SNCM Insight #7

Salary Negotiation:

This negotiation exercise was helpful in ways as it relates to a lot of us as we will be freshers
seeking jobs once we are out of AIM. Initially I had the impression that first time job seekers do
not have much to bargain but during the four simulations two time as an employee and two
time as an employer I understood that employer screens hundred of resumes spending
considerable amount of energy into getting the right kind of employee for their company. Like in
my Case as an employee one of my employer mentioned that he would not mind paying a little
higher if that is what is requires in keeping me. I would like to summarize here the different
learnings I had in different stages:
Trial 1: I was an employee. The first thing I did was formal introduction and some talks on how
the flight was and letting him no my intentions and my impressions about his company. The
thing on my mind was to look at the salary as an overall package because apart from the salary
it also included bonus and relocation allowance. I told him I am ready to accept the median of an
MIT graduate in that sector but would like to have a higher bonus which was tied to my
performance. Then for relocation allowance we searched the internet and calculated it. I feel
because I asked for too high bonus (1% of the revenue) which was way high, and it was agreed
upon it left me appearing as somewhat less caring and trustful. Also, the CEO had some level
some level of dissatisfaction. I feel if I would have explained my numbers more before
negotiation as to why I was asking for it would have lessened the feeling.
Trail 2: As an employer I decided to ask the Monroe (Employee) as to what her expectations are
and the reasons for the number. If that was within the range of his colleagues I decided I will
pay for that. Initially I just talked to her and told her how excited I am in working with her and
how can she really benefit from our company aside from a handsome package. What is the value
in this company and what do we expect of her. Then I asked her price which I found reasonable
and accepted immediately. The conversation before really eased the feeling and satisfaction
level of both of us.
Trial 3: This time I was more cautious as to what I ask and how I can explain my asking price.
Other thing that I did was trying to know before hand as to what is he offering to me. I was
happy to know that his prices were higher than mine so then I negotiated a little increase in the
bonus clearly stating that it would be a huge motivator to perform better. He agreed to that. I
see that sometimes due to our mental structure we try to agree at the first encountered price
without realizing a lot depends on how we prove ourselves.
Trail 4: This time as an employer I used the same strategy. The initial asking price Monroe I felt
was too high ($150000) because she based it on people who are at the executive level. I told her
I get her rationale, but would it be better that I reduce a little bit on compensation and increase
your bonus. I also explained the rationale behind this and how it is mutually beneficial. High
compensation might sometimes create undue pressure. The negotiation was pretty satisfying
for both of us.
From all four negotiations I felt a lot depends on the type of person you are negotiation with and
although each person had the same information, but each was negating differently. Gender also
plays some role.
Key Learning: Try to understand what you bring to the table.
By: Masood Mohammad Shakeeb