Generosity at work

Does being generous at work pay?

We have all met people who seem to be completely selfless and are always available if you need help.  We also know people of the opposite type - those who you know to never ask for any favors.  

So how do those personality traits play out in a work environment?

Unsurprisingly, there have been a number of researches trying to answer this exact question.

There are two aspects of being generous at work - how it affects you personally and how it affects your career.

It turns out, being generous improves one’s well-being:
"Our findings make a simple but profound point about altruism: helping others makes us happier. Altruism is not a form of martyrdom, but operates for many as part of a healthy psychological reward system," says professor Donald Moynihan, of  UW-Madison's La Follette School of Public Affairs, an author of the study that tested the relationship between altruism in the workplace and happiness. 

Does generosity help one’s career or hinder it? It can be both, Adam Grant notes in his book Give and Take. Grant is Wharton’s youngest full professor, who has consulted for clients that include Google, the NFL, Goldman Sachs, and the United Nations, and an extremely generous person himself. Grant’s studies show, among other findings, that many “givers” (employees who perform all sorts of selfless acts with no expectation of reciprocity) tend to linger at the bottom of the food chain, with low promotion and productivity rates. They fail to excel because they’re too busy helping other people do just that.

But though they’re overrepresented at the bottom, Grant’s most interesting finding is that givers also climb to the top.  They construct valuable networks out of all the grateful colleagues who correctly perceive them as selfless and agenda-less. Givers share credit without demanding any in return, which spurs co-workers to flock to their projects. Their generosity earns them deep and lasting respect, which translates into potency. This article  by Slate contributor  Seth Stevenson  summarises the difference between “losers” and “winners” among givers and provides more details about Grant’s study.
 

Generosity can be also a good for business, as Tesco’s retired CEO Terry Leahy told the New York Times:

“When I joined Tesco, somebody said to me, “They’ll eat you alive,” because it was known as a bit of a hard-charging place. That sort of brought out the street kid in me, and made me a little bit hard and combative. I had to learn later that there’s another way to get the best out of people, which is to really motivate them and make them feel good about themselves. So I changed. ….  If I had to sum it up, it would be about being generous at work rather than selfish.”

A study of “100 Best Companies to Work for” showed that, while perks like free food and unlimited vacations  are, of course, important, there is another “common denominator of employee satisfaction at these companies,” suggests Forbes’ contributor Ryan Scott: “the opportunity to be part of a company that places a premium on giving back. Most of the companies that made the list have a corporate philanthropy program that engages employees in some way and involves them in the process of connecting to their communities and the world at large.”
 

And then there is always the question: do companies provide generous perks out of pure altruism? Of course not, says this 2007 article from Wharton: Google “ wants to achieve several goals: Attract the best knowledge-workers it can in the intensely competitive environment for high achievers; help them work long hours by feeding them gourmet meals on-site and handling other time-consuming personal chores; show that they are valued; and have them remain Googlers, as employees are known, for many years.”

So, we see that generosity in the workplace, when done right, brings benefits not only to the subjects, but also to those who practice it.

Offer negotiations - for candidates

We have written on various facets of offer negotiations in our blog and on Facebook, so here is a recap of our advice. Please keep in mind that there are no universal rules.

1. Timing.

• When to start: While it is understood that we all work for the money, compensation discussion is probably not what a hiring manager wants to engage in during your first conversation. Usually a salary range is been discussed during an initial call with the recruiter to establish that you and the company are on the same page in this regard. If there was no discussion with the recruiter, you may bring this topic up when you are invited to the second round of interviews.
• When to amend: If, during the interview process, you realize that the scope of your responsibilities is significantly broader than was defined in a job description, it is a good idea to bring this to the attention of a hiring team and update them on your acceptable compensation range.
• When to finalize: Ideally, a written offer should have the numbers you are happy with, so try to negotiate all the details during a verbal offer stage. After you sign the offer, it will be really difficult to renegotiate. If there is an agreement on a raise within a certain amount of time after your start date, make sure it is included in the offer as well.

