If you are on the verge of securing another position in a different organisation then you are probably in a position to negotiate your package up by at least 10%. This is on the basis your new role is on a comparable basis or perhaps senior to the one you perform now. I say this because you must take advantage of two things:
- Market value for your profession
- Initial type of interest in you.
One key point to remember is that once you accept a new role and enter an organisation, your ability to secure higher wages is diminished. You will fall back on the organisation’s performance appraisal and salary review process. My advice is that the best time to secure a more substantial increase is at the negotiating table before you accept a new job.
You are in the best negotiating position at this time and it is unlikely a similar negotiating position will arise once you are employed.
Let’s look at market value initially. Every job has a band in terms of market rate and you could cut that band into four parts. Your knowledge, experience, industry, location and market labour economics. That is, supply and demand will determine your positioning on the higher and lower end of the band.
This is a bit of a handful, but you should be aware that jobs in the city would pay better than country regional positions for similar jobs. Also, that your position on the band may vary between industries as some industries pay better than others because of the market segment they are in an. So there are many factors you must weigh up to determine your position on the band.
A quick and easy way to determine your market value is to get a hold of expensive salary surveys and reports. Employer associations, larger employment agencies and private organisations such as Hay Group prepare such salary surveys. The problem with this is that the majority of this information is not free, particularly, if you want it to be up-to-date and specific to your position.
These reports are updated regularly and show movements in market rates by classification based on a number of factors. This is the information the professionals have when determining your rate during the interview process. Another cheaper way for you to determine market rates is to look for job advertisements in your profession and establish your own market salary band. I find that sometimes this is even more accurate than the salary surveys and a true reflection of the market place. When investigating your market rate, talk to employment consultants who are privy to this information.
Develop an information base dependent upon location, experience, industry, benefits and salary to form your own market rate. In other words, educate yourself as you would when buying a car or a home to establish market rates. This is important when negotiating salaries because you do not want to sell yourself short.
A good resource to get up-to-date salary survey information is contained at the Hays Consulting Website, http://www.hays.com.au/salary/index.asp
Here you can search for industry average salary information for your profession. The service is called Salary Check and it contains a Salary and Recruitment Survey.
Another excellent website with Australian wages and salary information worth visiting is
The following table is a good example of a salary band for an Accounts Payable Clerk. Notice the band split into four quartiles with accompanying rates of pay for those quartiles. Try to establish which quartile you are located in and then try to move to the next quartile during salary negotiations. It is not unusual for a successful candidate to move up two quartile dependent on industry and other factors.
Your ultimate goal is to reach quartile 4 and then look at promotion to a more senior position such as Accounts Payable Manager.
Salary Band (Australian Dollars)
|Quartile 1||Quartile 2||Quartile 3||Quartile 4|
|On Commencement (1-12 months)||Some experience
- Tips to Negotiating a Higher Salary (mint.com)
- Salary negotiation: Everything you’ve been told is wrong (management.fortune.cnn.com)