At Career Transform, we are often talking with clients about negotiation. It is an integral part of any Career Evolution, and we should all be ready for these kinds of conversations, whether it be for a new role, for an internal promotion, or even if you are looking at contracting or consulting work.
So, for your future negotiation discussions keep our key tips in mind.
Negotiating your salary, responsibilities, and conditions should be no different from any other business deal. Each side wants to pay, or be paid, a fair amount. Of course, the employer doesn’t want to agree to more than they have the capacity for, while the employee doesn’t want to commit to too little in way of compensation, value or flexibility.
For women especially, negotiation can be a daunting challenge. The gender pay gap has been approximately 18% for the last 20 years in Australia, and for senior roles, the gap can grow to as much as $75,000 per year! A key contributing factor to the pay gap is that women are less inclined to engage in negotiations when moving into a new role or receiving a promotion. Negotiation is hard for most people; however, men are more likely to broach the discussion, feeling more comfortable to say “this is what I want, this is what I’m worth, and this is why”.
At Career Transform we have assisted thousands of people with career negotiations, so here are our top 6 tips to help you get started:
6 Tips for Negotiation for your Career Transformation
- Don’t discuss salary before you have been offered a role.
When you are asked about salary in the early stages of the job search process it can be very difficult to avoid answering the question; however, try not to go there. It can be like comparing apples to oranges. A good line to remember is: “as long as I’m paid fairly, commensurate with what I bring to the role, and what you want me to achieve, we will both be happy”.
- Do your research.
Do your homework: always research the role to find out what the market is saying. Look for opportunities to negotiate variable pay, incentives or conditions; and if there is room to negotiate, be sure to prepare evidence for a counter offer. You’ll find that most senior positions are open to negotiation of salary, conditions and responsibilities, while less-senior roles may be less flexible in terms of remuneration but still open to negotiation of other conditions. The key here is to do your research well before you walk into any discussions with the company.
The best way to find relevant information on your target organisation is to talk to people within it, or who’ve recently left. It is also useful to check similar organisations and their packages. The more information you have, the better armed you will be when you get to the discussion stage.
- Know your value.
You can’t expect to negotiate for what you want if you’re not able to demonstrate why you’re worth it. This is why it is so important to understand your value. Be able to articulate your achievements and the results you have achieved for businesses you have worked for in the past, and also understand the value of what they are hoping for you to achieve in the role. If you’re interviewing for a more senior position than you’ve been in before, demonstrate that you’ve got the capacity to grow and excel in the position, based on your adaptability and past progression.
Of course, knowing your value comes down to being able to communicate clear examples of your proven history of results, as someone who is able to exceed in fulfilling the company’s needs. When you’re in the interview, you want to give clear and concise examples, and then reiterate these when you commence negotiations later.
- Understand what you want.
Before you even apply for a role, take time to consider what you actually want in a job, and therefore which aspects of an offer may require negotiation. Remember that you don’t need to trade your salary for flexibility. This is 2021, we know what can be achieved remotely and flexibly… So, expect – and demand – both a competitive salary package AND flexible work.
If you are returning to work after time out, you DO NOT have to pay for that in a reduced salary. The benefit you bring to a business has not reduced, it has increased! While you’ve had time away from work, you’ve likely continued to develop your communication and interpersonal skills, which are more important now than ever before. Also, the demand for your skills may have increased while you were out.
Other aspects to consider include:
The Job – including title, level, responsibilities, location, people you supervise, reporting relationships, opportunities for advancement.
Conditions of Employment – you may consider the start date, work schedule, opportunities for “flexitime”, holidays, sick pay, tuition reimbursement, flexibility, the list goes on!
Salary – think about the starting salary, frequency of salary review, and bonuses.
Other things to negotiate can also include extras such as mentoring, professional development, and termination notice advice with career support as part of a new contract.
Categorize each aspect into three categories: your must-haves, should-haves, and nice-to-haves. Take into account how much you desire each, and which areas could potentially be up for negotiation.
- Read the signs.
During the interview, regardless of whether you’re applying for a new role or a promotion, there will be signs to tell whether the interviewer sees you as a high-quality applicant, and also whether they are open to negotiation later down the line. Hold your cards tight here and avoid questions about salary, conditions and responsibilities; this conversation is all about demonstrating how you will benefit the company.
The only time you are in a position to actually negotiate your salary is when you have received an offer, until you accept it. This space between receiving and accepting is your “negotiation window”, so prepare to use it wisely!
- Receive the offer.
When you receive your offer for the role, take the time to evaluate before you accept. People often think the offer is a “yes or no” choice rather than an opportunity to negotiate. Take your time to consider how the role measures up to your criteria, and also think carefully about how open to negotiation the company or decision-maker appears to be.
If you decide that there could be room to negotiate on your key criteria, and the position is not too different from your ideal job anyway, then go ahead and schedule a time to meet to discuss the role. Organise a face-to-face discussion with the decision-maker, and be prepared for a data-driven discussion, with all the evidence you need to discuss in order to get what you want.
Then all that’s left to do is commence negotiations. When you walk into this conversation, remember that this when you have some leverage in this process: you know that the manager and company want you, they’ve offered you the job – so leverage that! You want to be polite, considerate and civil throughout your negotiations, but more importantly; be clear.
Start the conversation going through their expectations of you for the first 3 months, 6 months and year in the role, and what you’ll achieve in that time will be worth to the organisation. You need to be ready to communicate! Then start to go through what you want and articulate this in a straightforward manner. Tackle each aspect that you’d like to negotiate individually and wait until you’ve come to an agreement before moving to the next.
Remind the decisionmaker of what you will be working on, and provide examples of your demonstrated value from your past. Remember that your last salary is often not relevant to the discussion.
When the discussion is over, don’t say yes straight away, ask for the offer in writing and go through it again before you accept it.
Negotiation doesn’t have to be hard, and with preparation, it can be a smooth and easy process. Knowing how to navigate negotiation conversations effectively and feel comfortable is a skill that will serve you well in Transforming your Career.
We help people work through the negotiation process every day as a part of our work in Transforming Careers. We know that it is incredibly beneficial in creating the job and career of your dreams, and we genuinely enjoy helping others realise that too.
If you’re still feeling unsure of how to negotiate your way to your ideal role, get in touch with the Career Transform team, we are more than happy to help you on your journey.
