Guilt and fear are the two most common emotions that shows up in negotiations. Confidence is the most important skill when you are entering a salary negotiations. If you don’t ask, the response is always no.
How companies determine pay
Companies determine compensation based on cost of labour not cost of living
- Tier 1 city are 100%
- Tier 2 city are between 90-95%
- Tier 3 city are 80%
A company will determine their target percentile depending on the market the operate and the talent they want to attrack. Most companies want to be between the 25th percentile and 75th percentile. If they are at the 50th percentile they know that one offer in two they make is going to be the highest you receive.
When you negotiate the process is the following:
- The recruiter goes to the HM and share they want to negotiate
- The HM goes to HR which determines the level trying to keep equitable across the company
- The HM goes to finance to check the budget, and it could go to the head of department, and come back down to the recruiter
Info
Large companies benchmark the market, while in smaller companies the hiring manager has in general more authority
Preparing the negotiation
- Acknowledge you need to prepare
- Name the negotiation explicitly to drive better results
- Record yourself in a mirror when you practice
- Acknowledge your emotions, try to boost your confidence
Write down hypothetical questions that you might expect from the hiring manager. You can ask this to a chatbot:
I am negotiating for a salary with “company name” for “role”. Act as if you are the manager on the other side of the table, and I am going to have back and forth with you. After I am done, please give me feedback on how I did
Negotiating
When you get asked what salary you are looking for, ask what range you have for the role.
“I did some research and I know what my desired compensation is, however I don’t know the full extent of what you are able to offer for this position. So can you tell me what the range is for this position? (and then be silent)”
How long people stay in the role? What is the very max salary? What is the most senior title can offer me? How often can I expect a raise? What kind of flexibility I can get?
Tip
Building a human connection with the recruiter helps to achieve better result. If you can negotiate in person, then on zoom, then on the phone, then via email.
Tip
Connect with the name of the interviewer, and say how excited you are to work with those people. Be kind and nice, it can earn more fight from the recruiter