I have read many interview books, the most important of which was 'Job Search Guidebook' by Alison Doyle. I believe it is a must-read for every professional who wants to master the art of interviewing. However, the most intelligent book I read on salary negotiations was 'Get More Money on Your Next Job' by Lee Miller, which beautifully takes you through the entire process of negotiation. It teaches you to ascertain your true worth, equips you with the tools to understand the mind of your recruiter, and trains you to get what you are worth. Yes, what you are worth because you will perform your best only if your material and emotional desires are met, and salary is the first, foremost, and biggest material desire any professional works for. I mean, who can perform when every time his head carries, 'Why am I underpaid?'
How to Get the Best Out of Negotiation
But how to get the best out of the negotiation? What to say and what not to say? What should I know before entering into a negotiation phase? All these questions will be answered in a while, but before that, I just want to give one piece of advice. Don't ever drop the towel even before trying. Negotiation is nothing but an art of speaking which gets you the best you deserve, so if 5 minutes of additional discussion gets you an extra 10-15%, I say, why not?
5 Things You Should Never Do During Negotiation
- Don't compare your salary with the people you know in other fields, as every field, industry, and position offers a different range of salary.
- Don't be the first one to talk about the salary. Let the recruiter make the offer first.
- Never quote an expected salary range during the interview because you may be underquoting or overquoting, both of which can go negative for you.
- Don't beg by telling how much your financial requirements are or have increased to the recruiter.
- Never lie during negotiation as you would lose your creditworthiness.
10 Best Tips for Successful Salary Negotiation
1. **Research.** Research through various salary survey sites and people you know in your field to understand what a person with your kind of experience in your industry should be worth. Also, research what is the percentage of salary hike given under current economic conditions in your sector. If you are asking for a 25% raise in the IT sector, whereas the current situation allows only a 15% raise, you would lose certainly as it is an unrealistic demand.
2. **Support your recruiter.** The recruiter is the person who is mediating between you and the signing authority. That means that he has to sell your candidature to the hiring head or whoever the authority is, so he would need strong justifications as to why a particular salary must be offered to a candidate. So never enter the negotiation room with a mindset that the recruiter is against you. Give him what he would need to win your case.
3. **Be flexible.** One thing is for sure, that whatever amount you would be carrying in your head won't be given. You would certainly have to compromise, but the trick is to know how much you are ready to compromise. Once you know that, you are ready to negotiate.
4. **Prove why you deserve the best.** Let your experience, skills, and numbers speak for you. Give the facts. Tell your recruiter what you achieved in your last job and what you expect to achieve in the new job. Show him the ROI on your hiring.
5. **Show your excitement about joining the company.** Let your recruiter know that you are extremely excited about the position and you can't wait to bring so many new ideas on board for the company's benefit, and the only thing in your way is compensation. The recruiter would do his best to satisfy you in his capacity.
6. **Understand the complete package structure first.** Sometimes there are elements in the package structure that look attractive, like stock options, but it's extremely important to quantify them or, in simple words, evaluate the monetary value and understand the implication on overall cash income or their future investment value. There are some components which the company is willing to give easily and some are difficult to get. Identify them. If there is an annual performance bonus component up to 15%, try to get the exact percentage given in the last 3 years.
7. **Always negotiate on other perks.** Let's say you are offered $50,000 with 10 vacation days and $10,000 as a joining bonus. The first counteroffer you make should be $55,000 with $15,000 as a joining bonus with 5 extra vacation days. In most cases, the company will offer $52,000 with $15,000 as a joining bonus without extra vacation days. Grab it and run.
8. **If the offer does not meet your expectations, negotiate on a midterm salary raise and not as per the yearly raise cycle.** Definitely, there will be certain achievements or reviews based on some performance parameters. Accept it if it's reasonable and get it in writing.
9. **Always, during the entire conversation, use words like 'we' or 'us'.** It shows the recruiter that you have already made yourself a part of the company and you are trying to work hard along with the recruiter so it's in everyone's best interest. We always like to be good and fair for our people, so why won't the recruiter be good to you if he thinks you are already a part of them? Asking him, 'what he would do if he were in your shoes?' would really turn the table.
