“Definition of a competitive salary: we remain competitive by paying less than our competitors”.
“Appraisals are where you get together with your team leader and agree what an outstanding member of the team you are, how much your contribution has been valued, what massive potential you have and, in recognition of all this, would you mind having your salary halved.”-Theodore Roosevelt
Salary negotiation is the most important and crucial part of the job interview. It is most nerving task for the most happened candidates also. Negotiating salary is not an easy task for all the people. It is also more important to compare the pay check with change in variation of cost of living, health care and other implications associated with it. It is also important to match the expected pay and benefits offered with your skills and abilities. If you ask for more, you may lose the game. If you ask for less, you may end up with the feeling that you may get more.
Below job interview tips to get win-win solutions to the task:
1. Do your homework
Before the issue of salary, does some home work about the priorities like money, responsibilities, work-life balance, and personal life. This exercise will help you to decide on which aspects you can compromise to accept the offer. Do research on the pay standards of the industry for which you are interviewing for. You can search through online from any reliable source like company official website or any dependable person of the company. It is also important to be flexible in outlook factors such as company size, the economy, and the competition for the job in deciding the salary package.
2. Salary negotiations at right time
Never discuss about the salary details at the beginning of the interview within the interview premises. You convince the interviewer first and explain in detail that how you can add value to the organization. You can also explain your achievements and awards in your last job or college achievements for a fresher. Market your skills and capabilities to the interviewer in a positive way. Once you succeed in this task, the interviewer will be flexible in negotiating your salary. If the interviewer discusses the salary aspects in the beginning of the interview, you can answer like “Money is of course important to me, but what matters most is to see how suitable I am for the position. I would like to explore that first and then come to the salary part, if that is alright with you”
3. Know the company standards
Every company will have their pre defined standards for each position. Most of the companies follow the standards and they offer flexibility in signing bonus, extra vacation time and other benefits. Be confident, when the interview reaches at the stage of salary negotiations. Never forget to negotiate as per the industry standards and you can also put your views like” Iam expecting a salary range of 12-14 lakhs p.a .This can be modified for right opportunity”. Knowing the industry standards would save the time of both parties in making decisions.
4. Ask in a right manner
It is very important to negotiate the salary in a right manner. Your attitude plays main role, when the interviewer offer less pay than what you expected. Don’t forget to thank the interviewers and see as they are flexible to negotiate the salaries. If they are not, ask for time and also avoid discussion on the same at that time.
5. Know the benefits offered by the company
A competitive salary package is more than a pay check. Companies offer many benefits to expand the size of the compensation package. Doing homework about the benefits and perks will be added advantage. Take some time to think about the salary and benefits and consider what is important to you on job.
Consider the non monetary benefits offered by the companies before making a decision. Even you can think about some casual questions like:
• What type of rewards, besides salary, are you looking for?
• Whether the offered position provide long term security or not?
• Does the job provide enough creative opportunities or not?
The common benefits offered by the companies are as follows:
● Causal leaves
● Sick leaves
● Med claim
● Health insurance
● Vacation allowances
● Car allowances
● Pension plan or 401K
● Housing Rent allowances
● Health care
● Paid leave
● Expense accounts
● Profit sharing and Stock options
● Educational reimbursement
● Company-sponsored training
You may field a salary question by asking or saying something like:
● “What is the range for this position?”
● “I’m really excited about the opportunity to work for your company, and I am willing to consider a competitive offer.”
● “Compensation isn’t my only consideration, but I’d like to make sure we’re thinking along the same lines. What range do you have in mind for this position?”
Every employer and employees will be having equal opposite goals from their perspectives. An employee goal will be to get offered the best salary for the job. An employer’s target salary will be to offer the equitable pay while saving money for the company. Every company wants to be their employees happy and satisfied with the salary offered. A very less salary causes dissatisfaction and results in desire to leave. This is very bad situation for both employers and employees, both parties should work together to create a win-win situation.
The below key factors plays an important role in salary negotiation:
1. Never discuss salary until the end of the interview
Never discuss about your salary until the job offer is proposed. Make sure that your job description should match with the salary expected.
2. Let the employer be initiative in offering salary
Every candidate will be having their own views and expectations about the salary expectations and packages offered. Let the employer be initiative in establishing the benchmark. It helps you in obtaining the best package that we can.
3. Employers never tell you the most offered range
Let the employer be initiative in offering the general pay. So you can start negotiate up from there.
4. Better to conduct market research before the negotiation
Have a detailed job description is also important in determining the equal market pay. Never depend on the research results completely. Sometimes the same titles may differ from company to company.
5. Prepare a detailed budget before you into the salary negotiations
Calculate your monthly expenses, insurance, savings, investments and other amounts to be deducted from the pay check. Do cost of living analysis before joining in a company and take decision to accept the offer.
Sometimes you may not succeed in salary negotiations. You may do what if analysis to join in the company and also think in point of view of long term benefits available with the company. Some companies’ offer bonus packages when the salary package is not competitive. If you are willing to join in the company with the aspect of long term benefits, you may negotiate with the future. Negotiating for the future means looking from one quarter to a year or two out and establishing benefits or incentives for benefits in that time frame. Some of the future negotiations are as follows:
● A performance review in 60, 90, or 120 days. You can utilize this time to prove yourself and have a fair measure for a potential increase.
● You can ask your employer to evaluate your performance for a prospective promotion after a year of working within the organization.
● Bonuses (Monthly, Quarterly, and Annualy) are the other way of increasing the total financial package which is completely related with your performance in that particular time period.