One of the trickiest topics when it comes to negotiations is Salary. Most often one signs the dotted line and thereafter feels he has been conned by HR. Most of the time employees are not prepared as they would have not done the background research.
Some of the guidelines I am giving here as to the timing and conducting by the incumbents in the interviews. They are,
1. Never talk about expected salary at the start of the interview.
2. Money requirements have to be revealed later
3. Start off with the challenging assignments one is looking forward to
4. The experience one has in handling the assignment for which he is being interviewed for
After these issues have been discussed and it is time for Salary Negotiation the candidate must be very clear about the organization he is negotiating with.
Types of Organization:
Organization can be divided into three categories Based on standardization of salaries and perks
1.Rigid
2.Semi-flexible
3.Completely flexible
Rigid Organizations:
Public sector organizations come under this category. Every thing is fixed. The system is completely transparent. Everybody knows about salary and perks applicable to different grades. Therefore bargaining for salaries and perks is simply waste of time. The only possibility for bargaining is the grade and a few extra increments in that grade.
Semi-Flexible Organizations:
Some multinationals and some other professionally managed companies come under this category .They have some flexibility within well thought out compensation package for different levels. It will be advisable to make some discrete enquiries about areas where there is some flexibility. The candidate should concentrate on bargaining only in those areas. He should also try to assess how well he has performed in the interview. If the candidate is the best fit for the job, companies under this category can stretch even beyond permissible limits.
Some multinationals and some other professionally managed companies come under this category .They have some flexibility within well thought out compensation package for different levels. It will be advisable to make some discrete enquiries about areas where there is some flexibility. The candidate should concentrate on bargaining only in those areas. He should also try to assess how well he has performed in the interview. If the candidate is the best fit for the job, companies under this category can stretch even beyond permissible limits.
Completely Flexible Organizations:
There is total anarchy in wage administration in companies under this category .They are mostly family managed companies. Here the HR Manager will try to give as little as possible .The candidate should try to get as much as possible. In this battle of wits, the person who blinks loses. It primarily depends on the negotiating skills each one has. The more skilled one carries the day.
There is total anarchy in wage administration in companies under this category .They are mostly family managed companies. Here the HR Manager will try to give as little as possible .The candidate should try to get as much as possible. In this battle of wits, the person who blinks loses. It primarily depends on the negotiating skills each one has. The more skilled one carries the day.
Some basic points to remember for effective bargaining in companies under this category:
Conduct a survey to find out innovative ways of compensating employees of companies falling under the category .This information can be obtained from some employees of the company or even ex-employees.
Obtain information about total package at the level of job for which interview is being taken:
The candidate need not give his present salary as it is not relevant for comparison as he is moving from a certain world to an uncertain one. However in some cases one cannot avoid it and in such a case the candidate will have to convince the HR Manager in asking for such a jump.
Do not reduce once you have quoted your price:
Bottom line is a thorough research on the organization and its values and bargaining strategy will depend on the results of this research. One should remember that bargaining power is high before joining an organization. After that it diminishes drastically .Ever if cheated in any hard bargaining, do not crib about it after joining. Just work hard. Make a name in your profession and then take up a new job at a higher salary in another organization.
Negotiation Matters:
When an interviewer asks for salary history or salary range, he/she is interested in establishing a starting point for negotiation. The important thing is to avoid basing the desired salary on current salary. Do not lie about your past salary reference checks can easily provide this information. Provide information about why your salary may have been lower .if appropriate.
Determine opportunities for promotion. Job progression is an important factor in making salary decisions.
By taking a good look at own salary needs, understanding the current market, and approaching salary as something that the candidate and the employer will agree on as mutually beneficial the chances of successfully negotiating a salary are greatly enhanced. Better access to data improves the quality of salary negotiations by making it possible to start on common ground.
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