Tips to successfully negotiate a salary

Tips to successfully negotiate a salary

By: Sanjeev Sinha, ECONOMICTIMES.COM

Bad bosses, job burn-out, high stress level at work, unhelpful colleagues and lack of growth prospects are some of the possible reasons for leaving a current job.

Some people also hop from one job to another in search of new skills or promotion. However, the reason most people change jobs is for better pay.

Money matters, after all. But negotiating one’s salary well and with confidence is not everyone’s cup of tea. In fact, talking about money is something that can sometimes make even the most confident people feel uneasy.

Doing it successfully, therefore, requires knowing the right technique of going about it and having a clear sense of what one really wants.

Here’re some smart ways of negotiating one’s salary successfully:

Go for self appraisal

The first thing you need to do is to go for self appraisal, determine your worth and then set your expectations realistically.

“One should do some home work on the most recent/current trends in the market as far as compensation is concerned and accordingly pitch for it -- neither too low, nor too high,” suggests C S Venkata Ratnam, director, International Management Institute, Delhi.

For, asking for too much can give the impression that you do not understand the job and the market, while settling for too little won’t be good for you and may also cause disappointment in the long run.

So, you must have a realistic expectation of the appropriate salary for the position, given your skill set and the level of responsibility.

Tips to successfully negotiate a salary

Don’t talk about salary at the beginning of the interview

After you have developed adequate skill set for a job and has also fixed your worth, you should be ready to discuss your salary during the interview.

“But one of the most important aspects of salary negotiation is that the candidate must not broach the subject of salary at the beginning of the interview. If one does that, the interviewer would probably feel that the only reason for him/her to change the job is the financial aspect,” says Shrikant Dikhale, VP-HR, Kansai Nerolac Paints Ltd. However, if he/she feels that the interview is nearing the end, the subject could be touched upon.

Be honest and transparent

Most of the times, the interviewer would ask about the salary expectations. In case he/she doesn’t and the candidate is sure that he/she would like to work for the organization, there is no harm in politely asking them about the compensation being offered. The interviewee, however, must be honest and transparent and give full clarity on the salary he/she is getting, what are the different components, what is included in the CTC and whether there are adequate supporting documents to testify them.

“At times, the candidate is hesitant on talking about the salary expectations. There is nothing wrong in expressing your expectations but of course, it must match the industry trend. 25–30% is the typical salary expectation one has, while contemplating a job change,” says Dikhale.

Tell why you need the hike

While stating one’s expectations, there should be enough clarity that one is looking for a higher salary because of either a change of location or expenses incurred on child’s education and conveyance etc in the new place would be higher. One of the reasons for a hike could be because the spouse (wife) is working and on relocation, she may need to leave her current assignment and look for a new one.

“If the establishment is new and a new house would have to be rented, one’s expenses would surely be higher. May be at the current location the candidate was staying with parents and now a separate accommodation would have to be searched,” says Dikhale.

Don't falter while discussing salary

While talking about the salary expectations, the candidate should go with complete preparation and not falter while discussing this aspect. This will reflect the confidence level of the interviewee.

Seek clarity on job profile Another important aspect that one must keep in mind is to seek enough clarity on the job profile. This is very important because during the course of the interview, the candidate can get intricate information on the role, responsibilities, expectations from the role, key deliverables, reporting structure, span of control, career prospects and how it is going to impact the company. If you are being given more responsibilities, you also deserve better pay.

Be prepared for performance-based incentives As one goes up in organization hierarchy, there is a lot of emphasis on performance and as a result of which, a professional set-up would focus on performance-based incentives which could range between 20 and 30%.

“One should take it in one’s stride as this will exhibit that the candidate is a positive individual with self belief that if one delivers the result, there would be the possibility of receiving higher percentages,” says Dikhale.

When approached by another company

If you have been approached by another company, you can definitely expect a higher salary because that company is aware about your skills and needs you at any cost. So why not look for more?