Salary Negotiation: A Two-way Street
Salary is the most important aspect of your job profile. It is an indicator of your position, growth, and success in the company and will, in many cases, determine the course of your career. When you wish to change your organization, your prospective employees will place you in their company structure primarily based on your past remuneration drawn. When you encounter a job opportunity, it’s important to create a win-win situation not only for yourself but also the recruiter, since it would set the tone providing a base for your professional life with the future employer. Always remember that the success of your professional endeavor depends 10% on how you perceive it and 90% how you react to it.
In other words, if you feel you have turned the situation in your favor, making the first move might be a safer option. Taking the initiative provides momentum for a feasible bargain as per your expectations. It rather acts as a magnet, pulling up the employer’s offer. If you are secure they might offer you a job, this method puts you in a comparatively stronger position — it is convenient to wisely negotiate down from a higher number than to push up from a lower figure in case you have the relevant expertise and experience to justify the bargain put forth. On the other hand, if a recruiter initiates upon money without evaluating your skills, it’s a better to smoothly change the course of the subject so you can un-dauntingly demonstrate your qualifications before considering your salary requirements. Spend money to build character but don’t spend character to make money.
Adopt a positive approach and the strategy relevant to your situation to enable you achieves success in the venture. Use the tips below that you’re most comfortable with.
Evaluate the Offer
- Establish research-based benchmarking: Research on the average pay scale offered at other companies in your respective industry to professionals with your level of experience and education to enable you to land on a platform deserved by you.
- Negotiate on performance-based pay: In case the recruiter promises a higher package at a later stage, be specific about getting the incentive pay agreements in writing during the hiring process so your employer is committed to following the same through.
- Highlight the expertise: During Salary negotiation, ensure that your outstanding performance at a competitive exam, training program organized from time to time at our previous organization or other certifications, recognized and considered while initiation of the bargain. Don’t undersell as you are your own ambassador especially while aiming for a leadership position.
- Payroll components and their taxation:Salary negotiation should be done by attaining a documented bifurcation of CTC consisting of basic salary, monthly allowances (HRA, Dearness Allowance, Conveyance, Entertainment Allowance) Gross salary including bonus, Net salary and their calculation along with components which constitute your salary structure with clear description about variable and non-variable segments and the percentage to which they might vary. Gain information about Implementation of TDS as a statutory compliance. The components impacting the deductions apart from standard Provident Fund Policy, Medical Insurance, universally applied should be clearly stated as it would enable you to plan your savings and investments judiciously.
- Miscellaneous non-monetary benefits: Reconsider the job offer in terms of your long-term career goals, the work environment, growth perspectives and miscellaneous benefits which would otherwise prove profitable in the long run.
See: Communication Skills
- Practice impressive nonverbal communication: Demonstrate confidence by using appropriate body language. Stand straight, form consistent eye contact and connect with a firm handshake. That first nonverbal impression could either be a great beginning or a quick ending to your interview.
Dress for Success: is important to know how to dress up suitably for an interview and to be well-groomed. Whether you wish to wear a suit or something less formal depends on the company culture and the position you are seeking. If possible, inquire about the company’s dress code prior to the interview.
- Compromise Reasonably: Begin the salary negotiation with reasonable requests. At the same time, be willing to accept compromises like receiving additional benefits in place of a higher salary. These could include tuition help, training, more vacation time, a flexible schedule, stock options, a company car, onsite daycare, parking privileges, etc.
- Listen carefully: In case the offer made is lower than you expected, make your point clear. State that you would still be interested in the position if they want to reconsider their offer and find a mid-way solution if, both you and the employer are willing to compromise to some extent.
- Clarity of Profile: In case you are uncertain about some information related to the job, state and fix a time to discuss before accepting the job offer. Suggest meeting again to talk about the offer.
- Being Tactful: Avoid giving the discussion an emotional or hostile turn. Utilize your value, skills, experience, and education to negotiate. Don’t be desperate to gain the opportunity or to negotiate.
Being a Proficient Player
- Don’t assume the first offer is fixed. Even if the interviewer tells you it is, it rarely is.
- If the same figure is offered a couple of days later, it probably is the last offer. In that case, you can ask for a salary review in six months. Or you can turn the job down, asking that they keep you in mind for future openings paying more money. If you do this, remember to leave on good terms.
- When you reach an agreement, request for ever minor detail to be documented in writing; leave no stone unturned to thoroughly discuss every minor aspect.
- Even while declining, the offer, leave the door open to negotiation. However, do not use this as a trick to negotiate a higher wage. When you say “no,” be ready to lose the job forever.