10. **Take your time to decide.** Request the recruiter for some time to think it over and decide. The recruiter would always want you to decline rather than take more time. If he asks 'why?', you can say 'I can't wait to join, but I am a bit disappointed with the salary offered because...'. Tell the justifiable reasons and then ask for the best they can do. I assure you that the recruiter would come back with the best they can for that position.
Final Considerations
Remember one important point: assuming that you are evaluating two offers from two companies, one of which has employee-friendly policies or offers higher growth potential in the long term and the other one is offering more money, don't run after the extra money as that's a trap to keep you away from mental peace. Without mentioning a name, I can remember several examples when the candidate left a bigger company just for a few thousand extra and repented later. You can make that extra amount by your performance, but you won't be able to bring the career growth and peace that the other company was offering and you declined. So choose wisely.
From India, New Delhi
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8How to Get the Best Out of Negotiation
But how to get the best out of the negotiation? What to say and what not to say? What should I know before entering into a negotiation phase? All these questions will be answered in a while, but before that, I just want to give one piece of advice. Don't ever drop the towel even before trying. Negotiation is nothing but an art of speaking which gets you the best you deserve, so if 5 minutes of additional discussion gets you an extra 10-15%, I say, why not?
5 Things You Should Never Do During Negotiation
- Don't compare your salary with the people you know in other fields, as every field, industry, and position offers a different range of salary.
- Don't be the first one to talk about the salary. Let the recruiter make the offer first.
- Never quote an expected salary range during the interview because you may be underquoting or overquoting, both of which can go negative for you.
- Don't beg by telling how much your financial requirements are or have increased to the recruiter.
- Never lie during negotiation as you would lose your creditworthiness.
10 Best Tips for Successful Salary Negotiation
1. **Research.** Research through various salary survey sites and people you know in your field to understand what a person with your kind of experience in your industry should be worth. Also, research what is the percentage of salary hike given under current economic conditions in your sector. If you are asking for a 25% raise in the IT sector, whereas the current situation allows only a 15% raise, you would lose certainly as it is an unrealistic demand.
2. **Support your recruiter.** The recruiter is the person who is mediating between you and the signing authority. That means that he has to sell your candidature to the hiring head or whoever the authority is, so he would need strong justifications as to why a particular salary must be offered to a candidate. So never enter the negotiation room with a mindset that the recruiter is against you. Give him what he would need to win your case.
3. **Be flexible.** One thing is for sure, that whatever amount you would be carrying in your head won't be given. You would certainly have to compromise, but the trick is to know how much you are ready to compromise. Once you know that, you are ready to negotiate.
4. **Prove why you deserve the best.** Let your experience, skills, and numbers speak for you. Give the facts. Tell your recruiter what you achieved in your last job and what you expect to achieve in the new job. Show him the ROI on your hiring.
5. **Show your excitement about joining the company.** Let your recruiter know that you are extremely excited about the position and you can't wait to bring so many new ideas on board for the company's benefit, and the only thing in your way is compensation. The recruiter would do his best to satisfy you in his capacity.
6. **Understand the complete package structure first.** Sometimes there are elements in the package structure that look attractive, like stock options, but it's extremely important to quantify them or, in simple words, evaluate the monetary value and understand the implication on overall cash income or their future investment value. There are some components which the company is willing to give easily and some are difficult to get. Identify them. If there is an annual performance bonus component up to 15%, try to get the exact percentage given in the last 3 years.
7. **Always negotiate on other perks.** Let's say you are offered $50,000 with 10 vacation days and $10,000 as a joining bonus. The first counteroffer you make should be $55,000 with $15,000 as a joining bonus with 5 extra vacation days. In most cases, the company will offer $52,000 with $15,000 as a joining bonus without extra vacation days. Grab it and run.
8. **If the offer does not meet your expectations, negotiate on a midterm salary raise and not as per the yearly raise cycle.** Definitely, there will be certain achievements or reviews based on some performance parameters. Accept it if it's reasonable and get it in writing.
9. **Always, during the entire conversation, use words like 'we' or 'us'.** It shows the recruiter that you have already made yourself a part of the company and you are trying to work hard along with the recruiter so it's in everyone's best interest. We always like to be good and fair for our people, so why won't the recruiter be good to you if he thinks you are already a part of them? Asking him, 'what he would do if he were in your shoes?' would really turn the table.
