Negotiating a Counter Offer: A Step-by-Step Guide

Are you a job seeker with multiple lucrative job offers, or are you just about to receive your first job offer? Negotiating a counter offer or a new salary can be a daunting task, but it is crucial to ensure that you are being fairly compensated for your skills and qualifications. In this article, we will outline a step-by-step approach to effectively negotiate a counter offer, taking into account market conditions, personal negotiation techniques, and company policies.

Understanding the Market Conditions

The first and most important step in negotiating a counter offer is understanding the market conditions. Across different industries, companies are offering a range of salaries and comprehensive total cost of compensation (CTC) packages. Typically, the CTC can vary from 30 to 40 percent above the current CTC, depending on your skills, the company's demand for your technical expertise, and the urgency with which the company needs to fill a position.

Adjusting Your Expectations Based on Your Skills and Competence

Your valuation is not solely based on the job market but also on your personal skills and competence in the job. Consider your command over the work being offered, your performance during the interview process, and any additional responsibilities or innovative projects you might be able to bring to the role. For instance, if you have exceptional technical skills and can bring significant value to a startup, you might be able to negotiate a higher salary. Conversely, if you are overqualified for a position, you might have to accept a lower salary if it is the best offer available.

Strategies for Effective Counter Offers

When it comes to negotiating a counter offer, being assertive yet flexible can go a long way. Start by asking for ten percent more than the initial offer. If the HR representative expresses dissatisfaction, you can respond by saying, Meet me in the middle. This approach demonstrates that you are willing to find a reasonable compromise.

Here are some additional negotiation strategies:

Be Prepared: Research the company and the industry, and understand the typical salary range for the position. This will help you anchor your expectations and provide a foundation for your negotiation. Be Confident: Express your negotiation in a calm and confident manner. Reassure the employer about your commitment to the role and the value you can bring. Have a Backup Plan: Always have a fallback strategy. Be prepared to accept a lower offer or decline the offer if it does not meet your requirements. Consider Non-Financial Benefits: Salary is not the only factor when negotiating a counter offer. Consider additional benefits such as flexible working hours, remote work options, career development opportunities, and other perks that can contribute to your overall satisfaction.

Learning from Success Stories

A practical example of successful salary negotiation can be seen in the career progression of a known person from a campus selection to the present time.

2018-2019: The individual started with a salary offer of Rs.7.5 lakh from a Multinational Corporation (MNC) and later received a Rs.13 lakh offer from another MNC. During the 90-day notice period, he received additional offers totaling up to Rs.17 lakh. He successfully negotiated and accepted a Rs.15 lakh offer from a company, just before joining the other firm.

2021: He interviewed for a position as a software developer 2 and told the interviewer his expected CTC of Rs.25 lakhs. He was offered a position as a software developer 3 with a CTC of Rs.33 lakhs and a waived job experience condition. Within a year, he received two hikes, increasing his CTC to Rs.55 lakhs.

2022: He was selected for a position with a Canadian MNC with an offer of Rs.125 lakhs.

This example highlights the importance of leveraging your skills and negotiating effectively to achieve your desired salary. It shows that your technical competence plays a significant role in determining the final offer amount.

Conclusion

Ultimately, the key to successful salary negotiation lies in your technical competence and your ability to present a strong case for why you deserve the salary you are seeking. With careful planning, confidence, and a strategic approach, you can successfully negotiate a fair and satisfying salary that aligns with your career goals.