Secrets Of Salary Negotiations
View(s):BY : PRASANNA PERERA, MARKETING AND MANAGEMENT CONSULTANT, CORPORATE TRAINER AND SENIOR LECTURER
Introduction – A key aspect of agreeing to take a job is the salary. Therefore, the ability to negotiate a salary is critical. Most employers will simply tell you the salary, when they make the job offer. But if they don’t, it is important to ask and be prepared to negotiate. Most employers have a budget in mind and leave some room to negotiate. It is also important to remember that a salary range is the norm and it is your job to learn as much as you can about the range, to ensure that you get the best possible offer.
Secrets of Salary Negotiations
1. Prior to the Interview, do Some Research on Salaries for your Field and in the Prospective Employer Organization – This will provide you the ammunition to negotiate your salary, in case the employer does not openly state it and does not indicate that it is not negotiable. The critical question is how do you determine whether the figure the employer first offers you is only their starting bid or is their final offer? This is where you need to conduct prior research, before you even go in for an interview.
So how do you do the research on salaries? There are two ways – online and off-line. In the case of online research, there are some free sites that may provide you the required information. (Eg. www.salary.com, www.glassdoor.com). For off-line research, the best method is to talk to people, by asking them about ranges rather than a specific number. Employment agencies, recruitment consultants, HR Professionals, Universities etc., can provide valuable inputs in this regard.
2. Salary Should Never be Discussed, Until the End of the Entire Interview Process and the Prospective Employer has Definitely Stated that you are Selected – In many interviews the prospective employer raises the question of salary at an early stage by asking “what kind of salary are you looking for?” Your response could be that in order to answer, please help me understand what this job involves. However, if the interviewer is adamant, provide a salary range and not a definite number, based on your prior research. Further, state that this salary does not include other fringe benefits such as bonuses, allowances, medical insurance etc.
In the alternative, for the question “what kind of salary are you looking for?” you could simply state that you have done some research and are aware of the standard rates in the market and industry.
Further, state that you are willing to discuss salary at a later stage of the interview process.
3. During Salary Discussions Never be the First One to Mention a Figure – Always leave it to the prospective employer to commence the salary conversation.
In situations where the goals of both parties are opposite, with you trying to get the highest salary and the prospective employer trying to offer the lowest salary, whoever first mentions a specific figure is a loser.
4. When Salary Negotiations Commence, do not Forget to Discuss the “Entire Package” – The basic salary should not be the main point of discussion. What about the entire package? Bonus payments, allowances, payments for unutilised leave, medical insurance, life insurance etc. Get your prospective employer to spell them out clearly and then assign a value for each item and add it to your basic salary. This will then provide you a “complete” picture of your “total” remuneration package.
5. Clearly Understand your Competencies, Capabilities and Value in the Market – Many employers group their salaries according to whether a person in the role is new (a learner), mid-range (a doer who can jump into the role with little training) or a leader (someone who can train others). The salary ranges are generally adjusted based on where the prospect falls in this range. Therefore you need to assess where you are in the range and decide on your salary expectations accordingly. For this, you need to clearly understand “where you stand” in terms of competencies and capabilities.
6. Never State in Advance that the Salary/Package is Negotiable – This is a definite give away! You are demonstrating that you are desperate for the job and also not certain about your value in the market. If the prospective employer asks you if the package is negotiable, please state politely that you are open to it, subject to the package meeting your capabilities and competencies.
7. Always Justify your Asking Salary – This should be done to demonstrate to the interview panel, that you are not mentioning figures without any rationale. Give weightage to your academic and professional accomplishments. Also for your team working, entrepreneurial and innovative abilities. Another factor to keep in mind is your career life cycle stage. The longer period of work you have ahead, the higher your worth will be for prospective employers.
Conclusion – Salary is undoubtedly an important factor in making a decision regarding a job. The ability to negotiate your salary is essential, for a successful job interview. Preparation, Patience and Perseverance (3P’s) are critical for any candidate negotiating a salary offer, for any kind of job. If you get the salary wrong, you will be starting on a negative footing and will always have to play “catch up”.
“No matter what you do, your job is to tell your story”
(Gary Vaynerchuk)
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