If you are a newly minted graduate, chances are that you are closing in on your first job. You might be wary of negotiating your first salary. What if the company rescinds its offer?
The truth is, hiring managers are open to graduates negotiating their first salary. After all, they want driven and passionate people to work for them. As a new graduate, you may not have the work experience that you can use to negotiate aggressively for a higher starting salary but you can be prepared and give it your best pitch. Here are four ways to do it.
Do your research
Priya Aneesh is the Vice President of Human Resources - Country Learning and Talent Lead in a leading multinational corporation. She says that graduates must do their research before negotiating starting salary ranges. “You need to do your market research to make sure you have the right number,” she says. “If you are going into banking, you should know that the starting salary is a certain figure. It could be different if you are going into the hospitality industry.”
Different organisations have different starting salaries, which also vary across domains. Do your research on your potential job, including salary packages that the company offers.
There is no formula for arriving at a perfect figure when negotiating for a salary but there are two strategies. One, check out websites like Glassdoor, which tell you about the benchmark salary for your role and your industry domain. These websites also have information on specific companies and how much they pay.
Two, consult a coach, a mentor or an industry expert who understands the job market thoroughly. If you have any college alumni who work in this specific company, reach out to them for some guidance.
Negotiate for other benefits
There is so much more that you can ask for when it comes to negotiating your compensation package. While most organisations only give mid-management perks, there are some benefits that freshers can ask for too. To do this, you need to be self-aware and understand your goals thoroughly.
Says Priya, “There are organisations that will sponsor your education. They could sponsor your masters through reputed educational institutions. Another benefit that I think is very appealing is travel. Large organisations are spread all over the world and they post all their jobs online. If I see something in the Maldives or Sri Lanka, I can apply for that job. Today, the benefits are weighing in equally as much as compensations in the market. I think it is a play of both.”
According to Priya, many HR organisations do something called ‘benefits benchmarking’. They find out if they are as good as their competitors when it comes to compensation and perks. Many companies offer flexi-working benefits and they are ranked very high on work environment and systems.
Don’t go overboard
As someone who has interviewed many candidates, Priya says that negotiating is fine but it is important not to go overboard. “You know where you stand and what your qualifications are, but don’t overquote a number,” she says. “Also, do keep in mind that with COVID-19, the ecosystem has been impacted and the numbers have gone down against a normal market when prospects were better.”
As first-time employees, it is important to also strike a balance. The role may be exciting, even though the salary may not be exactly what you had in mind. Also, citing other job offers may not always work in your favor. Many experienced HR managers see through this and it is best not to venture into it this early in the game.
Negotiate from a position of strength
You may have a great resume with an excellent academic track record but it is important to present yourself in an impressive manner and to market your strengths.
Do you have any good certifications under your belt?
Many companies now look at other qualities like leadership and a strong sense of community. Did you hold leadership positions in college? Did you volunteer and do something for the community? Research the company and find out about their core values. Says Priya, “You should not just pitch these strengths in a standalone but say where your skill ties in to the organisation.
It is perfectly reasonable to negotiate your first salary offer. After all, the initial raise in your 20s can add up to more savings and investments over the years, increasing your market value significantly. Equip yourself with enough information to negotiate successfully.
Exude confidence but be polite and respectful. Finally, make sure that you understand what the company is looking for and let them know how you can help them achieve these goals.