How much do you think you are worth?

Negiotiating ones package is often a scary concept for many people. However you need to be confident when coming to the table to discuss the remuneration.

Think about it…Do you deserve to be well remunerated for my time, effort, experience and knowledge?

If the answer is yes, then knowing some techniques of negotiation can be an asset.

Bear in mind that a shrewd employer is going to try to get you for a little as possible - it’s a fact of life. If you answered no, then go back to the list of your skills and strengths to remind yourself just how worthy you are.

When to discuss salary?

Many employers will ask applicants for their salary expectations up front. However, experience shows that the first person to name a figure usually loses in the negotiation. By naming a figure too early the potential employer may also be basing their selection decision on the dollar figure rather than on who is best for the role. Therefore, it is best to delay giving a figure that will ‘lock’ you out of negotiations.

The best time to commence negotiations is:

• Once the company has realized they cannot let you go. It can be difficult to gauge exactly when this is but it is often after the second or third interview. If you pay attention to the cues, you are likely to know how the interviewer is feeling.
• Once you have gotten to know them and are able to pick up on the cues they are giving you.
• Once you know exactly what the job entails.
• Once you have decided that you really want to work there and are not just taking the job to get a job.
• Once you are in the final interview phase.
• Once they have said they want you.
• Once they have said they must have you.

If the employer does ask what salary you are seeking try using the following methods: Delay, Deflect and Give range.

Delay

Use this technique to acknowledge the question, but do not give an answer.  For example you could say

• “I couldn’t really say without knowing more about the specifics of the role”
• “I think we may be in the same ballpark, but could you tell me a little more about…?”
• “Until you know you want me and I know I want the job too, that might be a little premature. Can we talk more about…?”
• “My requirements are flexible”

Deflect

Turn the question back by asking what they believe the role is worth.

• “What is the range you usually pay”
• “Based on the role, what figure did you have in mind?”

Give range

If the employer still pushes for an answer it is best to provide a range. For example

• “Based on what I know of the role I believe a salary in the range of $50,000 to $60,000 a year plus superannuation would be appropriate.”

But, be sure that you would be happy to accept the low end of the range because your response would signal that you are happy to accept it.

It is important that you go into any negotiation having done some prior planning and preparation. There are countless websites that provide information regarding salaries. Most surveys are able to specify geographical regions, occupations and industries. These sites may give you the information you are looking for:

• Hays
• Payscale
• Peoplebank
• Seek

Research can also be done off the internet. Talk to people at the company. Talk to people in the industry. Talk to recruiters. Talk to your networks. Looking in the paper at job ads may also give you a hint at starting points for salary negotiations.

Closing the negotiation

In addition to base salary it is important to discuss and negotiate the issue of fringe benefits. These include options such as performance bonuses, income protection, superannuation, allowances, additional leave benefits or subsidized insurance policies.  If you are relocating for the role, also consider relocation allowances.

Depending on the role some of these may be more important than others. For example if the position is for a sales executive where the expectation is for regular travel around the city, negotiating a car allowance would be acceptable.

Once you have reached an agreement on remuneration issues, it is important to get it all down in writing, through a letter of offer or employment contract. Without this it is all too easy for the employer to ‘forget’ the promises made in the negotiations.