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Negotiating
your salary - is there a right way to do it?
You've
made it!!
You've
got the job and the interviewer has called you for the final discussion.
But your exhilaration is certainly tempered by the fact that there
is still one hurdle to cross - that of closing the deal - the
crucial aspect of negotiating your salary.
Most
of us feel very uncomfortable when the subject of salary comes
up. But negotiating your salary and doing it well is very important
as:
- It
affects your self-image to some extent
- It
affects the value you have placed on the job and the organisation
- It
always pays to start out positively at your job
- You
feel cared for by the organisation
- You
are bonded to the organisation because you have negotiated well
and have got a fair deal.
What
is a fair deal?
A
fair deal depends on the match between the salary promised by
the employer in relation to other factors such as
- the
position for which you are being considered
- the
geographical location (linked to the cost of living)
- the
changes that you need to make on account of this job (relocation
etc)
- your
current market value
In
case of most organisations, the salary will be directly linked
to the position. However it is still advantageous for you to negotiate
as:
- each
position may carry only a range of cost to the company(CTC)
and the exact point in the range will be decided based on negotiation.
- Depending
on how badly the company needs you, they may make exceptions
in perks, only if you negotiate.
Hence
if the negotiation process is essential to get the best deal,
you may plan for it.
Plan
your negotiation strategy
STEPS
INVOLVED
- The
first step is to realistically list down key job skills.
- Skills
perceived by you as important for the job.
- Skills
perceived by the employer as important.
- Based
on the above information, evaluate and determine your hot skills
i.e. skills that add value to your ability to perform well at
the job. The higher the value-added skills, the higher the leverage
you have during negotiation.
- Research
salary range before you begin interview process.
- You
can find out the salary range by networking with your friends
(find out what they are being paid) for similar jobs at other
organisations, check out the salary surveys (Business India
in the Indian context), compensation data from Web sites,
cost of living surveys etc.
- This
should help you fix a similar salary range based on facts. A
clear idea of what you will be willing to settle for facilitates
your ability to win over the employer in understanding your
demands for a fair salary.
- What
are your salary requirements?
- Break
down your present salary into its various components.
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Salary Components
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Before taxation
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After taxation
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Basic
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HR
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Medical
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LTA
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Total Salary
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- Compare
salary before and after taxation for a realistic picture.
- Take
a look at your own monthly cash requirements. Include fringe
benefits, savings and contingencies in your budget plan calculation.
- While
determining your future salary, make a realistic estimate by
matching paying capacity of the organisation, last drawn salary,
your relocation costs (cost of living demands etc) and actual
requirements.
- It
is important to plan the words you intend to speak. Your communication
style must reflect that your focus is on the job and not on
the compensation.
- Avoid
haggling over money. Indicate your confidence in the organisation
to give you a fair deal.
- You
must be effective in communicating your clarity in understanding
your worth because of your ability and willingness to deliver
the employer expectations.
We have now discussed the various steps in your negotiation process.
For further guidelines on effective salary negotiation, click on
to our next section.
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