Talking about salary can feel uncomfortable for both employees and employers, yet it often plays a big role in whether someone accepts a job or stays in one. Because of that, learning to negotiate pay is one of the most important career skills you can build. Whether you’re interviewing for a new role or asking for a raise, speaking with confidence can make a big difference.
But why do so many people shy away from these discussions? A CareerBuilder survey reveals:
- 53% avoid negotiation because they feel nervous asking for more.
- 48% worry the offer might be withdrawn.
- 38% don’t want to appear greedy.
So, how can employees navigate these conversations effectively—and how can employers balance fairness, budgets, and market standards while maintaining trust? Let’s explore.
Why Salary Talks Are Tricky in India
Salary negotiations in India are often complicated by several factors.
- Cultural Barriers: Discussing money is often considered uncomfortable, leading many candidates to avoid or cut short negotiations.
- Power Gap: Many candidates accept the first “no,” assuming HR’s decision is final.
- Fear of Risk: Candidates worry that negotiating might seem disrespectful or hamper the offer.
- Lack of Research: Many skip checking market salary benchmarks and accept the first figure presented.
- Employer Constraints: On the employer front, budget limits, economic pressures, and preset pay structures make negotiations challenging for employers too.
Beyond these practical issues is a more personal struggle. Performance Elevation Coach Karishma Maini says salary talks can feel like trying to please while negotiating the value of your worth.
She explained, “The candidate wants the other party to appreciate and value them but at the same time, the other party is engaging in a subtle debate on the worth of the value the candidate brings to the table. This can be uncomfortable and even triggering for some.”
According to Maini, a common mistake is relying on traditional back-and-forth bargaining. “Each time the company pushes back, it’s a blow to their self-confidence because the subtle message feels like: No, we don’t think you’re worth that much!”
How Employers Weigh Fairness, Market Rates, and Budgets
For employers, offering a fair salary is no easy task. Budget limits, market standards, and performance incentives all need to be balanced. To create a win–win outcome, employers can use smart negotiation strategies such as:
Determine the Market Rate: : Find out what similar jobs in the industry pay at different experience levels. Also, consider benefits, and each employee’s needs.
Be transparent and thorough: Make sure to explain every aspect of their total compensation package, including healthcare benefits, bonuses, flexible work options or other perks.
Align Offers with Company Budget and Pay Structure: Ensure that a candidate’s salary expectations are balanced with your budget and compensation strategy. Paying too much or too little can create pay equity concerns and impact employee satisfaction.
As Sakshi Singh, HR Head at Oximobi Media, explained, approaches vary by organizational stage. Early-stage companies often compensate for limited budgets with learning opportunities or future wealth creation. Scaling organizations aim for market parity with new hires, though existing employees may experience variations. Mature organizations can tie career growth to rewards through analytics-driven pay structures, ensuring long-term fairness.
Smart Strategies for Employees to Negotiate with Confidence
We spoke with HR experts to uncover strategies for negotiating effectively and securing a compensation package that truly reflects an employee’s worth. Here’s what they had to say.
- Know your worth: According to strategic HR leader Rushita Adroja, employees should first research industry salary benchmarks to understand their worth. They should clearly articulate their achievements and values, and communicate with confidence and respect.
“Framing the discussion around mutual benefits can ease tension and improve the likelihood of a successful negotiation,” she added.
- Do your homework: It’s perfectly fine to aim high, but before proposing your desired salary, make sure to do thorough research. Online platforms like Glassdoor and AmbitionBox can help you identify salary ranges for similar roles in your area.
Sakshi added that combining research on your skills with market demand creates an effective benchmark. When multiple pay data sources are unavailable, highlighting measurable contributions and tangible impacts adds objectivity to the conversation.
- Avoid giving a salary range: It’s usually best to keep your cards close when discussing salary.
Karishma advises not giving a range for your expected pay, as it can make you seem flexible and may result in a lower offer. “Think about it – When you walk into a store and ask the price of a pen. The shopkeeper doesn’t say give you a range, instead they give you one price. Now imagine if they did give a range. Would you ever pay ₹150? Of course not. You’d push for ₹100 or even bargain down to ₹80. That’s exactly what happens when you give a range in an interview,” she concluded.
Salary negotiations are not just about securing a number; they’re about shaping your career trajectory and building confidence in showing your worth. Handling these conversations carefully can build trust, show your worth, and open doors for future growth. With preparation, clear communication, and a respectful approach, both employees and employers can make these discussions a win-win deal for everyone.
