Negotiating the best salary package
In order to get a good job and a good salary package it is important that while preparing for the interview we also focus on the ways in which we can handle salary negotiations.
SO YOU RESEARCHED and prepared extensively for the job interview. Youcreated a perfect resumé and cover letter. You even practiced answersto common interview questions. You made sure you're dressed right, have , and are on time. references
But you did little preparation for the all too critical – salary negotiation with the HR manager. Don't let all that effort go waste as a consequence of not being offered the salary you expect. Here's what you need to keep in mind:
How much do you earn?
As simple as it sounds, most people don't know their financials. Clue it down to your basic salary and add up all the benefits. Your current employer may be providing you free food, transportation and medical allowance. If these are not a part of the benefits being offered, then you need to demand a higher basic salary to compensate for them.
Collect Salary data
You can gather information about salary ranges for any position through multiple sources like trade publications, industry associations, network of friends, consultants etc. Business Today publishes annual salary surveys based on industries and positions.
What do you want?
Break your expectations in to three categories – money, benefits and hygiene factors and jot down your expectation against each. Money would include – salary, incentives, bonuses and any stock options. Benefits would include –company car, travel, relocation expenses etc. Hygiene factors would comprise of – job title, training, exposure, international travel etc.
This will allow you to stay flexible and also provide alternatives to the employer during negotiation.
Do your homework
Get some basic facts about the overall state of the industry in which you are applying. A booming or sunrise industry will offer better packages. Check on the company's profitability and its market position. If you have some friends in the same company, try to find out their urgency to fill the particular vacancy. Such information will give you an edge during salary negotiation.
Salary discussions during the interview
Many employers will throw the salary question in the middle of an interview. This trick is used, as most candidates are likely to agree on a lower salary figure due to their anxiousness to crack the interview.
Do delay talking about compensation as far as possible. Say something like ‘I am keen on this role and your organisation but I'd like to keep aside salary discussions untilwe are both sure that I’m right for this job’.
Negotiate the basic salary first
Many HR managers will try to engage you into discussions about benefits and perks before getting to a consensus on basic salary. This gives the HR manager leverage in justifying why your basic salary should be lower. Always agree on the basic salary first and then move on to perks and other non-monetary benefits.
Get the lowdown on benefits
Benefits can often go up to 25% of your total package. Always get the details on Medical and life insurance, travel allowance, pension plans, educational assistance programs, overtime allowance, dependent care for parents/spouse, paid holidays, profit sharing and stock options.
Keep ‘selling’
Continue ‘selling’ yourself throughout the negotiation process. Keep remindingthe employer of the impact you will make, the problems you will solve, therevenue you will generate and the unique skills and talents that you will bring to the table. Highlight your interest and enthusiasm to work for the organisation.
Wait for 24 hrs
Don't rush into accepting any offer on the spot, no matter how lucrative. It is always good to buy some time. Tell the HR manager that you are interested in working for the organisation and would need about 24 hrs to consider the offer. Think about it – you will be spending 8-10 hrs daily in this new job so a 24 hr wait is worth it.
Relocation
Make sure that you include factors like cost of living, relocation expenses, housing and travel in your package if you will be moving to a new city for the job.
What if you're a fresher?
Don't be so excited on being offered a job that you end up accepting anything. Ask questions about promotional opportunities, performance reviews and the kind of salary progression that can be expected in 1.5- 2 years.
End it on a positive note
The last step of salary negotiation is to set the groundwork for the kind of performance that will lead to a larger raise or promotion in the near future. Talking aboutfuture performance and expectations will make a positive impression and will help you to end the negotiation on apositive note.
Get it in writing
Make sure that you see everything that you agreed upon with the HR manager in writing before you finally sign on the offer letter. The last thing you want is a nasty surprise a month down the line.
So go ahead and negotiate your way to a fat salary package
