Regardless of what industry you work in, changing and switching jobs is going to be a constant. People usually switch jobs to work and gain experience in different areas, to get new opportunities but most importantly to get a better salary or to get a hike.
Negotiating a salary can either be very easy or very difficult depending on how well you are versed with the process. But it is a multi-faceted process. For instance, if you are a CFA, it certainly involves more than just googling CFA salary in India and then asking your next employer to pay that.
Things to Negotiate for in Your Salary Discussion
1. Find out your value
You must know exactly how much value you bring to the table, what the market will pay for it, and what other companies are offering.
This is not just a matter of comparing job titles. Your job title may be the same as someone else’s, but if they have more years of experience than you or they went to a better school than you, that person is worth more. You need to take all factors into account to find out where you fall on the salary spectrum.
When doing this research, don’t just look at jobs that you want to do. Look at jobs that are similar in terms of responsibility and skill level. For example, if you’re looking for a front-end developer role, look at web developer roles and software developer roles as well. Looking at only one job title could severely limit what you find out about the market.
2. Consider the benefits
A good salary negotiation strategy is to consider all the components of an employment package. You should not only focus on salary but also look at health insurance, vacation time, retirement plans, and bonuses when negotiating your pay. The benefits offered by a company can make up for a lower paycheck or help reduce the tax burden. Hence you could also have a discussion with your employer about things like TDS 194c in order to increase your earnings and make money in good numbers.
3. Use counter offers as leverage
When negotiating your salary, keep in mind that there are many different ways to get what you want. If you are negotiating with your current employer and they cannot reach your asking price, consider asking for other forms of compensation such as more vacation days or stock trading options instead of more money. For example, if they offer ‘x’ amount and you would like to earn ‘y’ ask if they could add an extra week of vacation instead of giving you that additional raise.
4. Prepare your talking points
As you’re developing negotiation talking points, it can be helpful to write them down on paper. Make note of what you want to achieve, why you deserve more money, and how you’ll prove it. If a written list feels too formal for you, try recording yourself for practice. Practising your talking point in front of a mirror could also be effective. However, it’s also essential to have a trusted friend or family member play the role of the interviewer and ask you questions. This way, you can get an idea of how your answers will come across to a stranger.
Be careful not to sound too rehearsed. You want to sound natural and confident in your talking points, not robotic. Reading your talking point word-for-word won’t convey the confidence you want to show in the interview.
5. Share your concerns
If you have concerns regarding the expensive costs, politely bring up these issues with your employer and ask if they can help cover some of the expenses. For example, you could say something like: “I am currently living in [city] & moving here definitely will be costly for me. I was hoping that part of my compensation package could go towards helping me relocate here. Is there anything that can be done?”