Transitioning into a new job comes with a lot of joy and also a little bit of anxiety. After all one is venturing into a new territory and the future can hold a lot of opportunities and at the same time a lot of risk along with it. One thing, however, is sure, you deserve a financial reward to move to a new job or role. It is not only important for you that you get the desired compensation and remain motivated in the new role, but it is also important for the new organization to have a motivated employee. However, it is a common practice for an organization to try to get the best resources at the least possible cost. They are running a business and you can’t blame them.
Therefore it is an extra responsibility on your side to be able to negotiate your salary well that can create a mutually beneficial association between the employee (you) and the employer. Let us learn some of the techniques that can help you negotiate your salary effectively in your new job role.
STEPS TO EFFECTIVELY NEGOTIATE SALARY DURING A JOB CHANGE
1. USING CONTRAST EFFECT
We often try to be reasonable regarding our demand for a salary hike based on our understanding. When asked for our expectations regarding the pay hike we often tend to quote an increment amount or percentage hike which we think is most appropriate and reasonable. This sounds nice to ears but actually is not the best strategy to negotiate your salary.
The best strategy is to use the contrast effect. A contrast effect is an enhancement or diminishment, relative to normal, of perception, cognition or related performance as a result of successive (immediately previous) or simultaneous exposure to a stimulus of lesser or greater value in the same dimension. What it means is that you must always quote a higher expectation of job hike to be able to create a contrast effect. Say you want a salary hike of 30%, then you must quote 50% salary hike as your expectation What contrast effect does is it makes a 30% hike appear to be a far lesser increment compared to when you would have quoted say 35% hike from your current salary. While this works very well in most cases do not go overboard with it.
You can read more about the contrast principle in influencing and persuasion techniques.
2. IMPORTANCE OF DISCUSSING THE SALARY AND REMUNERATION EXPECTATION OF THE CANDIDATE
No salary negotiation can take place without capturing your expectations for a salary hike. One of the most common strategies many organizations use is to send you a provisional offer without consulting you for your expected salary. This is their shot at getting the desired candidate at the best possible cost. Do not fall for it and politely discuss with the concerned HR team the need to discuss the expectation of the candidate which of course, in this case, is you!
3. UNDERSTANDING THE CURRENT POSITION AND ITS DYNAMICS
Organizations spend a lot on hiring a suitable candidate. For numerous man hours the line managers, HR team and in many cases other technical teams work to ensure the right candidate is hired. On the other side for the candidate, a new job is a new opportunity. It can also be a relief from the earlier job or a transition after unilateral separation. In the latter case, we have a very low threshold for acceptance of any offer that comes our way. If you are in this situation just remember and see reality as it is.
The company has spent a lot of resources and it now finds you an appropriate candidate. Rest all is information that you do not need or does not matter. .
4. NEGOTIATE WITH THE RIGHT INDIVIDUAL
Negotiate with the right individual. Often the business stakeholders are not much concerned about the salary negotiation. It is the role of the HR to get you at the best cost. Know who has the ultimate authority to make negotiations. Remember it is always not HR, you need to find them. A short clue, he or she is the person most interested in knowing your current and expected remuneration.
5. BE SPECIFIC WITH WHAT YOU WANT
We often make the mistake of saying that our expectation is as per the industry standards. This not only could hamper your chances to negotiate a good salary hike. It also shows to the interviewer that you are less confident or unclear about your value. You must have the specific figure that you quote as your salary and remuneration.
6. UNDERSTAND THE POWER OF SILENCE
Keep quiet and always wait for an answer. There’s an old saying, the one who talks first loses. When you propose your salary number or your item to negotiate and your desired terms, do not talk. Wait for the response.
7. USING BENEFIT STATEMENT
Don’t only have a one-sided focus on getting the best our of salary negotiation for only self. Also, focus on what’s in it for your employer. Never make this solely about your needs and wants. Explain how they will benefit from hiring you. you may want to have a look at framing benefit statement.
8. BE PREPARED TO WALK AWAY
No matter how difficult it sounds but no great negotiation can happen if are not prepared to walk away. If the offer doesn’t meet your expectations in areas important to you, you may be better off declining the offer. It is always a good decision trust me, otherwise, you may be bitter or resentful if you accept less and will most certainly result in a loss for you and your employer in the long run.