How to negotiate the right salary, before you take the job
WITH a less than robust job market, finding employment isn’t easy, and you may be tempted to take whatever you can get so you can pay your bills. But just because you may be desperate to find something so you can start paying back your student loans or finally move out of your parents’ home, be careful not to show potential employers just how desperate you are. In fact, showing desperation may backfire, in that you may be offered a lower salary than you’re worth, or you may be forced to sign a contract that won’t be beneficial in the long run.
Even if you’re being interviewed for your dream job, and even if it’s the only interview you’ve had in months, you still need to employ some basic principles when it comes to salary negotiation. Accepting the first figure that’s thrown at you will potentially stunt you financially for a long time.
Lisa Soares Lewis, founder and CEO of Great People Solutions, shared a few tips for persons negotiating a starting salary.
1. Discuss before signing. Soares Lewis said before signing a contract it is best practice to discuss your salary with someone who has experience. You need to know what you are entering into before you are bound by a contract. She explained that understanding the company you’re working for, how they pay and the market salary for your job is important.
2. Research salary information. Arming yourself with adequate information about the salaries in your industry is necessary before you negotiate. “Understand the post you’re going into and make sure you research before you ask for what you want,” Soares Lewis said. She added that asking for an outlandish salary is a turnoff as employers are usually equipped with this type of information. For a word of advice she added, “Tread lightly”.
3. Accept what you can live with. When you enter a contract you are expected to fulfil your end of the bargain. Going in, signing a contract, then stating a few months later that you didn’t know how much taxes would affect your net pay, then demanding an increase, does not show responsibility.
4. Know your taxable salary. Soares Lewis said as a prospective employee you must remember that tax changes are outside of the control of the employer. She suggested that you know your net salary, budget and make a decision from there. A good rule of thumb is to negotiate for what you want after taxes.
5. Understand the company. “There is no harm in asking about the culture of the organisation,” Soares Lewis said. Always remember it is your side of the bargain. Some companies are different than others and as a result offer different pay packages.
6. Know your job market. The type of salary you will be paid is based on the job market. Remember that the job market is currently floundering, so bear that in mind when making your decisions or putting your requests in.