Because you’re worth it
By Jim Bright | smh.com.au | 12 September
Before taking a job, decide on a minimum salary and be ready to negotiate, writes Jim Bright.
Judy writes: ‘‘I am a PA to the head of department in a large public-service institution. When I took the job I was surprised at how low the salary was. When I mentioned my reservations about the low pay, various reasons were given, the gist being that salaries are banded and fixed. Negotiation never seemed an option. But six months into the job, I discovered the previous incumbent was paid substantially more and his starting salary was matched to what he had been receiving at another similar institution. Is there anything I can do?’’
In the words of Cary Grant: ‘‘Oh, Judy, Judy, Judy!’’ What a tricky situation you are in. It is not going to be very helpful for you on this occasion to say that when going for a new role, you should know your market worth and have a bottom-line figure that you stick to.
But it is worth saying it for other readers who may be applying for roles. (See mycareer.com.au/advice for several articles on negotiating salary, including a starting wage.) There are several hurdles in negotiating salaries and perhaps the hardest is the psychology of the situation.
When we talk remuneration, we are talking about the value of the role to the organisation, which is a separate thing to your value as a person. There is a third ‘‘value’’ we can consider here and that is your value to the organisation.
The important thing is to try as best you can to keep all of these separate. The value of the role to the organisation is determined by the employer.
The value you bring to the organisation is the degree to which you meet or exceed the value of the role to the organisation. So if you can do the role and bring other skills or services over and above the role, then you ‘‘add value’’ and in an ideal world this is where you get rewarded with better remuneration, conditions or prospects, such as rapid promotion.
The last part of the trinity is your value as a person, which is much more than simply your economic value and obviously incorporates all your other roles in life. The problem is that the boundaries between these things are easily blurred and when this happens it is a short step to equate salary with personal worth, with the result being loss of confidence.
The second hurdle is to research your market worth. Rod Stinson’s book What Jobs Pay (Yorkcross) is a good resource, along with myfuture.edu.au and mycareer.com.au/salary-centre.
The third hurdle is to decide your bottom-line figure and stick to it. Then add between 10 per cent and 30 per cent to that figure to give you room to negotiate with your employer.
Remember, even in jobs with awards and classifications, there is often room to negotiate and do deals. Furthermore, those who value themselves highly are more likely to be valued highly by employers.
Do not entrust the employer ‘‘to do the right thing by you’’ – it is not their role. Their role is to do the right thing by the organisation, which can mean getting you as cheaply as possible. In your current situation, Judy, first you need to decide what action you are prepared to take if the employer won’t negotiate (like leaving).
Then you can avoid making empty threats. Next, I’d put any negotiations in the context of an ongoing review of your performance and explain that while you initially accepted their terms, you now appreciate that the role is worth more and your value to the organisation is worth more.
Be ready to suggest a figure to the employer and be prepared to negotiate. I wouldn’t raise the predecessor’s package unless negotiations stall.
As unjust as it seems, raising a predecessor’s terms and conditions can be a risky move as the employer probably has better knowledge of that person and the circumstances than you do and can also make claims about them you may find hard to dispute, leaving you at a disadvantage.
Ultimately, do not be afraid to discuss your needs and concerns with your employer. Sadly, it is a reality that some (but not all) employers will only focus their minds when they think withholding a rise will result in you leaving, causing a headache for them.
Jim Bright is professor of career education and development at ACU National and a partner at Bright and Associates, a career management consultancy.
Email your questions to brightside@jimbright.com.
First published by Smh.com.au on September 12 2009
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