EXACTLY How To Negotiate Your Salary: Watch and Learn

Summary

The video captures a negotiation between a recruiter and a candidate for a product analyst role at a startup. The recruiter offers a 25 LPA package, including salary, bonuses, and ESOPs, while trying to maintain a budget-friendly structure. The candidate negotiates for a better balance between cash salary and ESOPs, emphasizing his financial stability. After back-and-forth discussions, both parties reach an agreement, highlighting the challenges of salary negotiation, company constraints, and the importance of knowing one's value. The video also emphasizes wealth creation and financial management through platforms like Zerodha Varsity.

Takeaways

• 🤑 Salary negotiation is compared to a chess match where both sides aim to achieve their goals.
• 🎯 The recruiter’s goal is to stick to the company’s budget while the candidate tries to maximize their offer.
• 📝 A good negotiation ends in a stalemate where both parties feel satisfied with the outcome.
• 💼 The recruiter’s company offers a CTC of 25 LPA, which includes ESOPs, bonuses, and in-hand salary, but the candidate questions the ESOP-heavy structure.
• 📊 The candidate is concerned about the long-term financial benefit of ESOPs and seeks a balance between in-hand salary and equity.
• 📅 The recruiter reveals that part of the joining bonus will only be given after a year and explains the vesting period for ESOPs.
• 💡 The candidate analyzes the structure of the offer and considers whether the long-term rewards are worth the initial lower salary.
• 💬 The recruiter tries to justify the offer by discussing the potential growth of ESOPs and the possibility of becoming a product manager in six months.
• 💰 The candidate negotiates for a better balance between ESOPs and salary but is met with resistance due to budget constraints.
• ✅ In the end, the candidate decides to accept the offer after weighing the options, recognizing the growth potential and trusting the opportunity.

Q & A

What is the recruiter's main responsibility during salary negotiations?

The recruiter's main responsibility is to stick to the budget provided by the company while hiring talent, aiming for a win-win negotiation.

What is the candidate's initial approach to salary negotiation?

The candidate does not state a specific number and instead asks for full disclosure from the company's side to check if they are in the same salary range.

How does the recruiter try to frame the offer to make it more attractive?

The recruiter includes components like joining bonuses, performance bonuses, and ESOPs (Employee Stock Ownership Plans) to make the total CTC seem higher, despite the immediate monthly salary being lower.

What is the candidate's reaction to the initial CTC breakdown of 25 LPA?

The candidate asks for a breakdown of the CTC to clarify the monthly in-hand salary, which reveals that the in-hand salary is 10 LPA, significantly lower than the 25 LPA total.

What negotiation strategy does the candidate employ after learning about the CTC breakdown?

The candidate asks if the ESOP component can be reduced in favor of a higher in-hand salary, seeking a better balance between ESOPs and the monthly salary.

Why is the recruiter reluctant to increase the monthly salary in favor of reducing ESOPs?

The recruiter explains that keeping the monthly salary low helps the company stay lean and encourages early-stage team members to stay longer by offering ESOPs as an incentive.

How does the recruiter try to compromise after the candidate asks for a better balance between ESOPs and salary?

The recruiter offers to keep the salary at 12 LPA for the first six months, with the possibility of increasing it to 18 LPA if the candidate performs well and becomes a product manager.

What concerns does the candidate raise about the ESOPs offered as part of the package?

The candidate is concerned that the ESOPs may not materialize and that there is no guarantee they will benefit from them, which is why they prefer a higher salary upfront.

What is the candidate's decision regarding the offer after the negotiations?

The candidate decides to accept the offer, reasoning that it provides a balance of earning, learning, and opportunities for career advancement.

What does the recruiter reveal about having a backup plan during the negotiation process?

The recruiter mentions that they have extended an offer to another candidate as a backup in case the current candidate does not accept the offer.