One of the golden rules of negotiation is whoever speaks first loses. What are the other rules that exist that, if you use them well, will lead to ...
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What to do when they ask our current salary say that they can provide max X percent hike on that and also say that this information is necessary to proceed the application for the interview so we cannot skip this.
My recent experience with this question taught me this:
I completely agree with you regarding current salary being irrelevant to the future salary. The current salary is as per the skills analysis by the current company and the new company cannot carry forward that.
But the real challenge is convincing this to recruiters and HRs especially in India from where I am who have corrupted mindsets following this strategies for salary discussion even before the interview. Also, almost all the candidates reveal their salary details and accept the percentage hike as given by the recruiter. So if any one candidate who does not follow this will be odd man out and will be rejected in the application stage itself even before the interview.
Irony is that they ask candidates both current and expected salary without specifying the salary range or other compensations details or perks for the position. When asked about the salary range, they say they provide 30-40% hike on the current salary. So, I once asked recruiter then what's the point of asking the expected salary when that is fixed by the specified percentage without the interview. He replied this is to check the expectation is not beyond their percentage hike.
Your suggestion of giving range for current salary sounds cool and will try it.
Surely, in that sort of situation, the best approach is to give yourself a pay rise: when asked, increase your salary by some believable percentage.
If someone happens to know your actual salary and calls you on it, you could say that you were including the value of the various extra benefits provided by the organisation.
I like bouncing the question back - it sounds like the best way to handle this. I found some of the suggestions in this guide helpful also, especially pushing back salary conversation until the very end. Last time I negotiated, didn't do that and I'm sure it cost be tens of thousands. Here if anyone else is negotiating: candor.co/guides/salary-negotiation
I'll follow what the blog says, calculate the hike they are ready to give. Have a number in mind that you expect. If the offer doesn't exceeds, you probably wanna pass this company
At one of my previous jobs, I negotiated a +$10k/year increase at the very beginning, before signing the contract – and it worked the "no questions asked" way throughout the following 5 years I spent in the company.
Which sounds contrary to the "Don’t Say a Number" advice. But every case is unique.
You bring up a good point. The part about not saying a number has multiple parts. You can absolutely negotiate at any point and be the first to say a number. The reason I advise against it has to do with the number you start from.
Too many devs think of their current salary and then negotiate from there. Companies have a salary range that is often invisible. So when a dev starts with a number they often put themselves too low in the salary band. If they go too low outside the run the risk of looking incompetent, if they go too high they are unaffordable.
When the company gives the number, on the other hand, they will pick one based on their internal range, their internal urgency, and how willing they are to continue looking. This generally leads to them picking a higher number than most devs will, and then you can negotiate up another 10%.
In the same time... I have cases with companies saying e.g. 90k and then being able to raise up to 135k throughout the negotiation process. Which also indicates for me that a company can start way lower than they are prepared to pay.
Thats a lot of money, good job buddy!
What if it's your first time???
Great question.
When I mentor devs who are after their first job, I advise not negotiating. Here's Why:
It's hard to get that first job.
There are so many things to get right that adding the stress of negotiating, which is very intense, is too much to ask. The stress of getting through the tech interviews and all of that is crazy. I recommend focusing on getting through the interview as the priority. Negotiate when you can handle the extra stress.
Now, we all have different appetites for these things, so if you want to negotiate for the first job do it. Remember, be willing to walk away. If you can be in that space mentally you are in the right frame of mind to have that discussion.
Very good article Ryan, we almost wrote the same thing with different context. Being ready to walk away is the super power.