Get That Coin: How To Negotiate Your Salary?
The offer's on the table, and it's time to negotiate. You ain't getting no cold feet! It's time you wear your confidence on your sleeve…
Good chance you're reading this because you've got a job offer or are currently negotiating with your future employer. In any case, congratulations! Switching jobs can be tiring. Interviews drain you the most, and it just doesn't end there. There's always a trail of emails, multiple rounds of tests and many follow-ups to finally get the job you deserve.
Why do we have to work? Well, the answer is simple. To put the bread on the table. To pay our bills. To afford the lifestyle we want, live freely and save enough for what's yet to come. To each his own, but everyone needs money, and that's why we acquire skills that help us get where we want to.
Whether a business or a job, you get paid for your services. A good salary/source of income means you can lead a good life. Leading a good life means you'll have an easy retirement. Your salary should not just pay your current bills but also help you make a great deal of savings. For your future, dreams, and any emergency that might be looming.
How do you get a good salary? One way is to work hard, climb the ladder diligently, always meet your deadlines, be punctual and outperform your colleagues. Your employer will notice it and reward you for it. Another way is to do everything and demand the salary you deserve. In this case, your employer will hear you, evaluate your request, and decide. But what if you can't act up, especially when it comes to matters related to money? Don't worry; here are some excellent tips for negotiating your salary:
1. Research and know your market value
The key to good negotiation is to understand how much leverage you have. How does one find this out? It's simple! Go online and research on job sites such as indeed.com, glassdoor.com, or LinkedIn. Many resources will help you compare your salary to those working in similar positions at the same, similar or different companies.
Going into a negotiation with research to back you up can help you win. Also, check if you can get additional perks or benefits in exchange for cash.
2. Range works, always!
When switching a job, the industry standard is a 10-30% hike on your last-drawn salary. However, it pays (literally) to be flexible and realistic with your desired compensation range. A lesser wage at a company with better benefits and growth opportunities can be much more valuable than a higher salary at an organisation just stepping its toes in the water.
Another important tip: Always have room for negotiation based on industry standards and personal expectations. Asking for an astronomically high salary without any backing is a sure-fire way to lose all leverage and end negotiations.
Here are some tips to help you start with your financial goals.
3. Communicate expectations and have a clear plan
It is good to communicate your expectations when negotiating. If you feel unsure about the number you're quoting, asking around and double-checking it with colleagues, friends, and well-wishers is never a bad idea.
If you're looking for a starting point, you're at the right place. Ask these questions and see the magic:
Are you open to negotiating?
What are the other benefits offered by the company?
How did you arrive at this number?
When do you conduct your appraisals? And what's the average hike offered?
My current salary expectations are based on my previous experience, industry average, and research. Would you be able to match that figure?
Recruiters can always accommodate reasonable demands if you demonstrate value and quality.
4. Document everything, show flexibility and give time to revert
When negotiating your salary, it is crucial to document everything. Get to know your breakdown, your in-hand salary, how much tax you would pay, variable pay and fixed pay etc.—also, show flexibility and excitement to make a lasting impression.
Lastly, give time to the employers to revert. Good candidates are hard to find and harder to lose. So if you're the one, it'll all fall into place.
So off you go to claim what's yours and get the coins you deserve!
After all, Mahatma Gandhi said, "If you don't ask, you don't get it!"
P.S. When negotiating your salary and benefits, don't forget to ask if your employer provides a health plan to cover your healthcare expenses and what the benefits are. Post lockdown, the Indian government has made it mandatory for employers to provide health plans to their employees.
Kenko offers health plans for small and big groups as well as individuals. If the plan chosen by your employer doesn't cover your OPD costs, you may want to invest in one and save more money. Check our plans here!