How To Negotiate Compensation Like A Boss

Summary

In this episode of 'Life Engineered,' Steve hosts Brian Liu, founder of Aurora, a company that empowers tech professionals to negotiate better salaries and career terms. Brian shares three key tips for effective salary negotiation: framing the negotiation as a win-win alliance, understanding and strengthening one's BATNA (Best Alternative to a Negotiated Agreement), and debunking the myth that good work alone will be recognized. He emphasizes the importance of proactive communication and self-advocacy in achieving career success and offers a special discount for viewers interested in Aurora's services.

Takeaways

• 😀 The channel 'A Life Engineered' provides a structured engineering approach to life and career, with a focus on under-discussed topics like salary negotiation.
• 📧 Brian Liu, the guest, is the founder of Aurora, a company that helps technical talent negotiate their careers, charging a commission only on successfully negotiated increases.
• 🤝 The key to successful salary negotiation is creating win-win deals, viewing the negotiation as an alliance where both parties benefit.
• 💼 It's a misconception that asking for more money appears greedy; instead, focus on creating value for the company to justify the increase.
• 📝 Aurora's clients create a document during the offer stage outlining expectations and outcomes, which helps align with managers and set the stage for negotiation.
• 🚀 A real-life example shows how aligning on role expectations can lead to a higher job level and increased compensation without damaging relationships.
• 🤔 The BATNA (Best Alternative to a Negotiated Agreement) is crucial; understanding and strengthening your BATNA can lead to better negotiation outcomes.
• 🙅‍♂️ Rejecting an offer is not the end; it can lead to better opportunities and should be considered a valid part of the negotiation process.
• 📈 Over-communicating your work and achievements can make you more visible within a company and set you up for successful compensation negotiation.
• 🔄 Creating a feedback loop with your manager by asking for feedback, mapping it to skill development, and showing improvement can enhance your negotiation position.
• 📊 Maintaining a 'brag document' or 'brag book' to catalog your achievements helps in showcasing your impact and is beneficial for future negotiations.

Q & A

What is the main topic of discussion in the 'Life Engineered' channel video?

The main topic discussed in the video is salary and compensation negotiation, specifically how to approach it in a way that is beneficial for both the employee and the employer.

Who is the special guest featured in the video?

The special guest in the video is Brian Liu, the founder of Aurora, a company that helps technical talent negotiate their careers.

What is the unique aspect of Aurora's business model?

Aurora's unique business model involves charging a commission only off the negotiated increase in salary (the 'Delta'), meaning they only take money if they successfully help their clients negotiate a higher salary.

What is the concept of an 'alliance' in the context of salary negotiation?

An 'alliance' in salary negotiation refers to a mutually beneficial deal where both the employee and the manager negotiate terms that benefit both parties, creating a win-win situation.

How does Aurora help its clients create a win-win negotiation?

Aurora helps its clients by creating a document at the offer stage that outlines expectations and outcomes for the role, aligning with the manager, and then using this document to advocate for the client's needs in a way that shows added value to the company.

What is the significance of the BATNA concept in salary negotiations?

BATNA, which stands for 'Best Alternative to a Negotiated Agreement', is significant because it represents the negotiator's alternative options. A strong BATNA gives the negotiator leverage and confidence in the negotiation process.

Why is it a mistake to believe that the company is the only option during a job negotiation?

It's a mistake because it leads to a scarcity mindset where the negotiator feels they have no other options. In reality, there are often many opportunities available, and having a strong BATNA can lead to better outcomes.

What is the role of visibility in salary negotiations and career advancement?

Visibility is crucial as it ensures that a person's work and contributions are recognized within the company. By over-communicating and making one's work and achievements visible, an employee can set themselves up for successful compensation negotiations and career advancement.

What are the two quick hacks suggested by Aurora to set oneself up for successful compensation negotiations?

The two quick hacks are negotiating for feedback to understand performance expectations and mapping this feedback to work that allows developing the necessary skills, and over-communicating one's accomplishments and priorities to make work visible within the company.

What is the 'state of me' email and why is it recommended by Aurora?

The 'state of me' email is a weekly and monthly communication tool where employees share their accomplishments, areas where they are blocked, and their priorities. It is recommended to make an employee's work visible, especially in large organizations.

How can someone learn more about Aurora and potentially benefit from their services?

To learn more about Aurora, one can visit their website at www.teamrower.com. They offer a discount for those coming through the 'Life Engineered' YouTube channel, providing a mutually beneficial arrangement.

