Now why would i be talking about salary negotiation in a personal finance blog, well because salary is one of the primary source of income to over 90% of the people reading this blog and hence if you were to negotiate your salary well and get a good salary, you would have more money to spend and invest. I found this cartoon on one of those job portals that i would really like to share with you, its says a lot..
Well any HR professional will tell you that the first thing on his mind during any interview is the salary and how much he thinks the candidate is worth and how much is he willing to negotiate. While some candidates i know, who are desperate for a stable job in these times of recession are thinking "Lets just get in once no matter what they pay right now, i will get a good raise later". This thinking is not practical, since what ever raise that you get after this point will completely depend on the base salary fixed at this time.
There are some things that should be kept in mind while negotiating a salary...
1. Always be ready - Ready with all the data about your current Cost to Company along with any data like your retirement benefits or retention benefits that your company may have provided to you. Research your net worth and what salaries are your peer groups getting in different companies. Know your worth.
2. Dont push too much - Always remember that you are negotiating with the people you have to work with, dont let your negotaition skill tarnish your image. But then there is a very thin line between too much negotaition and too little. Even for the employer, if they really want you cost will always be taking the back seat but still you need to puch in your point as gently as you can.
3. Do not start a salary discussion - Never intiate a salary discussion, it shows you are desperate. Let the employer intiate even if it means going into next round.
4. Do not be hasty - Do not be hasty in rejecting or accepting any proposal put forward your way. Give it time to settle down and think over it very carefully before replying.
5. Freshers careful - If you are fresh out of college remember most companies have policies they like to stick to and might not like to negotiate but you have every right to ask if the salary is negotiable. So ask and if it is let them know your expectation. Do not under or over estimate your worth.
6. Time for silence - Remaining silent for a few seconds to think over a matter or let the emplyer get some breathing space to be able to evaluate what you might have just said. Silence is considered a very key negotiation skill.
7. No politics - Dont let the discussion get into a political mode, these discussions dont go anywhere and you might be left high and dry. So keep the discussion focussed.
8. Dont use the telephone - Never negotiate the salary over telephone, it may always end by you not getting what you asked for. It is very imporatant to study the body langauge of an individual. Including letting the employer study your body language.
9. Do not lie - Never lie about your past salary or about your packages, you dont know where it could lead you and if you are caught even at a later date your job may always be at risk. Some companies do reference checks of there prospective employee and it may create a bad note between yourself and the company.
10. End on a positive note - Always end the discussion in a positive note, even if you dont get the job at the end. Even when rejecting an offer always be polite and remember that you never know when you might be applying again to the company.
Related Posts
Defining Salary Structure - Part 1
Defining Salary Structure - Part 2
Defining Salary Structure - Last Part
What do you do with surplus money.
Well any HR professional will tell you that the first thing on his mind during any interview is the salary and how much he thinks the candidate is worth and how much is he willing to negotiate. While some candidates i know, who are desperate for a stable job in these times of recession are thinking "Lets just get in once no matter what they pay right now, i will get a good raise later". This thinking is not practical, since what ever raise that you get after this point will completely depend on the base salary fixed at this time.
There are some things that should be kept in mind while negotiating a salary...
1. Always be ready - Ready with all the data about your current Cost to Company along with any data like your retirement benefits or retention benefits that your company may have provided to you. Research your net worth and what salaries are your peer groups getting in different companies. Know your worth.
2. Dont push too much - Always remember that you are negotiating with the people you have to work with, dont let your negotaition skill tarnish your image. But then there is a very thin line between too much negotaition and too little. Even for the employer, if they really want you cost will always be taking the back seat but still you need to puch in your point as gently as you can.
3. Do not start a salary discussion - Never intiate a salary discussion, it shows you are desperate. Let the employer intiate even if it means going into next round.
4. Do not be hasty - Do not be hasty in rejecting or accepting any proposal put forward your way. Give it time to settle down and think over it very carefully before replying.
5. Freshers careful - If you are fresh out of college remember most companies have policies they like to stick to and might not like to negotiate but you have every right to ask if the salary is negotiable. So ask and if it is let them know your expectation. Do not under or over estimate your worth.
6. Time for silence - Remaining silent for a few seconds to think over a matter or let the emplyer get some breathing space to be able to evaluate what you might have just said. Silence is considered a very key negotiation skill.
7. No politics - Dont let the discussion get into a political mode, these discussions dont go anywhere and you might be left high and dry. So keep the discussion focussed.
8. Dont use the telephone - Never negotiate the salary over telephone, it may always end by you not getting what you asked for. It is very imporatant to study the body langauge of an individual. Including letting the employer study your body language.
9. Do not lie - Never lie about your past salary or about your packages, you dont know where it could lead you and if you are caught even at a later date your job may always be at risk. Some companies do reference checks of there prospective employee and it may create a bad note between yourself and the company.
10. End on a positive note - Always end the discussion in a positive note, even if you dont get the job at the end. Even when rejecting an offer always be polite and remember that you never know when you might be applying again to the company.
Related Posts
Defining Salary Structure - Part 1
Defining Salary Structure - Part 2
Defining Salary Structure - Last Part
What do you do with surplus money.
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