You’ve been shortlisted for that
coveted job, and you’re on cloud nine. But you have one critical stage to
cross: working out your pay package. Tread with care – this is where it can
roll, or break completely. Here is the list of common errors candidates make at
this stage, and a few tips from industry experts on what you could do to sail
through.
1. HOMEWORK NOT DONE
Candidates are often clueless about
company and salary structures, and walk into traps they have themselves laid.
Biotech firm Biocon was once looking at hiring a highly qualified candidate
from a rival pharmaceutical firm for a new level, recalls HR head, Ravi
Dasgupta. Soon after the candidate was told his salary, he emailed Dasgupta
saying he found out the salary on offer was less than what others at the same
level were getting. Dasgupta, in turn, told him he could not possibly know
anyone else’s salary as he would be the first in that grade and level. The
candidate apologised, and was subsequently hired.
Expert Take:
Understand the hierarchy of a company
before you get down to salary talks. Grades in two firms may not be same.
Sudhakar, HR head, Dabur says, “Always research the minimum – median – maximum
a candidate with your experience, qualifications, achievements and industry
exposure can ask for.” Kunal Banerji, ED & CEO, Absolute HR International
says, “Before joining, check what the company’s performance pay was in the
previous year, how much increment and bonus they paid.”
2. OBSESSING OVER ‘TAKE HOME’
Typically, Young managers are
focused on take-homes and companies on total cost. During talks, candidates
forget about perks and benefits. And companies focus on getting the right
talent at the best possible cost. Candidates need to compare an apple to an
apple when it comes to benefits, says K Gopal, ED at Omam Consultants. For
instance, if an executive gets a car as an incentive, he can ask a new employer
for an updated version, but not an upgrade, which might cost much more.
Companies like to defer payment and add long-term incentives into the package
to make it seem bigger.
Expert Take:
Understand all components of the cost
to company. Find out what was actually paid out on the variable components in
the past two years. Consider the total value proposition and not only the
compensation element.
3. ASKING FOR THE MOON
Negotiation is a subtle art, and you
need to get the timing right. Ask for too much, too soon, and you can ruin your
case even before you’ve begun. Dabur has come across candidates who ask for an
over 100% rise in salaries, says A Sudhakar, HR head. That’s when the HR team
has to gently explain that the candidates will be included in a salary
bandwidth right for their grade, and cannot jump to the upper limit
straightaway. Understand what is expected of you, before you take the plunge or
ask for an hike in salary.
Expert Take:
Let the company make an offer first.
E Balaji, CEO, Ma foi Randstad Wait until late in the interview before
negotiating a salary. This will give you more leverage since the number of
candidates will be smaller and the firm will more than likely be convinced of
you.
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