Outlines

00:00

🤝 Introduction to Salary Negotiation and Guest Expert

The video introduces a structured approach to life and career, emphasizing the importance of salary negotiation. The host, Steve, welcomes Brian Liu, founder of Aurora, a company that helps technical professionals negotiate better job offers, raises, and promotions. Brian's company operates on a commission basis from successful salary negotiations, focusing on empowering underrepresented professionals. The conversation aims to provide viewers with valuable tips on salary negotiation without damaging relationships or appearing greedy.

05:00

💼 Creating Value and Understanding Alliance in Negotiations

Brian shares the first tip on salary negotiation, which is to create a win-win situation by focusing on value creation for the company. He explains the concept of an alliance, where both the employee and the manager benefit from the negotiation. The strategy involves preparing a document outlining expectations and outcomes for the role, which can be used to negotiate salary increases effectively. An example is given where a client successfully negotiated a higher job level at Microsoft, resulting in increased compensation and a faster career progression.

10:02

🛡️ Strengthening Your BATNA in Negotiations

The second tip involves understanding the concept of a BATNA (Best Alternative to a Negotiated Agreement). Brian advises viewers to strengthen their BATNA and be aware of the other party's BATNA during negotiations. He discusses the common mistake of feeling obligated to accept an offer due to the fear of missing out, and instead encourages viewers to adopt an abundant mindset, recognizing that they have options and can afford to walk away from an unsatisfactory offer. A story is shared where a client declined an offer and later received a much better one from Tesla, illustrating the power of having a strong BATNA.

📢 The Myth of 'Work Speaks for Itself' and Communication Strategies

In the final paragraph, Brian debunks the myth that good work alone will lead to recognition and compensation. He suggests two strategies for increasing visibility within a company: negotiating for feedback and over-communicating one's accomplishments. The first involves asking for feedback, understanding it, and then demonstrating improvement. The second is to maintain regular communication with managers about achievements, blockers, and priorities. Brian emphasizes the importance of making one's work and impact visible to ensure successful compensation negotiations in the future.

Keywords

💡Salary Negotiation

Salary negotiation refers to the process where an employee discusses and potentially alters the terms of their compensation with their employer. In the video, it is a central theme as the guest, Brian Liu, specializes in helping people negotiate better salaries. The script discusses the importance of not appearing greedy during negotiations and focusing on creating a win-win situation.

💡Win-Win

A win-win situation is one where all parties involved in a negotiation or agreement benefit. The video emphasizes that successful salary negotiation should result in mutual benefits, where the employee receives fair compensation and the company gains a motivated and capable employee. An example from the script is when a client negotiates for a higher job level, benefiting both the company and the individual.

💡Alliance

In the context of the video, an alliance is a mutually beneficial relationship where both parties negotiate terms that are advantageous to each. The script mentions that viewing the negotiation as an alliance with the manager can help in creating a win-win agreement, as opposed to a confrontational stance.

💡BATNA

BATNA stands for 'Best Alternative to a Negotiated Agreement'. It is a key concept in negotiation strategy, indicating the best option one has if the current negotiation fails. The script discusses the importance of strengthening one's BATNA and understanding the other party's BATNA to gain leverage in negotiations.

💡Scarcity Mindset

Scarcity mindset refers to the belief that resources and opportunities are limited. In the script, it is mentioned as a barrier to effective negotiation, where individuals might feel compelled to accept offers due to fear of not having better options. The video encourages adopting an 'abundant mindset' instead.

💡Abundant Mindset

An abundant mindset is the opposite of scarcity mindset, where one believes in the availability of ample opportunities and resources. The video script illustrates this concept by encouraging job seekers to believe in their ability to find better offers and not to settle for less than they deserve.

💡Leverage

Leverage in negotiation is the advantage or power one has to influence the outcome of the negotiation. The script mentions that the ability to walk away from an offer (exerting one's BATNA) is a significant form of leverage in salary negotiations.

💡Feedback Loop

A feedback loop is a process of communication where feedback is given, understood, and acted upon to improve performance. In the video, it is suggested as a strategy to set oneself up for successful compensation negotiation by demonstrating the ability to receive feedback and make improvements.

💡Visibility

Visibility in a work context refers to the recognition and awareness of one's work and contributions within an organization. The script highlights the importance of making one's work and achievements visible to managers and the organization to set the stage for effective compensation discussions.

💡Brag Document

A brag document is a personal record of one's accomplishments and achievements. The video script recommends maintaining such a document to catalog and communicate one's contributions effectively, especially during compensation negotiations.

💡Overcommunication

Overcommunication, in the context of the video, refers to the practice of proactively and frequently updating managers and team members about one's work progress and achievements. It is presented as a strategy to increase visibility and recognition within an organization, which can be beneficial for salary negotiations.

