Negotiating Compensation: Tips to Help Boost Your Package for A New Job or Current Position

Negotiating Compensation: Tips to Help Boost Your Package for A New Job or Current Position

Interviewing with a new company or advancing within your current organization offer opportunities to negotiate the salary and compensation you deserve. Serving in a sales role can also provide a unique compensation package. Check out these tips when negotiating:

New Company = New Opportunity

Interviewing at a new company provides an opportunity to negotiate the best compensation package for the role. While companies must follow corporate guidelines, this is your opportunity to maximize your total compensation package and define a career path. Get that far in the interview process by following these steps:

Do your homework. Know what the organization does, where you will be working, and who you will interview with. Weave your findings into the conversation. Don’t forget to check them out on LinkedIn.

Demonstrate your work. Think about the interviewer’s pain points and give examples from your experience to showcase why you are the best fit for the job.

Search sites like Glassdoor to understand the company’s general pay practices and ranges of certain roles.
When asked about pay, provide a range of total salary you expect. Don’t box yourself in to one number and stretch beyond what you actually expect – this is your time.

You Are Here, So Now What?

As you prepare for a promotion or raise, showcase your value and readiness for more responsibility:

  • Create a plan with your manager. Discuss and set clear and measurable objectives and agree on what you need to do to get there. Avoid qualitative or subjective measures that are subject to interpretation.
  • Demonstrate your accomplishments.  Show how you have contributed greater value than the role requires.
    • This can’t be “gut feel”. Demonstrate this with fact.
    • Is there an opportunity to increase responsibilities?
    • Is there a role you could fill that is higher than the one you have today?
  • Don’t wait until your annual review to talk with your manager. At that point, pay changes have been agreed to with HR.

Do You Work in a Sales Role?

Compensation for people in selling roles is different than for non-selling roles. Before negotiating, understand how the incentive portion of your pay works and check to ensure it has the attributes of a great compensation plan. If you are a high performer, that should be reflected in the incentive plan.

If plans and targets are set up appropriately, you should be able to reach your targets. If you are a high-performer, you should be differentiated with a higher proportion of pay for those results. That’s The Reverse Robin Hood Principle: incentive pay for low performers is paid out at a lower rate, and those incentive dollars are allocated to pay high performers more than standard rate.

Other factors to consider:

  • Is it easy to understand? Do you know how you can earn incentive? A big challenge companies face is the complexity of their incentive plans.
  • How many measures are in your plan? Can you influence them? The best plans have three or fewer measures. Too many measures create lack of focus and hinder your ability to achieve any of them well. If you can’t influence the measures, your incentive is left to chance.
  • Is there a pay cap? The best incentive plans aren’t capped but have something to cap extremely large deals that are out of proportion to the level of effort of the sale.
  • How has the organization traditionally performed against the targets? A best-in-class organization should have approximately 70% of the organization at or above their quota.
  • Does the organization reward high performance? High performers should be able to earn proportionately more incentive than a low or average salesperson.

About SalesGlobe:

SalesGlobe is a sales innovation consulting firm that solves challenging sales problems. We work with our clients to implement new solutions that give them a significant return on their growth investment. We provide a range of sales effectiveness services that include sales transformation, sales strategy, sales organization and talent, sales compensation, and quotas. Michelle Seger is global sales strategy and change management leader.

The 4th missing key element to sales success

The 4th missing key element to sales success

According to IDC, despite a “typical” $1 billion company spending a large amount of resources devoted to training for customer-facing people, poor sales enablement results in around $14 million of wasted sales and marketing expenses, and $100 million in lost sales opportunities. Where could they be going wrong?

Imagine for a moment that you’re a sales manager evaluating how to deliver a sales enablement program that will benefit both new hires who need to ‘hit the ground running’ and provide value to more experienced team members. What would you include?

When we think of sales training, the first thing that usually comes to mind is a series of workshops – usually instructor-led and evangelically-delivered – designed to hone performance in time management, listening and communication, objection handling, closing, and so on. So far, so good; this is crucial stuff for all salespeople regardless of experience levels. It’s what your competitors are all doing, it’s what staff expects, and so you should rightly be making ‘classic’ sales training available.

elements of sales success

What next?

After first considering workshops, how about motivational training to foster the kind of positive attitude that helps staff better deal with the ups and downs of the sales cycle, to more effectively develop prospects, build value, and open up new business opportunities? Absolutely right, this is often central to the annual kick-off meeting, and can be an element of monthly meetings in addition to any specific training.

