Career
15
10
1 Accept initial offer and
lose `1 crore
Always, always, always negotiate.
Women and first-time job seekers are
more prone to accepting the opening
offer without questioning it. A 10%
salary difference in the first job with a
CTC of `4 lakh represents a lifetime
loss of over `1 crore, assuming a 15%
annual hike over a 40-year career. So,
politely restate your case and provide
justification for a revised offer. In over
95% of the cases, the employer has not
made his best offer right away and is
expecting you to negotiate upwards. As
a ballpark, ask for a 10% increase.
2 Do your homework on
position & firm
Thoroughly research the market and
the firm. In negotiations, as in war, the
better prepared side wins. Never
approach a new employer without
finding out the standard market salary
for the position offered based on your
experience and qualification. Start with
online research, and then talk to profes-
sionals and recruitment consultants.
You can also speak to people in the
company to have an idea about the
latest state of its business, operations
and the compensation structure. Use
this data to justify your stand.
Dont use last salary or
3 financial need as pegs
Focus on the value you will bring to
the company. Most professionals are
browbeaten by the firms hiring manag-
er, who will peg the new offer to your
last drawn salary. This is usually
underselling your competence since it
does not give you a fair market correc-
tion. Similarly, do not negotiate on the
grounds of how much money you need.
Convey the value addition you will
provide to the profile and firm, and why
you deserve a better deal.
pointers on
negotiating your
salary
If you didnt bag the best compensation in the market when
you switched jobs, dont worry. The best of professionals
come up short when it comes to discussing salary with a new
employer. Here are some of the common mistakes you can
avoid while discussing your salary with a potential employer,
says Devashish Chakravarty.
4 Have a back-up plan
Know your options if you choose to walk
away from the offer. Only if you have a
back-up plan can you negotiate without fear
and take a stand on a fair compensation
structure. This is the reason its not advisable
to quit a job before you find a new one. In
todays challenging job market, a few months
of savings or an alternate source of income will
do wonders for your confidence during the
negotiation process.
5 Let the employer start
salary discussion
Let the employer talk about salary first. Most
newcomers make the mistake of initiating the
compensation discussion early on in the game.
This exposes your inexperience and sends a
negative signal that you are concerned only
about the salary, not the profile. On the other
hand, if the employer makes the first move and
quotes a figure, it sets the floor for the negotia-
tion and the final salary can only be negotiated
upwards from there.
6 Dont be eager to share
information
Be miserly about sharing salary details
initially. Knowledge is power, more so in a
negotiation. So, dont be in a hurry to pass on
information about your past compensation,
precise expectations about salary, bonus etc.
Focus on discussing your achievements, pro-
posed job profile, and your fit with the position
and the company. The more you delay it, the
greater is the time that the firm is investing in
your hiring. This usually translates into a
better job offer.
7 Only accept a verbal offer
Get every commitment in writing. If the
hiring manager makes a verbal onereview
in six months or a guaranteed 20% bonusit
has no meaning. If the firm is reluctant or slow
in making its promises in writing, treat it with
suspicion. The firm is either looking at a
stronger candidate or has no intention of
The Economic Times Wealth, September 16-22, 2013
following up on its promises. Do not
resign from your existing job till you
have signed a written offer.
8 Avoid wrong advisers
Trust either your own research or inde-
pendent consultants. The hiring man-
agers advice to you about the great
offer is a clear conflict of
interest. So is the advice of the
recruitment consultant who is dealing
with you. The inputs from inexperienced
negotiators like your friends often miss
the point and focus on power play
instead of creating value. So, conduct
your own research and seek inputs
from consultants not related to the
ongoing hiring process.
9 Refuse instant rewards
Invest in delayed gratification. If the
hiring manager throws in a `1.2 lakh
joining bonus to sweeten the deal,
recognise that it will not be there next
year. So, your take-home salary in the
second year will be lesser. Instead, ask
for a `10,000 monthly hike. Though
there wont be any instant cash, the
cumulative benefits will be much more,
as also permanent. Similarly, the new
job should add long-term, permanent
value to your career and not be a fresh
start for the sake of compensation.
10 Dont show desperation
Rehearse your lines to avoid showing
your need. As in a dating game or a
sales process, any hint of desperation
swiftly kills your ability to succeed.
Even if you urgently need the job, you
will have to find a way to stay calm and
respond smartly during the selection
and negotiation process. Seek inputs
from trusted professionals to rehearse
your responses. Dont be in a tearing
hurry to reply to e-mails and job offers
from the hiring manager. Respond as
you would to standard communication.
Dont forget
the extras

Sign-on bonus
If the employers bureaucratic
salary band restricts him from
paying your worth, ask for a sign-
on bonus to cover the difference.
It is the easiest solution for the
employer to match your value
without upsetting the applecart.
The bond for this should not
exceed 12 months.

Relocation cost
Most of the employers would be
willing to consider covering your
relocation expenses if you were
to take up the issue. The amount
is typically higher for senior
positions, so negotiate accord-
ingly. Check if the reimburse-
ment is for actual expenses and
whether it is tax-exempt.
Flexitime &

flexiplace
How much would you pay for
the privilege of flexitime at your
workplace? Or for the opportu-
nity to work from home? Both
benefits have a tangible value
for you. Discuss these options
with the firm to make your offer
more attractive.

Six-month review
Depending on the firms annual
performance review cycle, the
next increment and bonus could
be 12-18 months away. Ask for
an early review in, say, six
months. It is not a risk for the
employer, while it gives you an
opportunity to prove your worth
and earn a quick salary revision
and/or bonus.

Leave
Though often bound by rigid
policies, many employers are
willing to look at special
requests for paid leave. You can
explore the options for a longer
maternity leave, a sabbatical in
3 years time, a months fur-
lough after 18 months, or sim-
ply an extra weeks leave.
The writer is Director,
Executive Search, at Quetzal.