Highlights

Introduction to the topic of salary and compensation negotiation, emphasizing its importance in professional development.

Brian Liu's introduction as a guest expert in salary negotiation with his company, Aurora, which helps technical talent negotiate their careers.

Aurora's unique commission-based model where they only charge if they successfully negotiate a higher salary for their clients.

The importance of approaching salary negotiation as a mutually beneficial alliance rather than a zero-sum game.

Creating a document outlining expectations and outcomes for a role as a strategy for successful salary negotiation.

The concept of a 'win-win' negotiation where both parties benefit, and how to frame salary requests within this context.

The story of a client who successfully negotiated a higher job level and compensation at Microsoft by aligning expectations and demonstrating impact.

Understanding the BATNA (Best Alternative to a Negotiated Agreement) and its role in strengthening one's negotiation position.

The common mistake of feeling obligated to accept a job offer due to scarcity mindset and the importance of recognizing one's value and alternatives.

The story of a client who declined an offer and later received a significantly better one from Tesla, illustrating the power of betting on oneself.

Dispelling the myth that 'work will speak for itself' and the necessity of proactively communicating one's achievements for successful compensation negotiation.

Tips on negotiating for feedback and creating a feedback loop to demonstrate growth and close performance gaps.

The strategy of over-communicating one's work progress and achievements to increase visibility within an organization.

The recommendation to maintain a 'brag document' to catalog achievements and ensure they are recognized by management.

Brian Liu's final advice on the importance of learning to advocate for oneself and the benefits it brings to one's career and life.

Information on how to learn more about Aurora and the special offer for viewers coming through the Life Engineered YouTube channel.

