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What do I need to know before negotiating a crypto salary?

What do I need to know before negotiating a crypto salary?

12 months ago by
Captar Newsletter Headers (28)

​What do I need to know before negotiating a crypto salary?

 

A recent study by Social Finance (SoFi) [1] has revealed that over a third of employees would like to receive part of their salary or bonuses via crypto. This trend is increasing in popularity, despite the widely recognised volatility in the crypto market. In this article, we explore why anybody would want to be paid by crypto, what the benefits are, and the risks they should be aware of.

 

It is true that all employees should be recompensed according to their true worth and that with rising inflation rates, many employees around the world are experiencing a situation wherein their salary can no longer provide for them and their families in the way that it used to. Employers are well aware of this situation and will be expecting salary negotiations but the key to any successful negotiation is in the planning and execution.

 

Planning for salary negotiations

 

Research the market to determine an appropriate range for your salary, and as part of this, decide on a baseline figure below which you are unwilling to accept. Make sure that you compile evidence that demonstrates why you believe that you are worth the figure that you are asking of your company. If you have landed a significant contract, increased productivity or can directly attribute your efforts to the company's increase in profits, make sure that these points are highlighted throughout negotiations.

 

If necessary, benchmark your salary against that of equivalent roles in other organisations within your industry to prove that your current salary is insufficient for the knowledge, experience and skill that you offer.

 

Once you have established a headline figure, you will need to decide how you wish to be paid. If you want to be paid partially in crypto, you should understand what is legal within your country and the country from which the crypto would originate, including any tax implications. You will need to determine the crypto equivalent to the currency figure that you have in mind and have evidence that supports this determination.

 

Benefits of crypto payments

 

1. Instant payment. Crypto payments occur instantaneously and do not incur transaction fees. This can be an attractive motivator for astute crypto investors who are keen to add to their portfolio and capitalise on upwards trajectories of investment.

 

2. High reward potential. The crypto market is highly volatile meaning that significant profits can be achieved by those with sufficient risk appetite.

 

Risks of opting for a crypto salary

 

1. High market volatility. Yes, this was also mentioned in benefits. The volatility in the crypto market is a double edged sword. When on an upwards trajectory, wise investors stand to make an impressive profit on their investments, but conversely, they also stand to make a significant loss. For those with a low risk appetite or who don't want to risk losing the bonus for which they have negotiated hard, opting for payment by crypto is a risky decision.

 

2. Cybersecurity concerns. As crypto assets are stored on a third party platform, there is a real risk of crypto wallets being targeted by cyber criminals. Securing your crypto assets can be really challenging, so if you opt for payment in cryptocurrency, ensure that you also select a platform that offers insurance and protection from money laundering.

 

3. Employer buy-in. If you work in the fintech industry, there is a reasonable likelihood that your employer will be comfortable with crypto payments. However, if you work elsewhere, this will be less common and you will need to work harder to convince your employer of the benefits of making a cryptocurrency transaction. Insisting on crypto payments when your employer has not bought-in could jeopardise your salary negotiations.

 

Summary

 

Planning for salary negotiations is essential and walking away is usually the last option for a talented employee. If you are unable to secure the deal that you need from your current employer, Captar can help you to find a position with a company that will appreciate your true worth and that won't shy away from your expectation of a crypto salary: http://www.captarpartners.com/

 

Resources:

 

[1] https://investors.sofi.com/news/news-details/2022/SoFi-at-Work-Study-Reveals-Three-in-Four-Workers-Are-Stressed-About-Financial-Issues-Spending-9-Working-Hours-Per-Week-Dealing-With-Personal-Finances/default.aspx