It is said, “Your first salary sets your career rolling to great heights.” Do you agree?
Well, you must! It could be a slight increase in your pay, but when you add it up, it makes a massive difference in lifetime savings.
However, it is one of the most challenging tasks for job seekers. Salary negotiation for some, sadly, is akin to that of climbing the tallest mountain—a nerve-wracking experience, exciting no doubt, but one that has a lot at stake!
You must understand that negotiation is anything but a confrontation. Think of it as a communication, an assertive one, and when it is done right, it will showcase confidence, preparedness, and belief in one’s value.
This blog highlights salary negotiation tips and strategies that are backed by insights from some of the most sought-after negotiation experts. Read on to know more about what you need to say during salary negotiations and when you must say it.
Try these tips, and you are sure to walk away with a salary package that matches skills, experience, and potential!
Let us start with “When” of Negotiation!
Step 1
Is the Job Offer in your hands?
It is advisable to wait for the job offer before negotiating your salary terms. By this, we mean do not initiate discussions during the first and second rounds of the interview. You have a better chance of winning when they have decided to hire you. By now, they know that you are the best candidate for the role!
What to do when confronted with questions on “pay”?
Defer it: The best tactic to defer them is by giving a professional answer, saying that learning about the responsibilities is more essential to you now at this point.
Offer a Range: If they insist on knowing your salary expectation, offer a range and avoid providing a single figure.
Receiving the Offer
The best stage to start the salary negotiation process is the “Golden Window” period. It is the time you receive the actual offer in your hands. Now is the stage to convey your enthusiasm for the job offer and request sufficient time to review the salary package, showcasing confidence and professionalism.
Step 2
The next is the “What” of Negotiation
The stage wherein you research, strategize, and prepare the next steps for salary negotiation. It is time to collect relevant information to prepare for your salary negotiation.
Know what you can ask
It is best that you understand your worth and ask for a number that is relevant to the role that is offered, as per industry standards. Asking for an unreasonable number is unfair and may not be seen as justified.
How to find out your worth:
Research Tools – Glassdoor, LinkedIn Salary websites offer insights into the market rate for the role, location, and experience.
Internal Information – Get information from within your network about those who are in similar job roles, or better still, someone who works for the company from which you have received the offer letter.
Prepare a Case to Justify the Reasons for Salary Expectations
Asking for an increase in CTC must justify the reason for seeking it. So building your case is the best foot forward before you initiate salary negotiations:
List the Skills and Accomplishments – Begin by highlighting the value you would bring to the company. List the number of skills and accomplishments through qualified details, such as increasing sales to 30 lakhs or saving the company 50 lakhs.
Set a Target Number: Create a specific number and a minimum amount you would be willing to accept.
Be Flexible: Consider the salary package as a whole and be flexible to negotiate on benefits, bonuses, stock options, remote work, and additional time off.
Step 3
The “What to Say” Part
The next step is the practical guide to “What to Say” during the negotiation phase.
First Response: Your first response to receiving the offer is to be sincerely grateful. It must then be followed by a humble request to discuss the compensation package.
For eg:
You can say, ” Thank you for your generous offer. I am genuinely excited to have been offered this opportunity. I want to review and discuss the offer at your convenience. Kindly let me know.”
Making the Counteroffer– Be positive and confident while making the case for your counteroffer.
For Eg:
“I am excited and enthusiastic to offer my services to your organization. My contribution to the company would result in a 30 percent increase in overall profitability. As per my research, the market rate offered to a role similar to mine is within a () (mention the particular range).”
How to Handle When Negotiations Result in Rejection or Low Offers?
Not all salary negotiations meet expectations. Shifting the strategy from demanding more Salary to highlighting the unique value that you have to offer is a more polite way ot move forward.
For eg:
Say” I understand the current budget, but I believe I can bring more value to the company because of my skillset, and due to my past accomplishments. I am confident my presence would increase the value for the team.”
Reemphasizing the value you bring can help explore other forms of compensation and may lead to an opportunity to discuss a sign-on bonus and additional paid time off.
Avoid the following mistakes
- Sighting personal reasons(talking about high rent or loans taken)
- Giving an ultimatum!
- Be truthful about other offers made to you
Finally,
As soon as your prospective employer agrees, you seal the deal and follow up to receive the counteroffer. Be sure to express your gratitude, and your final interaction highlights professionalism, building a strong foundation for the new role.
