An exciting world of work lies ahead of you, but you need to know your professional worth — and how to negotiate a salary.
While negotiating your first graduate salary is a timid affair, a thick veil of silence typically clouds conversations around pay. This lack of knowledge impacts on your financial wellbeing, firstly as a graduate, and ultimately across your career. All of this makes learning to understand fair pay parameters for your industry and profession a vital skill.
This information is most important for women graduates. We know from research that the graduate gender pay gap is close to zero but widens in the first three years after graduation, continuing to do so for the remainder of your career, for no other reason aside from your gender. This needs to change and as the graduate class of 2022 it is possible for you to bring this change.
Understanding the language of organisational pay structures means coming to grips with salary ranges, scales and rates.
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Salary range is the upper and lower rates of pay established within your organisation for employees in each role and function. Salary ranges are determined by comparing market pay rates for professionals doing similar work in the same industry in similar geographical locations. The upper and lower ends of the range are punctuated by a series of scales which facilitate pay rate increases.
Your position on that pay scale is called your market rate. This is determined by your level of education, and experience when compared with the performance requirements of your role.
As you settle into your role, create a file called “salary negotiations” and, in it, include details of pay scales, your salary range, your progression and experience, and any negotiations that happen.
In-house HR departments have the pay scales for every job, at every level in your organisation, which you can ask for, so don’t be hesitant to ask for these scales; alternatively, you can access similar information through free online salary guides such as Payscale, Morgan McKinley or Glassdoor.
This information provides essential data to help you identify where you sit on the salary range for your role. In turn, this context helps to manage that inner (even critical) voice that keeps asking “Am I looking for too much?”
Based on that research, choose lower and upper figures within which you are willing to work. Start off your negotiations with the higher figure, as this will help you gauge what is really up for negotiation. While some suggest giving a figure is a gamble, there is an equally strong case for putting your cards on the table. Anecdotally, I can tell you that most managers welcome a well-considered figure — particularly if it is framed strategically.
Hard data is the best way to begin any business negotiation, and salary negotiation is no exception. Over the course of your first year as a graduate, record your progression across four categories, including your skills, experience, qualifications and contribution. Each Thursday make it a point to collate the evidence that you need to build your business case. Identify your achievements and contributions by using practical and specific examples of what you have learned and achieved since starting your job.
Remind yourself managers are busy, and for the most part are well-meaning, so by preparing and putting a well-researched business case forward to support your pay rise, you are more likely to be successful,
Managers usually receive little or no training about navigating pay and performance reviews, so anything that you can do to make life easier for them puts you in a better position.
As you kick off salary negotiations, be clear that perks and pay are different. Perks are the added extras in recognition of your personal performance. They may include extra annual leave, free medical insurance, flexible work patterns, gym membership or a serviced canteen. Remember: perks don’t pay the rent, so do not confuse them with salary.
Be considered in your approach and ready to answer questions about what’s next for you and your career. Talk openly about your ambition and desire for professional growth, and outline where or in what role you see yourself in the next 18 months.
With all this in mind, you’ll have a good chance of getting that all-important raise.
— Sinéad Brady is a career psychologist and speaks on the future of work: ACareerToLove.com.
