Fun fact: A famous study revealed that only about 7% of women attempted salary negotiation in their first salary, while 57% of men did. What stopped them? Fear.
Salary Negotiations can be really stressful, even nerve-wracking. Not only do most people lack clarity on what they should be asking for and what the market value of their job position is, but there is also the accompanying fear that in asking for more they might come across as greedy or demanding, and run the risk of losing the offer.
However, most companies expect you to negotiate! Accepting the offer that is given to you is an exception, not the norm. It is important to keep in mind though, that there are good and bad ways to negotiate an offer. How to negotiate salary is as important, if not more, than what you negotiate for.
Being polite, respectful and considerate, even while refusing to compromise on the non-negotiables, is a tough balance to get right, but it can be done. The process of going back and forth over salary negotiation emails on an offer will also give you important insights into the company culture, which will help you decide whether you actually want to work there or not.
There are multiple salary worth calculators available online. However, a few things that you should not miss out on include writing a genuine salary increase letter, knowing your company’s salary increase percentage or the average salary increase per year that is offered to all employees. On top of that, you can also do some research on Glassdoor salaries.
Watch this video till the end to understand how to go through salary negotiations fearlessly and arrive at a compensation package that works for you.
Continue Reading Below.
Here are a few things you need to know on how to do a salary negotiation.
Know Your Market Value
It’s good to know your expected salary before beginning the negotiation. You must start by considering factors that will affect your pay. These can be things like experience & skills, job descriptions, the market value of job position, industry standards, cost of living, and relocation expenses.
One of the best ways to know your market rate is to talk to as many people in similar profiles as you and try to get a sense of what they are being paid and extra perks in salary in salary.
You have to keep all these factors in mind when trying to negotiate your salary compensation package and decide upon a range that encompasses the minimum you’re ready to settle for and an aspirational package within your market value.
You can use Glassdoor’s ‘know your worth’, dice.com, and Payscale’s salary calculator to get an estimation of your worth and market value. Talk to as many people as you can who are in similar roles to understand what their pay scale range looks like.
Have clarity on what the lowest figure that you are willing to settle on is, but also on what your desired compensation salary should be.
Ask For Your Worth, But Make An Effort To Be Likeable
Many people think that reaching the negotiation stage is the end-all of the interview process. However, just because the company is ready to negotiate a salary, it does not mean that they are ready to hire you.
Have all your demands related to salary compensation and benefits backed up with fair reasons.
People will only think about meeting your compensation demands if they like you as a person. Likeability becomes a crucial aspect at this stage! You should present yourself as open to conversation and compromise, even while remaining firm on the basics. Remember to drive home how interested you are in the company and their work, and how much you are looking forward to working with them if everything works out. As important as the money is, people don’t want to feel that you are only interested in the salary.
Remember that you are negotiating with a person, not with an organisation.
Negotiate, But Don’t Haggle
Impatience and rudeness won’t get you very far. Patience is the name of the game! In order to handle your salary negotiations put your thoughts across succinctly and listen to what HR has to say to you. Counter their points after thinking about the offer, and after forming clear points of your own. Speak with clarity, transparency, and confidence.
Highlight the market pay standards and your unique value.
If you’re willing to take a pay-cut for a great job, make sure you verbalise it and leave some room for future hikes and appraisals. Try to see the company’s constraints as well and don’t be unreasonable if you want the job.
Try to not haggle for very small amounts. Instead, you could also for a sign-on salary bonus or even equity.
Remember, whether you’re starting a new job or seeking a salary compensation plan for your current job, you should always gain clarity from HR about the following things:
- What are the performance appraisal methods adapted by the organization?
- How can I calculate percent raise in salary?
- How to calculate bonus on salary?
- How to calculate the bonus deduction from salary?
- Is bonus included in gross salary?
Bring More Than Just Money to The Negotiation Table
There is usually a lot of back-and-forths when it comes to negotiating salary. You might have to spend a few weeks or more while waiting to finalise the offer. If the company comes back to you with a counteroffer that addresses all the concerns that you have raised, then you should take it.
Be flexible and don’t compromise the opportunity by getting hung up over minor things.
If the counteroffer is missing out on some major components then present your own counter. Aim to land somewhere between your original offer and the company’s first counteroffer. Keep your non-negotiables, and consider compromising on other points.
Focus on the overall value of the package. Apart from just the money, you can negotiate on timings, benefits and work from home options.Those are equally important contributors to your overall work life balance and quality.
Lookout For Red Flags
If the company’s HR is haggling incessantly and can’t put a fair value on your worth, then you might want to rethink your decision of working at this particular organization. This is not a one-way negotiation: you are joining them as much as they are hiring you!
Carefully observe the assess the vibe of the office, and decide if you’d like to work with people who can’t bid on your true worth.
Be willing to walk away. It’s okay to turn down offers!
Remember, your ultimate goal is to land the job with comfortable compensation. There are other things besides salary that can be important to factor in. A few things you can think about are stock options, a better designation, location and growth and learning opportunities.
So go on and say yes to the job, but on the right terms!
Studies show that you’re more likely to get a raise if you negotiate on Thursday. This is because people tend to be difficult and disagreeable as the week begins. As the weekend draws closer, people become more flexible and accommodating.
Now you know How to negotiate a salary package that is best for you when starting a new job or asking for a raise at an existing job. Don’t forget to also write a heartfelt thank you letter for a raise in salary if you are in the former situation.
There are many little tips and tricks that you can learn to make sure that you get offered what you deserve!
Are you ready to take on the world ? Go forth confidently and always know your worth!
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Last updated: 22 March 2021
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