Salary negotiation is a critical and crucial aspect of any job situation, and the trickiest part too. Most common doubts raised are “Is it safe for me to negotiate a salary without jeopardizing my chances of getting a job?", as well as "When and how do I negotiate my salary?”

The situation in which a salary is negotiated could vary depending on whether the individual is a candidate with a certain degree of work experience, applying for a position in a company, or is a candidate with no prior work experience, applying for an entry level position in an organization. Another situation could be an employee looking for career advancement in his current organization. The details of each of these situations might be different; however certain basic principles and rules regarding salary negotiation remain the same.

The golden rule of salary negotiations are:

·         Don’t initiate salary talk until you are offered the job.

·         Don’t reveal the salary you are expecting until the recruiter puts forward the figure

Salary negotiation is all about what you think you are worth of? Therefore, before entering into a salary negotiation you need to know the following:

·         Know the market; research salaries

·         Understand your value - based on your skills and experiences

·         Be clear on the skills and qualifications required for the position

·         Don’t overlook the overall compensation package

·         Be clear in what you want.

There are a couple of ways to determine how much the position someone currently fills should be paid: through salary survey analysis, reviewing on-line salary information, and just by asking around.

Take the time to know your salary value. With salary calculators all over the internet, it is easy to gather the information. Salary.com  has a "salary wizard" that allows you to enter a job category and match it to a zip code or location. Research should also include information gathering specifically related to your industry and other people in the industry doing your work. For instance, if you are being considered for a Senior Financial Analyst role at a law firm, gather salary data for SFA's at other law firms and the one where you are being considered. This will help give you a realistic idea of what you can expect in an offer.

Know Thy Self

The most important factor in considering a job opportunity is salary. Everyone works for money. People often find it difficult to prove their points at salary negotiations. It is very important that you get what you deserve on the basis of your performance. For this purpose you should be aware of your skills, capabilities, and achievements.

Self assessment helps you in knowing thy self. You must be aware of the skills and capabilities you have and how you are utilizing those capabilities at work. You should know your job profile and responsibilities. Your inputs form the basis for the results. You should analyze the inputs you are putting in and the results produced. Self-assessment will help you in knowing yourself and making decisions about your salary.

Know the company

Knowing how badly the company needs to fill the role in question could support your negotiating. You could find this out a few ways. It may come across during the interview or by talking with other people in the industry or even by the date on a job posting (if a position has been open for 6 months they may be in dire need of filling it).

When you are negotiating a low offer with a potential employer, and have total faith in your ability to succeed in the role, consider your willingness to base your raise or bonus on your performance. I suggest you be very specific by taking initiative in setting milestones and deadlines. Let the potential employer know that you want a higher salary, but are willing to receive it as a reward.

Most companies share salary data with each other: the typical big-company’s payroll department will have detailed breakdowns on the distribution of salaries for their types of work. So they will generally know within a pretty narrow range what your job is worth.

To save labor costs, almost all companies play a little game. They ask you how much you want. Sometimes there's a slot on your application like "desired salary range." Most people automatically fill in all blanks on a form, so they'll put down a figure.

Unfortunately, many people underestimate their worth, so they'll put down a low figure, less than the company was prepared to pay. It's a rare company who will offer you what you're worth in this situation. Some companies will even bargain down your already undervalued amount.

You're happy because you got what you asked for (or nearly so), and they're happy because they're underpaying you and you're not likely to realize it.

So, the bottom line is: Don't tell them how much you'll take.

Before you begin negotiating, you must have a minimum salary figure in mind. If at all possible, you should talk to several people who are doing similar work in an area with similar living costs. Remember the golden rule, though: have a minimum figure in your head, but don't tell them.

The purpose of the method is to get the company to be the first party to name a number. If it's above your minimum, you accept. If it's too low, you tell them it's too low, but you do not say by how much. They will either break off negotiations or come back with a higher offer.

>>  Select a target salary or total pay. You may not get the amount you want, but having a specific objective can help you get close.

>>  Do not initiate salary discussions. Wait for the interviewer to bring the subject up, even if it is postponed to a second interview.

>>   When asked for your salary requirements, say that they are "negotiable." Do the same on applications by writing "negotiable" in any box asking about salary details. If the form asks you to provide current salary, write, "To be covered during interview." This isn't being evasive, because without knowing details about benefits, how could you select a salary figure?

>>  When asked for your salary requirements, reply by asking the interviewer to share the position's salary range.

>>  Discuss benefits separately from salary. Your list of benefits can include insurance, tuition reimbursement, relocation payments, stock options, bonuses and outplacement upon termination.

>>  Analyze all benefit packages with a family member or friend, or with an insurance, investment or bank professional. They will provide you with an invaluable second opinion and may look at the offer more objectively.

Consider the cost of living if you are moving to a new area, and if it is higher, suggest that you be paid a differential.

>> In discussing why you deserve a substantial increase, use examples of your accomplishments that prove your value, not merely your experience. Comparisons to your current salary are irrelevant and should be avoided; you are talking about the benefits you will bring, not your past salary, which you may have had no control over.

>>   Always assume a firm's first offer is negotiable and never accept an offer at the interview. Express your strong interest, but state you always discuss decisions of this magnitude with advisers whose judgment you have relied upon for years. Tell your interviewer when you will contact him or her with your decision.