Why it pays to be a good salary negotiator.

Our last blog focused on Salary Negotiation.  Some of the feedback we received from clients who read the blog was that they wanted more practical advice on what to say and when to say it.

 

“Negotiation does not begin until you have a written job offer in hand.  If an offer is not made, you don’t negotiate and you definitely keep your job search active.”

Charles H Logue

 

The time to discuss salary is in the final interview stage.  It’s important to give your employer a chance to get to know you, to see how well you would fit into their company culture and to give yourself a chance to outshine the other applicants. Conversely, why discuss salary until you are really sure that this is the place you want to work?

Keep your cool, don’t be the first to raise the salary issue.  There is an old adage that whoever discusses salary first, generally loses the salary negotiation in the end.

 

Remember that in a salary negotiation, everything is negotiable.  Think of the overall salary package as a long sheet of options.  At the top are your base salary, superannuation, bonus and other monetary items.  Underneath this is a long list of items that you will need to quantify in advance, so that you know the exact dollar value of each.  Work out the value of everything on the list, including shares, parking at your new location, FBT, Novated lease for your partner, health insurance, discounted loans, health club membership, study leave, rostered day off, childcare, study assistance, etc.

 

Remember it’s the take home pay after tax that is the most important.

 

Another item that you may want to add to your negotiation list is annual leave.  It can be very restorative to take a break between finishing your current role and starting your next role.  Perhaps taking 2 weeks off is more important to you than negotiating extra salary.   These upfront negotiations are the time to mention this.

 

Remember that the goal of any negotiation is to achieve a win-win outcome.  You will need to be prepared to compromise some of your negotiation items.  Keep your ideal salary in mind as well as your lowest acceptable figure.  Make sure that all verbal discussions are followed up in writing.

 

Another element to keep in mind in salary negotiation is pace.  Hiring feelings can cool quickly.  Don’t take too long to decide, and make sure you respond to all communications promptly and politely.  Don’t waste your prospective employer’s time.

 

In the event you can’t reach an agreement, conclude your negotiations quickly and make sure you reiterate your enthusiasm for the role.  The hiring manager may find it difficult to find a better candidate than you in which case you could end up being the successful applicant after all.