Negotiating In A Downturn

Negotiating can seem like an afterthought when the economy is down, but it shouldn't. Here’s what you need to know about negotiating job offers in this climate.
💰The Economy
Negotiating during times of downturn is tricky. As the market slows, businesses clamp down on hiring to save cash. Hiring still happens but each hire becomes more important and a bigger decision.

Negotiating should shift to negotiating for intangibles instead of cash. In addition, preserving the relationships becomes even more important.
🤑At Your Current Job
If you’re looking for a raise at your current job, look for opportunities to fill gaps when people get laid off. Suggesting to your boss to have a meeting to go over responsibilities of people laid off and figure out how to cover them.

Document your accomplishments being very specific to document ways you added value that added to the company’s mission or bottom line. It’s even more important to translate your contributions to the company’s success when things aren’t going well.

Another way to add value is to help the company weather the recession. Propose projects or paths forward that will help the company generate extra revenue during these hard times.
🏙️For A New Job
When negotiating during a downturn, focus less on getting more cash today and focus more on maximizing your upside long term.

For example, companies aren’t willing to burn cash during these times. But they might be happy to extend you more equity or to commit to a larger bonus or raise when meeting certain milestones or during next year’s review cycle.

Be sure to highlight how you’re going to add value to the company, especially to the company’s priorities or to its bottom line. For example, if you’re being brought on board to work on a new project, show them you’ve done your homework and have ideas about how to hit the ground running, and how that project will be impactful to the company for weathering the recession.