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HR Zone » Compensation and Benefits » Important Tips For Effective Salary Negotiation During Interview

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Important Tips For Effective Salary Negotiation During Interview
Pradeep
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Posted 23-07-2009Reply

It is always recommended not to mention your Salary History. Don't reveal the details of your previous salary to your prospective employer.

While filling the form for the interview, you would come across the question regarding your salary expectation. Prefer writing "Negotiable" as the answer. This would indicate to the organization that you are not adamant on salary issue.

The figure of your previous Salary should not become a hurdle in asking for a higher package. You should be able to convince the interviewers that the salary should be decided according to your value and experience that you will bring to the organization.

In the interview, you may be told by the interviewer that the company can offer you some specific salary figure. Now, if that salary figure is lower than your expectations, you should try to convince the interviewer regarding your current and future requirements, and make them feel that you are asking for what you deserve as per your talent, and experience.

It is recommended that you should not be the first one to bring the issue of salary. Let the interviewer begin with that, and let it be one of the last things in the interview. Never state your current salary falsely to get a higher salary.

SALARY NEGOTIATION

In many cases, salary negotiation takes a centre stage during interview process. Therefore, it is desirable to understand negotiation mechanism before engaging in salary negotiation. Negotiation is a process in which two or more parties attempt to reach agreement on the issues on which they have differences.

In the case of salary negotiation, there are two parties- panel of interviewers and interviewee. The issue on which difference exists is that the interviewers want to offer as low salary as possible while the interviewee wants as high salary as possible.

During the negotiation process, each party has a target point which defines what it would like to achieve. Each party also has a resistance point which marks the lowest outcome that is acceptable – the point below which the parties would like to break off negotiation rather than accepting a less – favorable statement. The area between these two points makes up each party’s aspiration range. During the negotiation process, each party’s tactics is to get its opponent to agree to one’s target point or to get as close to it as possible.

Depending upon the bargaining power of each party, setlement is arrived at between target and resistance points. If settlement is unlikely to be arrived between these two points, the parties prefer to terminate the negotiation process. In the context of salary negotiation, it has been observed that in many cases, interviewees used to fix their target and resistance points much higher than organization’s resistance point and settlement could not be arrived at. Therefore there is a need for adopting highly rational approach during salary negotiation.

Before you think of salary negotiation, evaluate whether the position for which you have been interviewed falls within the preview of salary negotiation because there are many positions for which there is no scope for salary negotiation, for example, entry level positions in government services where salary grades are highly structured and additional increment is not allowed to any candidate at entry level.

Similarly, there are some other organizations which adopt this policy. However, most of the progressive business organizations prefer to have flexible salary grades where the scope for salary negotiation exists even for freshers. Experienced candidates have much wider scope of salary negotiation even in government or semi-government organizations. Therefore, it is better to evaluate whether you have chance to go for salary negotiation. If yes, proceed further. For making your salary negotiation effective, divide it into phases

Preparation for salary negotiation:

Before engaging in salary negotiation, it is better that you do some homework. This type of homework can be done before attending the interview as well as during the interview process itself. Activities involved in preparing for salary negotiation consist of the following:

Research Salary Package of the Sector:

Research Salary Package of the Organization:

Assess Bargaining Power of Organization:

Assess Bargaining Power of Yourself:

Salary Negotiation Process:

Monica
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  Rated 0 | Posted 20-10-2009

Nice thing i liked

Pradeep
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  Rated 0 | Posted 20-10-2009

Nice thing i liked


Thank you so much Monica for your kind appreciation!

Yoga
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  Rated 0 | Posted 22-10-2009

Its too good..............

But don't u think its waste of time,if you don't let them know your expectations...

Yoga
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  Rated 0 | Posted 22-10-2009

Its too good..............

But don't u think its waste of time,if you don't let them know your expectations...

Pradeep
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  Rated 0 | Posted 22-10-2009

Its too good..............



But don't u think its waste of time,if you don't... See Yoga's complete reply


Thank you Yoga for your appreciation.
The salary negotiation should not be started by the candidate without being asked by the interviewer and that is the actual message in this article.Before you reveal your expectations make sure that you have the ability to convince the interviewer about your salary expectations and then proceed with your negotiations.
Cheers!
Pradeep

Shipra
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  Rated +1 | Posted 22-10-2009

Sir,

while we have discussed this issue earlier also, being a consultant i will like to add my views on this critical question.

i have seen professionals (very senior as well) asking for 50-100% hike which is given by companies but not every time depending upon the various factors. i will never suggest such hike demand at least in the resume or interview but if some one is rigid on such hike then he/she should write as said by yoga its wastage of time to go and give the interview without knowing the limit of the company.

i have seen with the word negotiable generally companies take it as 30-40% max hike in few cases i have seen it only upto 10-15% or joining on the same package (as candidates are more flexible after this recession or because of any reason)

If a person is seeking for more then this hike its better to write "discuss later"
'As per experience and abilities' , 'as per experience and role offered' , this gives an indication to the company that the person is confident about his skills and we have to negotiate well on the top side not the lower side.

I have seen some 50-100%hike reasons
Others of my experience or younger are getting such package
I m expertise in this skill and no one else, or company will be delighted to take a person with such experience like me
Relocation needs such hike at least
My appraisal is due from ..... months
I m getting this much hike in other company
I have few more offers

all these reasons really not going to work, why don't you apply after your appraisals or after few months in new job then you will get more better package then now.

No one is born alone with a skill, many are there
if others are getting then you must have noticed it much earlier
relocation can be a issue but local candidates are also there.

Its not for one person, it can apply on any one who reads it

please suggest what you say...!!

Shipra
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  Rated 0 | Posted 22-10-2009

while sending your profile to a consultant always mention your Current CTC, Ex CTC and notice period to fasten the process and allow him to help you better.

Pradeep
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  Rated 0 | Posted 22-10-2009

Sir,



while we have discussed this issue earlier also, being a consultant i will like ... See Shipra's complete reply


Thank you so much Shipra for your elaborative response.
All are quite aware on how much they are worth and based on that self-evaluation only they will negotiate the salary accordingly and similarly the organizations too will go by a pre-determined salary structure in which they will try to fit the incumbent.Only to match these both, negotiations are required and it should be a win-win for both and need not be a one sided one.
If I am expecting a 30% hike, I should be in a position to convince how I am worth enough for that hike and negotiate accordingly. For that it is more essential to know the salary structure of an organization before starting the negotiation (which is of course difficult and here the consultants will be of great help as they will have the details of the salary range the organization might offer and it has helped me personally to negotiate a lot) so that we can negotiate more effectively.
And Shipra, I don't think it is advisable to reveal the expected the salary while forwarding the profile itself as it will affect the negotiation process and sometimes it creates a negative impact if the expectations are exorbitant.So it is always better to keep your expectations as secret until you are asked so that a healthy negotiation is possible resulting in a mutually acceptable conclusion.

Shipra
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  Rated +1 | Posted 23-10-2009

Sir,



while we have discussed this issue earlier also, being a consultant i will like ... See Shipra's complete reply


Thank you so much Shipra for your elaborative response.

All are quite aware on how much they ... See Pradeep's complete reply


i suggested to write Ex CTC in the mail not in the resume while sending it to a consultant only, again not the company, when i discuss Ex CTC with the candidate i verify in my mind if he deserve or justify this or not.

i feel like that.....!!!

Daya
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  Rated 0 | Posted 23-10-2009

Nice ......
most usefulll!!!!!!!!!!!!

Regards
Daya



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