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Top 7 Tips To Negotiate The Best Salary Package
By Sunder Ramachandran
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So you researched and prepared extensively for the job interview. You created that perfect resume and cover letter. You even practiced answers to the common interview questions. You made sure you're dressed right, have references, and are on time. But you did little preparation for the all too critical – Salary negotiation with HR. Don't let all that effort go waste as a consequence of not being offered the salary you expect. Here are the top 7 things you need to keep in mind:
- What do you want?
Break your expectations in to three categories – Money, benefits and hygiene factors and jot down your expectation against each. Money would include – salary, incentives, bonuses and any stock options. Benefits would include –company car, travel, relocation expenses etc. Hygiene factors would comprise of – Job title, training, exposure, international travel etc.
This will allow you to stay flexible and also provide alternatives to the employer during the negotiation.
- Do your homework
Get some basic facts around the overall state of the industry in which you are applying. A booming or sunrise industry will offer better packages. Check on the company's profitability and its market position. If you have some friends in the same company, try to find out the urgency to fill the particular vacancy. Superior information will give you an edge during the salary negotiation.
- Salary discussions during the interview
Many employers will throw the salary question in the middle of an interview. This trick is used as most candidates are likely to agree on a lower salary figure due to their anxiousness to crack the interview.
Do delay talking about compensation as far as possible. Say something like " I am keen on this role and your organisation but I'd like to hold on to salary discussions until we are both sure that I’m right for this job".
- Negotiate the basic salary first & Get the lowdown on benefits
Many H.R managers will try to engage you into discussing about benefits and perks before getting to a consensus on basic salary. This gives the HR manager leverage in justifying why your basic salary should be lower. Always agree on the basic salary first and then move on to perks and other non monetary benefits. Benefits can often go upto 25% of you total package. Do get the details on Medical & life insurance, travel allowance, pension plans, educational assistance programs, overtime allowance, dependent care for parents/spouse, paid holidays, profit sharing and stock options.
- Keep selling
Continue selling yourself throughout the negotiation process. Keep reminding the employer of the impact you will make, the problems you will solve, the revenue you will generate and the unique skills and talents that you bring to the table. Highlight your interest and enthusiasm to work for the organisation
- Wait for 24 hrs
Don't rush into accepting any offer on the spot, no matter how lucrative. Infact a good idea is to buy some time. Tell the H.R manager that you are interested in working for the organisation and would need about 24 hrs to consider the offer. Think about it – You will be spending 8-10 hrs daily in this new job so a 24 hr wait is worth it.
- End it on a positive note
The last step of salary negotiation is to set the groundwork for what kind of performance will lead to a larger raise or promotion in the near future. Talking about future performance and expectations will make a positive impression and will help you to end the negotiation on a positive note.
Sunder Ramachandran is a Managing Partner at W.C.H (We Create Headstarts) Solutions - [http://www.wchsolutions.com], a Training solutions organisation. He can be reached at firstname.lastname@example.org
Article Submitted On: October 30, 2006