Many IT professionals in India accept their first offer without discussion, worried that negotiating will cost them the job. In reality, companies expect some negotiation, especially for experienced hires, and a respectful, well-prepared conversation rarely causes an offer to be withdrawn. This guide covers how to approach it.
Step 1: Know your market value
- Check salary data for your role, experience level and city on several salary research platforms, and treat them as rough ranges rather than exact figures.
- Talk to trusted peers and recruiters about current ranges.
- Consider the company type: product companies, global capability centres, startups and services firms often pay very differently for similar titles.
- Factor in your specific strengths: in-demand skills, certifications, leadership experience or domain knowledge.
Step 2: Understand what CTC really means
Cost to Company (CTC) is the total the employer spends on you, which is not the same as your take-home pay. Ask for a full breakup and look at:
- Fixed pay: the guaranteed part you receive monthly.
- Variable pay: performance bonuses, which may not be paid in full.
- Employer contributions: such as provident fund and gratuity, which are part of CTC but not monthly cash.
- One-time components: joining bonus or relocation allowance, which do not repeat next year.
- Stock or ESOPs: valuable but uncertain, with vesting schedules and conditions.
Compare offers on fixed pay first, then on the rest. Two offers with the same CTC can mean very different monthly income.
Step 3: Handle the “expected salary” question
Recruiters often ask for your current and expected salary early. Give a researched range rather than a single number, with the bottom of your range at a figure you would genuinely accept. Base it on the market value for the role, not only on a percentage increase over your current pay. Be truthful about your current salary, since many companies verify it through payslips.
Step 4: Negotiate the offer
- Thank them and show enthusiasm for the role first.
- Ask for time to review the full offer, typically a day or two.
- Make one clear, reasoned request, such as a higher fixed component, based on market data, your skills or a competing offer.
- Be flexible on form: if fixed pay cannot move, ask about a joining bonus, an earlier review, remote work days or learning budget.
- Get everything in writing before resigning from your current job.
Using competing offers
A genuine competing offer is strong leverage, but use it honestly. Do not invent offers, and do not accept offers you have no intention of joining. Recruiters talk to each other, and a reputation for dropping offers can follow you.
Look beyond the number
Learning opportunities, the team, the technology, work-life balance, stability and growth prospects all matter. A slightly lower offer at a company where you will learn fast can be worth more over five years than the highest number today.
Leave a Reply