All employment should be governed by a contract of some sort. This could be a letter of engagement, full contract, or even email correspondence (not smart to do). For most employees, the thought of negotiating a contact of employment with a prospective employer is scary and can leave you feeling quite stressed.
Of course, negotiations really start at the interview stage; however we would never suggest that you start raising your negotiation points until you are fairly sure you have the job in the bag.
There should be no surprises in your contract of employment. Most of the vital points should have been discussed beforehand and you should check that items talked about have been included. It is OK to take notes of what is said at meetings and interviews and be able to refer back to them if the contract does not reflect what is promised.
So obviously, you will want to negotiate the salary package and once again, that should have been discussed at interview stage, so you are prepared before you get the contract.
Check that all the salary package details are included like the superannuation rate, any bonuses, training and any non-cash items.
If you want to negotiate your package, always have a fall back position in your mind and don’t forget to count the non cash advantages of the role. Quite often, the non cash advantages of a role can become more important than the cash advantages because they enable you to maintain lifestyle or work/life balance.
Remember, most people who take a role, based on salary only, never have longevity in the role and end up generally being very unhappy. Money is not everything.
Understanding the market rate for your role is a good way to commence negotiations. This is easy enough to find out by looking for similar role in similar locations on a job board and getting a feel for the market rate. It is hard for an employer to argue against going market rate.
Another excellent strategy is to make a business case for what you will bring to the business through your employment. If you can prove that there will be positive business wins, you are more likely to be able to command a higher salary.
Finally, the ability to have open and frank communication with a prospective employer will give you an understanding of what it will be like working for this business. If you are finding the negotiations stressful with a person who does not seem to value your point of view or is unbending or domineering – think about it.
Important Note: These articles have been prepared for general circulation and are circulated for general informational purposes only; these articles should not be regarded as business or investment advice. The articles represent the views of the writers and are subject to change without notice. Additionally, while every care has been taken in the preparation of the articles no representation or warranty as to accuracy or completeness of any statement is given. An individual or organisation should, before any business or investment decision is made, consider the appropriateness of the information in this document, and seek professional advice, having regard to objectives, situation and needs. This document is solely for the use of the party to whom it is provided.