2. Base salary negotiation:

There are two different schools of thought, not surprisingly from the opposite sides of negotiation: One that says a candidate must disclose his/her current salary, the other says that “your salary history is no one’s business”.  

Here is our take on this dilemma:

• If you are generally happy with your current compensation and just want a reasonable improvement on it, go ahead and disclose your current salary as a base from which to negotiate. Be prepared that this information can be verified and if it does not match, you can be fired - or your offer may be revoked.
• If you feel strongly against disclosing your current salary, provide a desired range. Of course, your current salary still can be verified, and if it was significantly less than what you are asking, you need to have a good story why such a jump in your worth is justified.
• If your current salary is way below the market, you can be really open about it and explain the reason for this (for instance, the company was sponsoring your Green Card, or this was your first job after graduation), and why you deserve a much higher salary now. In our experience, this is a win-win approach - a hiring team appreciates your openness, and you are more likely to get your desired compensation.

3. When compensation is not negotiable, but you are very interested in joining the company, here is what you can negotiate for instead:

• schedule (vacation days, start/end time, telecommuting);
• job responsibilities / opportunities for growth / training opportunities;
• job title;
• potential raises.

4. For startup companies, you can (and should!) negotiate your stock options.

For all the above points you are in much better position if you prepare for negotiations by doing research and thinking through all your options.

Is That Job Offer a Good One?

We frequently place candidates at early-stage high-tech start-ups in Silicon Valley.  A common question we hear is, “Is this a good offer?” in regard to the shares that are offered as part of a package.  We don’t have a crystal ball that lets us see the future, but we can offer some basic insight into how you can evaluate this part of your offer.  Hopefully it will help you decide whether or not to take that next job.

(A) The following is a brief summary of things to remember, in regard to stock options, when you are negotiating an offer from a startup:

When joining a startup, and negotiating the offer, make sure that you ask the following questions:

(1) What is the valuation of the company at the present time?  In general, you can use the company’s value during the latest round of financing.

(2) What is the current number of outstanding shares? 

From the answers, you can calculate what percentage of the company you will be receiving and the stock price at the time.

(B) The following is the typical option grant by percentage after Series-A financing, based on the position you are being offered:

Title                                                % capital        

CEO                                                 5-10%         

CFO (usually hired at a later time)      1-2%             

VP                                                   1-3%    

Director                                            0.5%

Essential employees                          0.25%

All others                                         0.05%

Standard practice is usually 4 years vesting and a one-year cliff, no acceleration, no bonuses, and no severance. 

(C) Here are a few other things to consider when you negotiating your offer:

Other than the typical salary/stock benefits, you may also choose to negotiate for the right to exercise options for 12 months (typically it's 3 or 6 months) after you leave the company. 

Financially speaking, the worst time to join a startup is immediately after Series-A financing is closed. (This is because you will get less equity, and take a higher risk as at this point as the startup is not revenue-generating.)

The best time to negotiate salary/stock options is at the time the company makes you an offer.  Therefore, it’s not wise to accept a “We will re-evaluate the number of shares in 6 months” scenario, as it typically doesn’t work out well for the employee.  Also, remember that salary and stock options stated in a job offer are always subject to approval by the board. So while it is unlikely that the offer will change, please keep in mind that there is a slight chance that it could.

Bay Area Living

  

Are you thinking about relocating to the San Francisco Bay Area?  Considering moving here for the nice weather and great start-up opportunities?  I thought I’d share a few insights into life out here that may help you think about whether or not Bay Area life is for you…

Opportunities

If relocating here is something you are already considering, I’m going to assume that you already know about the start-up culture here, the many high-tech job opportunities there are, and how established companies such as Apple, Google, and Facebook have their headquarters here as well.  This blog post will mainly focus on the “other” aspects of Bay Area living.

