Salary negotiation - how much are you worth?
When the interview goes in the direction of starting salary, there is often an embarrassed silence. This is not the time to be nervous. Convey a clear idea of what you want to earn. Your salary expectations should not be too low, but also not unreasonably high. How much are you worth?
The right approach: this is how to earn more!
Make sure you do adequate research before your interview about the standard market rates. This information should however not prevent you from demanding something else. A company is never focused solely on paying the "industry average", instead it is planning to earn revenue through you. Therefore you should try to sell yourself as an investment and not as an expense.
Tip - salary information in the job advertisement: in Austria it is obligatory to quote the minimum salary according to wage agreement in job advertisements. But don't let that intimidate you; in most cases the quoted rate is exceeded, based on qualifications and experience.
Convey a clear expectation of your future salary and use the argument of the added value that you represent to your future employer. If you are unable to do that, you could ask specifically how you should develop in order to achieve that value for the company, and thereby your salary expectations. Then agree a plan that will realise your expectations as well as those of your interviewer.
Salary: the whole package counts
Do not limit your negotiations solely to the salary factor, there are many additional services that might be of interest to you:
- Canteen: Through a company restaurant that is subsidised by the business you can save a lot of money.
- Pension: Particularly at the beginning of a professional career, retirement is a long way off. Many companies however pay into a private pension fund on behalf of their employees. That is also an interesting benefit, considering that you usually keep your claim to it even if you leave the company.
- Tax-free subsidy of fitness, sports or other leisure activities.
- Company car: for some jobs (for example sales), and from a certain career level, you can also ask about a company car that is also available for private use.
- Share options: a stake in the company.
Don't be afraid to be persistent. However please consider that your salary depends on what you bring to the company, and not on what you yourself need.
Paycheque: how much Net is left of the Gross?
In salary negotiations one usually talks about gross annual salary. That also includes additional financial benefits such as holiday or Christmas bonus. After deduction of all taxes and insurances, what remains of the gross salary is the net salary. The amount of the net salary can be worked out using a salary calculator.