Holding effective Salary Negotiations for your next role

The process of securing a new role can be daunting, especially when it comes to salary negotiations.

For some it can be confronting, overwhelming and challenging, but, according to Reddin Group’s Andrew Telburn, there are things you can do to make the process an effective one for both candidate and company.

Transparency around salary expectations

Andrew believes that the key to effective salary negotiations is transparency from the outset.

“Organisations are always working to a budget and the sooner in the process they know what your expectation is, the more time they will have to find the budget for the right person. What this means is if you are set on a certain salary, its best to communicate that upfront and give the hiring manager the time to do the work on their end to secure more budget if required.”

“If you indicate the whole way along that you are comfortable with the salary on offer, then at the 11th hour you ask for more, it does not sit well with the hiring organisation. If fact, I have recently seen an organisation that withdrew an offer to a candidate because they were uncomfortable with the way the candidate approached the salary negotiation process. While this is rare, it can happen,” he warns.

Andrew’s advice is to refrain from making a last-ditch attempt to increase your salary expectations simply because you believe you are in a position of power at that point in time.

“It rarely works out well for either party. Either the organisation walks away from the negotiation, or you get the role, but the relationship starts off on a somewhat sour note.”

“So, while organisations will always want to find the right person for the role, be careful how you go about asking for what you want,” Andrew explains.

If you are part way through a salary negotiation and you find yourself believing that you need to lift your salary request, make sure it is well researched and that you can clearly articulate the reasons why.

It not all about the dollars! Negotiating Conditions is just as important

In a post-Covid working word, it’s not just about the money.

According to the Australian Bureau of Statistics, more than 40% of employed people were regularly working from home in 2021. This trend then continued into 2022 and has shaped employees’ expectations around workplace flexibility. For many, the ability to work remotely is no longer seen as a benefit, but as an expectation.

However, as we turn the corner from 2023 into 2024, some organisations are pulling back on the amount of flexibility they have been giving, without removing it entirely.

Nike Australia, for example, requires employees to work in the office from Tuesday to Thursday, with Monday and Friday flagged as optional work from home days. They believe that it’s difficult to build culture if you don’t have consistency and connection.

When it comes to negotiating your own flexible arrangements with a potential employer, Andrew believes it’s all about how you go about the conversation.

“There is no doubt that providing a flexible workplace has a great deal of benefits for both employee and for organisations and consequently, many simply assume that they are entitled to flexibility.

“My advice would be that if there are certain days you need to work from home, then asking rather than assuming it’s a given is the way to go. I’d also caution anyone to watch the wording used – things like “this is non-negotiable” will put up a barrier to potential employers. It paints a picture of a ‘difficult employee.’ So, rather than take a hard-line type of approach, be transparent, state the reasons why you required flexibility and work together to find a solution that can work. Open conversations lead to much brighter outcomes.

Sage words of wisdom (or at least something to think about…)

While salary negotiations can be challenging and, at times, complicated, there are ways to do it well.

Andrew’s final word of advice is that the recruitment process is a priority for organisation, but it does cost time and money.

“The best outcomes are reached when both sides have been mutually respectful of one another. Both are putting in time and often money to reach an outcome that benefits both. It’s a fact worth keeping at the back of your mind,” he says.

Top Tips for effective salary negotiation

1. Be transparent from the beginning. If you are the right fit for the role, rarely will an organisation be put off if you are asking for slightly more than is on the table. Nine times out of ten the conversation with the candidate will proceed. (The same thing goes for flexible working arrangements, as well as salary).
2. Understand your current salary package and bonus structure in detail – be prepared with facts.
3. If something changes during negotiations, be up front, early. Give the organisation time.
4. Don’t make a last-ditch attempt to increase your salary expectations simply because you believe you are in a position of power at that point in time. It rarely works well.
5. Mutual respect for each other’s time is paramount.