Here’s the secret- “Salary negotiation is a game, and the first to give a number loses”
Technically, there are two ways of making more money, you can either earn more money or cut costs. Well, cutting costs will mean giving away your luxuries and one of the best ways to increase your income is through salary negotiations, either when you’re first offered the job or during a performance review. (Not because you need it but because you deserve it)
While you can get loads of overdose and merry-go-round over internet, HireTale brings the basic principles and tips of a salary negotiation. Remember, as one of the most neglected and under-rated aspects of a job search, salary negotiation is more of an art than science. People often feel they just need to get in. Once they are in they can get good raises etc. Do not accept a position at a salary lower than you know you are worth with the hopes of big raises in the future.
The first interview is definitely not the best place to negotiate a salary. You do not know at this stage whether the interviewer is even still considering you for the job. Unless he offers the job to you on the spot, which is an unusual. When the employer brings up the subject of salary for the first time, often in a second interview or after a job offer, then you can begin speaking about your salary expectations and concessions. If you’re just starting out—you’re a recent university graduate or moving to a new career—you might not have hard numbers to prove your worth. In that case, pitch your enthusiasm and work ethic. At the very least, ask for about ten percent more than what you’re offered.
Principles of Salary Negotiation:
i) Get the ingredients: Knowledge is power. Before reaching the negotiation stage, the first step is to make sure that you understand the job, its requirements and expectations. Once you understand it, next comes research. Research industry salary norms for the position you’re applying for or. Also find out, how company is doing financially. Being greedy may cost you dear. The best way to research is through ‘networking’. Get in touch with the people working in the same field. Get to know their work (how similar or different is it from that of yours), their responsibilities and their expectations.
ii) Prepare the dish: Once you have gathered all the ingredients through research, the next step is to determine the target salary you would like to make. Based on your research of similar jobs in your geography and industry, decide upon what you think would be an appropriate salary range for the job. Your target salary should fall within this salary range. The last thing to be done in this step is to define your ‘walk-away’ point, the minimum salary you are willing to accept and why. Then consider and write down the reasons to be unwilling for a lower amount. These points will come handy during salary negotiation.
iii) Time to garnish it: Through with the two steps, next step is to make yourself ready. During the research you must find out, what are the expertise which will put you ahead in the race in your field. Now you need to start working on it. You need to show your employer that you are unique and brings that little extra (which can be experience, past performance, knowledge etc) with yourself. Use this ‘extra-factor’ as your leverage in negotiation.
Let’s go serve it: The final step is to prepare yourself for the actual negotiation. Practice it with your friends, in front of the mirror. You have to be flexible, bold and convincing at the same time.
Too often in negotiation, focus gets shifted from goals to winning. Never ever let that happen. There comes a point in every negotiation when you have achieved everything that you could gave reasonably expected to achieve. At that point you should thank the person you are dealing with and accept the offer (always take the final offer in writing). If you don’t recognize when to stop negotiating, you run the risk of having the company decide that it made a mistake by offering you the job in the first place. Remember, employment is an ongoing relationship.