Transcripts

welcome everybody to a life engineered

on this channel we take a structured and

Engineering approach to your life and

career I just started an email

newsletter so if you'd like the latest

from the channel go ahead and subscribe

the link is in the description below

today we're going to talk about a topic

that I think is ridiculously under

talked about in the world today which is

salary and compensation negotiation

today we have a special guest his name

is Brian Liu he's helped hundreds of

people better negotiate their salaries

thanks for joining the channel today

Brian thanks for having me Steve I'm the

founder of Aurora and we're a company

that empowers technical talent to

negotiate their careers we're kind of

like a career coach but with the

specific expertise of negotiating job

offers raises promotions and Severance

packages and the goal is really to

create these win-win deals between you

and your company we charge a commission

off of the negotiated Delta and our

mission as a company is to give

underrepresented professionals the

confidence to negotiate and we achieve

this through our pro bono coaching

service

yeah so what it means with this

negotiated Delta is that if you are

unable to negotiate for a higher salary

they take no money only if you are able

to negotiate a higher salary you

compensate Brian and his company so it's

a super interesting model one where it's

just like why not like go and figure out

how to get the skills to negotiate a

higher salary because it's something

that I think that will benefit you for

the rest of your life yeah I appreciate

that and we really do see it as as

educational in addition to very

practical just like a little bit of

context on me so I personally came up

with the idea for Aurora after my friend

got a job offer that was below what she

was currently making and she was this

phenomenal engineer first generation

college student from Stanford and I

remember asking her if she's going to

negotiate the job offer and she replied

do you think I should and for me I was

just so shocked that some of her caliber

would question whether she should or

should not negotiate and that led to me

creating raw Brian's here to give us

three tips about better negotiating your

salary so I'll let you take it away for

the first one the first quick way to

understand is how to negotiate in a way

that doesn't look greedy so this is a

really common concern and hesitation for

most people negotiating you don't want

to damage relationships you don't want

to look greedy to your manager think

about how you can create value for the

company and make this a win-win

agreement and the best way to make it a

win-win is to really think of the

relationship you're negotiating with

your manager as an alliance so what is

an alliance it's a mutually beneficial

deal whose terms need to be negotiated

and where both sides benefit I think

people have this sort of hang up that if

they ask for more money everybody will

think that they're greedy not just the

people that they're negotiating with

right so right like recruiters are armed

with way to negotiate managers are armed

with a way to negotiate but really those

are kind of the only people that are

really negotiating for the salary like

your co-workers don't know that you're

asking for more money upper management

likely doesn't know that you're asking

for more money and so it really is a

private transaction when you ask for

more ask looking for more money can feel

uncomfortable and a way to make that

feel more comfortable in the

conversation is actually to focus on how

you can create value first so at rora

well we actually have our clients do is

create a document at offerstage which

outlines expectations and outcomes for

the role and you do this with your

manager right so once you basically

create this document and you've aligned

on expectations that totally creates a

space for your manager to then ask like

how can I advocate for your needs right

you clearly outline that you're going to

meet these goals expectations now it's

any good manager is going to recognize

it's their job to support their team and

that's what creates the natural space

for you then to ask for salary in a way

that is win-win and not win lose yeah

absolutely I I really think the concept

of a mutually beneficial agreement is

the winning mindset I think a lot of

times people sort of approach it as in

if I ask for another twenty thousand

dollars that means the company loses out

on twenty thousand dollars and this is

sort of like like mindset of scarcity I

think really holds things back yeah and

what you want to realize if you're

asking for let's say twenty thousand

dollars more in base your manager is

happy to give that to you if he's

confident or she's confident that you're

gonna create twenty percent twenty

thousand more in value right then it's

like yeah it's not my it's not coming

out of my pocket right and I want more

to get done if you follow this

strategy you're just so much more likely

to be successful so like one example is

you know we had a client who had over 10

years of experience and he was a given

an offer as an l62 engineer at Microsoft

and we both believe that he should be

leveled higher the thing we did at offer

stage was we didn't actually negotiate

with the recruiter right because the

recruiter has no understanding of level

we actually focused on aligning

expectations for the role and making a

case for l63 impact with the manager and

offered to do additional interviews

right this process itself took like a

month and a half right but after that

happened he they increased his level

right and that automatically increased

his base case his Equity his bonus and

that is a win-win right because for the

for Microsoft there's now higher

expectations and greater impact from

this candidate and for the client he got

more comp and saved himself probably one

to two years in his career at a lower

level I really like this example as well

because it's not about trying to

advocate for the absolute maximum sort

of like level expectation and

compensation it's really about sort of

right leveling so that you're sort of

set up for Success within your next role

yeah yeah because it's equally important

not to yeah set up expectations too high

and you're just gonna fail in the

company for sure yeah let's move on to

your second tip so the second quick win

is to understand the concept of a batna

so a batna is an acronym for best

alternative to a negotiated agreement

and the smartest negotiators they work

to strengthen their batna when they're

negotiating as well as understand what

is the other side's batna a really

common mistake people make with

negotiating is they get so influenced by

the company that they believe that they

can't say no or that they have no best

alternative right like this is really

where recruiters are actually

negotiating experts is that they're

really Savvy at influencing you and

making you feel like this is like a once

in a lifetime opportunity that you can't

say no to and it's a rocket ship and all

these things that conjure to what you

said earlier this scarcity mindset and

you know part of that is recruiters and

maybe effective negotiating by companies

but it's also fears that we create in

our own head right we get into this

scarcity mindset especially in a job

search it's stressful it's tiring and so

you know in your mind you're telling

yourself the story of like I have to

accept this job offer there's nothing

better in the market out there I'll

never find another company the true

reality is that you can actually have

you know what we call an abundant

mindset which is is saying like I have a

financial plan and I have you know four

more months I have these options I can

do otherwise I'm confident in my ability

to do XYZ he thinks right and you know

the more objective reality really is

that for engineering Talent you know you

have more security and opportunity than

your fear is telling you right even in

