The Kubera Principle
The Book That Will Change the World
So here is a summary of the discussion we had on Lagos Talks 91.3 FM and Chartered Institute of Personnel Management of Nigeria CIPM (Official LinkedIn Account) on the show: The Office.
Q1
What are the standard components of a salary & please explain them.
Answer: The standard components of a salary comprises different variables
1. Basic salary
2 TAX
3. Pension
4. Transportation
5. Housing
6. Leave allowance
7. Health insurance
8. Group life insurance
9. Car allowance
Q2
Please shed some light on the meaning of Gross Pay & Net Pay.
Answer: Gross pay comprises your total benefits & basic salary without deductions.
While Net pay is just basic income minus all expenses & costs.
Q3
When negotiating salary, do you discuss the gross pay or the net pay?
Answer: It is important to discuss the net pay, but necessary to understand the breakdown of what the organization calls deductions
Q4
Can/Should your previous salary affect the salary negotiation?
Answer:
So this depends on what side of the table you are sitting on. From my personal experience, you should always select candidates in the bracket of the salary budget specified for the role
Q5
Kindly share tips on salary negotiation
Answer:
* Research the organization
* Benchmark your expectations against industry standards
* Do not undersell yourself
* Do not oversell yourself
Q6
What are the common pitfalls made during a salary negotiation?
Answer:
* Self overvaluation
* Lack of information
* Lack of self-confidence
* Your reality / Society’s reality
* Employers / Recruitment team small god mindset
Q7
Could you explain the concept of the Total Compensation Package & how you negotiate?
Answer: Total compensation entails the base salary the employee receives plus other monetized privileges, such as paid time off and health insurance. In other words, salary is one ingredient of an employee’s total compensation.
Q8
In negotiation, how do you respond to a low-salary offer?
Answer: Remember that every interview should be seen as an experience, & organizations like people evolve.
Accepting an offer or saying no to one, can be said professionally, without aggravating the process. This goes both ways, for both the interviewer and interviewee.
