Top Salary Negotiation Strategies for better Compensation

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Generally, organizations pay good for the position you have employed in, but sometime employees struggle to get a salary package they deserve, at this point, your knowledge and idea of salary negotiation techniques stands out.

Salary is the amount that every organization pays for their potential employees for the services they provide to the organization, but the range of salary differs for each individual employee. Organizations determine the range based on an employee's job position, knowledge, experience and previous salary package.

What is Salary negotiation?

Salary negotiation process is a part of employment where conversation between hiring manager and fresher/employee reaches to the agreement where organization offers a suitable range of salary to the employee based on employee’s experience, skills and previous salary package.

When to negotiate?

Focus on these two points before you negotiate,
  • Once you are assured, you have been considered for the job (or, after receiving a formal offer), start discussing on the salary aspects, but you should not be the one to initiate the discussion. Wait for the hiring manager to initiate the salary negotiation, then only you put forward your points, otherwise, it may happen that your over enthusiasm will lead to your elimination from hiring process.
  • Negotiate only when you are sure about your market value is more than what you have been offered for the services you are going to provide to the organization. Do the complete research, before speaking on salary negotiation and don’t compare your current salary package with a salary package of other employees, who is working at the same position for different companies. May be, other (employee) is getting salary higher than you because of their extra qualities.

 

How to negotiate?

While negotiating, a candidate/employee needs to establish trust and reliability in a manner to convince the hiring managers that they are making the right decision.

Companies hardly ever offer the best salary package in the initial stage of the employment, but candidates who perfectly know the salary negotiation techniques, usually get better pay than those who don’t know. They need to understand what is most important for them - designation or salary hike?

Why to negotiate?

Sometime, the company offers a good salary package with unsatisfactory designation and on other occasions, lower salary package with satisfactory designation. Very rarely you will be served with good pay and higher designation.

Due to many certain reasons, employees get the lower salary package. Let’s see a few of them,

  • May be, an employee’s skills and qualifications are below the company norm for the higher salary package.
  • May be, the employee is skilled and well educated, but the company itself is unable to pay higher salaries 
  • May be, the employee started his/her job career with low paid salary and the impact of that is being reflected on his/her current job.
  • Apart from all above, there can be many other reasons of lower salary package/ compensation

To get the satisfactory salary package/compensation, in the initial stage of building your career (as a fresher), job seekers need to make their salary equivalent to the market value.

The best thing can be done,

  • Appropriately, learn salary negotiation strategy.
  • Effectively, negotiate the salary before joining the company because once you have appointed at the lower salary package, later on it will difficult for you to negotiate the salary.

Here are the guidelines to help job seekers in understanding what mechanism to use while negotiating the salary.

Do the complete research for understanding your market value

Most often, it has been seen that the underpaid employees undervalue themselves. They feel, what they are getting (lower salary) is sufficient as per their knowledge and skills. But, actually they are unfamiliar about the market value of the services they provide to the company and the negative impact of current job salary (low salary) when they go for a job change. Your low salary package not only harms you while switching from one company to another, but also harms you during appraisal.

Better not to undervalue yourself and understand the market value of the position you have applied for. To understand the market rate and value of a particular designated profile, make sure you have worked on all the given ideas given below before getting into an interview process,

  • Go through salary survey sites (www.salary.com, www.payscale.com, etc.), job posting portals, and classified ads to better understand the market value and demand for the job position
  • Contact experienced professionals who have worked at the job profile you are interested in. Those professionals can give an ideal salary range based on the prevailing market condition. Having a range for expected salary, will help you negotiate better.
  • If possible, discuss to the company contacts for better understanding of the job position
  • After doing complete research, understand what is important to you – Higher salary package, higher designation, or both salary package and designation

Figure out your position among other applicants

Figure-out, where do you stand among other applicants who had applied for the same job profile? Understanding your abilities and position among other applicants can help you build a more effective negotiation strategy. If you consider yourself among top ten applicants, you can confidently take participation in the salary negotiation process with the hiring managers.

Don’t speak on salary at the first interview

Switching from one company to another with some years of job experience increases your interest of getting a specific range of higher salary, but your interest of getting higher salary should not tempt you to initiate the conversation on salary benefits in the first round of interview.

Be patient and wait for the interviewer/hiring manager to initiate the conversation about salary, benefits, or let them (hiring managers) raise the question - What salary are you looking for? Answering to this particular question depends on how well you have done your homework, that means,

  • How well you have done the research work on salary range
  • How well you know yourself in terms of your skills and knowledge

The best way to answer the question (What salary are you looking for?) is – Speak on some range of salary based on your research, not on a specific number.

By understanding the market value in relation to the designation skills, and experience, specify the salary range that should be appropriately the job position. Your specified range should make hiring managers to believe that the candidate knows the job market. Also, the conversation should be in manner to emphasize hiring manager that you are mainly concerned towards getting a right job position, not towards getting the higher salary package.

Don’t get afraid, but be polite and professional

Speaking for your rights is good and it is better when you are skilled and experienced. The same mechanism can be followed in the negotiation process, when you feel, you deserve something good. While negotiating at the interview, you can fight for your rights, if you feel, you are fighting for the genuine reason. But, some candidates mistakenly take it in a different manner and lose their temper very soon which is not good.

Also, while negotiating at the interview, so you are characteristically very patient and professional that helps you in standing against any kind of situation. Although, your talk decides, how fast you can convince hiring managers to initiate the process of sending the offer letter. So, while doing negotiation, keep in your mind that you should be focused towards making hiring manager take right decision in relation to your skills, knowledge, qualities and experience.

Communicate on how company can be benefited by you

Negotiation makes sense when you present,

  • How imperative you will be for the company? 
  • How your contribution can help in company growth? 

How your skills and experiences can be benefited to the team members and other employees of the company?

Job seekers are always benefited by knowing the negotiation techniques. Suppose, the company is offering you $75k, but you required $5k more than what a company is offering you, negotiate smartly by explaining that how your skills, qualities, characteristics, and experiences will be benefited in the company growth.

For example, if a company have two job openings

  • A front end developer to develop user interface
  • A software engineer to do backend programming

You are applying for the post of software engineer. To design a front-end software system, the company is planning to hire a freelancer.

By explaining about your expertise on user interface development along with your programming skills, you can enforce interviewer to think “why not to hire him for both the task by giving some more advanced salary, instead of paying extra to a freelancer.

Converse on salary other benefits carefully

While negotiating, you should discuss not only on salary package, but also on additional benefits company offers to their potential employees, like, bonuses, paid and unpaid leave, numbers of holidays, etc.

Although, now, companies are willing to pay extra for the additional benefits to the employees, if you feel that the benefits offered to you by the company is not sufficient, you can raise your voice based on your market value.

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