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How to negotiate your salary

When it comes to negotiating your salary, understanding the company's situation and your own personal market value, will help to ensure a successful negotiation. The key to negotiating your salary is gathering as much information as possible before salary talks begin.

Here are some key things you should consider before entering into salary negotiations with your potential new employer. 

How is the company doing?

It is important to understand how the company you are interviewing with is performing. Have they posted record profits for the previous year, or is their financial performance below their targets? Have they made many redundancies in the past 12 months? All of these factors will have an effect on whether the organisation is going to pay above/ below or the market rate salary for a role.

How much do employees receive in similar roles?

Find out how much employees carrying out similar roles are paid. The key is to demonstrate your views with good examples of similar jobs both inside and outside the firm. You can also benchmark your salary against the Robert Walters Salary Survey in your sector.

What are the market conditions like in your sector?

Is there a shortage of candidates with your skill set in the industry you work in? Have general salaries been rising or falling within the sector? Are there a high number of roles appropriate to your skill set available in the sector? It’s important you know the answers to all of these questions so that you understand what level of salary you are able to request and what is realistic.

Try not to be lured into a false sense of satisfaction by the top-line salary figure. Make sure you do your salary sums because you may have increased costs in your new job.

 

Are there any salary trade-offs?

Try not to be lured into a false sense of satisfaction by the top-line salary figure. Make sure you do your salary sums because you may have increased costs in your new job. For example, you might need to travel further to reach your new office or workplace, and you might lose out on other benefits too.

Of course, the reverse can also be true. Your new salary may not be as high as you'd like but there could be other advantages; a company car, free health insurance, gym membership or other perks. Never forget, however, that this is the wage you're going to be living on. So the greater actual salary you earn, the greater your financial security.

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