Getting a job offer is always an exciting experience. A new job can be your most desired break that you always wanted. Whether it’s your first job fresh out of college, your first managerial role, or your first opportunity to land an executive position, you have every reason to be excited about it. However, it’s important that you don’t undersell yourselves in that excitement.
Negotiating your salary package is your legitimate right and, if done right, will be quite rewarding for months and years to come.
A little bit of your time invested towards this objective entails a very hefty return on effort (ROE) and every second of time spent on careful groundwork is worth the effort.
Negotiate wisely with hard facts:
- Evaluate the offer thoroughly. Ensure that you fully understand various components of the offer. It’s always advisable to get a firm written offer from the employer. You will be well within your rights to take a couple of days to review the offer. Use this time wisely to evaluate the offer before you make the final decision. Feel free to ask questions if clarity is required, there is no harm.
- Benchmark your salary. A bit of research will provide the right answers. Consider your job title or grade, location and industry. For example, a Quality Manager in the furniture industry in Gujrat probably pays less than a Quality Manager position in the pharmaceutical industry in Karachi. It’s important to compare the offer against right benchmarks.
- Consider the other perks or benefits. Annual leave, leave fare assistance, provident fund matching, gratuity, life insurance, medical insurance, maternity leave, and bonus structure are just a few examples. Determine what’s most important and relevant to you.
- Great insurance and maternity leave might be critical factors in your job search. Someone else might be charmed by the prospect of driving a company maintained car.
- Remain amiable. This is the most important factor in the negotiation process. Maintaining a likable outlook can be difficult at times though. Remember, upsetting your potential employer by being too cocky won’t do much good to you in the medium to long-term.
Negotiate hard but not at the risk of alienating the other side.
- Be rational in your demands. It’s not desirable to say, “I would like another Rs. 10,000 per month in addition to what you are offering.” A more tactful approach might be, “A similar position in the industry is fetching at least Rs. 10,000 more. Would you be able to consider that?” If you cannot reasonably justify your demand, you may appear irrational or myopic and this may not go well with the employer.
- Back up your claims with facts as much as you can. Present your arguments in a reasonable and amicable manner.
- Understand the other side. At time, the other person’s may not be in a position to entertain your request due to reason beyond his control, e.g. company policy. Be empathetic and show respect for constraints that you may not be aware of. Don’t push too hard if you don’t see things going your way.
- Ask yourself what the company really needs. Do they really need you or someone else can easily fill that position? Do you have skills that are not easily available in the market? How valuable are you to them?
- Always remember that salary is just one dimension of the overall package. The other benefits, work environment, co-workers, growth potential and company’s standing in the industry are also important factors. Avoid one dimensional approach while considering the offer.
- Have integrity. It’s easy to fall into the trap of posturing, or claiming you have another offer when you actually don’t. These negative tactics can backfire and you may lose an opportunity which otherwise was just right for your career progression.
- Accept the offer if all your requests are met. It would be a big mistake and unethical as well to come up with new demands just because you want to negotiate.
- If the position and offer are satisfactory, you don’t really have to negotiating at all.
Remember that the flawless negotiation is of little use if the job is not a good fit for your career. Understand the average salary and benefits for your prospective job title within that industry and for other graduates from your college or university. Go into the negotiations equipped with relevant information and make sure that you are able to justify your requests. The groundwork in advance will go a long way in paying you off.
