The largest raises you'll likely ever get in your career are a result of your quitting your current job and going to work for another employer. At least that's true if you learn the strategies necessary to negotiate your salary and benefits. And, you must learn to avoid the minefield of mistakes common to most over-eager applicants.
A key concept to learn is this: Whoever mentions money first loses. That means if the employer asks you to mail in a salary history (one quarter of employers do) you need to simply ignore this request. Employers admit that they use the salary question as a device to screen out applicants. While you worry that the employer won't offer pay high enough, in reality, oftentimes, employers eliminate you because your previous salary was too low, thus automatically downgrading your skills. Nothing illustrates this more clearly than what happened to Kathy, one of my clients.
Kathy, who spent several years at a large prominent company, kept taking on new managerial duties as her job expanded. She excelled, but her requests to upgrade her salary seemed to get lost behind other items her boss found more important. When she left on maternity leave she just never went back to that company. Two years later she decided she wanted to return to work. In an early interview Kathy made the mistake of telling the hiring manager her previous salary. A friend inside the interviewing organization later told her that once the hiring manager heard the low figure her last employer had paid her, he devalued her skills, deeming them lower than the level he needed. It cost her the job. Too late, Kathy learned that the best salary negotiation technique is to never reveal a previous salary. She never made that mistake again. A few weeks later, she masterfully dodged the salary questions when interviewing with a prestigious high-tech company. Coupled with good answers to interview questions and solid work examples, Kathy landed the job that brought her a 45% increase in pay over the job she left behind.
Of course, some people know they are underpaid and aren't sure how to negotiate. James had an MBA and wanted to get promoted but his company had a salary freeze. His work was praised and he got new job titles, but no raises came his way. He got fed up and became a recent client of mine. He was motivated to get a better paying job. We created a resume that promoted his accomplishments and rehearsed how to deal with salary questions. An international marketing job caught his eye, and he was well prepared for the interview. He wrote to say, "My interviews went so well, I know they truly liked what they saw. Using the work examples as props and adopting a conversational approach was a real hit. I also followed your advice on salary, didn't disclose a thing."
He got hired, and wrote again to say, "I am really loving it here, and growth opportunities are everywhere. I just got my first paycheck, and WOW it's one BIG paycheck. Just wanted to say thanks again; this is more money than I ever dreamed I'd make."
Everyone should be paid a salary commensurate with his or her true value. There are three cardinal rules to all salary negotiations that you must master so that you can enjoy a more prosperous future.
Rule #1 -- Never reveal your previous salary.
Rule #2 -- Never break Rule #1.
Rule #3 -- Never EVER break Rule #1.
Why? Whoever mentions money first loses, so don't let it be you. This "secret" preserves your negotiating power! Once the employer decides they want to hire you they are more motivated to pay whatever it takes to entice you to join the team.
My advice is TRY to negotiate! Many applicants simply accept the offer as given. Too bad -- because in the last few months I've seen employers offer higher salaries and more lucrative benefits packages, simply because the prospective employee asked for them.
From India, Bangalore
5A key concept to learn is this: Whoever mentions money first loses. That means if the employer asks you to mail in a salary history (one quarter of employers do) you need to simply ignore this request. Employers admit that they use the salary question as a device to screen out applicants. While you worry that the employer won't offer pay high enough, in reality, oftentimes, employers eliminate you because your previous salary was too low, thus automatically downgrading your skills. Nothing illustrates this more clearly than what happened to Kathy, one of my clients.
Kathy, who spent several years at a large prominent company, kept taking on new managerial duties as her job expanded. She excelled, but her requests to upgrade her salary seemed to get lost behind other items her boss found more important. When she left on maternity leave she just never went back to that company. Two years later she decided she wanted to return to work. In an early interview Kathy made the mistake of telling the hiring manager her previous salary. A friend inside the interviewing organization later told her that once the hiring manager heard the low figure her last employer had paid her, he devalued her skills, deeming them lower than the level he needed. It cost her the job. Too late, Kathy learned that the best salary negotiation technique is to never reveal a previous salary. She never made that mistake again. A few weeks later, she masterfully dodged the salary questions when interviewing with a prestigious high-tech company. Coupled with good answers to interview questions and solid work examples, Kathy landed the job that brought her a 45% increase in pay over the job she left behind.
