What are the tips for a successful salary negotiation ?

Salary negotiation is an important issue in the recruitment process. Many people join the company with a feeling of “selling themselves short” by agreeing for less. They feel they would have done that little extra bargaining. On the other hand, in situations where the candidates have been given salary packages that are higher than their equivalents in the company, feelings of resentment, bitterness and dissent can creep in.

Hence salary negotiation is of vital importance in any organization. The negotiation should be conducted in a manner that makes both the employee and the employer feel that they have made a good deal.

The factors which influence the salary negotiation process are: 

- The position of the job within the hierarchy in the company. 

- The abundance or dearth of the specific job skills in the market. An abundance of skill causes a fall in market while a dearth causes a rise in market value of any candidate. 

- The experience of the candidate and the position in the last company. This needs to be ascertained by the last pay slip received and other related documents. 

- The value in the market for the current candidate. 

- The pay range for the position in the company and in the immediate geographic vicinity. 

- The present economic conditions in the company and in the immediate geographic vicinity.

If the employer is in dire need of the candidate, he may settle for more than the actual worth of the candidate. This leads to higher expectations of the candidate, bitterness and resentment amongst his colleagues. This leads to a hostile and unfriendly work environment.

The process of negotiation is a physically and emotionally taxing process. It involves huge investments in time and resources such as Interviewing people, short listing, scrutinizing, verifying etc.

The following are some simple hints which can be used in a successful negotiation

- A negotiation can be considered successful if both the parties feel that they have got a good deal. It is unsuccessful and potentially damaging if only one of the parties involved feels that he has succeeded. 

- It is imperative that the organization finds out the most recent salary drawn by the employee. Most organization ask that the most recent payslip be enclosed with the application form. 

- Always be conscious of the present salary ranges in the organization for similar positions. The salary negotiation process should also consider the present market situations, the profitability of the organization and the present conditions in the job market. 

- Even in situations where the salary cannot be negotiated, more competent and confident candidates will negotiate on perks and other benefits such as paid cellphone, bonus, stock options, relocation expenses etc. 

- Always be conscious of the limits of your company. Even if you feel that the candidate sitting in front of you has great things to offer, it is important not to settle hastily for something that will cause great problems for you and for the organization in the future. It is better to call for fresh recruitment process. 

- If you make an offer to a candidate that you know is not negotiable, it is better to make that clear to the candidate. Also, explain to him why you made that offer such as the present salary range for similar posts within the organization etc.

A good negotiation that is perceived as fair by both sides can be a foundation of a strong and mutually beneficial association between the employee and the organization. This calls for sincerity and frankness on the part of both sides during the negotiation process.