Friday, September 05, 2008

How To Negotiate Salary

Following are some of the tips you can use while (or before) negotiating your salary with prospective employers. They don’t guarantee you anything, but the least they do is getting yourself prepared.

1. Evaluate how much you are worth

Conduct an assessment on yourself - compare your skills, the demand of the skills in the job market, and find out the salaries of those in your job niche.

Take account both internal and external factors in evaluating your salary. Is your company a leader in the market (which can mean they’re already paying top salaries)? Are you currently lowly paid even though you’re being loyal with your company and stay for years (which can mean your chance of landing a job with top salary is higher)?

2. Compare salary and compensation plan

Compare the current salary and the new salary offered. Then go to the next level - study the overall compensation plan. The salary offered might be lower than you are expecting but there might be some elements in the benefits or perks that counter it. List the haves and the have-nots - e.g. share option, medical benefits, traveling entitlement, allowances, insurance scheme and so on. If they’re not satisfactory, go back to the negotiation table.

3. When asked about salary, try soliciting a range

Certain people react differently when asked about current salary at point-blank. If you’re put in a position to reveal how much you’re earning, get even by soliciting a range this new company can offer. That’s only fair, isn’t it? This is a pre-emptive strike that can determine if you should pursue your interest with the new company.

4. Use justification rather than confrontation

Rather than shamelessly hammering your fist and stating your demand, justify why you’re worth that salary. Use persuasion techniques effectively.

“Part of the job requires me to (do certain stuff). As my own experience tells me, there are only a handful of specialists in the market out there who have this expertise and I’m sure you’d agree. I’ve done my own analysis, and their salary is either at par or above than the salary figure I’m asking.”

5. Don’t give ultimatum too soon

Some people throw the “pay me, or leave me” ultimatum too soon thinking that the employer is desperate enough to get you on-board. Often times, this will result in a pissed off employer who would soon withdraw from the offer altogether. Rather, allow 2 or 3 rounds of salary negotiation, before you make up your mind.


No comments: