Jan 6, 2010

The Salary Negotiation



Ajay met Gautam for a cup of coffee during his visit to Delhi for the holidays. He had read Gautam's blog for the two years he had been in his MBA. He had mailed Gautam once to get some thoughts on a HR project and over the next one year they had started been in virtual touch first by email to Linkedin to Facebook.

Gautam asked "So Ajay, how is this job you're doing at Bangalore?"

Ajay replied "It's great. For someone like me just out of B-school a start-up gives great opportunities to learn - and actually come up with and implement my own ideas. I am the only Management guy in HR and I report directly to the Director of Ops. It's great!"

"Good to hear that" Gautam grinned, picking up his Americano as if to say a silent 'cheers!'

"However, Gautam, I have this dilemma - I appeared for this interview with a huge FMCG firm - and its a great role in the Corporate office looking after Performance Management for employees in the whole of the Northern Zone"

"Why would you look forward to a job change now?" Gautam asked "You just joined this IT firm from campus barely 10 months ago - and you seem to be doing well there"

Ajay said "Last year when we graduated, hardly any of the big recruiters came to campus, and the salaries we got were really low. This year the companies are visiting my campus again- and my juniors are poised to get higher salaries than me. So I don't want to miss out. This FMCG firm is also in Gurgaon and my parents are in NCR ...so it makes sense for me.."

"Hmmm... so what's the issue"

"Well I have been in three interviews and I think they really like the work I have done" Ajay said "However, they are just offering me a role at 7 lakhs and money for relocation"

Gautam asked "So what are you planning to ask them?"

"Well Gautam, my salary just increased in my firm to 7.5 lakhs, and the tax saving components are much better, so that's what I told them. And I told them I would be getting ESOPs too in the near future"

"So what did they say?"

"The person I would be reporting to didn't sound very enthusiastic - however his boss seems very keen that I should join - so am hopeful that it would work out"

They then talked about other things - and departed wishing each other a Happy New Year.

The day after next Gautam got a call from Ajay "Yes, I finally got the final offer, after negotiating - and calling the GM in HR a couple of times - up to 8 lakhs and a joining bonus of 50 thousand. They reduced my relocation amount to actuals - but I think I got myself a pretty decent deal. They said since I would be staying with my parents in Delhi I would be saving a lot - but I told them that I would be staying in Gurgaon close to the office to keep the commute to a minimum"

"So will you do that?" Gautam asked

"Yeah - absolutely"