Salary management -biggest business challenge before companies
The biggest challenge before business today is attrition, be it IT, BPOs, manufacturing or other services. This has been of serious concern to industry all over the country, but more so in Bangalore as the city leads on the attrition index and has become very worrisome for the managements. More Here


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Establish a Salary Range


It�s perfectly natural to want to jump at the first offer that comes along, especially in this economy. But at the same time, there�s no point in taking a job that won�t pay the bills. That wastes everybody�s time and can lead to frustration as well as financial problems down the road -- and it can be a short road if a little more thought isn�t given to what�s required to stay afloat economically.

One of the most common questions Monster members post on the Salary and Negotiation Tips message board is �What should I say when asked to define salary requirements?�

Establishing a realistic salary range that reflects your actual income requirements is important. Once you�ve done that, the whole process of finding a job becomes much easier, because you know how low you can go and can eliminate prospective jobs that fall outside your range.

Develop a Budget

You need to do some research to come up with your realistic salary range. Take a hard look at your living expenses. Which are fixed? Which are variable? Which are discretionary?

Whip out the old checkbook and start adding up fixed expenses, such as a mortgage payment, rent payment or car payment -- the predictable ongoing expenses. Add in the variables, like a 12-month average of electric bills, telephone bills, heating bills and grocery bills. Finally, do a monthly average of discretionary expenses, stuff like entertainment, travel, gifts and credit card purchases. Add all that up, and you should have a fairly accurate picture of what it costs each month to maintain your present standard of living. This is the amount of take-home money you must earn to at least maintain your financial status quo. While that number may not represent the salary level you want, it will tell you the amount of income below which you cannot go without making some budget cuts.

Trim the Fat

Speaking of budget cuts, depending on your personal financial situation, consider some reductions within the discretionary section of your monthly expenses. It may be necessary if you�ve been out of work for an extended period of time.

Set Realistic Expectations

Many people seem to get caught up in the �they�re not offering what I�m worth� syndrome. Realize that it�s a buyer�s market, and what you may think you�re worth really doesn�t matter as much as what the prospective employer thinks the job is worth.

Determine Your Range

Once you�ve determined your salary requirements to keep body and soul together, make that the bottom of your range, and add $10K to that number to establish the top of your range. Some will argue that you should add $20K to establish the top of your range, but where you put that top amount depends on how willing and able you are to negotiate once an offer is made.

Now, if you�re asked to provide salary information as part of the application process, you can do it without worrying about pricing yourself out of the market or grabbing a job that won�t pay the bills.

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