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By Vincent Malunga | 21 March 2022
One of the most important aspects of changing jobs within or across organisations is negotiating a competitive remuneration package commensurate with the new role and its responsibilities. It is a delicate process that can scupper a perfectly good opportunity or lead to gross under remuneration that makes the job change not worthwhile and lead to demotivation. Every profession needs to take such a process very seriously and pragmatically.
As is often the case with most informed actions, it must all start with good research. It is important to benchmark the role in the market to learn how much other organisations are paying for similar roles for people with qualifications and experience similar to one’s own. This should take one to at least a median position one should try to set as a bottom during negotiations.
Next, factor in all the unique attributes and qualities that you bring over and above peers in your job bracket that you can use as motivation for why you should be paid more than the median or average for your peer group. Focus highly on special skills or a track record of consistent superior achievement.
It is also important to careful about how one defines remuneration. Often, people focus on the cash part of the remuneration only. In reality, the structuring of overall remuneration can make one package more attractive than another whose cash portion is greater. Even conditional parts of remuneration can make a package very attractive. Examples are packages that include such things as school fees for children, low cost loans for houses and other assets or have tax benefits. While one can access such only if one has children or takes out loans, having then as options has serious intrinsic value and should not be underrated.
The above calls for appropriate individualised intertemporal cost benefit analysis to arrive at a sensible target negotiating position. At the end of the day, one needs to empower oneself fully with all the relevant facts when going in to negotiate.
Moreover, one must also maintain and espouse a positive negotiating posture without capitulating before even the first salvo is fired. You are not going in as a beggar who the employer must do a favour for or to apologising for asking for a commensurate package. At the same time, you are not going in as a greedy and unrealistic renegade who is hell bent on bankrupting the organisation.
Empowered with relevant information, you are going in as a consummate salesperson determined to get the best quid pro quo for your skills and experience and clearly defined value you are set to deliver whose value is multiple times the most the organisation can offer you on its pay scale.
Every true negotiation involves compromises so be prepared to make some compromises over the course of the negotiation. It thus helps to have best, medium and lowest case scenarios framed in one’s mind when going in.
Finally, do not fall in the trap of allowing the employer to use your last salary as the benchmark. What is important is the future not the past of your salary history. So be a strong but fair negotiator for your true value!
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This article is also published by the CEO East Africa Magazine submitted by us.
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