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Home / Business / Economy / Employment

Not asking could be expensive mistake

By Steve Hart
NZ Herald·
10 Nov, 2015 04:00 PM4 mins to read

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How much you will earn can be an awkward job interview question.

How much you will earn can be an awkward job interview question.

Jump in too early and you could look greedy, too late and you may miss out

It can feel great getting news that you have an interview for the job you want. But after rocking up and meeting your prospective employer, the question of when to ask about the salary can loom large.

Go in too early and you could give the impression you are more interested in money than finding out about the job. Leave it too late and you might be disappointed at what's offered and feel you have wasted your time.

Jason Walker, managing director of Hays New Zealand, says candidates need to look out for what he calls the "Goldilocks zone".

"The perfect time to raise the remuneration package is when they start to get a good feeling during that second interview, when the interviewer is sending out the buying signals," he says.

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"Candidates can pick up on this when the employer starts to change the way the interview is going and the way they engage with the candidate. They'll use language such as 'when you start with us you'll be doing this'. They start to personalise the engagement to the individual and the organisation.

" When a candidate starts to hear that, then these are the buying signals, that's when you can say something such as: 'so if I did join your organisation what's the type of remuneration package for this type of role?'.

"Then you can start a negotiation process and quickly find out if what's being offered is in the ball park."

It works a bit differently for people job hunting via a recruitment agency, says Walker.

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"That part of the process is done beforehand, the recruiter will already have an understanding of what the salary range and package is for that position."

Nevertheless, preparation is key, he says. "Every applicant who wants to negotiate the best salary for the position needs a good understanding of their value for that role in that industry. A lot of that information is available on the internet - via salary guides attached to industry associations, and agencies such as ours that produce a salary guide every year based on a survey.

"It builds confidence so when a candidate does start to negotiate, or if they feel an employer is low-balling them, they can give factual credible information of the value of their position in the industry."

He suggests that if the package is lower than the industry's average to question it with a phrase such 'thanks for the offer, but I understand other positions of this nature are paying at a higher level'.

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However, he says a job should not all be about the money.

"Money is a hygiene factor," he says. "So companies do need to get it right. If a company is an attractive brand to work for then they can pay up to 10 per cent below the market rate, and if the company isn't then they'll likely need to pay 10 per cent above the market rate.

"The reason I say that is because larger organisations can offer a lot more in non-financial remuneration such as training, maternity packages, parking or better super schemes. So all those factors build up that remuneration package."

Walker says it can be a big mistake to ask about the salary too early.

"You don't want to go in like a bull too early, because if you do you can offend or create a poor impression with the interviewer," he says.

On the other side of the coin, he says, are people who do not ask about the remuneration package at any point. They roll the dice hoping the salary they are offered at the end of the process is higher than their expectations.

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"And when that happens the candidate can get a bit resentful if the package is less than expected, and they tend not to get back to the employer - and the employer loses them," says Walker.

"It is not the fault of the employer, [but] it means they have to be aware of that. So if the candidate doesn't raise the issue of pay by the end of the second interview, then they will need to."

Show me the money

• Tell your hiring manager that you are interested in the position, but that you would like to discuss the salary.

• Discuss openly and professionally how much you think you are worth.

• Research current salaries before your interview.

• Speak to your recruiter and listen to their advice.

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• Use your research to support your salary position.

• Don't make your salary pitch too early - wait until you know you are the preferred candidate.

• Your recruiter can also negotiate on your behalf without the risk of jeopardising your offer.

- Source / Jason Walker, Hays.

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