SMART SKILLS
It pays to prepare for salary negotiation
Usha Albuquerque

SANDEEP was called for his first job interview. He had put together an excellent CV and it had obviously attracted attention. After rehearsing what he should do and say at the interview, and working out all the possible questions, Sandeep presented himself for the interview. He was thrilled when he was offered the job and though the salary was not what he had expected, at least it was a start. Or so he thought! Until he spoke to a colleague who was offered a similar job but with a better pay package. Sandeep had prepared for all aspects of the job interview but had not considered salary negotiation.

Perhaps the most difficult aspect of seeking a job is knowing when and how to negotiate your salary. You have to go in with a game plan and be quite savvy when it comes to negotiating the best possible package.

Do your groundwork

Ask yourself the following questions to understand where your psychological strengths lie. How much do you want the job you are interviewing for? Aside from money, is this the best job for you in terms of career growth, educational advancement and future prospects? Are there other jobs that measure up to this one?

Also do a little homework – find out how desperate is the employer, or company, to fill this position? How many other candidates are being interviewed for this job? How do you measure up against the other candidates?

Once you are clear about your position vis a vis the job offer, prepare a salary strategy. Your perfect job won’t be so perfect unless it pays enough to support your lifestyle or at least pay the rent.

Count your expenses

To determine the salary you need, list out all your expenses, and how much you spend on them. Be sure to include — house rent, or home loan (if you have one) premiums, food, clothing, telephone, Internet, household utilities, household maintenance, car, petrol, entertainment (including movies, eating out), education (if you are taking any extra classes, books you need), professional services (you may need an accountant, or lawyer), insurance (life, home, car, medical), holidays, and so on. It’s a good idea to multiply the total by 2 to roughly allow for taxes, provident fund payments, and any unavoidable eventuality.

Moreover, try and find out the salary range for the position before the interview. If possible, contact someone in the personnel office, or a networking contact that works in the company who may be helpful. Then work out the salary you can reasonably expect for the type of job you are looking for, taking into account your experience, education, and the standards in the industry. There are normally some guidelines with other companies in a similar business, or check with friends, contacts, and trade associations, your accountant. It is imperative that you know your worth, so you can counter their offer with your researched response

Be ready to talk money

Next, practice answering salary-related questions. You may want to meet with a counsellor, or a senior friend/business contact for a mock interview. It is important to be thoroughly briefed and prepared before the interview. How you respond to salary related questions would affect your future earnings for years to come

Finally, know when to discuss your salary requirements. Generally speaking, you should defer all discussion of salary until after an offer has been made. Particularly if you are on to your first job, or are struggling in a really competitive job market, it might be better to put off salary talk until after the job offer. Also allow the employer to disclose the salary range first.

Don’t assume, ask

It is also good to be properly dressed for the job in mind. Your clothes and appearance, body language and general preparedness will have an influence on how valuable you appear to your potential employer.

Once the offer is made, it is advisable not to react to the offer until you’ve had time to think about it. Make sure you have understood the job description. You can take notes and ask questions. Be clear about the job profile, be sure to nail down the reporting structure for your new job. Once you're on board, you don't want any surprises about where you fit into the hierarchy. Ask your interviewer about the company's policy on salary raises, incentives, if any, and bonuses. Keep asking questions until it is clearly understood. Careful thought and consideration will only gain you respect.

Take time to assess offer

Express your appreciation and strong interest in the job, but ask for at least 24 hours to consider it, even when saying "Yes." You need time to assess the job offer in terms of your needs, benefits, and long-term career and life goals. You also need to talk it over, to brainstorm about your strategy with your family, or maybe a business-savvy friend, who can help evaluate the pros and cons of the job offer.

Be frank about previous pay

Never lie to a prospective employer about your previous salary. It can be grounds for termination after you're hired. You can increase your perceived value by telling the employer of another job offer, only if you have received one. But negotiations should never become emotional or hostile. Use your value, skills, experience, and education to negotiate. Do not use your need for the job to negotiate.

If possible, try to market yourself to more than one employer so that you can compare offers and career opportunities. Having a few job offers on the table at once can increase your bargaining strength and confidence.

Put it down in print

When the negotiating is completed, get your agreements in print. After all, if an issue comes up later, the lady who promised you that big pay rise or a house with swimming pool on confirmation may conveniently forget that she ever discussed it. Or, she may be long gone from the company by then.

A letter of agreement should contain:

The terms and conditions of employment, salary, benefits, etc

A clear description of the reporting structure and your job duties.

A clause that clarifies how an employment dispute (should one arise) will be settled (either arbitration or litigation), and who will pay the legal fees involved.

Any agreements or benefits that you've arrived at, which are not standard company policy. It's in your interest to have an agreed-upon schedule for your annual reviews. Try to negotiate an initial salary review after your first six months on the job and annually thereafter. That way you'll squeeze in more pay raises during your tenure.

Finally, if the offer is less than you expected, let them know that, but state you are still interested in the position if they want to reconsider their offer. Even when saying "no," leave the door open to negotiation.

Do not use this to negotiate a higher wage. Keep in mind that when you say "no," you have to be ready to lose the job forever.

Finally, if you can't compromise on compensation but still want the job, let the interviewers know that although you are disappointed, you are still interested in working for the employer.