycom’s compensation committee, said in a statement to Insider.

“This grant further aligns our CEO’s total compensation with the Company’s sustained growth over the next decade and provides a strong incentive to continue building the Company’s value,” he added.

Richison will not be eligible for further equity grants until 2026.

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Nearly 300 people who paid to attend the infamous Fyre Festival won a $2 million payout in a class-action settlement

Billy McFarland
Fyre Festival founder Billy McFarland.

  • Nearly 300 Fyre Festival ticket holders have won a collective $2 million payout in a class-action settlement.
  • They all paid to go to the infamous 2017 music event, which organizers canceled on the first morning.
  • They will each get $7,220, pending final approval next month.
  • See more stories on Insider’s business page.

Ticket holders of the ill-fated Fyre Festival have won $7,220 each in a class-action settlement, the New York Times reported.

The nearly $2 million payout was awarded to 277 ticket holders in US Bankruptcy Court in the Southern District of New York last week, and is waiting for final approval next month.

Fyre Media touted the infamous Bahamas-based music event as the “cultural experience of the decade,” promising 8,000 attendees luxury eco-friendly beach huts and top-tier artists across two weekends in April 2017. But when people arrived, they were shown to disaster relief tents without adequate food, forcing organizers to cancel the event on its first morning.

Billy McFarland, founder and CEO of Fyre Media, pleaded guilty to wire fraud in 2018 and is serving a six-year prison sentence for defrauding more than 100 investors out of $26 million. McFarland sold tickets to customers starting at $1,200, with some packages costing more than $100,000.

Social media influencers including model Kendall Jenner promoted the event – yet it was a single viral tweet about a cold cheese sandwich by attendee Trevor DeHaas that unraveled the scam.

De Haas has now teamed up with rapper and festival co-organizer Ja Rule to sell the rights to the tweet as a non-fungible token.

Ben Meiselas, partner at law firm Geragos & Geragos and representative for ticket holders, said he was happy with Tuesday’s outcome.

“Billy went to jail, ticket holders can get some money back, and some very entertaining documentaries were made,” Meiselas told the Times, referring to the popular Hulu and Netflix films on the debacle. “Now that’s justice.”

McFarland said in a statement to the Times in 2017 that he was “committed to, and working actively to, find a way to make this right, not just for investors but for those who planned to attend.”

Compensation attendees receive may go down depending on the outcome of other bankruptcy cases against festival organizers.

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Facebook’s top execs took home hefty bonuses in the second half of 2020, partially as a reward for the company’s ‘election integrity efforts’

Mark Zuckerberg at Georgetown University
Facebook CEO Mark Zuckerberg.

  • Facebook executives got 110% bonuses in the second half of 2020, according to a new SEC filing.
  • The bonuses were partially tied to Facebook’s “election integrity” efforts.
  • CEO Mark Zuckerberg doesn’t participate in the employee bonus program.
  • Visit the Business section of Insider for more stories.

Facebook CEO Mark Zuckerberg’s two lieutenants got a big pay day for their work around last year’s election: COO Sheryl Sandberg and CFO David Wehner got just shy of $1 million in bonus compensation for the second half of 2020.

Those bonuses, awarded at 110%, were at least partially tied to “election integrity efforts in connection with the U.S. 2020 elections,” according to an SEC filing from the company first spotted by The Information.

Ahead of the November 2020 elections, Facebook rolled out a number of measures intended to curb misinformation and promote voting.

The company added labels to all posts about voting that came from federal elected officials and candidates, it paused political ad buying for months, and opened an information center intended to inform users about voting laws. Those efforts were apparently considered a success if the bonus payouts are any indication.

Read more: Some Lululemon retail employees say there is an environment of ‘toxic positivity,’ where workers feel pressure to share personal information with managers and constant feedback can feel like bullying

In the years following the 2016 US presidential election, Facebook struggled with how to moderate speech and advertising from politicians and political campaigns.

CEO Mark Zuckerberg has remained steadfast in his argument that political advertising is equivalent to political speech, and that political speech shouldn’t be moderated by the social media giant.

