Even the most inspirational women can use a little support when it comes to ensuring they are paid a wage that reflects their work. In this edited extract from How To Not Work Forever, authors Natasha Etschmann and Ana Kresina reveal their tips on how to negotiate your wage … And, get paid what you’re worth.
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Australian employees switch jobs every 3 years on average, the Australian Institute of Business found. It’s not enough to find a higher paid job and settle for an increase in income. Often, negotiation needs to take place to land on a suitable salary.
With constant changes in our economy, and COVID challenging our relationship with work, it’s no wonder people are switching jobs frequently in search of a better role or work life-balance.
There’s another good reason to switch jobs too: it usually comes with a pay bump.
Since it’s rare for advertised positions to share compensation rates publicly, it’s important to go into a wage negotiation prepared.
1. Do your research; know the going rate
Before you get into any negotiation, be prepared and know what your salary expectation is.
You may like to be paid 5 per cent more than you currently are; however, unless you do research, you won’t know what a role is actually worth. The same role may have a sliding scale depending on your experience.
Having an idea of what the position would pay is a data point that may help you in your negotiations. Tools such as whatsthesalary.com let you copy-paste a job posting to find out the salary range. Similarly, websites such as levels.fyi and Glassdoor are great places to see what the going rate is for roles and seniority at various companies.
2. Never share your wage expectations first
The recruiter usually has a range in mind. As they are the ones hiring, they’ve already budgeted for the role. By knowing their number first, you can have an idea of where that sits with your expectations.
If the recruiter does ask your salary expectations, you can respond with, ‘What do you usually pay someone in this position?’
Alternatively, if you are pressed for a number, you can say: ‘I’d like to learn more about the role to understand its full scope before I set my salary expectation’. This defers the conversation to a later time when you will feel more comfortable talking about salary expectations (when you have a better idea of the role and the organisation).
If you get asked what you make in your current role, never ever share that information. Instead, say something along the lines of: ‘This position is different from my current role, so I would like to understand the responsibilities further to determine an appropriate salary’.
The interviewer may continue to push, in which case you can say something like: ‘I’d appreciate it if you could make an offer based on what you budgeted for this position’.
3. If you need to state a number, provide a range
There may be times where you’re cornered into providing your salary expectation. Ensuring you’ve done your research and know your expected rate, offer a range with your rate at the lower end.
If you’re looking for $70,000 a year, state something like: ‘The range I’ve been looking at is between $75,000 and $95,000’. This provides room for negotiation, which may land you at a higher amount, such as $80,000.
Stating a range over an exact number allows for both parties to negotiate and gives wiggle room in terms of expectations.
4. Have a list of non-monetary items you can negotiate on
Although the goal is to increase your income, there are non-monetary items you can negotiate too. Some worth considering are:
- leave entitlements: more paid leave, parental leave policies and long service leave.
- flexible working: now is the time to negotiate these expectations.
- working from home: this may be something to capture in your contract.
- professional development opportunities: find out how the company can support your goals.
- HECS debt repayment: some companies may be willing to assist you in paying down your debt.
- bonuses: if your role is a result-focused one, ask to receive a bonus for reaching expected targets.
- equipment: your company may be willing to compensate you for any technology or equipment that you may be using to do your job.
List all the nice-to-have items and see if there is anything that the hiring company may be willing to provide.
5. Use a spreadsheet to run various scenarios
For most new roles, compensation is pretty straight-forward: you receive a wage and super, and that’s it. But there may be other things you want to consider.
Is your wage inclusive or exclusive of super? What is the take-home pay after tax? Are there any share options you can consider?
By running various scenarios in a spreadsheet, you can have an idea of your total compensation package.
A small change to a contract can make a world of difference to your pay cheque. So, it’s good to run a few different scenarios and to be informed in case numbers are discussed.
This is an edited extract from How To Not Work Forever by Natasha Etschmann and Ana Kresina (Wiley $32.95). Available 26 June at all leading retailers.
