January 23, 2023
"I'm not afraid of storms, for I'm learning how to sail my ship." - Louisa May Alcott
Being in the corporate sector for more than 15 years has taught me a great lesson. One of the biggest concerns many professionals have is that they cannot negotiate the salary they deserve. The pain of continuing to work without the desired remuneration generates frustration. I have seen this frustration in some of my colleagues and good friends of mine who were very good at their work but not able to negotiate the salary they deserve. I don't want you to feel the same as I am on the mission to empower engineering and technical professionals to earn the income and respect that they deserve at the workplace.
You should not just survive the job but live it, and this article will get your arms ready with weapons of negotiation.
When you are in the process of joining a new company or during performance reviews, you have to agree upon the terms of compensation. If you do not involve yourself in the discussion about getting a higher salary, you could be leaving lacs of money on the table. I know that salary negotiations are not easy and can lead to difficult conversations as well.
But with the right approach, salary negotiation can lead to a mutually beneficial agreement that helps foster a positive and productive working relationship. Salary negotiation is a golden opportunity for you to support yourself and your worth. You can present your qualifications, experience, and accomplishments and make a case for why you deserve a higher salary or better benefits.
"The art of negotiation is not about getting what you want, but about finding a solution that makes everyone happy." - John C. Maxwell
For most professionals, salary negotiation is intimidating because we as human beings are always in fear of rejection. And we don't want to face that because that raises conflict and leads to the breaking up of good relations. You may worry about damaging your relationship with your new employer or being looked at as difficult or demanding. However, if we remember that salary negotiation is more of a request than a demand, the possibility of damaging relationships is eliminated.
There are several reasons why some people may not want to negotiate:
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Fear of rejection
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Fear of conflict
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Lack of self-confidence
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Lack of information
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Socialisation
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Guilt
In the majority of cases, the reason could also be “lack of negotiation skills” as it is not taught in our formal education.
It is important to remember that negotiating is a normal and necessary part of many professional and personal interactions. By learning how to negotiate effectively, you can gain the confidence and skills needed to advocate for yourself and your needs and to build stronger and more mutually beneficial relationships.
Payscal conducted a survey among 31000 people to determine if they had ever negotiated their salary. The facts they found out were interesting, 57 percent of people have never asked for a raise in their field. The most often reported reasons were that
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My boss gave me a raise before I needed to ask for one (38%)
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I'm uncomfortable discussing compensation (28 per cent)
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I didn't want to come out as forceful (19 per cent)
The Ripple Effect
When you are changing jobs or moving to new companies, you should be able to ask for the salary you want. Typically, you are paid higher than your previous employer, but you should also look at how much. Not only does it satisfy you, but it also creates a ripple effect that extends beyond the immediate financial gains. Look below for the other positive impacts of negotiations:
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Increased job satisfaction: When you are paid fairly you will feel satisfied and have a positive attitude towards the work. This can lead to increased productivity and motivation.
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Better retention: When you feel valued and compensated fairly, you are less likely to leave the company. This can save the company the time and resources that go into recruiting and training new employees.
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Positive reputation: When a company is known for treating its employees fairly and providing competitive compensation, it can attract and retain top talent, and also create a positive reputation in the industry.
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Positive impact on future negotiations: Successful salary negotiations can give you a sense of self-value and you may be more likely to negotiate in the future. It can also serve as an example for others in the team, who may also feel more confident in negotiating for themselves.
Let's do the math
Successfully negotiating a ₹2,00,000 raise in a new employee's wage offer may have a significant impact on a career. A 25-year-old employee starting at ₹7,00,000 will earn approximately ₹14,07,997 more over the course of a 40-year career (assuming yearly 5% increases) than an employee starting at ₹5,00,000. So always look for long-term impacts if you are deciding on salary negotiations.
"The difference between a good salary and a great salary is the art of negotiation." - Ramit Sethi
Winning strategies to start with negotiations
Salary negotiations with HR can be a challenging process, but with the right approach, you can increase your chances of getting the salary and benefits you want. The following are the points you should keep in the back of your mind so they become a reflex when it comes to negotiation.