Of course, some people know they are underpaid and aren't sure how to negotiate. James had an MBA and wanted to get promoted but his company had a salary freeze. His work was praised and he got new job titles, but no raises came his way. He got fed up and became a recent client of mine. He was motivated to get a better paying job. We created a resume that promoted his accomplishments and rehearsed how to deal with salary questions. An international marketing job caught his eye, and he was well prepared for the interview. He wrote to say, "My interviews went so well, I know they truly liked what they saw. Using the work examples as props and adopting a conversational approach was a real hit. I also followed your advice on salary, didn't disclose a thing."
He got hired, and wrote again to say, "I am really loving it here, and growth opportunities are everywhere. I just got my first paycheck, and WOW it's one BIG paycheck. Just wanted to say thanks again; this is more money than I ever dreamed I'd make."
Everyone should be paid a salary commensurate with his or her true value. There are three cardinal rules to all salary negotiations that you must master so that you can enjoy a more prosperous future.
Rule #1 -- Never reveal your previous salary.
Rule #2 -- Never break Rule #1.
Rule #3 -- Never EVER break Rule #1.
Why? Whoever mentions money first loses, so don't let it be you. This "secret" preserves your negotiating power! Once the employer decides they want to hire you they are more motivated to pay whatever it takes to entice you to join the team.
My advice is TRY to negotiate! Many applicants simply accept the offer as given. Too bad -- because in the last few months I've seen employers offer higher salaries and more lucrative benefits packages, simply because the prospective employee asked for them.
From India, Bangalore
Good to read. But how practical is it in India, where employers insist employees to reveal their salary? Professional organizations have a well-defined salary structure, and an experienced HR professional can easily judge your market value. Over-exaggeration can cost you opportunities, so be very careful.
From India, Mumbai
From India, Mumbai
Hi,
That was really a good piece of knowledge that you have provided. Presently, I am looking for a change, and that will surely help me in gaining a higher package. But I have a question to ask: "What if the consultant asks for the package when they call? In this case, what could be the answer?" (If they ask about the current CTC, what should I say?)
In a personnel interview, what should I say regarding the expected salary if they ask me? Because sometimes a good opportunity fails because one demands a higher salary.
I am working as an HR Executive and looking to change my profile. Currently, I am earning 1.68 lac P.A. in hand, and I am looking for 2.5 lac or 3.0. I have around 1.5 years of work experience in the corporate world. I am planning to make a change in a big MNC.
Is it incorrect to mention the present CTC and expected CTC on the resume?
Please guide.
Cheers,
Nidhi (HR Executive)
From India, New Delhi
That was really a good piece of knowledge that you have provided. Presently, I am looking for a change, and that will surely help me in gaining a higher package. But I have a question to ask: "What if the consultant asks for the package when they call? In this case, what could be the answer?" (If they ask about the current CTC, what should I say?)
In a personnel interview, what should I say regarding the expected salary if they ask me? Because sometimes a good opportunity fails because one demands a higher salary.
I am working as an HR Executive and looking to change my profile. Currently, I am earning 1.68 lac P.A. in hand, and I am looking for 2.5 lac or 3.0. I have around 1.5 years of work experience in the corporate world. I am planning to make a change in a big MNC.
Is it incorrect to mention the present CTC and expected CTC on the resume?
Please guide.
Cheers,
Nidhi (HR Executive)
From India, New Delhi
Hi Nidhi,
The exact moral that I could extract is that you should reveal your package at the right time for a better hike. In India, I agree that they will question you about the salary. However, generally, this is asked by companies who refrain from paying high packages. If it were a good paymaster, you can expect this question in the HR interview after all your technical or preliminary rounds.
So, when you are aware that the company is a good paymaster, then put forward your expected salary as per their company standards. Also, include any perks or bonuses that you receive which would not be a part of your CTC. As for consultancies, you really don't need to worry.
Thanks,
From India, Bangalore
The exact moral that I could extract is that you should reveal your package at the right time for a better hike. In India, I agree that they will question you about the salary. However, generally, this is asked by companies who refrain from paying high packages. If it were a good paymaster, you can expect this question in the HR interview after all your technical or preliminary rounds.
