Salary Negotiation Tips

After you are through with 2 or more rounds of technical interview, you would be called for a HR round.Most of us feel nervous and ill-equipped to deal with salary negotiations. Here you have to be street smart.

HR Manager's sole objective is to absorb you at the lowest possible package. Your main objective should be to negotiate for the best possible package. Negotiation is an art but with proper prior planning before meeting the HR Manager, you would definetely be able to bargain for a good package.

First understand and know what the market is currently paying for your experience and qualifications. If you do not know what the market is paying, you may be underselling or over pricing yourself.

Most important factor for a better deal would be on how well you did in the technical rounds. The better the feedback from technical interviewers, the more the HR manager will be willing to give in to your demands. So clearly know on how well you did in the technical rounds. In today's market, it's becoming difficult to get good quality resources. Hence most interviewer's are willing to take resources on board, even if they are not completely satisfied with the performance of the resource. So be sure to unbiasedly judge whether you just made it or you did exceptionally well.

Its always good to have 3 prices, i call them as jockpot package, a good package and the least acceptable package. In current market situations, the least accepatable package should be 20% of your current CTC(Cost To Company), a good package can be between 25% to 30% and a jockpot package can be anything above 30% of your current CTC. Write down the financial figures for the 3 packages on small sheet of paper. There are 2 things to bear in mind, it's not a good idea to hop jobs for hikes less than 20% and exploiting vulnerable employer for huge hikes might affect your long term career path.

During the interview with the staffing manager, don't be the first one to talk about financial package. Wait for him to make the first move. Delay talking about money as much as possible. If he still insists that you make the first move, a good rule of thumb is to make your opening bid between 5% to 10% above your jackpot package. Your opening bid should depend on how well you did in the technical interview, current market price ranges and the demand for your job profile.

If things don't go well and the package offered is below your least acceptable package, clearly inform the HR manager about the same in a polite manner and wind up the interview. Thank him for his time before leaving.

Lastly, many candidates accept offer letter even when they are not satisfied with the offer and clearly know that they will not be joining the company. Please avoid accepting the offer beacause the HR Manager will be stupidly patting himself for acquiring you at the lowest package and the Technical Manager will be counting on you to get on board.