Career Development: 5 Fast Tips ...what to include in your salary negotiations

Being prepared to negotiate for your salary and developing the skills to do so are absolutely vital to ensure that you earn what you're worth. 

As one of my mentors once said to me "If you're going to work X hours a day - it may as well be for as much money as you can make. There's only finite hours in a day". So true. And an area where Career Chicks can really help each other in sharing experiences, learnings and success stories.

One aspect of this is to understand what is negotiable. There are numerous items and benefits that can be part of remuneration negotiations and you will be in a stronger position when you understand all of the areas which you can bring in to the discussion. And where you can make trade-offs or negotiate for future benefits.

Here are 5 Fast Tips of what to include in your salary negotiations:

1. Base Salary - this is crucial to your standard of living and the regular financial commitments you can make. It is also important to your future earning potential as your annual salary review is likely to be a percentage of your base salary and the amount of your % increase on your base salary is determined by how much your base salary actually is.

There are two approaches to your base salary - one is to be negotiable on this amount and make gains on the other areas of your package such as your annual bonus and benefits. Alternatively you could sacrifice some of these in order to secure the higher salary.

2. Performance Bonus - this is becoming more and more a part of business remuneration packages. It is definitely a  great point for negotiating on - as you are able to create the linkage between what you will deliver and how much the company will pay you. It is very low risk for the employer because if you don't deliver they don't pay - but when you do, they do. Win. Win.

3. Shares, stock options, car parking, health cover - you may need to be a reasonably senior Career Chick for these to be options - but if they are, know what their value is and ensure that these are calculated in your discussions. I know a few stories  of people who have been caught out by negotiation a total remuneration amount, being told that car parking was part of their benefits and THEN finding out that they were expected to pay for it out of their package. Too late when you get to that stage.

4. Tools of trade - lap tops, smart phones, Internet access - these may all be included as part of your package. Make sure that you negotiate for what you need to do your role and understand if these are being included in the financial calculation.

5. Flexibility - although working hours or remote working arrangements may not add directly to your pay packet - they can make a HUGE difference to your quality of life.  Moving into a new role or organization is the perfect time to put your request / preferences / needs on the able and include them as part of this negotiation.

This list is certainly not exhaustive and there may be other benefits up for negotiation such as club or association memberships, study assistance and extra leave. On the other hand, not all of these  may be of interest to you or available from your organization.

Know what is applicable for your role and organization, and most importantly  what you want to negotiate for.

Have you negotiated for any other benefits as part of your package? Let the rest of us Chicks know!

Thanks for the chat!

- Karen

1 comment:

  1. I'd add "Job Title" -- Not just about ego, also helps in networking and on resume for future. If possible ask for one that reflects your contribution to the organization. Obviously this only works if yours is a unique position. I've had bosses who wanted to call me "Assistant", which while better than "Secretary" still makde it sound more clerical than was appropriate to what I was doing.