How to negotiate your remuneration package

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HOW TO NEGOTIATE YOUR REMUNERATION PACKAGE

1. Before the interview

2. During the interview

3. After the interview

So you’ve finally selected the job you want and have been called for interview. You know that one of the areas to be discussed is remuneration and the job advert shows that the salary and associated benefits on offer is not what you were expecting.

Most companies leave room for negotiating the salary package so you must be prepared to fight your corner to get what you deserve. But caution is required, holding out for too much may result in you failing to secure the job and agreeing on too little could give you negative feelings about your new role.

Below we offer some tips on things to consider when negotiating a remuneration package.

1. Before the interview

§Do your homework. Check the salaries on offer for similar roles, by consulting a salary checker, of which there are numerous on the Web. Creating your own ‘Salary Profile’ (which involves recording the salary levels in your fields of work) and keeping a watchful eye on changes and updating it so that you always know the average value for your professional skills. It is important that you negotiate a remuneration package from a position of strength by having the most recent salary information for your professional position.
§Know your needs and wants. Calculate what you need in terms of salary to make the job rational and valuable. Don't forget to include any additional expenditure you might incur from changing positions, such as relocation, travel costs, loss of company pension orchildcare. If you’re expecting a prospective employer to match or improve your existing remuneration, include all your benefits and expected bonuses when calculating your current remuneration package. You’ll have a range in mind of what you'd really like – but be sensible – if you ask for too much, you could seem demanding and unrealistic.
§Practice your approach to handling likely questions. The two probable questions are "What kind of salary do you want?" and "What are you looking for?" The bottom line here is, “Everything’s up for negotiation." If it's too soon to talk about money, a good idea is to change the discussion topic to the job itself – its requirements or expectations and how you think you will be able to contribute to it. This provides for an easier entry point into the money talk and you will have more justification for any reasonable demand you make. Be familiar with possible perks and benefits, and ways to increase your remuneration package. Brainstorming with fellow professionals can be useful here. For example, if the position is one of auditor which requires a lot of travel in your own car, you can even negotiate mileage allowances for driving. Anything is potentially negotiable, provided you are prepared to negotiate!

2. During the interview

§By the time you attend the interview you will know the level of salary you will want to ask for. Employers often offer a ‘menu’ of benefits from which you can pick-and-mix. For example, if your spouse’s company provides a medical plan that already covers you, then this may be one benefit on offer that you would prefer to swap for another. Be prepared to ask about flexibility – for example, if you don’t want a medical plan, can you opt for a cash equivalent instead? If you have to move house to take up the job, ask if your prospective employer will pay a relocation allowance. Also ask if the company will honour any holiday you have already booked. Know your options and ask, ask, ask.
Never lie about your current salary. A new employer can easily validate your claim from your P45. This check would be done after you have joined the company but during your probationary period of employment. You would not like to create negative thoughts about your probity by your new employer.
If you are in a position to refuse a job offer and have any doubts about the remuneration package, don’t take it. If you have negative thoughts about the remuneration package but feel you must take the job, don’t be surprised if you have to start job-seeking again only a short time later.
If you’re offered less than you expect, ask about the company’s policy towards pay reviews and how personal merit is assessed when salary rises are decided.

3. After the interview

§If you are offered a job position, but think a preferable offer from another company is imminent, you need to buy time without annoying either possible employers. The best approach is to tell your preferred employer about the other job offer – it could help the company to speed up its recruitment decision. However, it is unadvisable to use one job offer to try and ‘lever up’ your salary demand in another. This tactic normally backfires – and your preferred employer may ‘call your bluff’! You need to carefully weigh all the attributes about a job – career advancement, potential for personal growth and experience, job interest, work environment – as well as simply focus on its salary level.
If, after the interview, you want to continue your discussions about salary, you should do this in person. You cannot read an expression, present figures, or have convincing argument quite as well on the phone as you can when you engage a person face-to-face.