The art of negotiation
It is a frenzy to acquire as much as you can without being unreasonable or deemed by the opposing party as unrealistic or uncompromising.
This often plays out in our careers as we negotiate our contracts. From a brand employment contract to a promotion with your existing employer.
In getting into the arena of negotiations there are a number of things to consider in order to achieve success.
The first one would be to speak up. Many of us seem to accept whatever is offered to us without so much as a query or question raised.
Silence does us no favours. Whether we are ecstatic at the proposition placed on the table or deeply disappointed, we must voice our concerns and advocate for ourselves.
If the number seems right or is way below what you would even consider there is no harm in asking: “is this the best we can do? “ You have the offer there in black and white, the worst case scenario is that you will revert to what has been initially offered. You cannot allow fear and insecurity to make you shy away from supporting your financial interests.
You will also garner greater confidence in posing this question if you are able to get a market-related indication of what to expect from a cost to company perspective. This can be done by engaging a number of recruitment personnel or using the internet.
When you have a market-related idea of salary make sure you request a dummy payslip. Never sign any offer without asking for a monthly dummy payslip.
This helps to see if your actual take-home is worth the change in role and taking on the additional responsibility.
It also allows you to have a very clear understanding of how much your take-home will be after the pension; unemployment insurance fund, pay-as-you-earn tax and medical deductions have been made.
There are some deductions you can potentially negotiate such as medical deductions. If you can prove that you have your own medical aid prior to joining, you can more often than not negotiate that it doesn’t form part of your cost to the company.
This will increase your take-home pay and you can at times increase your net take-home. You need to do some research to see which medical option has both the best benefits and affordability, as well as more cost effective.
Another tool which could potentially have positive impact on your take-home is a sign on bonus.
It never hurts to ask: “What is the sign-on bonus?” Usually it comes with a guaranteed period when you can’t leave the company or you will be liable to repay it back. You may not always get what you request but it is always worth asking your human resources business partner.
The worst case scenario will be a polite “we don’t currently offer a sign on bonus for that role.” You will be in no worse a position should they decline but in a more positive cash flow position should they agree to your request.
One of the least used and most advantageous tools is equity. We often are able to use this as our biggest bargaining chip for listed companies.
In requesting shares and trying to negotiate where possible their vesting period, you can in the long term help increase your net asset value if they perform well over time. Companies are often more willing to negotiate on equity versus cash.
You must remember that the engagement of a negotiation is not a dictatorship nor is it a one- sided conversation. Step into this arena with the confidence and knowledge of your own worthiness.