salary, pay and contract negotiation for a new job



If you are changing jobs, the best time to negotiate salary is after receiving a job offer, and before you accept it - at the point when the employer clearly wants you for the job, and is keen to have your acceptance of the job offer. Your bargaining power in real terms, and psychologically, is strongest at this point, and is stronger still if you have (or can say that you have) at least one other job offer or option. A strong stance at this stage is your best chance to provide the recruiting manager the justification to pay you something outside the employer's normal scale. The chances of renegotiating salary after accepting, and certainly starting, the job are remote - once you accept the offer you've effectively made the contract, including salary, and thereafter you are subject to the organization's policies, process and inertia.

A compromise in the event that the employer cannot initially take you on at the rate you need is to agree (in writing) a guaranteed raise, subject to completing a given period of service, say 3 or 6 months. In which case avoid the insertion of 'satisfactory' (describing the period of service) as this can never actually be measured and therefore fails to provide certainty that the raise will be given.

If you are recruiting a person who needs or demands more money or better terms than you can offer, then deal with the matter properly before the candidate accepts the job - changing pay or terms after this is very much more difficult. If you encourage a person to accept pay and terms that are genuinely lower than they deserve, by giving a vague assurance of a review sometime in the future, then you are raising expectations for something that will be very difficult to deliver, and therefore storing up a big problem for the future.



salary negotiation during and after new job interviews - tips for employees (and managers)



While these tips and techniques are ostensibly for employees, they also serve as a helpful guide to managers who are recruiting staff, and want to ensure that people joining are doing so happily and on a sustainable basis. People who join happy that they've been given a fair deal are more likely to stay, and less likely to harbour grudges or feelings of being 'bought' for less than they deserve.

Employers who recruit people at less than their market worth might think they've done a good deal, whereas in fact such employees are likely to become frustrated and feel 'cheated'. Help employees to make good, right, and fair decisions about their careers, and they will respect you and your organization for doing so.

That said, from the employee's viewpoint, changing jobs is a very good opportunity to increase your salary level. Critically, to take advantage of this opportunity you must negotiate before you accept the new job offer, whether the job is an internal or external move. Any manager who fails to give this opportunity to a new recruit is likely to be putting a problem into store for the future.

The most important thing from the employee's perspective is to secure the job offer first. There is no point in negotiating until then.

The employer's initial offer will be based on their own budget and internal pay-scale reference points, and what level of reward they feel is necessary to secure you (or a suitable alternative candidate), and this salary/package level is nearly always negotiable.

The stronger you convince the interviewer and employer that you are the best person for the job - in all respects that need to appeal to them - then the more likely you are to do well when it comes to negotiating the package.

If the employer asks you before or during the interview to confirm your salary/package expectations, give them a broad indication at the top of the range that has already been indicated or discussed for the role (plus 10-20 per cent for good measure if you wish), and say that ultimately your decision will be based on comparing your options (think and behave as if you expect to have more than one).

Tell them 'Let's see if you like me first - then we can discuss/agree the detail.'

It's a matter of personal feeling as to where you set your target salary level for a particular job, ie., how much you'll eventually be happy to accept, and how firmly you hold out for it and anything above it. This will be a combination of what you want, need, whether you have another real offer, and generally what your market value is - these are the reference points.

In terms of negotiating salary and package, your best position is always to secure two job offers from two different employers, which gives you the huge advantage of choice. If you can't or don't, (which is normal), then behave as if you have other options, which of course you do, if not right now.

Do not allow the interviewer/negotiator to set, suggest or argue for a salary level based on your previous one (assuming it's lower) - be very firm about this. It's not relevant. What you earned before and why you worked for that wage is not their business and has no bearing on your value to them and the market now (make that point politely not aggressively of course).

What's relevant is your value in the market, and how much the employer wants you compared to other candidates and their respective salary expectations. It's important to give them the feeling that you are entirely confident in being able to go elsewhere if the deal's not right. Bear in mind also that you can always buy some time to 'think about it' whatever they offer you. Time will generally work in your favor if they want you. They will worry that they'll lose you, perhaps even to a competitor, and so will be more likely to increase their offer, and to justify some extra budget if required.

You do not need to give them a rushed answer whether to accept their offer just because they'd like one. Of course they'd like one quickly because they know they'll get a better deal that way, and they'd like to finalize the recruitment ASAP.

Generally a good manager and employer will respect you more, and feel you are more valuable, if they get the impression that you are in demand elsewhere.

During the negotiation be sure to maintain a positive and committed view towards the prospective new company and the job (assuming of course you feel that way about them). This will prevent the risk of their coming to the view that you are wasting their time or stringing them along. It's important to be fair and right with people, even while negotiating.

While acknowledging the appeal of the opportunity, conduct your discussions professionally, firmly, confidently, and at the same time ask for their understanding that you have a responsibility to yourself and your family to achieve the best 'price' for what you can do in your particular job market.



asking for a salary negotiation or pay rise in the same job



If you feel the need to ask for a raise, the most positive way to approach this is to ask for extra work and responsibility and link this to a pay rise, if not immediately then in the future. This is a grown-up approach that employers respond to better than simply asking for more pay for doing the same job.

Another positive approach is to ask for a performance related bonus or pay increase subject to achieving more, based on standards or output greater than current or expected levels. This again should be received positively by the employer because you're offering something in return, and not simply asking for more money, which most people tend to do.

If you do not understand the organization's method of awarding pay increases, your first step should generally be to discuss this with your boss. Pay is normally linked to performance, which allows the company to increase your grade, or promote you, or to award a bonus. Discuss with your boss how you can improve your performance and contribution to the organization, in a way that will enable promotion and grading and pay improvement. At times of low inflation any significant annual pay increase is not automatic or a 'right' of the employee - a pay increase will generally be given in return for achieving agreed objectives or standards and an increased contribution to organizational performance. Find out what process exists in your organization to enable this exchange to happen. It's always essential to keep your boss informed of your position, so talk to them first. If your boss doesn't know then you should ask your personnel department, or person responsible for personnel and human resources, but always keep your boss informed, because their opinion will usually be sought before your employer considers improving your job and remuneration package. You need your boss's support.

Ask for a face to face meeting rather than try to present your case in a letter, which is just a one-way communication and doesn't allow you to develop a mutual understanding of the situation and what to do about it. Simply ask your boss for a review meeting to discuss your responsibilities and remuneration. In the meeting ask what the opportunities are and/or process by which you can improve your salary package. Follow the principles described here - the process needs to be two-way discussion. Approach it positively and constructively. Ask what flexibilities exist and what the rationale is for setting and increasing pay levels. Who does your boss have to make a case to? Will he/she support you? What would improve your case? What commitments would the company want from you? What exchanges can be agreed - what you can put in and what can be given in return. It's a discussion, not a demand.

Separately, before the meeting you must get an objective view and measure of your market worth. Look at other similar jobs outside as well as inside the company and compare them to your own responsibilities and rewards. Personal views about reward and job-load can become very subjective and need to be validated or it's difficult for you (or anyone else) to decide how deserved the claim is.