Salary negotiations are one of the most difficult barriers to pass at the time of signing an offer with any organization. Think you’re offered too less? Will you come across as greedy, if you’re asking for a higher salary? How do you prove to the person across the table about your capabilities? Too many thoughts to battle against before actually getting to the negotiation. You have simple 5 negotiation tips to follow that could ease this process.
Your time is valuable and you don’t want to waste it on an organization that isn’t offering what you are worth. This requires you to understand how employees understand their salary levels and thus adjust your job search.
At the same time, Companies use various benchmarking tools. They compare average pay rates with:
- Pay at other companies in their industry
- The salary for professionals with your level of education and experience
- The income of professionals in your field in their area of the country
Employers interested in you will offer you the best salary after weighing your competencies. However, understand the benchmarking process and make the right negotiation.
Shift focus from past pay to future potential
Your future pay package is usually always given in reference to your past pay. When you are at the table talking about your offer – the concerned HR person will give you a hike based on your previous salary. This is a normal process and most organizations follow this. Regardless, there are tactics you can use to have the hiring manager focus on what you can do now and in the future. Take his mind out of the past and let him know your goals and aspirations on the new job.
Understand their constraints
The organization may like you. They also think you deserve everything. However, when you look at the salary break-up – these intentions are not visible there. Why? You have to understand that every organization sets a budget for an employee. They have constraints and salary caps that no negotiations can break. In such a circumstance, your job is solely to figure out whether they are flexible or not. During a bulk selection, for e.g. Any organization taking in 20 people at the same time, your salary can’t be higher than the other. However, you would have noticed that your organization has been generous and flexible at the start dates, vacations, bonuses and additional incentives.
It’s better you understand the organization’s constraints before you put forth your proposal. Don’t make any decision without gauging all the problems.
Remember when you are calculating your salary – don’t get too excited on the whole figure. Usually, employees get happy at the whole figure and forget to calculate the components of the salary. Remember to consider the value of benefits like bonuses, commissions, health insurance, flexible spending accounts, profit-sharing, paid vacation, stock benefits. You have to take into account every component and then make a final proposal.
Don’t get emotional – Get Creative
Don’t be too focused and emotional about your salary while negotiating. You need to create a certain reputation which doesn’t come across and desperate and greedy. Instead, create a smart image – make the employer feel you have that spark in you, and they are convinced about giving you a higher salary.
Negotiations don’t need to focus only on the salary structure. Instead, try using creative ways and negotiate on the time period, especially if it’s a contract term. Use creative ways and negotiate on getting a contract of a year instead of 6 months. This can also change the perspective of the employer, and you may just notice your salary get better.
Remember, the more a company wants you, the more salary negotiation leverage you have.
5 Salary Negotiation Tips
- Understand benchmarking
- Shift focus from past pay to future potential
- Understand their constraints
- Everything counts
- Don’t get emotional - get creative