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4 Important Tips for Salary Negotiation

What aspects do you consider before taking up a new job? Most people consider growth prospects, the working environment, employer reviews, and of course the salary. Regardless of how we perceive our career decisions, salary does play a major role in accepting new job roles. Picture this – you have just finished your interview for your next job. A couple of days go by and you receive a call from the Human Resource (HR) department. They want you to meet them to discuss the compensation/salary. At the discussion, the HR offers you a certain package which is below your expectations. What should you do? Deny it upfront? Or negotiate? A pretty awkward situation, right? Today, I am going to share four important tips with you for effective salary negotiation.

Also read: Psychological tricks to help you Ace Job Interviews

Do some homework

Before you step into the salary negotiation discussion, ensure that you know what the company is willing to pay and your market worth.

Let me put this into perspective – a Sales Manager with an MBA in Marketing from a good Business School and 5 years of experience in the Automobile Sector has applied for a job with an Automobile company for the position of a Regional Sales Manager. While he has the experience and expertise required for the job, it is important that he looks at how much a professional with similar experience is getting paid in the market. Also, he must know what the company is paying its current employees in similar roles to determine the range of salary negotiation.

Secondly, prioritize things that are most important to you and the ones that you might want to trade off.

Salary Negotiation is a collaborative effort – not a fight

On the day of the discussion remember to approach it as a collaborative effort between you and the HR Department. Don’t think of it as you vs. the HR at any stage of the discussion. If you look at the salary negotiation discussion as an opportunity to create a package that works well with both you and your prospective employer, you will find that the discussion flows more freely with no awkwardness for either party. For example, if you are expecting an annual package of 15 lakh and the organization is offering 14 lakh, then you might want to talk about including a performance-linked bonus to make up for the difference. Remember to keep your focus on the entire compensation package which includes your salary, perks, and other benefits.

Don’t be over-eager to discuss the compensation package

Many job seekers want to understand the salary that the company is planning to offer much before the entire interview process is over. For what it’s worth, discussing salary/compensation early is not in your best interest.

When you go to purchase a television, the salesman takes his time to describe its features and USPs so that he can justify its cost. Else, you might simply find the television set too costly and walk out of the store.

Similarly, by taking time to showcase your qualifications and/or skills, you send a non-verbal message that you want to be fit for the role and make it easier to negotiate your package at the end.

Stay positive and assertive

Many people either feel shy or too awkward to manage salary negotiation effectively. As you walk into the discussion, tell yourself to stay positive, focused, and state your points assertively (not aggressively). Let the company know that you are looking forward to taking up the job provided the compensation meets your expectations.

Also, refrain from using your personal circumstances as a bargaining tool. Empathy won’t get you far – try using the fact that you will add a lot of value to the organization instead and back it up with your previous achievements.

And lastly, never apologize for negotiating. Avoid phrases like, “I am sorry but I won’t be able to work at that package.” Instead, try saying, “If you could include a performance-linked bonus with the salary, I could join your company ASAP.”

Also Read: How to efficiently answer the interview question: Tell me something about yourself.

 

At Change Ur Story, we believe that you have the power to create the reality that you envisage. Through our Interview Coaching programs, we help you prepare for job interviews right from working on your resume to conducting mock interview sessions and salary negotiation skills. This ensures that you are confident during the actual interview/salary discussion. Drop us a line and soon you will be able to make an offer to your prospective employer that he cannot refuse! 🙂

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