How to negotiate smartly

Your job is at risk these days. Your hierarchy, responsibility and salary level don’t matter. Anyone can be sacked on a day’s notice and almost everyone has or is likely to face either a salary cut or an increment freeze. Therefore, it is critical for you to protect your job and make it the number one priority at your workplace. “With almost 40% of companies reporting redeployment of human resources, large-scale alignment in organisational structure may be expected,” says Sandeep Chaudhary, leader (performance and rewards practice), Hewitt Consulting.

Randhir Roy, 27

Last profile: Sales Executive

Rebound strategy: Decided to take up freelance assignments and wait for the right opportunity. He offered to work on a commission basis and was soon hired by a happy client.

"Look for opportunities in the same field that you were working in. If that doesn’t work out, try and explore other areas where you have at least some kind of experience."

Before we tell you how to become more valuable within your organisation, you should know whose job is at a greater risk. The normal course of action for managements is to first fire employees who have been among the last to join. However, some firms are opting for the opposite logic. “For some, this is the right time to get younger talent as their compensations are not high,” says Kris Lakshmikanth, MD & CEO, Headhunters India.

Similarly, salary cuts are likely to be inflicted first on those who have been hired at huge hikes in the past few years, are rated as underperformers, and whose work has become redundant or is limited to the current downturn.

“Last year, there was a significant drop in the number of employees rated as ‘outstanding’ and ‘above average’,” says Chaudhary. Adds Vishal Chibber, head (human resources), Kelly Services: “There is still a market for top performers while those with performance-related issues will continue to be under the scanner.”

Try to become indispensable
The first step to be perceived as a ‘retainable employee’ is to sort out all the workplace-related issues— fast. Start with little things such as showing up at work before time and volunteering for extra responsibilities. To further recession-proof your career, acquire additional skills. Don’t be afraid to take on a new project even if you don’t know anything about it. Such actions convince the managements that you are willing to learn and are open to exploring new opportunities.

No matter what your designation, it is crucial for you to understand your firm’s business. Learn how to anticipate changes in the industry. “You may be a low-level manager and not dealing directly with customers, but you still need to know the big picture, what makes your business work, where the revenues comes from, and how you can impact the bottom line,” says human resources consultant Navdeep Arora. Setting a Google alert for your company can be a good start, but also interact with the various departments, especially with the sales and service staff.

“In these challenging times, one cannot dictate terms; one has to be flexible,” says Naresh Malhan, MD, Manpower India. He adds that, “across the board, employees should tone up their efficiencies and move from single-skill to multiskill competencies”. So, make sure that you learn the art of multitasking to increase your productivity. Remember, every time an organisation sacks people, it becomes necessary for everybody else to take on extra work.

In some cases, where sacking is almost inevitable, it may be a better idea to suggest a salary cut and shift to part-time work. Such decisions make it easier for managements to agree to your choice, and also let you look for another job while earning a part of your earlier salary. This is what Varun Garg, who works for a production house that makes TV promos, did. After he was asked to leave, Garg, who has an editing machine at home, told his manager that he could work from home for a small, but regular, stipend. The company agreed. His pay was reduced to 40% of the original, but he was technically retained as an employee. However, he could take up freelance assignments. In fact, the sales department regularly passes on low-value clients to him to help him make up for the salary loss.

Take more risks, don’t relax. Think innovatively to help your firm deal with the economic crisis. Make sure, your employer thinks of you as an enthusiastic, valuable member of the team. Although instinct will force you to ‘hoard credits’, don’t miss a chance to ‘share credit’ with others. Such acts of goodwill can provide a high bulletproof value. “Assume that you are hiring someone to do your job. Can you picture your perfect replacement? What would he/she be like? Now, be that person,” says S.P. Tripathy, director at executive search firm El Dorado Consulting.

You can also become the person that your company needs. For instance, Ali Riaz (name changed), a corporate lawyer realised that his firm had decided to reduce the number of partners. So, instead of staying in Delhi, which had the highest number of partners, he agreed to shift to Chennai and set up an office there. The move yielded him three advantages: his firm had to start operations in Chennai due to the clients’ demands, his salary wasn’t cut since this was a promotion of sorts, and his expenses came down as the cost of living in Chennai is cheaper than in Delhi.

However, these are difficult times. So, don’t take anything for granted. Update your resume regularly and keep in touch with colleagues. If you feel the firm may lay off people, find a job and leave. “One has to be cautious about suffering from survivor’s guilt, the feeling that you might be the next on the firing list,” says Rajesh A.R., V-P, TeamLease. This also helps negotiate a better severance compared to those who are forced to leave later.

The lay-off pay-off Employers don’t have to give a severance pay, but do so as a gesture of goodwill. Play on that.

Plan in advance: Review your resources and expenses to determine your financial needs. Create a list of benefits you want to negotiate. Read before signing: Get the deal read by a lawyer if possible. Deal with the boss: Talk to someone who has the authority to tell HR what to do. That could be your boss, head of your division or even the CEO. Take help: Some companies hire a firm to find you a new job. Some even offer training. Take advantage of these offers. Avoid non-compete clauses: These reduce the number of companies that you could work for.

