Most organisation both large and small will have established
and benchmarked salary ranges based on industry standards for
every position. But company's do determine the range where
an employee would fit in and sometimes they do get it wrong,
thereby loosing a potentially good candidate to its competitors.
Actually no company would like to loose a potentially good candidate
because of low salary offered. The only reason why as a candidate
you should negotiate is to get fair market value of your skills,
experience and knowledge. But remember, that your success
in negotiating a higher compensation is totally based on the
data you have which suggests that your market value is higher
than that reflected on the offer.( For example, you may have
a similar offer from another company with a higher package but
if your friend has received a higher salary for a similar job
at a different company-that would be considered insufficient
data.), Your present salary also determines your future salary offers
to some extent.
Two things need to happen before you negotiate. First, begin
discussing salary only after you receive a formal offer from
the company. Second, negotiate only after you have evaluated
the entire job offer package and researched what the market will
pay for your skills. The worst form of negotiation is to stay
stuck in your lace. It is not negotiation if you freeze and the
other person freezes too.
Salary Negotiating Tips:
When you begin negotiating you may ask questions
about how the salary was determined? Be realistic about what
you want and state clearly why you feel your salary should be
higher by giving evidence clearly supported by facts and figures.
Testing: Find out what the other party really
wants from you and for this one needs to shift from your point
of view to the others view. A negotiation should ideally end
in a win-win situation for both the parties.
Never lie about your previous salary- it will
soon be found out and may result in your termination.
Negotiate the complete offer- some companies
are flexible on the salary part while others on the perqs. Identify
your chances where you can gain an advantage. Ask about the performance
bonus / incentives about the company's policy on awarding raises.
Wear your salary- your outward dress and mannerism
greatly influences your success in salary negotiation