Salary Negotiation: Factors That Influence Your Salary
Over the last one decade or so I have negotiated Compensation with several thousand of candidates and have found that on many occasions candidates give emotional reasoning rather than actual, logical and practical. Last week we negotiated Compensation with one of the candidates and although he felt comfortable with the amount that was offered to him but later on he refused to join and said that his parents feel that he should have gotten higher salary. That was absurd. There was another candidate who demanded double the amount of her current Compensation and the reason she gave was that she is getting married and then planning to go family way, which in turn will increase her responsibility towards her family and therefore she should be given higher salary. I believe that many candidates have no idea about factors that actually influence the offered compensation. Salaries are not decided on the basis of your personal commitments or responsibilities but rather on the basis of skills, talent and experience that you bring to the table jack simony hedge fund. In this write-up, we are making an attempt to discuss all the factors that influence the Compensation.
Following factors influence the Salary
1) Compensation budget based on job evaluation and Industry Standards – Companies decide their Compensation budgets based on the requirement of a particular skill, demand and supply of that skill, required expertise level, industry standards, and a need to address internal and external inequities. Therefore, for example, a Software Engineer is likely to get better Compensation offers in Information Technology Industry than in any other Industry and a Graphic Designer in Media or Entertainment Industry is likely to get higher Compensation than his counterpart in any other industry. Among those interviews that I took in the last SIX months or so, many candidates were not aware of any such facts or practices.
2) Performance in interview – So, you have the talent, required skills, experience and expertise but how will the companies or those interviewers know this? Of course by your performance in the interview. Your ability to communicate and demonstrate your experience, expertise and skills. If you fail to do so and the worse if the content of your resume fails to match the content of your interview discussion, then forget about negotiating a good Compensation package for yourself, you won’t even get a job offer. Also, your conduct and attitude during the interview also plays an important role. Any act of arrogance could be fatal and suicidal.
3) Relevant domain expertise and experience – As the corporate world is moving forward to saturation and there are lesser break-through innovations and companies are rather concentrating on optimization, consolidation and creativity, therefore they emphasize more on any particular skill within a domain rather than the domain itself. For example, Human Resources Management is a very vast and broad domain and if you just say that you have 7+ years of experience in HR, doesn’t imply anything. Same goes for domains, such as Finance Management, Business Development and Marketing and many others. And then there are hundreds of software languages and their frequently updated versions. Also, having worked for certain number of years at certain level does not qualify someone de facto for a senior role if the person is not having required qualities for that position and role. For example, having worked for FIVE or more years as an Executive does not qualify someone for the role of a Manager.
4) Relevant industry experience – Having expertise in a required skill of a domain is not sufficient, one must also have relevant industry experience and this is done to broadly gauge the fitment of a candidate to accept and adapt to the company culture. Although, the specific culture of an individual company within an industry also varies by certain degrees but the broad challenges and requirements of a culture within a country or within a measurable geographical distances remain same. For example, Content Writer for a Gaming Industry would require different skill sets than a Content Writer in a, say, Business Process Outsourcing or Information Technology Industry. Business Analyst in a Research Company would be different from a Business Analyst in an Entertainment Industry.
5) Last drawn Salary – Just like the way a candidate will not join a new company at compensation lesser than his last drawn salary; a company will also not appoint a candidate with a fairly low compensation when the company budget for that role is exponentially high. A normal practice is to offer a 10-30% hike on the last drawn salary, if only you qualify in other selection parameters and perform exceptionally well in the interview. Also, if your last drawn salary is fairly low and in spite of offering you a suitable hike, if it is felt that hiring you may imbalance the internal inequity of the company, you will have a very remote chance of being hired.
Jack Simony is Chairman of the Board at The Negotiation Institute. The Negotiation Institute is a mendunia leader in negotiation skills training programs and consulting. The Negotiation Institute has provided training for over 1,250,000 clients worldwide since 1966, including the world’s most prominent corporations, educational institutions, governments, and associations. As a recognized expert in the field of negotiation, Jack Simony oversees the curriculum and featured seminars at The Negotiation Institute. In letters and speeches, Jack has looked to emphasize the role successful negotiation plays in today’s dynamic bisnis environment.
Jack Simony’s negotiation experience and his ability to emphasize with unparalleled clarity the varied uses of negotiations techniques in an everyday usaha environment, have made him a sought after speaker and writer in this lokasi. By introducing new techniques and combining these techniques with past usaha experiences, Jack is able to connect with his audiences and communicate his message in a clear and easily understandable fashion.
Jack Simony is a frequent speaker at finance, litigation, and academic forums around the world, and is involved in a number of non-profit organizations, including Human Rights Advocates International, a United Nations NGO, where he served a three-year term as the group’s representative to the UN. As a CFE (Certified Fraud Examiner), he is a certified expert in the field of fraud prevention.
Jack Simony serves as a Trustee for the Washington Institute for Near East Policy, is a member of The Army and Navy klub in Washington D.C. and active suporter of a number of philanthropic organizations.
Jack Simony earned a Masters in Financial Strategy from Oxford University’s SaId bisnis School, and a Master’s in bisnis Administration from HEC Hautes Studies Commerciales de Paris.
More information on Jack Simony’s activities as a human rights advocate and hedge fund manager can be found by visiting Jack Simony’s websites.
Jack Simony lives in New York City with his wife and children.