Thirdly, we’ll need product knowledge training in the mix, too. Most companies have a wealth of technical product information available in-house, and which can be delivered via multiple formats (documents, videos, webinars, workshops etc) and when the sales teams need it.

So, we’ve now invested a lot of money in our integrated sales enablement initiative, and in doing so we’ve created an army of charismatic, enthusiastic, mentally-resilient, product-aware salespeople who are all ready to get out there out flood the business with new orders.

But experience shows that, even now, the fourth key element, Industry Knowledge, is still missing.

  • Only 1 in 5 execs say that meetings with sales people meet expectations
  • 76% said sales reps didn’t understand the role and responsibility of the execs they were meeting with well enough
  • 77% said sales teams weren’t able to demonstrate to them how their company’s products or services can help their prospect due to their lack of industry or business knowledge

                                                                                                Forrester research

Supporting this is IDC research indicating that less than half of the companies they interviewed considered their own sales reps to be ‘very prepared’ for an initial meeting!

So it seems as though there are plenty of salespeople constrained not by technical sales skills per se, but more by lack of knowledge of their prospects’ industries and the buying motivations of the decision-makers they meet with.

The customer’s crucial question is ‘How is what you’re selling going to help my business?’ – That’s something that just isn’t being answered most of the time. Knowledge of your product needs to exceed an understanding of mere technical specifications and encompass its various applications and how it can be used to serve your customers’ clients.

Imagine that one of your technology sales reps has an initial meeting with an Oil & Gas client. They might have watched a short video about big data. He might even have watched an overview of upstream operations. But when you’re sitting in front of the buyer, understanding disparate concepts without knowing the broader context won’t give you the confidence and credibility you need.

Can your rep contribute meaningfully if the conversation turns to how your products or services can help mitigate the financial impact of rising production costs, falling EROEI, the cost of complying with regulations, and so on.

Perhaps that suggests a quick test you can use – do all the reps you send to Oil & Gas clients know that EROEI stands for ‘Energy Returned On Energy Invested.’ If not, it’s a clue that your company may not be able to get involved in the early stage project definition and planning discussions, so you are destined to end up in the late stage price-based battle trying to supply into a configuration that someone else has designed.

Conclusion

Truly effective selling comes, in part, from:

  • Becoming fluent in a whole new language of industry-specific terms
  • Using these terms to position your offer in the context of real-world business problems that matter most to the executive you’re meeting with
  • Being able to anticipate the direction the discussion is headed
  • Being able to guide the discussion towards areas in which your offering has a proven record of delivering benefits

By Rory Christian, Senior Consultant, Cambashi

SMEI is the worldwide professional association for sales and marketing. To join as a member visit our website.

The scope of Bitcoin and cryptocurrencies

The scope of Bitcoin and cryptocurrencies

Previous blockchain blogpost

Cryptocurrency is a digital payment maintained by a network of computers that uses cryptography to authenticate transactions. Depending on how investors expect to make money and how they are structured, some cryptocurrencies may count as securities. If traders of these currencies prop up the price and go online to spread gossips, that might count as fraud. It can be hard to determine if a bubble exists. The only way to ensure that they avoid a burst is mass adoption.

The first digital currency was Bitcoin mined by millions of people in different locations around the world. It was Satoshi Nakamoto, Bitcoin’s pseudonymous creator, who built its decentralized system that anyone could participate in, but no one could own. Although it was open to all, ironically, Bitcoin transactions were supposed to be anonymous. When Bitcoin came into being in 2009, the promise was to be the universal electronic currency that passed around the world in minutes. However, Bitcoin has qualities that make it not only a coin but also a store of value and a network of payments.

Store of value

The exponential jump in the rate of Bitcoin has stoked interest from big banks and even Wall Street. For example, in 2010, using the forum bitcointalk.org, a developer bought two pizzas by paying Bitcoins for the purchase. Fast-forward a few years, and the value of that Bitcoins shot up to 425 million dollars. They are now trading for more than $2,600/- but hardly anything to spend it on.

Network of payments

The software stores a continuously updated ledger that records all Bitcoin transactions. The code sets the scarcity of Bitcoin, and mining introduces new Bitcoins at regular intervals. This form of earning Bitcoins consists of solving the math problems necessary to confirm transactions. Successful solving of those problems using mathematical calculations triggers the creation of more currency.

