Secret Recipe of Salary Negotiation

We all cherish money, right? And there is nothing wrong with it. If we look back to history, it has played a compelling role to facilitate exchange as a measure of value; brings diverse societies together by setting up gift-giving and reciprocity; bolsters social hierarchies; and finally, it is an instrument of state power. Demand and supply in a market economy hinge on the purchasing power of an individual. It means, with more money, you can create a better demand in the market and ultimately help to run the economy better. To highlight the importance, in the Later Vedic Period, demand created by surplus economy from agricultural gave birth to non-agricultural activities resulting in a robust internal and external trade and commerce.

But when it comes to salary negotiation where you try to chase more money is a complex process because you do not know the numbers exactly the organization has decided for the position. To give you a little idea, an established company's salary bracket is always predefined. Due to this exotic number it becomes a scary process where fear of losing the opportunity is always attached to it. Learning how to negotiate salary offers is a profitable skill that can increase your earning capability throughout your career and better assure you are reasonably rewarded for the work you do. However, like any skill, it takes groundwork and discipline to do well.

The most important thing to understand in this trivial process is your approach towards the situation. Let’s discuss two different interlinked situations:

1. You are carrying an influential set of skills and experience to the management and the compensation an employer extends should account for the quality you provide. If you feel the employer’s initial offer is below the value that aligns with your accomplishments and experiences, you have done market research that reinforces your ask, not based on your financial needs. So be confident in your decision to ask for more.

Once you have provided your logic and asked more means you have done your job. Now be careful to understand when to wrap it up.

 2. Despite your best attempts, there may not be adequate funds in the budget to widen your compensation package offer. Sometimes the company may also not want to create unfairness by paying one person more than other colleagues in a similar position.

In that case, you can at least know what you tried. Plus, if this job has the potential to offer you a good company culture, the benefits, and the projects — regardless of the salary, then you can also consider it.

Once you reach the job offer phase of the hiring process, you have probably invested a tremendous deal of time and energy applying and interviewing for the position. The employer has also invested time in the process, so you must recognize this and thank them for considering you for the opportunity. Be clear to share any distinct reasons why you are enthusiastic about the job, such as the culture or the product.

Even if you end up dismissing the offer, it is important to do so affectionately and professionally. After all, you never know what opportunities they may have for you in the future.