Location

There’s no doubt about it – we are located in a great part of the US.  The weather leaves little to be desired (we do have seasons, but winter and summer are mild) as you won’t be rained out most days and you will never need to shovel snow out of your driveway here. 

This is a beautiful part of California, less than an hour to our spectacular coastline with beaches, cliffs, and wildlife.  We are only a few hours drive from the majesty of Yosemite or some fantastic skiing in Lake Tahoe.  Napa is also just a few hours away, if touring the vineyards and enjoying wine is of interest.  It’s a non-stop flight to Hawaii, and if you travel to the Far East for business you can get direct flights from San Francisco.

If you like to hike or bike, there are lots of paths and mountain roads, plus plenty of open-space preserves to explore.  Some of us complain when it’s cold (in the 50’s in winter) or hot, but in all honesty we are truly spoiled.

Entertainment

As far as dining is concerned, the Bay Area offers many amazing restaurants, cafés and coffee houses, and due to the multi-cultural nature of the area there are endless ethnic dining options as well.  We have some great sports teams, from the SF Giants, to the SF 49’ers, to the San Jose Sharks.  There are also some fantastic science and art museums in the area, as well as the SF Symphony, Ballet, and Opera House. 

Housing

There has to be a down side to all this, doesn’t there?  Well, most people who move here have to downsize.  If paying over 1 million dollars for a postage stamp lot and a small house doesn’t sound appealing to you, you may want to reconsider a move.  Housing prices throughout Silicon Valley are exorbitant, causing many workers to seek housing farther out where it’s still expensive but not quite as outrageous. 

This leads us to another potential downside:  the commute.

Transportation

If you can manage to live close to your work, you are one of the lucky ones!  Unfortunately, California does not have a robust public transportation system, so you may find yourself spending much more time with your car than you thought possible.  Of course, a bad commute may be ameliorated if you are able to work from home a few times a week or if you can drive during “off” hours.  However, many people have figured this out, leading to a long “rush hour” starting at 3pm most days. 

Final Thoughts?

So, is it worth it?  Only you can decide.  The Bay Area is definitely a wonderful place to live, but it isn’t for everyone.  If it weren’t such a great place to live, it wouldn’t cost so much!   But first, come for a visit and check it out to see if you feel that the Bay Area is a cultural match for you; how well could you fit into this extremely diverse and intellectually intense environment?  So come for a visit, check out what we life here has to offer, and see for yourself if this is a place you could call home.

Put a Positive Spin on It (Part 3)

Lately we’ve been sharing how you can put a positive spin on a difficult or negative work experience.  Today we’re going to share a third story, one that shows that you can learn from your mistakes.

Negative Spin

My last position was at a small company that had created an interesting and innovative product.  The goal was to negotiate a contract with a large corporation and to eventually sell the company.  The product wasn’t complete and it had some weak spots that we tried to hide.  Most of the employees at my company spoke Russian, but the other company’s representatives were all American.  During one of the joint meetings, one employee said to his peer sitting next to him, in Russian, “They are such idiots!  Let’s hope they don’t ask us about the “black box!”  At the conclusion of the meeting, one of the members of the other team thanked everyone for meeting, in Russian!  We were not able to make a deal with them, most likely because of that comment.  This is not a company I am happy to be a part of and thus I’m seeking a new position.

Positive Spin

While the facts of the story above remain the same, you can put a positive spin on it by explaining how even a big mistake can have a positive outcome:

As a result, we had to work harder as a team and re-focus our efforts on improving the product.  Personally, I have learned several things from that experience.  I don’t make assumptions about people I meet and I have learned to never underestimate a team that I am negotiating with.  

Furthermore, while the loss of this deal was devastating at the time, we were eventually able to spin-off the department and create a new successful company!

Conclusion

Even though this story highlights a big lapse in judgment, the ability to learn from your mistakes, or those of your team, is an important and valuable skill.  Furthermore, the ability to re-group and re-focus one’s efforts after such a “failure” shows both resilience and a positive attitude.