How to Negotiate Salary: Why you should not directly disclose your in-hand or take-home salary in an HR interview? Which word is most useful during salary negotiation in interview? What precautions should be taken while telling salary expectation in interview?
Salary Negotiation Tips: Are you going for a job interview in a new company? If yes, then one question asked in HR interview can make or break your entire salary negotiation. Everything is going well in the interview, but as soon as HR asks, ‘What is your current take-home (in-hand) salary and what are your expectations?’ That’s where most people make a big mistake. Most people declare their take-home salary without thinking, but this same mistake can keep them away from a big hike. Career experts believe that using the right words during salary discussion can significantly increase your negotiation power. Today we are going to tell you how to mention your salary in the interview and what is that one word which can get you a big package offer as soon as you speak it.
Why is take-home salary a big mistake?
Many candidates tell HR how much money comes into their bank account every month. They share their ‘in-hand’ i.e. ‘take-home’ salary. The problem is that companies usually don’t prepare offers based on your take-home salary, they look at your entire CTC (Cost to Company). If you tell only the take-home salary, then the other person will not get the complete picture of your real earnings.
What word to use for salary hike in interview?
According to career experts, whenever HR asks you about your in-hand or take-home salary, instead of telling the number, the word you have to use is CTC (Cost to Company). But just saying the word is not enough, you should be able to present it in the right way. You have to say, ‘Sir/Ma’am, instead of my current take-home salary, it would be more appropriate if we talk about my total CTC and the benefits included in it.’
What is the benefit of saying this?
Salary base looks bigger
Take-home salary is that which comes to you after deducting PF, tax and insurance, which always seems less. But CTC includes your PF contribution, medical insurance, gratuity and bonus, making your total package look bigger.
Hikes always get big numbers
According to career experts, whenever the new company gives you a hike of 30% or 50%, it will be given on your CTC and not on the take-home salary. Therefore, always start the conversation with a big number.
3 ways to negotiate salary with HR
Do not open the number from your end first
Try that the first offer of salary comes from the company. You can ask them, ‘What is the company’s budget for this role?’ This will give you an idea of how much the company is willing to pay.
Talk about salary range
If you must state your expectations, state a range rather than a fixed number. Like, ‘Considering my skills and responsibility, I am expecting a range of Rs 8 to 10 lakh.’ This keeps the path of dialogue open.
Don’t just see in-hand, understand the whole package
Sometimes the in-hand salary is a little less, but the company is giving you excellent medical insurance, free cab facility, performance bonus or money for learning courses. Therefore pay attention to ‘Total Compensation’.
Disclaimer: The information given in this article is for educational and informational purposes only. Salary negotiation and career related decisions entirely depend on your personal capabilities, company policies, your experience and market conditions. The methods and tricks mentioned here are based on general experiences in the corporate world, but do not give 100% guarantee of any kind of sure hike or job. Before finalizing any interview or agreement, carefully check the company rules and your salary slip or CTC breakup.