Salary
negotiations
This article is predominantly focussed on the critical part
of the journey towards being offered and accepting your next role. You will
however, be able to leverage some of the tips below when negotiating at salary
review time.
No matter how comfortable an individual may be with
negotiating a successful deal at work, or buying a new car, the thought of
negotiating their own salary either during an employment selection process or
at salary review time can be a cause for considerable concern. You are most
likely presented with one opportunity, during which you state your position and
attempt to achieve the best possible outcome. If things go perfectly your
expectations will be met (or even better, exceeded) or in the worst case
scenario the prospective employer finds your demands to be unreasonable and
negotiations break down irreversibly.
Here we explore the methods behind ensuring the negotiation
process gets the right result:
What are you
worth?
This is very important to establish prior to applying for
your next role. How does your current level of remuneration compare to what is
currently happening in the market for similar role profiles and levels of
experience? Explore salary checkers, speak to recruitment consultants and harness the power of our network where possible to find out what similar level roles are currently paying.
Seek out relevant
opportunities
Now that you are clear about what your expectations are
(financially) for your next role, the search is on to uncover opportunities
that meet your requirements. Of course you will be clear in your own mind about
these ‘parameters’, however if you are engaging with specialist recruitment
consultants it is imperative that you outline your expectations early on in the
process. Assuming the recruiter understands your aspirations and the types of
roles and organisations that could be an optimum fit, a benchmark level of
remuneration expectations will ensure you are contacted regarding positions on
the right pay scale.
If you have sourced an opportunity yourself through your
network or have applied to a position directly with an employer then it is
likely that the employer will be keen to establish your expectations prior to
inviting you for an interview. Key points to remember:
·
Try to avoid discussing salary until you have a
job offer. It is certainly important to understand what the role is paying so
get the employer to disclose the remuneration details before you do.
·
When pushed to disclose your salary, focus on
expectations and even then you should try and counter that with a question to
uncover the client’s desired pay scale for the position.
·
Be clear on all the elements of your desired
package – if you expect health care, gym membership, shares and stock options
then tell the employer. If they are not offered by the employer then they will
have to be compensated in a different way.
·
If the word ‘package’ is mentioned by the
employer, ensure you have a clear breakdown of the fixed level components i.e.
Base salary, car allowance, superannuation, health care, annual leave loading
etc. You may discover that a significant portion of the package is made up of a
highly geared bonus that is indexed around overall company performance.
·
Establishing rapport with the employer from the
point of first contact will make the experience more enjoyable for both
parties.
The interview
process
The steps above outline the setting the tone for the ‘face
to face’ parts of the selection process. Let’s consider that both you and the
employer have established that there are now grounds to meet in person. It goes
without saying that in order to secure an exciting opportunity and a pay rise
you will need to sell yourself to the best of our ability during an interview.
Instead, let’s focus on a couple of key points to remember for when those
interviews take place:
·
Be consistent – if you are asked to confirm your
salary expectations during an interview then this MUST be in-line with what you
have previously communicated throughout the process. It doesn’t look good when
your expectations suddenly increase from one stage to the next without a really
valid and well thought-out reason.
·
Don’t become irritated if the employer asks to
re-confirm your salary expectations. There could be new stakeholders involved
in the process who have genuinely not been provided with this information.
·
You may, when prompted, outline your involvement
in other interview processes and at what stage of proceedings these currently
stand. This will provide the employer with a clearer view of which candidates
they are potentially at risk of losing from the interview process. Avoid being
too aggressive by outlining this at the start of an interview. Sell yourself
and ultimately win over the client before broaching the issue.
Congratulations –
you’ve been made an offer!
Most employment offers are made after the final interview
has taken place and the necessary background checks and testing has been
completed. If you find yourself being offered a job during the final interview,
try not to get caught up in the experience by being too impulsive and accepting
on the spot. Be courteous and polite, thank them for the offer and communicate
you will be keen to review the offer in writing and digest the entire
situation.
When you have received the written offer letter/contract
through:
·
Consider all aspects of the offer – both
monetary and non-monetary. This is especially important for opportunities
whereby you may be relocating or if you are considering moving into the NFP or public
sector. Write down all the pros and cons associated with the role and company,
and furthermore work/life balance, commuting distance and costs, industry
sector, professional development etc. Each aspect requires a weighting based on
your own values.
·
Take your time – you have demonstrated
throughout the process why you are the best candidate for the role, now take
the weekend or a couple of days to make the right decision.
What if the offer
doesn’t meet your expectations?
It could well be that the sum total of the package on offer
falls short of what you were expecting. Avoid any emotional reflex of calling
to discuss the offer if you are particularly angry or feel hard done by.
Reflect, and analyse the components that are potentially missing and write a
list of possible options that could make up the shortfall.
If the offer was made via a recruitment agent then it is
important they understand your exact positioning in this regard. The conditions
towards which the offer will be accepted should be crystal clear, and you
should obtain an understanding of what elements are non-negotiable.
When receiving an offer via an employer that you deem
unsatisfactory, try to arrange a face to face meeting. You should already have
developed significant rapport during the interview process and this
demonstrates your commitment to driving a successful outcome. If this is not an
option then decide on the best form of communication. Stay positive and
reinforce your enthusiasm for the role and company throughout.
Once you have arrived at a point that signifies ‘the final
offer’ when all negotiations have been completed, it’s decision time!
If you are happy to accept the offer, request the contract
through to double check on everything that was agreed.
Conversely, if the final offer still falls short of
expectations then decline gracefully and thank the employer for their time and
investment in the process. You never know if further down the track a more
senior opportunity may come up that meets all your requirements!