Here are some tips to help you navigate the process:
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Get Out of Your Way: We are our own first enemy. Because many times we undervalue our own worth. Making the first compromises in our own thinking before other parties have spoken their viewpoints are all traps. The process of bargaining ourselves down begins with self-doubt about our worth. Before we renegotiate our salaries, we have a tendency to believe that the employer holds all of the cards and that our only options are to accept or reject an offer outright. So, get out of your way, or I would say get out of your self-doubt from your way.
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Ace Card: Already have an offer or two in hand? This provides you with negotiating power. Most of the time, HR will request a copy of the competition's offer to check the counter offers. Never, ever give it to them. It is just a moral and professional obligation not to discuss one company's offer with another. Make this point very clear.
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Open Your Mouth with Backup Data: Before you begin the negotiation process, research the going rate for your job and industry. This will help you make a stronger case for the salary and benefits you are asking for.
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Create an anchor package: Now that you have done your research about the salaries in your domain and found that you fall into the 15 lac to 17 lac range, you see that the next level is almost within reach. Rather than expressing that you deserve 17 lacs, try saying that individuals like me have 17 lacs to 19 lacs package. Make this open-ended so that they can come back or correct you. This is a new anchor and gives you the heads up for a higher objective.
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Avoid sharing current CTC: HR professionals evaluate the current CTC as a reference point. The problem with this strategy is that existing CTC provides a bar that is tough to overcome, no matter how talented you are.
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Be Prepared: Come to the negotiation prepared with a list of your accomplishments, skills and qualifications that demonstrate your value to the company. This will help you make a strong case for the salary and benefits you are asking for.
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Communicate Your Needs: Clearly and confidently communicate your needs and the reasons why you believe you deserve a certain salary or benefit. Be prepared to back up your request with facts and figures.
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Be Flexible: Be willing to negotiate and be open to alternative solutions. If the HR representative is not able to meet your salary request, consider asking for other benefits such as stock options, flexible hours, or additional vacation time.
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Be Professional: Maintain a professional and respectful tone throughout the negotiation process. This will help you build rapport with the HR representative and create a positive and productive environment.
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Follow-up: After the negotiation, follow up with the HR representative to ensure that the agreement is being implemented as agreed upon. It is also a good opportunity to build a positive relationship for future negotiations.
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Don't be afraid to walk away: Remember that negotiations are not always successful. It is important to know your bottom line, and if the offer is not what you expect, don't be afraid to walk away.
Adding up the points here, you should negotiate, not only because you will earn more but also because it overcomes social status issues as well. Either you have enjoyable work or you deal with frustrations even after switching again and again for a new job. You should bargain for a variety of urgent issues, such as enjoyment, status, income, and perks.
"Negotiating is the opposite of fighting. It is about discovering what you have in common and building on it." - Deepak Chopra
A quick checkbox of questions you should definitely look into.
Here are some questions that you can ask during salary negotiations for a new or current job to help you gather information and make a stronger case for the compensation you are seeking:
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"What is the typical salary range for this position at your company?"
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"What are the benefits and perks that are typically included with this position?"
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"Can you explain the process for determining compensation at your company?"
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"What factors are considered when determining salary and benefits?"
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"What kind of performance-based bonuses or incentives are available?"
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"Can you provide any data or information that can help me understand the company's financial situation and budget for compensation?"
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"Are there any opportunities for advancement or professional development that come with this position?"
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"Can you give me an idea of what the compensation package for the top performers in this role looks like?"
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"Can you explain the company's policy on raises and promotions?"
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"Can you provide me with a detailed breakdown of the compensation package being offered?"
"Negotiations are a tool for creating the future, not for resolving the past." - William Ury
Good News for you
Despite global macroeconomic circumstances and growing inflation, salaries in India are expected to rise by 10.4 percent on average in 2023, compared to a 10.6 percent increase so far in 2022. According to global professional services business Aon, this trend is projected to continue in the coming months.
Imagine being able to confidently negotiate a salary that reflects your qualifications and contributions to your company.
With my help, you can learn the strategies and techniques that top negotiators use to be successful in salary negotiations.
Always remember that salary negotiation is a skill that can be learned and mastered. Don't let fear or uncertainty hold you back from getting the compensation you deserve. Take control of your career and DM me today to start the journey towards a more rewarding and exceptional professional life.