How to negotiate salary with HR, line manager

Having a salary figure in mind is important, but it's even more significant to have an idea of how the job market is responding to changing needs. (Illustration by Suneesh Kalarickal)

Navigating crucial questions during salary negotiations with the HR department and line managers requires finesse and preparation. However, there is no one-size-fits-all approach. Freshers and experienced candidates have to tread different paths to succeed in their attempts.

We will look at various crucial touchpoints of salary negotiation that may require broad answers rather than specific ones. But during all this, one must remember to engage in conversations, not confrontations.

Before jumping to a certain number or percentage hike, step back and think about why this figure is important to you. And then declutter the points of how your skills and experience align with your overall objective and how a competitive salary is vital for your commitment and motivation.

1) Timing Matters

Freshers: It's generally best to wait for the employer to bring up salary discussions. This will answer the most pertinent question: Does HR expect you to negotiate salary?

If they ask about your salary expectations early on, try to deflect and express your eagerness to learn more about the role first. When the time comes to discuss numbers, give thought to asking if there's room for negotiation based on your research.

Experienced candidates: Wait until you receive a formal job offer before discussing salary. Don’t just throw in numbers. Express your gratitude for the offer and request some time to review it. Deliberate two aspects: When should I and when should I not negotiate salary?

This pause gives you a chance to evaluate the complete package, including benefits, before entering into salary negotiations.

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2) Research

Having a salary figure in mind is important, but it's even more significant to have an idea of how the job market is responding to changing needs. Your current skills may have earned you a good salary but whether they will continue to do so depends on market dynamics. For instance, there is a steep decline in demand for data entry clerks.

Freshers: Get an idea of the salary range beforehand and share your target number wisely. This can be figured out by asking your peers or checking websites such as Glassdoor and AmbitionBox.

“At a startup, this range is wider, so don't ask for too little if in your interviews you felt a high level of urgency to hire and excitement from the HR/hiring managers about you. At a bigger company, this range is relatively stricter, so don't ask for too much,” said Nikunj Verma, CEO of job portal Cutshort.

Experienced candidates: Evaluate your experience, skills, and accomplishments in comparison to industry standards. Identify your unique value proposition, such as specialised skills or achievements, and answer a question to yourself: How do I convince HR to negotiate salary?

According to Verma, every task or project has a business goal. It could be revenue, cost, or awareness. Asking your manager about this will help you understand and quantify it.

Example: A metric for the business development team would be the number of clients added and the revenue they bring. But here, one needs to be certain that quality is maintained. A business development associate may bring in 10 clients but generate only a modest amount of revenue, whereas another associate may bring in three clients and match that revenue. Hence, the former should focus on bringing in fewer clients with a bigger revenue footprint to maximise output.

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3) Analyse Your Audience

Freshers: Initial salary discussions might be with HR or a recruiter, but the final negotiations could involve your prospective manager or department head. Be aware of this transition and adjust your approach accordingly. Focus on your skills and enthusiasm when speaking with HR, and emphasise how you can contribute to the team's success when dealing with your potential manager.

Experienced candidates: Ideally, negotiate salary with your future manager or the person authorised to make decisions regarding compensation. Still, the answer depends on the personality and behavioural style of the line manager. Many line managers may not wish to discuss salary and would like HR to handle it instead.

“Approaching them can create friction and may jeopardise the case. In such scenarios, discussing with the HR business partner or HRBP is useful. Such line managers can also make exceptions based on the kind of relationship one has with them,” said Rahul Gupta, founder of transformahead.com. In those cases, he said it is better to approach directly.

If the line manager is open for discussion, then it is always better to avoid a third person.

4) Potential Questions from HR

Approach salary negotiations as a collaborative conversation. Emphasise your interest in contributing to the company's success and ask about the specific expectations and goals tied to the role. This way, the conversation will be limited to the impact that you have created through college projects or in the present company.

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Diksha Arora, an interview coach and digital content creator, has an example on how to answer the most crucial question.

Freshers:

Question: Why do you have to quote this salary range since you are a fresher?

Answer: My passion and existing knowledge make me an asset for this role. Also, I have done my research and found that the average salary range for this position here is between [mention range]. So I believe that my passion for this role within the standard range justifies my quote.

Experienced candidates:

Question: Why do you think a salary adjustment is necessary at this point?
Z

Answer: I’ve thoroughly enjoyed my time with this company and learned a lot, but I’ve reached a point where I am contributing at a higher level and taking on more responsibilities. I believe that a salary adjustment is necessary to reward my efforts and the value I bring to the team.

5) Some dos and don'ts

Question: What other job offers or opportunities are you considering?

Do:
1. Mention other opportunities you are exploring, but don't provide too much detail.
2. Explain that you're genuinely interested in the current role and company.
3. Use this as an opportunity to emphasise your desirability in the job market.

Don't:
1. Share sensitive information about other job offers or companies.
2. Use this question as a threat or leverage.
3. Make it seem like you're not committed to the role you're currently negotiating for.

Question: Are you open to other forms of compensation such as performance bonuses or stock options?

Do:
1. Express openness to discussing alternative forms of compensation.
2. Highlight your long-term commitment to the company and your interest in its success.
3. Ask for details about these options to evaluate their value.

Don't:
1. Reject alternative compensation options outright without considering their potential value.
2. Agree to alternatives without fully understanding how they work.
3. Make it seem like you're only interested in immediate cash compensation.