Making a company invest in you gives you MORE leverage in negotiations

  • Even though it might seem counterintuitive at first, Book - The 4 Hour Work WeekBook - The 4 Hour Work Week

    Metadata:

    author: Timothy Ferriss
    title: The 4 Hour Work WEEK - Escape the 9-5, live anywhere and join the new rich.




    convincingly argues that if you make a company invest in you and your skills, it makes you more powerful in future salary and working condition negotiations.
  • The company risks losing you as well as the investment that they have made in you.
  • There are two psychological phenomena that also play into this concept: (look for sources)
    • foot in the door effect
    • aversion to loss
  • The story from Tom Watson Jr., CEO of IBM presents an extreme version of this concept: A young executive had made a decision that cost the company millions, after which the following exchange happened in Watson's office:
    • I suppose after that set of mistakes you will want to fire me.
    • Not at all, young man, we have just spent a couple of million dollars educating you.
  • Both the abilities gained and leverage are great, as Your potential impact is determined on two things.. Resources and AbilitiesYour potential impact is determined on two things.. Resources and Abilities
    When looking to invest work into something that furthers your potential to make money or impact the world around you in a meaningful way, they further one of two things:


    Resources you have, lik...