  Be your replacement
A job loss is such a traumatic experience for most of us in terms of shock, shame and fear that our first instinct is to accept whatever severance package is being offered and run home. But resist this urge. In fact, try and find ways to delay your departure from the company.

The excuses for this can range from convincing your employer that you need to finish existing projects for the company’s sake, to training the person who is likely to take on your job responsibilities to ensure a smooth transition.

If you manage it, you earn a couple of months’ salary; in addition, it gives you a breather to negotiate your severance. Since there are no fixed norms for severance in most companies (even if the formula is fixed, the number of months for which it has to be paid can be varied at the whim of the employer), this is crucial. Always discuss your final settlement at an individual level with the human resources personnel or your immediate boss. Never go as a group, as this can miff the management.

At the same time, be aware of the incentives that others have got. It will act as a warning against being short-changed. In many cases, the organisation tries to help those who have been sacked. For instance, many agree to continue with a few benefits, assist in finding a new job, and agree to other perks. Others are willing to provide good recommendations, which can help you negotiate your next job. Infosys not only provides the services of a head-hunting agency to pink-slipped employees, but also offers to train them for the next job.

After working for seven years with a consultancy firm, Sushil Kundu was on his way out when the project assigned to him in March 2008 was shelved. Undeterred, he approached a former client from whose project he had been relieved midway. Since this client liked his work, he insisted that Kundu be present at all it project meetings. The consultancy firm had no option but to give Kundu a three-month extension as well as his annual bonus, and he even retained the company’s car which, he said, was required for the meetings.

Even after everything has been agreed upon, read the final documents carefully. It may be a good idea to take them home to figure out the fine print. If possible, show it to a lawyer. This is important if you want to take legal action against your employer. Also, remember, that in legal cases, it is imperative to document all discussions with your employer, so pen down everything as internal memos or e-mails.

Avoiding a salary cut Act fast, and smart, to be the employee who does not have to take a cut in his salary.

Volunteer: Make yourself indispensable. Volunteer to do work that others balk at doing. Be noticed: The invisible guy is usually the first to go. Toot your own horn—but casually. You just want the boss to know you’re around. Be positive: Don’t get involved in office gossip. Be neutral in your responses to negative comments and remain loyal to your employer. Evaluate yourself: If you have been at your job for many years, you may be cutting corners or not putting as much effort into it as you did. See what you can do to improve job performance.

Be proactive to get a new job
Avoid everything that puts your job in peril. These would include aiming for huge hikes (50% and above), opting for fancy designations and pursuing short-term professional goals. There’s nothing wrong in accepting a lower pay if you feel that the future prospects are better with a certain firm. Similarly, weigh the pros and cons of multiple offers (if you get them) before deciding upon one.

Be critical while evaluating your skills. Know your weaknesses, but don’t hesitate to articulate your strengths while talking to a prospective employer. Knowing which skills are suitable for which jobs can not only expand your horizon, but also allow you to present the relevant sets in your resume or discussions with employers.

Finally, lower your expectations considerably if you are sure of your final goals over the next few years. Take the case of 25-year-old Ajay (name changed), who finished his course at the London School of Economics and was offered a job with Lehman Brothers in the US last year. When Lehman was taken over, it asked him not to join. However, Ajay wanted to work in America with a global financial services company and he was convinced that the employment slowdown would not last forever. So, he took up a job as a waiter in an Indian restaurant in New Jersey. “The job was enough to finance my stay here, gave me a break from the stress, and enough time to look for the job that I was really interested in,” he says.

In these difficult times, your job is a key asset and also your number one priority. So, even if companies keep coming up with innovative ways to reduce their compensation costs, you can find your own means to be counted among the better performers. This will ensure you are not the first name on the list when the company thinks of downsizing.

New Rules at the workplace The workplace norms are changing fast. No longer can you assume that you’ll get all the perks you once took for granted. In fact, you might get none at all this year. Here are the ways in which the office rules are being redefined. 1. Increase in variable component of the salary compared to the fixed component. 2. Longer probation periods for trainees and new staffers. 3. Lower intern stipends; sometimes no stipends offered to trainees. 4. Stricter identification of top and bottom performers; greater salary differentiation. 5. Realignment of teams, which means upgrading of skills required. 6. Cutback in perks like company-paid vacations or cash reimbursements. 7. Shifting of office to a cheaper location farther away from home. 8. Cut in overtime pay for non-permanent employees.
What the companies are doing This is how various organisations are tackling the problem of having to retrench employees:
Who gets fired first? Last in, first out. First in, first out. Non-performer. Projects shelved. Rank-based lay-offs.	Lay-off Options Cut pay, but stay on rolls. Continue some perks. Reduce variable pay. Encourage unpaid leave. Shift to low-cost locations. Absorb staff in future ventures.