Salary Negotiations

Tips on Negotiating a Better Salary

Negotiating a salary is usually a sensitive and awkward topic, but is an important part of the interview process. Salary negotiation is definately worth considering and if you negotiate your salary well, you can reap great financial benefits. If you are not prepared to negotiate or are unsure, you can lose out on benefits, mainly financial and other fringe benefits. Negotiating a reasonable salary will convey to your employer that you are confident about your skills and what you can bring to the company. Reasonable salary negotiations can work to your advantage other than financial gains.

Establish Your Salary Range

Before you go the interview and negotiate a salary, determine what you are worth and your salary range. Other factors that should be taken into consideration are:

1. What is the minimum salary you are prepared to negotiate?

• How much money do you presently live on?
• Do you need to earn more money?
• How much money do you need to pay bills and also the cost of living expenses?
  What is your current salary?
• What was your last salary?
• Does the interview seem like a reasonable individual and prepared for salary negotiations?

2. How low would you be willing to go if they offer you other benefits such as?

• Company Car
• Expense Account
• Fleet card for petrol
• Paid Holidays
• Profit Sharing
• Retirement plans/Superannuation
• Preferred Hours
• New Skills you will gain
• Meaningful Work
• Educational Reimbursement
• Good Working Conditions
• Convenient Location
• Opportunity for Advancement

3. Consider the industry's "going rate" or market value before you negotiate a salary.

• Phone a wage hotline and obtain the standard award wage for this industry
• Talk with friends in the industry and ask for their advice on salary negotiations.
• Investigate other similar job openings
• Look on the web for information regarding salary negotiations

4. What "Selling Points" do you have to qualify for the upper end of your salary range?

• Do you have salary negotiation "power"?
• Years of experience
• Education/Training
• Volunteer Experience
• Geographic Location
• Awards/Recognition

5. Consider how your job performance will help increase the company's profits, decrease their costs and create further efficiency to the company. Understanding this side of the business will give you extra bargaining power when it comes down to salary negotiations. The income you generate or save should be at least three times your salary.

Establish Your Value during the Interview

To be employed you must be one of the best candidates for the job. Until the employer is convinced of this, you have no bargaining power when it comes to salary negotiations. So never discuss or think about salary negotiations before you are offered the job. This can be very off-putting to the interviewer. If the interviewer offers you a salary but they are not 100% sold, just continue to sell yourself. Try and gauge the level of competition before you negotiate a salary, this may be difficult however. If there is strong competition for the current position, salary negotiations may pove to be tricky. A few ways to tell if the interviewer is impressed by you include:

Questions asked by the interviewer:

• Asking for details about when you are available
• Trying to find out if you have other proposals/job offers
• Asking when you can start

Behavior of the interviewer:

• Smiling knowingly
• Answering questions in a more relaxed friendly manner
• opening confidential files

Interview Begins closing the sale by:

• Explaining the company benefit package to you
• Giving you tips on how to convince the final decision maker
• Telling you "insider stuff"
• Using the "you will see" and "when" instead of "if" or "we" instead of "you"
• Inviting you to visit the office/factory or your future office/desk
• Inviting you for lunch
• Introducing you to key people and/or decision makers

Determine the Employer's Salary Range

Do not put the interviewer off by asking for an unjustified high salary or sell yourself short by asking for too little. If you ask for too much they will assume you will not accept what they are offering and you will not be made an offer.

If you ask for less than they plan to pay, you may get the job at a much lower salary than you could have. This mistake could cost you thousands of dollars.

Note: One dollar an hour on a full-time job amounts to $2080 per year! So salary negotiations are something to prepare for.

Always get the employer to name a figure first.

If the interviewer offers you the position but asks what your salary range is, here are some ways you can answer:
-"I am really interested in long-term growth and advancement. So I am willing to start at the rate your company pays others in this position".

-"I don't have a particular amount in mind. I am primarily interested in a career with your company, not just a job" If they seem hesitant to give a figure and want you to initiate the discussion, try:
-"I know you have other people in this position, what is their salary range?"

If the salary depends on experience or education say:
-"You have a copy of my resume, based on that and the interview, what do u think is reasonable?"

If the interviewer answers any of the above responses or similar responses with a dollar figure, just go along with it. Do not comment on the salary until they offer you the job. Once they offer you the position, if the salary is below your range, consider the other benefits they offer before suggesting a higher amount.

Negotiating A Salary

It is important that you salary negotiations produces a win-win situation, so that both parties feel they have reached a fair deal and are happy with it. Sell your strengths and deliver more than you promised. If the employer feels cheated, they may discontinue with the recruitment process. Here are some strategies which will help you in the negotiations. Salary negotiations can be quite liberating for both parties when both parties happily agree on the terms.

• Refer back to the research you conducted when "establishing a range" and use this information during your discussion which the employer. Your awareness of the industry's average salary for the position will allow you to discuss it specifically and intelligently.
  
• Be truthful in letting the interviewer know what other proposals you have and the salary amounts you have been offered, do not make up offers as it could backfire.
  
• Suggest trial period where you work at the lower salary for 3-6 months with an agreement to have your "skills and attributes" re-evaluated and a salary increase considered. If you choose this option be sure your work proved you are worth the higher salary.
  
• Consider all the factors, such as your ability to live on the salary offered, your desire to work for the company, opportunities for advancement and your ability to do the job above the employers’ expectations. So asking the interviewer to re-negotiate your salary in 3-6months would prove profitable.