“In a democracy it’s really important that people can see for themselves what politicians are saying so they can make their own judgments,” Zuckerberg said in a late 2019 interview with CBS This Morning cohost Gayle King. “I don’t think that a private company should be censoring politicians or news.”

Following the 2020 US election, as former President Donald Trump repeatedly insisted that the election had been “stolen” and Trump supporters stormed the US Capitol building, Facebook took the unprecedented step of outright banning Trump from its platforms.

“The shocking events of the last 24 hours clearly demonstrate that President Donald Trump intends to use his remaining time in office to undermine the peaceful and lawful transition of power to his elected successor, Joe Biden,” Zuckerberg said in January. “The risks of allowing the President to continue to use our service during this period are simply too great.”

Got a tip? Contact Insider senior correspondent Ben Gilbert via email (bgilbert@insider.com), or Twitter DM (@realbengilbert). We can keep sources anonymous. Use a non-work device to reach out. PR pitches by email only, please.

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Apollo is offering some associates retention bonuses of up to $200,000 to stay on until 2022 after a year of insane hours and rapid-fire deals

Leon Black
Leon Black, who stepped down as CEO of Apollo Global Management on Monday.

  • Investment giant Apollo is offering some associates six-figure ‘retention’ bonuses in the wake of exits in New York City.
  • The bonuses range from $100,000 for first-years to $200,000 for third-years, according to two people briefed on the matter.
  • The bonuses will be paid in April and come with an agreement that associates stay until September 2022, these people said.
  • See more stories on Insider’s business page.

Investment giant Apollo Global Management is offering six-figure retention bonuses to some of its private-equity associates after several young executives quit the firm, Insider has learned.

Seven out of 30 New York City associates have left the firm in recent weeks, Insider previously reported. Current and former employees who spoke with Insider about the exodus described a relentless workload that has become even more intense during the pandemic as the firm – well-known for its distressed buying strategies – pounced on opportunities.

In an effort to stem the exits, Apollo has extended $100,000, $150,000, and $200,000 bonuses for first-year, second year, and third-year associates, respectively, to be paid in April, according to two people familiar with the matter. The bonuses come with the stipulation that associates stay with Apollo at least until September 2022.

And they come on top of pay packages that are already at the top of the market: First-year associates at Apollo receive a total of more than $450,000, according to these people, who declined to speak publicly to preserve their relationships at the firm.

Apollo executives Matt Nord and David Sambur, who co-lead the firm’s private equity group, have been making the offers to employees via phone calls, according to these sources.

Insider could not determine how widespread the bonuses were. One Apollo employee said several associates they had spoken with had not received the bonuses, meaning that the bonuses could have been offered to a select group of associates.

It could also mean that Apollo is in the early stages of rolling out the bonuses.

Joanna Rose, an Apollo spokeswoman, did not address the specific bonuses when asked, but said that the firm’s private-equity business has been and continues to be “extremely active,” putting more than $12 billion to work in the past year across a “diverse set of opportunities.”

“With recent wins such as Sun Country IPO, Diamond/HGV merger and Synnex/TechData merger, we continue to recognize the impact of our extraordinary teams,” she said.

The offers show how far one of the largest investment firms is willing to go to deal with a talent drain among its junior employees, who have grappled with burnout fueled by long-hours and remote work.

They come as concerns about associate morale have cropped up at financial services firms across Wall Street. Last week an internal presentation by 13 demoralized Goldman Sachs analysts described 100-hour work weeks and a mental and physical toll during COVID.

Firms have been taking steps to address the concerns, though no action has been as extreme as Apollo’s. Jefferies has offered Peloton bikes and other workout gear for junior staffers, while Goldman Sachs has vowed to improve conditions for junior bankers, though it has not yet said how.

The additional compensation will make associate jobs at Apollo – already one of the highest-paying entry points on Wall Street – even more lucrative. The typical starting salary of $450,000 for first-years comes with subsequent $100,000 raises annually; third-years can earn up to $725,000, according to these people.

The position offers a four-year career track to principal and, from there, partner – a position that typically earns millions of dollars annually.

Young executives are key to the private-equity group’s success, handling the grunt work of preparing presentations and analyses that higher executives use to evaluate and pursue deals.