Limitations of Bitcoins

A civil war is over the future of Bitcoin ever since its launch, and it is already showing strain. Bitcoin’s share of the market cap of all cryptocurrencies fell from 85% to 41%. Its price has soared and not dropped, but many rivals have risen even faster. Moreover, the Bitcoin network can only process seven transactions a second due to code limitations. This quantity is trifling considering that the system aspires to serve the masses. As the load increases, it takes time to confirm transactions, and customers have been at odds. The bickering threatens to condemn Bitcoin to obsolescence or divide the currency into two versions. All in all, although Bitcoin allows the transfer of value, it is slower and more limited in its capacity than some of its latest rivals.

Biggest cryptocurrency competitor

One of the biggest among the competitors of Bitcoin is Darkcoin, a portmanteau of digital cash. Part of the stellar success of Dash is due to Bitcoin’s flaws and limitations. This cryptocurrency emerged following Bitcoin’s rise in price in January 2014. Dash is one of the most popular digital currencies because it promised untraceable transactions. Although it saw plenty of dumping, its creator continued to add new features and refine the software. In 2015 it was rebranded as Dash so that it would not be mistaken for a single-feature coin. Gradually Dash gained legitimacy, and its currency’s total value has grown every year.

Advantages of Dash

A new payment method has to be easier to use, more secure and faster than others to attract customers. Bitcoin and the other digital currencies in the market fail on all these three metrics. Dash has functions and features to address such concerns and weaknesses that most others do not have. Also, Dash offers its users a quick send feature that is as easy as using a credit card. People who hold 1,000 coins and above are required to submit all future projects for a vote. The benefit of such a system is that it is a decentralized network that allows making decisions rapidly, avoiding conflicts such as that of Bitcoin, which has no way to compel anybody to adopt a new version.

The next version of Dash will include features that protect against fraud or theft such as moderated transactions. This function would allow funds to be released only upon the receipt of products, and vault accounts, which can stop an impending withdrawal of funds within 24 hours. The goal is to have a medium of exchange that can facilitate everyday commerce. The one of its kind governance system of Dash is its clearest innovation, one that is impossible to replicate.

Smartest cryptocurrency competitor

Ethereum’s creators have built a network that allows developers to create agreements written into the software. These intelligence contracts can dispense funds and perform functions automatically in response to triggers.

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Emergence of altcoins

Many of the players in the digital currency world, known as altcoins, were exclusively used as vehicles for use-and-discard schemes. An altcoin’s creator would often pour funds into a coin and build hype. Novices would jump in, the price would spike, investors would throw them away, and the amount would plunge downward.

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Bitcoin versus altcoins

People use many of the currencies younger than Bitcoin for much more versatile purposes. That means Bitcoin faces a threat from more nimble competitors such as Litecoin, Zcash, and Monero. On the other hand, just as Bitcoin struggle against the American dollar, new cryptocurrencies face an uphill battle against Bitcoin, which has the most significant user base and the broadest name recognition.

Today, there are many digital currencies in the world worth billions of dollars

Today, there are many digital currencies in the world worth billions of dollars

Total market value

Today, there are many digital currencies in the world worth billions of dollars. In 2017, digital currencies in aggregate had a total market value of approximately $100 billion. Based on market cap, the price of digital currencies can be possibly ten times that of the most significant companies.

Cryptocurrency becoming mainstream

People are using cryptocurrency wallets because retailers are now starting to accept them. Japan’s new legislation in April 2017 and Australia’s in July allows retailers to take Bitcoin as a legal tender. Ten financial institutions have put enough trust in Bitcoin that they use Ripple to send payments in real-time. There is a consensus among 56 companies worldwide on scaling Bitcoin, reaching an agreement on a settlement process.

Driver of innovation

Blockchain will disrupt every business, and digital currencies will drive new company model innovation, accelerating and scaling business outcomes at unprecedented levels. This revolution could be either a bubble or the onset of a financial realignment. Therefore, investors are cautiously bullish on the success of blockchain, which is crypto currency’s groundbreaking technology.

Coming up next:

Blockchain technology represents a seismic shift like that of email and web in the 90s and Facebook and Twitter a decade later.This innovative technology also makes Bitcoin and other cryptocurrencies possible without centralized authority. But cryptocurrencies are just the tip of the iceberg, much bigger and more essential things lie below the surface. Blockchain technology has the potential to create countless opportunities everywhere. 21.co, a blockchain startup founded by Dr. Balaji Srinivasan, is a compelling case in point.