Salary Negotiation – The Key to Your Successful Transition

A key element of making a successful transition from one role to another is salary negotiation.  But many of our clients tell us that they find the prospect of negotiating their new salary daunting and a source of anxiety.

Being prepared can make a big difference in the way you approach these negotiations with either your current or future employer.

Obviously everyone wants to earn as much as possible for the job they do.  And responsible employers are looking to pay the least they can to encourage you to do a great job for them every day. 

Part of being a good salary negotiator, is knowing up front what you will accept as your ideal salary and what you can live with and your absolute minimum.  You should do these calculations in advance of the discussion.  Make sure you have worked out these three numbers per annum, plus superannuation and other items that are a standard part of the package. 

Depending on the industry you are in and whether you work for a government employer, your salary may be subject to a band or range.  The scope for negotiating may be quite small.  However there are other items you can include in your negotiations that can help to create a better overall package of benefits that keeps you interested and motivated.

Most employers can offer a range of non-monetary benefits that can all add up to form a better overall package to keep you happy.  Items like a mobile phone, company car and laptop are often considered standard inclusions for some occupations.  Other items like on-site parking, insurance, low interest loans, product discounts and medical benefits can help take care of costly regular expenses that would otherwise come out of your after tax salary.  If your new employer really wants you in the role, but simply has no room to move on base salary, consider asking for additional annual leave, flexi time, or study leave to be part of your yearly package.

The key to a successful salary negotiation is preparation.  Treat this discussion seriously, and take the time to do some research.  There are many ways to find out comparable industry rates. Look at online job sites for similar roles. Speak to friends in the industry.  Many recruitment companies have salary calculators on their websites and these can be a great source of information.

When discussing salary negotiations it is never a good idea to mention your personal financial situation or other sources of income that you may have.  This is not relevant to the discussion.  The focus needs to be on negotiating a salary on the basis of what the position merits - it’s market value, not your last salary or what you need to cover your personal expenses.

Once you understand the offer, it’s important to evaluate it carefully.  If you feel the offer is too low, you can state that your expectations were higher and the reasons for this based on your research of salary for similar jobs in the industry and the experience and enthusiasm you bring to the job.

As for any important meeting, if you have done your homework in advance you will feel much more prepared and confident. Remember at the end of any negotiation both parties should be satisfied.

However if there is no way of reaching a mutually agreeable position, it’s in your interest to be polite and prompt in letting the employer know that you won’t be accepting the offer.  After all, they may have other positions available that are more in line with your expectations, so it’s good to exit the negotiation in a friendly and businesslike way.