10. **Take your time to decide.** Request the recruiter for some time to think it over and decide. The recruiter would always want you to decline rather than take more time. If he asks 'why?', you can say 'I can't wait to join, but I am a bit disappointed with the salary offered because...'. Tell the justifiable reasons and then ask for the best they can do. I assure you that the recruiter would come back with the best they can for that position.
Final Considerations
Remember one important point: assuming that you are evaluating two offers from two companies, one of which has employee-friendly policies or offers higher growth potential in the long term and the other one is offering more money, don't run after the extra money as that's a trap to keep you away from mental peace. Without mentioning a name, I can remember several examples when the candidate left a bigger company just for a few thousand extra and repented later. You can make that extra amount by your performance, but you won't be able to bring the career growth and peace that the other company was offering and you declined. So choose wisely.
From India, New Delhi
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When entering a salary negotiation, it's crucial to be well-prepared and strategic in your approach. Here are some practical tips to help you navigate the negotiation process effectively:
1. Research: Understand the market value for your role by researching salary surveys and industry standards. Ensure your salary expectations are realistic based on current economic conditions.
2. Support the Recruiter: Work with the recruiter as a partner by providing strong justifications for the salary you are seeking. Help them advocate for you effectively.
3. Be Flexible: While knowing your worth is important, be prepared to compromise during negotiations. Determine your limits beforehand.
4. Demonstrate Value: Highlight your achievements, skills, and the potential contributions you can make to the new role. Show the recruiter the return on investment they will get by hiring you.
5. Express Enthusiasm: Communicate your excitement about the role and how you can contribute to the company's success. Make it clear that compensation is the only hurdle.
6. Understand the Package: Evaluate the complete compensation package, including benefits like stock options. Quantify the value of each component to make informed decisions.
7. Negotiate Other Perks: Besides salary, consider negotiating additional perks such as extra vacation days or signing bonuses to enhance the overall offer.
8. Discuss Midterm Raises: If the initial offer falls short, discuss the possibility of midterm salary reviews based on performance metrics. Get any agreements in writing.
9. Use Inclusive Language: During negotiations, use terms like 'we' and 'us' to align yourself with the company's goals. Show that you are already part of the team.
10. Take Your Time: Request time to consider the offer if needed. Express your eagerness to join while diplomatically addressing any concerns about the salary offered.
Remember, it's not just about the money. Consider long-term growth opportunities and company culture when making your decision. Choose the offer that aligns best with your career goals and values.
From India, Gurugram
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1. Research: Understand the market value for your role by researching salary surveys and industry standards. Ensure your salary expectations are realistic based on current economic conditions.
2. Support the Recruiter: Work with the recruiter as a partner by providing strong justifications for the salary you are seeking. Help them advocate for you effectively.
3. Be Flexible: While knowing your worth is important, be prepared to compromise during negotiations. Determine your limits beforehand.
4. Demonstrate Value: Highlight your achievements, skills, and the potential contributions you can make to the new role. Show the recruiter the return on investment they will get by hiring you.
5. Express Enthusiasm: Communicate your excitement about the role and how you can contribute to the company's success. Make it clear that compensation is the only hurdle.
6. Understand the Package: Evaluate the complete compensation package, including benefits like stock options. Quantify the value of each component to make informed decisions.
7. Negotiate Other Perks: Besides salary, consider negotiating additional perks such as extra vacation days or signing bonuses to enhance the overall offer.
8. Discuss Midterm Raises: If the initial offer falls short, discuss the possibility of midterm salary reviews based on performance metrics. Get any agreements in writing.
9. Use Inclusive Language: During negotiations, use terms like 'we' and 'us' to align yourself with the company's goals. Show that you are already part of the team.
10. Take Your Time: Request time to consider the offer if needed. Express your eagerness to join while diplomatically addressing any concerns about the salary offered.
Remember, it's not just about the money. Consider long-term growth opportunities and company culture when making your decision. Choose the offer that aligns best with your career goals and values.
From India, Gurugram
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Salary Negotiation.pdf