How to beat the taxman fair and squar...

Medical aid industry in reasonable shap...

Business Times Story...

UNIT TRUSTS:UNIT TRUSTS: Syfrets Advanta...

Need I declare a few shares in my dad's ...

Consider joint ownership before you join...

How fund managers shape u...

Billions flow into unit trust-linked pro...

Shape your strategy to ensure a smooth r...

How to beat the taxman fair and squar...

Wrapping up that package is an ar...

Sick rand fails to cure travel bu...

Back To Home Page

Wrapping up that package is an art

EMPLOYMENT

By LEIGH ROBERTS

Never accept the 'once you're here we'll sort it all out' excuse - be sure to get it all down upfront and in writing

WHEN negotiating a salary package remember that your prospective employer will never love you more than before you've signed your contract. Accordingly, that's the time to fight for the best salary and benefits available, and to pick up any extras.

It's crucial, advises Nick Thomson of accounting firm Ernst & Young, to get it all down in writing.

"Don't ever leave anything until later; get written commitments up front. It doesn't have to be a complex contract, simply a letter on the company's letterhead."

Thomson says never accept often-repeated excuses such as "once you're here we'll get it all sorted out", or "we want to start the thing with trust: don't you trust us?".

Here are some more useful salary-negotiating tips:

  • Before you go to the interview get as much background on the company as you can.

    This will improve your negotiating stance (and the interviewer should be suitably impressed).

  • Check what happened to your predecessor: Was he/she fired or promoted? Is this a new position? If so, why was it created? Why is the company recruiting from outside rather than from within?
  • Ask "what if" questions at the interview. It's important to ensure a "good fit", both in the organisation and the job.
  • Do a comparative check on the salary and benefits you should expect through newspapers and by talking to others.
  • Find out what the company's policy is on sick and annual leave, and how this accrues to employees during the year.
  • Enquire how the medical aid, pension and provident funds operate and how long it will take before one becomes a member. Ask whether the funds are non-contributory. The structuring of funds has an important bearing on the tax consequences of your salary package.
  • Establish whether the company offers any fringe benefits that will aid with the tax structuring of your salary package (refer to our lead story on how to tax structure your package).

    The common benefits include travel, car, entertainment and residential accommodation allowances.

  • Agree, in writing, on the crucial elements of the compensation package: base salary, performance bonus, severance package, notice period, sick and annual leave.
  • Enquire as to the group benefits offered, for instance, life and disability cover, funeral benefits.
  • It may be difficult but don't feel at a psychological disadvantage if you're out of work or have never worked before.

    That's no stigma these days. With no notice to give you may actually have an advantage over a candidate who has to give 30 days' notice.

  • Importantly, do not talk salary and benefits until you have sold yourself.

    Top of page

    | Home Page | News | BT Money | Survey | Companies | People | Appointments | World | Markets | Trends | Columns | News Maker | Calculators | Search | Archive | E-Mail us |