Getting current shop to match another offer
What is the etiquette around getting my current firm to match an offer I have away? I’ve been working at my current shop for a couple years and quite like it here, but have the suspicion I’m underpaid so have been recruiting on/off for about 6 months.
Is there a standard way to approach this situation if the preferable outcome is just to get my current firm to match the offer I have away? Obviously I have to be prepared for this to go poorly and be ready/willing to move, but wanted to know how others have gone about this to minimize animosity.
Navigating the delicate process of getting your current firm to match an offer from another company requires a strategic and respectful approach. Here's a step-by-step guide based on insights from the Wall Street Oasis community:
Assess Your Value: Before initiating any conversation, ensure you have a clear understanding of your value to the firm. This includes your contributions, achievements, and how your role aligns with the company's goals.
Prepare Your Case: Gather evidence to support your case for a salary increase. This could include details of your accomplishments, market salary data for similar roles, and the specifics of the offer you have received.
Schedule a Meeting: Request a private meeting with your manager or HR representative. It's important to approach this conversation professionally and at an appropriate time.
Communicate Your Appreciation: Start the conversation by expressing your gratitude for the opportunities you've had at the firm and your desire to continue growing with the company.
Present Your Case: Without revealing too much detail about the other offer, explain that you've been approached with an opportunity that has made you reassess your current compensation. Highlight your achievements and the market data you've gathered.
Express Your Preference: Make it clear that your first preference is to stay with your current firm, provided they can offer competitive compensation. Emphasize your loyalty and commitment to the company's success.
Be Prepared for Any Outcome: Understand that the firm might not be able to match the offer. Be prepared to make a decision based on their response, whether it means staying under new terms or moving on.
Avoid Ultimatums: Presenting your case as an ultimatum can create tension and might not yield the desired outcome. Approach the conversation as a discussion about your career and compensation.
Follow Up in Writing: After the meeting, send a thank-you email summarizing your discussion and any agreed-upon next steps. This ensures both parties have a record of the conversation.
Be Ready to Move On: If your current firm cannot match the offer and you decide to accept the new position, handle your resignation gracefully. Offer to assist with the transition and maintain professional relationships.
Remember, the goal is to communicate your value and desire to stay with the firm, while also seeking fair compensation. Handling the situation with professionalism and respect can help minimize any potential animosity.
Sources: Accepting TWO offers (one SA, one FT) during same year; date clash! Help!, Current IBankers: What would you do if a summer candidate reneged another offer to sign with your firm?, https://www.wallstreetoasis.com/forum/job-search/negotiating-offer-before-during-and-after-interview-follow-up?customgpt=1, Please help! Renegging on an offer and boss threatening to cancel me, Are you interviewing with any other banks/firms?
What is your current comp structure and the comp structure of the offer? HFs arent like corporate or banks, they dont tend to respond to something like this well, they arent going go give much for shopping another offer. Your comp at HFs is simple AUM x Returns x Payout - unless your payout is too low and you have a contractual agreement at the new place (IE Payout goes from 5% to 8%) hard to see how you could match
I'm quite sure more than half the people in this industry (and certainly at the analyst level) get paid a discretionary bonus rather than a % payout.
Fair, but hard to comparable two discretionary offers
Current comp structure is discretionary and competing offer is formulaic and would be step up from analyst to jr. PM (i.e., no independent risk to small book). Current shop has (verbally) promised me my own carve out, but I would have to wait another year or two and I may not be able to trade the products that I would like to trade as it overlaps too much with my PMs strategy.
You need to first make sure you are comfortable with the idea of walking out and taking the competing offer. Once you are comfortable with that possibility, it will take a lot of stress off the conversation with your current fund.
In approaching the conversation with your current fund, it's often not a good idea to lead with "I have a competing offer", as it often triggers a knee-jerk hurt-pride reaction of "we can live without you, so walk". I think you start by expressing how happy you've been working here and you appreciate how they've been good to you. You've been thinking about your career path and you now feel ready to become a Jr. PM. Would love to take that step within this fund and this is why you bring this up. This is where it gets tricky as they will probably refer back to their earlier promises of 1-2yrs from now. You need to be firm you want this now, so give me a credible path within the next 3 months. I have seen many funds delay things with promises that are never delivered on.. You'll need to read the situation and decide whether you sound firm enough to be taken seriously or whether at some point you reveal that you have an offer.. you could also go half-way and say you're getting bombarded with invitations to interview for Jr PM roles.. the point is to impress on them urgency and that they will probably not retain you if they don't move in this direction quickly.
If the above strategy fails but you were already comfortable with taking the new offer, you're still landing in a happy place.
Agree. People don’t leave a hedge fund seat for a 10-20% pay increase, they leave because they could make 2-3x total comp elsewhere. Unless you’re at the bottom of the food chain, which is probably not the case given your years of experience, the risks of leaving are far too high to offset a marginal 10-20% gain in comp.
I’ve never heard of an employer negotiating with an employee about pay to retain their talents. Not saying it doesn’t happen, but I know multiple people, myself included, who have tried to negotiate and were declined and told to leave.
Agree with this post up until this point. I would then say something like:
"I've been approached by another firm and have accepted an offer that is going to give me the opportunity to immediately step into a Jr PM seat with some gtee comp floor. Thanks again for everything but Ive accepted the offer and wanted to tender my notice."
If they can get you where you need to be they will then ask if there is anything they can do.
But you need to go into with the intent that you are resigning and not trying to play them.
I would just leave. If you have to threaten to leave to get paid market comp, pay will be an issue again at a later date. It's a problem that you have to advocate for yourself to make markets rent. Unfortunately this is the reality for most/many of us on the buyside. Myself included.
Life is too short to work for someone who is cheap or doesn't value the work product. People in this industry often don't change - so if they're not credible in following through with promises made previously - it's time to move on.
You should probably just leave and not bother trying to get a match. There are problems with your current firm. Likely those problems don't magically go away with more $ in your pocket. Research shows that most people who accept a counteroffer leave within a year anyways.
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