Jivan Pant, principal consultant and director Career Shapers HR Consulting Pvt ltd, bring you a low down on how to negotiate salary while applying for a new job
You wanted to switch job, cleared interview also. Now you are on the verge of getting offer by the prospective employer and hence would like to negotiate the salary to the best. Following tips will help you:
Understanding technicality of salary structure: It has been observed that most of the working professionals, especially at junior and middle level, don’t understand salary structures and how to compare. Failing in understanding can weaken your negotiation. Actually salary structures vary from company to company. Knowing total CTC figure or fixed per month (generally candidate only see these components) stand alone is not sufficient. And at times high looking CTC of company A may be lower that low looking CTC of company B. Hence candidate must understand components well. The best way to compare is in excel sheet and doing apple to apple comparison of all components. It must be seen how much amount and percentage hike has been offered in various components like fixed salary, take home, total CTC, incentives, bonus, lTC, ESOPs, benefits, various allowances etc.
Openness to discuss: One should be very much open to discuss while prospective employer is proposing a salary. Rigidity may lead to rejection. Also from employer side it is considered as bad attitude. Without detailed discussions perspective on both sides remains unclear. If open the prospective employer may put extra efforts to work out the best that can be offered which a candidate may even not have thought off initially.
Be clear of why you want what you want: While negotiating candidate must be very much logical in terms of why candidate wants the salary quoted. Candidate must do exhaustive home work to understand the same. Very often candidates give the argument like“I have a friend of mine who was working with me in my current company A at my level and he got 60 per cent hike in company B and hence I also must be offered the same.” But it doesn’t work. Such arguments badly fail. Actually, any comparison with others of any nature fails.
Use facts and figures: Candidates can use lot of facts and figures for better negotiation. First, appraisal/promotion due date or amount due in current employer versus prospective employer. Second, any amount that candidate may lose in current organisation in case of joining prospective employer immediately. Third, any benefit that candidate is getting in current organisation and the same is not there in prospective employer. Fourth, employer’s urgency and criticality to fill vacancy at prospective employer’s end, Fifth, candidate being from employer’s favorite target company or institute, Sixth, salary hikes got in past three years, Seventh, Cost of living of city going to in case of relocation. Eighth, demand supply gap in desired skill set for which candidate has been offered. Finally, salary range in the industry.
Scope of revised offer: There is always some scope of better offer after prospective employer gives the offer at the first stage. This is because HR keeps some bandwidth for further negotiation. If logical candidate can still negotiate in case of not satisfied with offered salary.
No lies please: Any lie or manipulation while quoting salary at initial stage can become a reason of big discomfort while negotiating and closing the offer. Candidate must share all facts and figures which are sent percent true. Candidates may even get rejected basis quoting false information.
Documentary proof: Candidate must ensure that all the components of salary quoted must be supported by documents. Any lack of document may lead to weakening of negotiation. For this candidate must maintain a file of all documents throughout the career.