this market right now and so we never at

Aurora advocate for anyone to make a

decision that legitimately risks their

basic needs you know food shelter Etc

but that's really actually not often the

case for engineers and Tech workers yeah

absolutely I think that uh you know a

senior engineer is ridiculously hirable

even in today's Marketplace and

macroeconomic climate you know even if

it doesn't feel like it and I feel like

recruiters it's in their best interest

to sort of make you think otherwise you

do have Alternatives and you do have

choices and you would be really

surprised at like what a company will do

if you actually just say no ultimately

your greatest leverage in a negotiation

is walking away from an offer exerting

your batna and I think a lot of

candidates just they kind of don't even

think about the opportunity cost of of

the future opportunities they're

foregoing by accepting maybe an offer

that doesn't feel quite right or is

undervaluing them and they just don't

take into enough account the option of

bidding on themselves yeah the imagery

of I don't know if you've ever gone on

vacation and gone to a market and you're

trying to negotiate on price and when

you say no and walk away how many times

people sort of like flag you down yep

right and then actually give you a

better price now obviously it's you know

higher Stakes than trying to buy a hat

you know when you're on vacation and I

think there's a there's something to it

right there which is

there is an option which is to say no

and to go and find something better and

people are sort of really fixated on not

the Alternatives that are that are in

front of them but on the opportunity or

offer that has been sort of provided to

them by the recruiter or by the company

yeah and I try to tell our clients all

the time too that like no now doesn't

mean that you're like on a black list

that the company will never hire you

again right there's a really good chance

that the manager loved you he's gonna

want you more right if he couldn't get

you this time right and so you know what

one story I'll share too on on this

quick win is that one of our clients was

basically I'm searching for about let's

say four months I think it was and he

was getting pretty down on himself and

he ended up getting an offer at a

startup in Boston for about a hundred

thirty thousand dollars and he had I

think it was like six or seven years of

experience so this was like pretty much

like an entry level type of offer for

kind of his skill set and experience you

know he had the offer and he was it's so

tempting to accept right because you're

like so down on yourself and I told him

like look I totally understand how tired

you are of interviewing but I believe

that if you can continue to search and

bet on yourself a much better offer will

come and you know to his credit he had

to kind of bet on himself and make that

courageous step but when he did and he

declined the offer two months later he

got an offer from Tesla for over three

hundred thousand dollars right and you

know I just checked with the checked in

with him a couple months ago he's gotten

a promotion he's and just the difference

in career trajectory is like completely

you know that's Bonkers that's that's a

hundred percent more than a hundred

percent increase in salary all right

what's your last tip so the last Quick

win is to understand this really common

myth that most employees frankly have

inside companies is that your work will

speak for itself so at Aurora I commonly

say the phrase only the squeaky wheel

gets the oil and it's really true you

know we're a startups of like 10 people

right now and it's true right now and it

only becomes more true the larger your

organization becomes so there is

definitely a strategy to making noise

right you don't want to do it all the

time but just doing good work is a

Surefire way to being invisible inside a

company and never succeeding in

negotiating your compensation

so there are two quick hacks you can do

in your job right now to be to set

yourself up for Success when it comes to

a compensation negotiation later and so

the first quick hack is to negotiate for

feedback you should be directly asking

your manager for feedback on how you're

performing or if your manager is busy

you should bring to him your

understanding of what you think your

manager's feedback might be right make

your manager's life easier and own your

own growth the next thing you want to do

is once you get this feedback is map

this feedback to work that allows you to

develop the skills that close the gap in

terms of the feedback being given and

then you need to execute and once you

execute you want to close the loop by

basically showing your manager you've

closed this Gap right this is like a

feedback loop that should really be

communicating and making noise about as

fast as possible as fast as you're

achieving and excelling the second quick

hack is to over communicate I think that

especially when it comes to like

asynchronous email male communication

it's pretty hard to actually do too much

of it and so you know we recommend to

send your manager and your skip manager

a weekly and a monthly like he calls it

a state of me email right and what that

is is basically what have you

accomplished where are you blocked and

what are your priorities right this is

making your work visible especially in

large organizations like Amazon that

would otherwise be invisible if you

don't do this proactive communication I

think visibility is one of the most

important things that people neglect on

the job there are just so many things

that are going on on a typical

development team that it's essentially

impossible for a manager or anybody else

that's sort of like looking at your

performance over any period of time to

actually know what's going on on the

ground floor there's just too much stuff

a lot of the advice is to us or over

communicate or or to sort of like you

know make sure that you're sending that

out to your manager to others really

over communication is just proper

communication I think in this case right

and so you don't want to be the guy

that's just like hey you know I I

checked in uh I checked in yesterday

checked in today too but you know just

making sure that people sort of

understand you know the type of impact

that you have on a team I think is

really really important I am a big

advocate for a brag document or a brag

book where you catalog your achievements

for the upcoming year and so definitely

for the things that you've achieved you

know make sure that your manager is sort

of aware of all the Kick-Ass stuff that

you're doing on the job I think on that

communication it's there's a subtlety to

it because I I don't think it should be

just summarize your work right what you

need to do is distill what does your

manager care about what does your skip

manager care about what's the like the

simplest most critical piece of

information to share and make sure

you're doing that filter and surfacing

that and that's like communicate as much

as you can absolutely thanks for coming

onto the channel I really appreciate it

if they want to know more about you and

your company what should they do yeah

thanks so much for having me it was it

was really great and I hope it was

informative I really can't emphasize how

important it is to learn how to advocate

for yourself that will pay such

dividends for your career and really

your life to learn more about Aurora you

can go to

www.teamrower.com we have like an

affiliate link with Steve and you can

get 150 off using our service if you

come through a life engineered YouTube

channel and yeah it's great chatting

yeah and I just want to emphasize again

you know their payment model is one

where they don't get anything unless you

actually reap a benefit so it's really

that mutually beneficial thing that

Brian was talking about earlier in the

video so thanks again and we'll see you

next time

foreign