Cross Salary Negotiation for a Job Offer

A few days back when I met one of my old colleagues, he was very happy. Not because of me but for a different reason. The excitement was coming out of his eyes and his expression was like “Ask me why I am happy?” It happens when you are too happy and you meet your old pal.  I asked, “Buddy, what’s the good news?” He said, “I got about 50% salary hike in my cross salary negotiation with a company and now I am changing job.”

So the excitement was more about getting 50% salary hike which is indeed a great achievement for a job seeker. But was it ethical to have Cross Salary Negotiation? Many of the readers would be knowing about Cross Salary Negotiation. If not, then let me tell you about this.

Cross Salary Negotiation.

Negotiation of salary against a job offer with already negotiated salary is called Cross Salary Negotiation. Let us take an example. Assume your CTC (Cost to Company) at your current organisation is INR X / annum. Now you approach company “A” and after clearing interviews, you negotiate your salary with HR team. A typical high of 20%-30% is followed as per the industry standards. Assume that you managed with 25% because of your good negotiation skills. Offered CTC to you is X + 25% of X = 1.25 X in this case. After this, if you negotiate with a Company “B” and seeking hike over 1.25X then it will be termed as Cross Salary Negotiation. And if you negotiate with the current company then too it is the same thing,

Why does Cross Salary Negotiation happen?

Sometimes the employees just want to correct their salary figures, which he/she feel that was low as per industry standards. With having no other reason to leave, the employee gives chance to its company to correct salary and retain them. But in the other case when he/she goes for other company, it is more about trying the luck or greed of even higher salary.

There are many good or bad reasons for a job change. (Read: 5 Questions you should ask before job change). But once decided to change the job an employee starts looking for opportunities. They appear for interviews and after clearing it they negotiate for designation and Salary. Now after getting an offer letter, the employee turned candidate is having three options:

Option 1. Accept the offer and change the company: This is the simplest way. It takes lots of effort & time of HR Guys, Consultancy Company, and the interviewer to reach the final stage of offer making. The moment a candidate appears for an interview, it is a silent agreement that he/she will join the organisation if the offer is made as per the discussion. By not joining the organisation after acceptance of the offer or after raising offer for acceptance, Candidate breaks basic ethics of job search. Not only the organisation will blacklist the candidate for few years but also it may cause bad name in the industry as nowadays all companies of an industry are connected via the different mode of communications. A candidate must accept that their last payslip will be considered as a benchmark for discussion and they need to prove their worth and reason to demand a higher salary.

Option 2. Take the offer and cross negotiate with current Company: When salary correction is the prime motive and there is no other reason then it happens. It also happens when an employee overvalues their worth. In this case, the employee needs to very diplomatic in approach and the cross negotiation should not appear as blackmailing. If the cross negotiation is initiated by the company after putting paper then the employee can yield better results out of this. But if cross-negotiation is initiated by the employee then it more appears like greed and blackmailing. If cross negotiation happens and the employee decides to stay then he/she need to turn down the given offer letter by the other company. As mentioned in option 1, it is a very negative situation. It can be okay only if the employee stays for a long period afterward. It damages the track record in the current organization as well and takes few years to be normal.

Option 3. Take the offer and negotiate with other company: This happens when the employee turned candidate want to try luck for even better salary. Most of the times it is greed. An analysis says that chances of getting success in such cases are very less. If any company is ready to give hike over other company’s offer then it has just two meaning, either you are extremely talented or the company is in die-hard need of an employee. Nowadays finding an extremely talented candidate is really tough and if the company is badly looking for some capable person to join then it may have many hidden shocks and surprises. Apart from this, it will have all negativity of option 1.

So, what to do?

There is no perfect path and there is no perfect method to get success. Only maturity, handwork, intelligence, and dedication can give you the right position. It is strongly recommended that if you have accepted any job offer then join that. It is not only an ethical practice but makes a good brand image also. Think about every aspect, before you are having a job offer on your desk for acceptance. It is very okay if you say not to raise offer letter in case you are not satisfied with the offered salary, designation or both. Once offer letter raised, decline only if there is any condition which wasn’t discussed earlier or there is any mismatch of figures committed and offered.

Don’t get fascinated by salary jumps of others, you are not seeing the hidden negatives. You need to understand unusual spike comes with unusual risks.


Check Disclaimer.

Post Author: SimplyVedant

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