Negotiating your salary is a legitimate and expected part of the hiring process. It’s important to remember that salary negotiations are a two-way street. HR is also trying to get the best deal for the company. However, following certain tips, you can increase your chances of getting the salary you want. Every negotiation is unique, and there’s no one-size-fits-all approach. Generally, the goal of the HR is to find a mutually beneficial arrangement that recognises a job-seeker’s value while also meeting the company’s budget and needs.
Also Read: Salary Takes Backseat As Indian Job Hunters Prioritise Work Flexibility Now, Says Report
During the conversation with HR, one must have heard a term which is widely used in corporate hiring across sectors, the ‘industry standard’ code. In the context of salary negotiation, it refers to the typical or common range of salaries offered for a specific job role within a particular industry or sector in a given region.
It represents the benchmark or average salary that professionals with a certain level of experience and expertise can expect to earn for a particular position.
Why Is Industry Standard Considered Crucial?
When negotiating your salary, referring to the industry standard can help you make an informed case for the compensation you believe you deserve based on your qualifications and the prevailing market conditions. However, keep in mind that the negotiation process involves more than just the industry standard. Factors such as your unique skills, experience, and the company’s specific circumstances will also play a role in determining the final compensation package (CTC).
Salary negotiation tips
Understanding the industry standard helps candidates gauge whether the salary being offered is competitive and reasonable based on their qualifications and the demands of the position.
Here’s how you can approach HR’s ‘industry standard’ negotiation strategy;
Research the Industry Standard: Before entering negotiations, research the average salary range for the position you’re applying for in your industry and location.
Your Value: Consider your skills, experience, education, and any unique qualifications that make you a valuable asset to the company. Be prepared to discuss specific accomplishments that demonstrate your worth.
The Right Moment: Let the employer initiate the salary discussion. If they ask about your salary expectations early in the process, you can offer a broad range based on your research. If possible, delay detailed discussions until after you have an offer in hand.
Express Enthusiasm: This may sound boring, but before discussing salary specifics, express your excitement about the role and the company. This shows that you’re genuinely interested and not just focused on compensation.
Negotiate Based on Value: Frame your negotiation around the value you bring to the company and the responsibilities of the role. Highlight how your skills and experience align with the job requirements and can contribute to the company’s success.
Consider the Entire Package: Remember that salary is just one component of the compensation package. Benefits like health insurance, retirement plans, bonuses, variable components, and can significantly impact your overall compensation and the take-away (in-hand) salary.
Know Your Bottom Line: Determine your acceptable salary range before entering negotiations. This range should be realistic based on your research and financial needs.
Effective Communication: Use clear and respectful language during negotiations. Focus on the value you’ll bring to the organisation rather than making demands.
Listen and Respond: After you receive an initial offer, take the time to carefully consider it. If it’s below your expectations, express appreciation for the offer and then explain your rationale for seeking a higher salary.
Be Open to Compromise: Negotiations involve give and take. Be prepared to compromise if the employer is willing to offer other valuable perks or benefits.
Stay Professional and Respectful: This is non-negotiable! Maintain a positive and respectful attitude throughout the negotiation process. Even if you don’t reach an agreement, leaving a positive impression is important for future opportunities.
Consider Timing: If the company is reluctant to increase the salary, inquire about the possibility of revisiting your compensation after a probationary period or performance review.
It’s always a professional approach to conduct thorough research specific to your industry and location, taking into consideration the most recent data available, to ensure you have an accurate understanding of the current industry standards for salary negotiation.