The group has been active in recent months, buying a $1.2 billion stake with Silver Lake Partners in the travel website Expedia and a $1.75 billion interest in the grocery-store operator Albertsons. It also recently completed a $2.25 billion deal to control and operate the Venetian resort and casino on the Las Vegas Strip.

Apollo’s new CEO, Marc Rowan, has signaled that he prioritizes making Apollo a more enticing place to work. Rowan has said in recent weeks that one of his primary areas of focus will be to improve Apollo’s famously ruthless culture.

Apollo had previously stated that Rowan, a co-founder at the firm who is credited with building its expansive insurance business, would take over the chief executive role from Leon Black, the company’s chief founder, who would relinquish the role by his 70th birthday in July.

In a surprise announcement on Monday, the firm stated that Black would step down immediately and also vacate his role as chairman of Apollo’s board, a position he had previously intended to keep. The firm’s announcement cited health issues as a reason for Black’s change of plans.

Black’s departure followed revelations in an investigation commissioned by Apollo and released at the beginning of the year that he had paid the convicted pedophile, Jeffrey Epstein, $158 million for tax and business services.

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Warren Buffett’s annual salary has been $100,000 for 40 years. Here’s a look at the billionaire investor’s unique compensation.

warren buffett
Warren Buffett.

  • Warren Buffett’s annual salary has been $100,000 for the past 40 years.
  • Berkshire Hathaway spends triple that amount on his security each year.
  • Buffett owns about $100 billion of Berkshire stock and lives modestly.
  • See more stories on Insider’s business page.

Warren Buffett is a legendary investor, leads one of the world’s biggest companies, and has ranked among the world’s wealthiest people for decades. Yet he earns a modest annual salary of $100,000 – and hasn’t had a pay rise in 40 years, SEC filings show.

As Berkshire Hathaway’s CEO and chairman, Buffett recommends to his board of directors how much he should be paid, and decides the the rest of the executives’ compensation. The 90-year-old has received $100,000 a year since 1980 – a fraction of the $15 million average pay of S&P 500 CEOs in 2019.

Buffett doesn’t earn much from other sources either. He netted double his salary in annual directors’ fees in the 1990s and early 2000s, before he resigned as a director of The Washington Post Company and stepped down from other corporate boards.

The highest total compensation he’s ever received at Berkshire was $525,000 in 2010, comprising his $100,000 salary, $75,000 in directors’ fees, and $350,000 allocated to his security costs.

Berkshire spends far more on Buffett’s personal and home security than it pays him directly. Keeping the boss safe has cost the company an average of $339,000 a year since 2008, or $4.4 million in total.

Buffett isn’t in desperate need of a big salary. He owns roughly $100 billion of Berkshire stock – which he’s gradually giving away – and doesn’t spend much: he lives in a modest family home, drives a basic car, and eats breakfast at McDonald’s.

The investor also doesn’t use a company car, belong to any clubs where Berkshire pays his dues, or commandeer company-owned aircraft for his personal use.

Buffett shared his views on salaries at Berkshire’s annual shareholder meeting in 2017, when he was asked how much his successor would be paid. He expressed hope that the next CEO would already be rich, and wouldn’t be motivated to earn 10 or 100 times the money their family needs to live on.

“They might even wish to, perhaps, set an example by engaging for something far lower than, actually, what you can say their true market value is,” he continued, adding it would be “terrific” if that was the case.

Buffett is a firm believer that CEOs should be incentivized to deliver long-term success for their companies. He believes massive annual salaries, bonuses, and short-term stock options encourage short-term thinking.

Charlie Munger – Buffett’s right-hand-man and Berkshire’s vice-chairman – has followed Buffett’s example. He’s also received a salary of $100,000 a year for several decades now, SEC filings show.

In contrast, Ajit Jain and Greg Abel, who head up Berkshire’s insurance and non-insurance divisions respectively, are paid far more handsomely. Both men have earned a $16 million salary in each of the past of three years, plus total bonuses of $7 million each.

Finally, Berkshire’s finance chief, Marc Hamburg, has seen his salary grow from about $300,000 in 1996 to $3.3 million last year.

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