Contract and Salary Negotiations

 

Contract and Salary Negotiations

 

Last Updated: 30-04-2025

Negotiating a contract and salary are very important steps in the process of finding a job. However, it can be quite hard to position yourself during these conversations and adapt quickly to the discussion. As preparation is key, this article can help guide you through the process of what to expect and how to prepare in order to get the most out of the negotiation. our actions in the past may reflect one of the two mindsets.

 

PREPARATIONS

Before the negotiations begin, it's crucial to have a basic understanding of your position in the job market, the field of the job you are applying for, and your personal priorities. These steps are important for being fully prepared:

  1. Minimum survival salary: Calculate the minimum salary you need to maintain a comfortable lifestyle. This is the basepoint for yourself on what you need. Consider all your financial obligations and which additional budget would provide certain additional comfort.

Remember that approximately 1/3 of your gross salary will go to taxes. Use online calculators or ask the company for net salary estimates.

  1. Know your priorities: Determine what is most important to you. Is it money, free days, or other benefits? Knowing your priorities will help you focus during the negotiation.
  2. Research usual rates: Understand what is 'normal' for your position. Use online resources and networking (students, friends, via LinkedIn) to gather information on salary ranges.

You can also consider researching salary scales of your ‘CAO’ or search for websites that help calculate a base salary. Know that more experience in the work field or having specific (wanted) skills means a higher salary, so be sure to take that into account when getting information on other people’s salary.

  1. Plan for Disagreement: Be prepared for the possibility that you might not reach an agreement. Have a backup plan and stay true to your minimum survival needs.

 

CONSIDER YOUR EXPECTATIONS (salary, benefits, job expectations)

When defining your salary range, start off by taking the top-end of the market range from (estimated from your research) and go slightly above. Providing a range rather than a single number gives you flexibility and can lead to a higher average offer. Ensure your range does overlap with the company's to avoid appearing arrogant. If you provided a salary expectation before the interview, feel free to adjust it during the actual negotiation. In general though, it is not usual to ask a starter on the job market for a salary range before the start of the negotiations. This is, however, more usual in senior positions.

Beyond salary, there are several secondary benefits to consider. These are usually non-negotiable for the company, but they may affect your range. Think of, for example, a case where you can get all travel expenses covered by the company. This reduces your day-to-day living costs and therefore should also affect your range of expected salary. Other examples of these benefits are education reimbursement, a company car, a 13th-month bonus, vacation days, a pension plan, and more.

Besides these benefits, also consider the overall package, including how much you like the job/company, the possible growth path, and other intangible benefits. Especially when it comes to your growth path within the company, make sure to get these aspects in writing. It's not unusual to ask for this, and it's important for your long-term career development.

 

THE NEGOTIATION SESSION

The negotiation session is a critical moment. Typically, you'll negotiate with a recruiter or hiring manager. They may not have the final authority to make agreements, so they'll often combine both perspectives after the negotiation session. The company will present their initial proposal during the meeting, so you are not always able to fully prepare for the session. Therefore, it is important to start off by asking questions to clarify the offer and assure that both parties interpret them in the same way. Then, begin the negotiation by explaining what is important to you and why. It can be helpful to explain why you have certain priorities (e.g. you are planning to buy a house). Discuss all your options, not just salary.

Usually, the final offer is not made at the negotiation session but presented to you afterwards. This usually goes over the phone. Be prepared to decide quickly, as the decision term usually is not longer than a week. Also, be aware that it is not common for a company to give more than two offers. In case of both offers not matching your expectations, the company is probably not a good match.

Tips

  • Win-Win Mindset: Be inquisitive rather than demanding, aiming to explore possibilities without creating opposition. By adopting a win-win approach, you make sure both parties will be satisfied with the outcome which is also beneficial for getting a good start at your new job.
  • Listen Actively: Pay close attention during interviews to learn about the negotiation process, the job, and the company. Ask “why”-questions to gain deeper insights about the companies reasoning as well.
  • Explore Your Options: Use "suppose I" questions. Instead of saying “I want 27 vacation days,”. For example, try “Suppose I wanted 27 vacation days, how would that work within the terms of the given position/proposed contract?”
  • Avoid Assumptions: Enter negotiations with an open mind. Be ready to adjust your stance as new information becomes available. Don’t assume things are impossible without exploring them.
  • Be Clear: When making agreements, avoid vagueness in your expectations. Use strong statements like “It is important to me that…” instead of “Perhaps I would like to…”
  • Document Verbal Agreements: Take notes during discussions and ask the other party to document verbal agreements immediately, such as through email. Your notes will also help you recap your earlier discussion topics, if you may need to remind the other party later on.
  • Request Time for Reflection: You don’t need to decide on the spot. It’s perfectly acceptable to ask for time to think things over before giving an answer.

 

WHAT IF IT DOESN'T WORK OUT?

If negotiations stall or break down, remember these key points:

  1. Stay True to Yourself: Don't compromise on your minimum survival salary. Your financial well-being is paramount.
  2. Balance Financial Needs and Job quality: Be realistic about your financial situation and balance these with the job quality.
  3. Be Prepared to Walk Away: If the offer (repeatedly) doesn't meet your needs, be ready to decline. There are plenty of other opportunities that may be a better fit.
  4. Evaluate the Process: If the company makes the negotiation process difficult or unclear, it may be a red flag about the company culture. Take this experience as a learning opportunity when talking to other companies.

The most important takeaway is this: if a company makes the negotiation process unnecessarily hard or unclear, know that it is completely okay to say no. Especially as a junior in the working field this may feel unnatural, but know that there are many other organizations that will value you and your skills appropriately.

 

CONCLUSION

It can still feel daunting to start this process, but know that you can practice and discuss with friends and family before you start the process.

Take these steps and strategies with you as your next approach to contract and salary negotiations. Preparing for these will bring you confidence, ensuring that you secure a job that meets your financial needs and career aspirations.

 

If you wish to get more specific information or get practice and feedback, feel free to subscribe to the Contract and Salary negotiation workshop by Career Academy