So, when you are aware that the company is a good paymaster, then put forward your expected salary as per their company standards. Also, include any perks or bonuses that you receive which would not be a part of your CTC. As for consultancies, you really don't need to worry.
Thanks,
From India, Bangalore
it was indeed a very true and good advise especially for people who work in Dubai Love Ancy
From Australia, Adelaide
From Australia, Adelaide
Hi Radsund,
Thank you for the reply. That really helped me out, but I have one last query related to the same.
As is common in India, consultants generally call for vacant jobs on behalf of companies, and before proceeding further, they first inquire about the package. I have missed out on some good opportunities because of this, as I mention my present salary is 14,000/- per month in hand, and I expect 20,000/- per month in hand. Unfortunately, they do not delve deeper into the matter. I am willing to negotiate on the salary as it is my time to learn new things, but they do not even consider me. In this case, what should I communicate in the first place to consultants regarding my CTC and expected salary?
If you could assist me with this, I would appreciate it.
Cheers,
Nidhi (HR Executive)
From India, New Delhi
Thank you for the reply. That really helped me out, but I have one last query related to the same.
As is common in India, consultants generally call for vacant jobs on behalf of companies, and before proceeding further, they first inquire about the package. I have missed out on some good opportunities because of this, as I mention my present salary is 14,000/- per month in hand, and I expect 20,000/- per month in hand. Unfortunately, they do not delve deeper into the matter. I am willing to negotiate on the salary as it is my time to learn new things, but they do not even consider me. In this case, what should I communicate in the first place to consultants regarding my CTC and expected salary?
If you could assist me with this, I would appreciate it.
Cheers,
Nidhi (HR Executive)
From India, New Delhi
Hi Nidhi,
You can tell them something reasonable, say around an 18k hike. After you have attended the interviews, you would be asked again for your ETC. At that time, you can convey what you really wanted. They won't take it back as they have spent time and effort to conduct interviews, and if you are the right candidate, they will accept.
But one more thing, when changing from one company to another, expecting a 25-35% hike is very reasonable and acceptable.
Thanks
From India, Bangalore
You can tell them something reasonable, say around an 18k hike. After you have attended the interviews, you would be asked again for your ETC. At that time, you can convey what you really wanted. They won't take it back as they have spent time and effort to conduct interviews, and if you are the right candidate, they will accept.
But one more thing, when changing from one company to another, expecting a 25-35% hike is very reasonable and acceptable.
Thanks
From India, Bangalore
I think the vice versa is also true. If you are sitting at the upper percentile of the salary range, you should be more than willing to tell the salary so that it covers up a lot of stuff. regards
Hi Radsund,
Thank you again for replying back, but I have one last query. I hope I am not bothering you. If I state that my ECTC is 18k and then later mention that I am expecting a CTC of 20k, they may question why suddenly you have changed your ECTC.
What reason can I give in that scenario?
Cheers,
Thanks a ton in advance for the reply. I really appreciate that you are answering my query.
Nidhi (HR Executive)
From India, New Delhi
Thank you again for replying back, but I have one last query. I hope I am not bothering you. If I state that my ECTC is 18k and then later mention that I am expecting a CTC of 20k, they may question why suddenly you have changed your ECTC.
What reason can I give in that scenario?
Cheers,
Thanks a ton in advance for the reply. I really appreciate that you are answering my query.
Nidhi (HR Executive)
From India, New Delhi
Hi Nidhi,
The first time the consultants ask for the salary is for the preliminary selection of your profile. Once you are selected and found eligible, you can put forth your expectations to the HR. Since they found you very suitable for the requirement and spent their effort in selection and scrutiny, it's not feasible for them to reject you.
You can inform them that you received a hike from your old employer recently and are expecting a similar increase here.
Thanks
From India, Bangalore
The first time the consultants ask for the salary is for the preliminary selection of your profile. Once you are selected and found eligible, you can put forth your expectations to the HR. Since they found you very suitable for the requirement and spent their effort in selection and scrutiny, it's not feasible for them to reject you.
You can inform them that you received a hike from your old employer recently and are expecting a similar increase here.
Thanks
From India, Bangalore
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INDIA SALARY HANDBOOK 2008 - 09.pdf