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by MattPalmer1086
699 days ago
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Absolutely agree people should learn to negotiate well. But comparing apples to oranges isn't a good place to negotiate from. Employers don't set employee pay at some lower percentage of consultancy pay. And neither do they set consultancy pay as some higher percentage of employee pay. They are distinct markets. You won't get far as an employee if you try to negotiate based on the consultancy pay rate. |
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If the talent you are buying can decide between your job and a consulting gig, you have no separate markets. What absolutely aren't the same things are the negotiating techniques of high value talent vs. low skilled labor.
Employers don't "set" pay either, they are in a market, and if a candidate knows what that company pays for a related service, they can anchor their bid to it. The exception is the minority of collectively bargained jobs.
Sure, if the company is a commodity talent shop or an institution that buys talent by the pound, then there's a race to the bottom to be the most liquid asset you can be for a mature company with limited growth in front of it. If you're actually good at anything and deliver value, consulting rates are one of many leverage data points.
Be extra suspicious of anyone who tells you to take less risk, as it's cheap and not high quality advice.