Whether you are a new hire or a long-time employee undergoing your performance review, not negotiating your salary can cost you a fortune. But negotiations can often be so hard that most individuals do not do it and leave the table’s money. Let’s consider an example; the salary of a data scientist in India ranges from Rs 500,000 to Rs 1,700,000.
What you get depends on many factors, such as experience, skills, and job role. But even in the same job role, experience, and company, data scientists might get different salaries, and that’s because of negotiations. Knowing how to negotiate a salary in an interview can help you save all this money.
Even if you are getting a mere Rs 2,000 less than what you deserve per month, it sums up to Rs 24,000 in a year and a whopping Rs 840,000 in your 35-year career. I hope the numbers are enough to show you the importance of negotiations.
The sad part is many people know this but are still afraid to negotiate, especially the new hires. If you are one of them and want to know how to negotiate a salary to get the best package, this post highlights some tips that will come in handy.
9 Tips to Negotiate Your Salary
Before starting with how to negotiate salary with HR, it is essential to know when is the right time to do it. If you don’t know when to negotiate, the following tips might not be as useful. You can negotiate your salary when:
- Taking up a new role either in a new or the same company
- You feel that you are providing more value to the company than your pay.
- It has been a while since your last hike.
- Your manager and other higher authorities seem impressed by your performance.
Once you have the right moment, embrace it and use the following tips to negotiate your salary.
1. Know The Industry Salary Trends
Know what are the salary trends for your specific role in your industry and region. You can use online tools provided by Payscale or Glassdoor to get the numbers. Walking into the discussion without a number will show your manager or HR that you are not well prepared for it.
2. Build Your Case
Having only the numbers is not enough; you also need to show them why you came up with that number. Showcase your skills or values you have or can bring to the employer. Highlight your strengths and make them realise they should go ahead and invest in you.
3. Use a Specific Number.
After doing some online research, you will get a salary range that is often given to individuals in your role. Keep the range in mind, but always ask for a specific number. If you provide a range, let’s say between Rs 600,000 and Rs 650,000, the other person will jump to the smaller number. Hence, although you should have a range in mind, always put a specific number on the table.
4. Look Out For Other Benefits Too.
One mistake that most individuals make is to include only the salary amount in their negotiations. Along with the salary amount, have some other benefits also. This will not only get you a complete package but also help your negotiation get considered quickly.
For instance, it might be easier for employers to give you a small hike along with other benefits such as flexible schedule, work from home opportunities at regular intervals, training, or medical covers. Hence, instead of asking for a more significant hike, consider including other perks in your negotiation.
5. Be Confident and Persuasive.
Show confidence in your pitches. Let them know that you have built your case through your talks. The best way to do this is by organising your thoughts. Plan what points you want to highlight and during what stages. Also, do some practice to hear how your facts and ideas sound in the open. See if you are confident enough to go ahead and persuade the employer representative to hike your salary.
6. Make It About You and The Employer.
Although you have done your research and have a range in your mind, don’t be firm on that. Be generous and understand the other person’s perspective too. However, if you want time to think about the first offer, say so and schedule another meeting. Be generous to accept something that is between your demands and their budget. But also be ready to walk away if they are not ready to offer you what you deserve and are ok with.
7. Talk About the Past but Highlight the Future.
Do mention what you have done in the past to bring value and success to the employer, but focus more on what you are capable of doing in the future. Explain the key responsibilities you can take and the amount of workload you can manage if the need comes.
8. Listen To Them
It’s not all about you; listening to the other representative is equally essential. It will help you understand the other person’s needs and perspective. Altogether, it will enable you to make and get the best offer.
9. Don’t Fear to Counter
If the employer says no and questions your case, don’t be afraid of countering them by asking questions or showing the metrics. One thing to remember here is that not to sound too pushy while contrasting or discussing your offer.
Completing certification courses for high-paying jobs alone won’t get you the best package; negotiation will also play a vital role. Let’s take an example of Machine Learning certification. Being an ML expert is one of the highest-paying jobs in India.
Suppose you take the upGrad’s and IIIT Bangalore’s PG certification in ML and Deep Learning course as it offers 240+ hours of learning and hands-on experience. It will help you learn the relevant skills and put you in the high salary bracket, but getting the highest package for yourself according to your intellectual and talent still depends on whether you know how to negotiate salary with HR or not.
Follow the tips mentioned in this post, and you will have nothing to fear about negotiations. Remember that whether the outcome was successful or not, this is not the last time you will be negotiating. There will be many opportunities that come during your entire career.
Is salary negotiation perceived as inappropriate behavior ?
A negotiation is just a way to have a conversation. It doesn't have to mean that someone is being forced to give a higher salary. If you are in an interview with a major company, you should absolutely ask for the desired package. The first point to remember is that you don’t have to ask for more than the market trends. You don’t have to force the interviewers to pay you more; you just have to ask about the possibility of increasing the package. You can ask for more salary when you feel comfortable doing so, even if it looks like your negotiation position is weak.
Besides financial benefits, what other benefits should be considered?
While negotiating apart from financial benefits other things should also be taken into consideration. Getting more paid leaves is one of the main perks which employees look for. Medical insurance of employees, training programs, and work-from-home opportunities are a good substitute for salary hike. Flexible schedules and a friendly atmosphere with frequent breaks are also a major factor to include. It is important to negotiate the benefits with the employer to make the workplace less stressful.
What should a company consider while increasing the pay range of employees?
When deciding whether to increase the salary of its employees, a company should consider a number of factors, including the current market rate for similar positions and the effect the increase will have on its employees’ morale and productivity. When it comes to increasing the salary of its employees, a company should consider the value it gets from its employees, the amount of time and energy its employees put into their jobs, and the impact their employees have on the company. It is appropriate to consider the employee’s explanation for the increase, particularly if the employee has been serving the company for many years and the employee is an asset for the company. This will help the company determine if it should increase the salary of its employees or not.