Navigating Negotiation

Negotiation can often be one of the most daunting parts of the interview process for anybody, not just the prospective employee looking for their expectations to be met but also for the employer who are usually tied to budgets and the realities of working from home and flexibility mandates.

It's important to set out, evaluate and revisit your expectations throughout the process as the last thing anybody wants is to identify an opportunity, move to the close and let it fall at the final fence.

In this article, I'll walk you through some of the tips I've passed on to countless candidates and clients during my time in recruitment, some work and some don't but it's always good to go into negotiations well armed and understanding that negotiations are a two way conversation, be ready to come to the party!

Setting out your stall early:

There are obviously different paths that you can take when it comes to searching for a new role. Naturally I would want every candidate to use a recruiter and let us help to negotiate expectations and demands, but that's not always the case and it is therefore important to be crystal clear on your expectations prior to walking into the interview room.

Work out what salary you are looking for, generally speaking you should be looking for a 5-10% pay rise when leaving one role to the next. If you're stepping up in responsibility/level then you may be able to push a little more, but don't be greedy as in a competitive market you need to make yourself a standout for the right reasons, not being lofty with expectations. For example, if you're earning $100k + Super at the moment, looking for $105-110k + Super is sensible and very achievable. Asking for $120-30k + Super is going to be more problematic (unless you're genuinely underpaid in your current role of course).

Work out what you need in terms of flexibility. Many businesses have worked through their work from home and flexibility processes to reflect the need of their workers. Ensure this aligns with your needs, as they're likely not going to change it for someone new at the risk of annoying their loyal workforce.

Ensure you understand the fringe benefits. Many organisations will offer bonuses, employee benefits and perks, additional annual leave days and more. Work out what you have currently and compare this to what is on offer. Don't let this be a surprise at the final hurdle, ask your Recruiter of the Hiring Manager if you feel comfortable in doing so.

Your expectations are only half of the battle, ask about theirs:

It's imperative to set out your stall when it comes to expectations, but it's equally important to understand what your clients expectations are as well. There is always flexibility in negotiation but having insight into budgets, work from home policies and any other non-negotiables can help to shape your decision on whether the organisation is one that you can see a future in or not.

One point is always to understand your expectations and then align them to what the client can offer, however don't see the budget for the role and decide that regardless of the salary you are on, that is your expectation. This can be harmful to your chances of landing the position as you may come up against much more qualified and relevant applicants looking for the same amount.

Ask the hiring manager, talent partner or whoever your contact is to explain their budgets and policies. Try to get this on email and send them to you, therefore you have documented evidence of what is on offer and how you match up to that. Remember again that some things can be negotiated on, usually salary, but other things like WFH and annual leave are universal policies that companies cannot and will not change for the individual.

Be honest and be confident:

It sounds simple and it really is, don't embellish your current salary or your expectations, when speaking to recruiters or hiring managers it is pretty noticeable and obvious, we speak to hundreds of candidates every week and have a fairly good grasp on the market and the salary ranges for different levels of experience and disciplines so it makes little to no sense to lie.

Being honest is also a great sign of showing that you're commercially minded, sensible about expectations and understanding of the competitive hiring environment in which you are working in. There's nothing wrong with wanting more, most of us do, but being realistically optimistic goes a long way in negotiations.

I've had many instances where proof of pay slips are required as well, so you run the risk of being rather embarrassingly caught out!

It's also important to be confident. Try not to be nervous or scared to ask the question, negotiation is a very normal part of the process and knowing your worth should give you the confidence to pushback on any lowball offers.

Outlining why you're worth what you're asking for should not be needed, remember that out of many, many candidates you have been identified as their number one option. There is a lot of strength in that and use it to your advantage, don't be cocksure but be confident enough to stick to your original expectations and ensure they get matched.

Make sure you've got it written down:

Another hugely important point here is to get everything written down. There have been many occasions in my mind where I've forgotten specific expectations of candidates when I haven't written them down and vice-versa if you're applying for multiple roles there will be a range of salaries and perks that you may well forget over time.

This can all be avoided by getting confirmation in writing from the person representing you or working for the business you're interviewing with. You'll usually apply via a portal that will allow you to input your expectations as well, but if not try and get them in writing to the client so there's no shocks come negotiation time.

On a final note, remember that this is a negotiation, the dictionary definition is "discussion aimed at reaching an agreement." so keep this in mind when coming to the table. Understand their position, be sure of yours and ensure that if you sign that all parties win and you'll be in a position to be a true value add to the organisation as well as make sure you're fairly compensated for your efforts.

As always, if you're on the market and looking to take on that next role then reach out to me on LinkedIn or at adam.geary@investedtalent.com.au for a confidential conversation