Negotiating terms of employment
Source: https://careerzone.universiteitleiden.nl/en/develop-your-skills/application-skills/working-conditions/negotiating-terms-of-employment Parent: https://careerzone.universiteitleiden.nl/ontwikkel-je-skills/sollicitatie-skills/arbeidsvoorwaarden/onderhandelingen-arbeidsvoorwaarden
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Negotiating terms of employment
In a meeting about employment conditions or salary negotiation you make arrangements about primary and additional conditions.
To begin, it is important to think about and write down what your ideal outcome would be from the salary negotiation. What are you hoping for? What is most important to you?
Salary
Gain information about a market-conform (standard) gross salary within an industry or organisation for a similar position to the one you’re interested in.
- You can do this by filling in a wage indicator on the internet. \ You need to fill in your level of education, the amount of work experience, the industry you’re interested in and if you’ll manage other people.
- Wage Indicator
- Hays
- IamExpat\
- Ask your network. Do you know someone who works (worked) in a similar position? Ask for advice about terms and conditions of employment. Asking someone directly ’about their salary is not very appropriate, but if you ask them more broadly (i.e. about employment conditions), you give them a little more room to answer.\
- Another option is to look for similar vacancies with a salary indication. \
- Finally, and perhaps the easiest way, is to ask your potential employer for an indication of your salary for the position. This is a reasonable question to ask. Often the employer comes up with a salary scale. It depends on the amount of experience you have, where you will be 'ranked'.
Tip: just like an employer may have a salary scale with a minimum and maximum salary for this position, you can do the same! This will give you more leverage when negotiating salary than if have a single figure in mind.
Additional or fringe benefits
Of course it is important to have an idea of the gross salary but also consider in advance your requirements when it comes to fringe benefits. What is important to you? Make a list and prioritize!\ \ What can you think of?
- Flexible working hours
- Option to work (partly from home) / working remotely
- Travel expenses
- Company car
- Company phone
- Company laptop
- Contribution to reimbursement of telehpone and/or energy costs
- Pension plan
- Cycling plan
- Discount or gym membership
- Leave arrangements or extra vacation days
- Training or development opportunities
- Bonuses
- Participation in collective (health) insurance policies
- Childcare
- Moving expenses
- Profit sharing
- Public transport allowance
- Sabbatical
By setting priorities when it comes to fringe benefits, you know which of your wishes you possibly abandon during the negotiation. Negotiating is a game of give and take. Therefore, during negotiations, aim for a higher price than you have in mind. But be careful not to price yourself out of the market by over asking hundreds of euros more than is common (market price).
Negotiating - how does that work?
- As you’re probably used to from job interview(s), a negotiation usually starts with some light conversation to break the ice. Go along with it and try to relax. \
- At some point the interviewer will likely push you for more detail. You might be asked to think about a salary indication or even to bring a payslip of your previous/current job. If asked, calmy and specifically state your gross salary indication (starting offer) and explain your basis for this. What research have you done? Where did you find information about the current salary scales? It is important not to name names. It is highly to name, for example, a friend who works in a similar position at a competing organisation.\
- The employer will likely now make a counterproposal. Listen calmly and don’t react immediately but give it some thought first. If the fringe benefits aren’t mentioned directly, ask about them! Also ask for the substantiation of the counterproposal. Try to negotiate the salary first, state that you know what’s competitive and ask if there is room for negotiation.\
- Does the employer indicate that there really is no room to negotiate about the salary? Don't keep on trying endlessly but negotiate the fringe benefits. In this way you can close (part of) the gap in your gross salary.\
- Finally, it is important to know that it is generally worthwhile to ask about the salary growth prospects.\ What steps can you take in the future? And within what time frame? Can agreements be made about this now? For example, achieving certain goals could lead to a salary increase of one (or more) steps. If this can’t be agreed upon concretely now, please indicate that you would like a meeting to discuss salary again after completing your probationary period (if you have one) or after 3-6 months. If the employer sees in three months that you are performing well (or preferably excellently) in the position, you can agree on a higher salary at that time. Indicating now that you would like a similar meeting in 3-6 months makes it much easier to bring up this topic in the future.
Tip: whether or not it’s possible to agree on anything concrete regarding a future salary increase, confirm what was discussed in writing to your interviewer.
- Negotiating a higher starting salary could result to a less positive salary growth prospects making the growth curve flatter. Accepting a lower starting salary because there is no room for negotiation, but making agreements about growth prospects, could actually steepen the growth curve.
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Negotiating salary
Negotiating salary:
Salary negotiation guide Wage Indicator Hays salary checker IamExpat - salary avarage income