Get the salary bump you want and deserve! Everybody loves a good paycheck and knows how critical it is to negotiate well when they receive a job offer. When that offer comes, however, we worry about appearing too greedy and whether the offer will stand on asking for a higher salary, making us shy away from a good salary negotiation. According to Jobvite, a recruitment firm, 71% of people do not negotiate their salaries, leaving money on the table. Here are some tips that I have learnt to implement from experience while negotiating a job offer.
- Identify Your “Walkaway Point”
Before you walk
in for a salary negotiation, it is critical for you to decide on a minimum figure
you are looking at. To decide what that amount is, you should not only keep in
mind the current salary you draw but also an amount that will keep you content.
In case you are switching companies, evaluate the risks that a switch involves and
think of a realistic amount that you need to take that risk. The minimum figure
that you finally decide becomes your walkaway point from the negotiation.
- Estimate the Zone of Possible Agreement (ZOPA)
ZOPA is the
minimum salary that you are willing to take and the maximum salary that the
company is willing to offer you. If you demand more than the maximum salary,
the negotiation can fall apart. Although it’s hard to identify the actual
numbers, you can speak to friends in the industry, look at online resources
such as Glassdoor, or speak to recruiters, if you know any, and get an idea of
what your ZOPA should be.
Sharing Salary Expectations
It is ideal that
you try and avoid sharing your past salary details or your current salary
expectations. Instead, get a figure from the hiring manager based on the
company’s salary standards. If you let on your salary expectation, chances are
that you are not going to get more than that. Therefore, check how much the
company is willing to offer for your experience and qualification. In case you must
share your salary expectation, put it at the topmost range of your identified
Say you got an
amazing offer; do not accept it right away and ask for some time to evaluate
the offer. Check if there is room for negotiation by being taking some time to
think after the offer is made. There is a chance that the hiring manager will
try to fill in the silence by improving the offer or adding a few perks. Take
this time to do your research and see if you can get a better offer.
a lot of time in conducting interviews and selecting the right person. Clearing
the interview implies that the hiring manager sees value in you, and this gives
you leverage. This is why you should discuss the salary after clearing your
interview – the company is more likely to give an ear to your negotiations. Another
form of leverage can come when you are one of the few people who have used a
new technology or have experience in working in a specific domain or industry.
Identifying your leverage will help you remain calm and confident during
Your Best Alternative To a Negotiated Agreement (BATNA)
When you receive
an offer that falls below your walkaway point and you are not able to negotiate
further, think and decide on a BATNA. Other alternatives could be joining the company
as an advisor or on a short-term basis. Always keep your options open.
Assume a power
pose before the meeting for negotiation. Research has shown that power poses
help boost your confidence and collect your thoughts. Once you say yes, you
cannot go back on your word. Therefore, being in your best form before the
negotiations will be advantageous to your discussion.
important for any kind of success. It is even more important when you are doing
something out of the regular. After all, we do not change jobs every day!
Prepare your numbers and pitch and go through a few rounds of mock negotiations
with a close friend or family. You would be surprised to find yourself easing
into the art of negotiation after a couple of mock rounds.
and then Negotiate Some More
If you are leaving
your current company stocks for a new one, ask the new company to compensate. Find
out about the joining bonus and annual performance range. Review the new
company’s leave, travel and insurance policies, and finally, review the joining
date too. If you have been craving a long trip to Europe, this is your time to
take that break!
*This blog was originally published on Medium.
About the Author: Charu Jain (Global MBA – 2012)
Charu Jain completed GMBA from SP Jain in 2012. She has 11 years of work experience in supply chain and strategy, with a larger part of the experience in tech firms like Apple and Amazon. Charu enjoys solving unstructured problems and delivering strategic outcomes. Apart from work, Charu loves to travel, play table tennis and write on different topics such as lifestyle, productivity, and experiences.