25 July 2008
	FM Campus Recruitment Edition Negotiating your contract By Niteske Marshall is general manager at Network Finance, a specialist financial recruitment agency Don't talk about your salary in your first interview - the art of negotiation is as much about timing as it is about preparation

Ne-go-ti-a-tion noun 1. Mutual discussion and arrangement of the terms of a transaction or agreement; 2. The act or process of negotiating; 3. An instance or the result of negotiating. Everyone's heard the saying, "negotiation is an art, not a science". Numerous training experts attest to just how important this is, because those unskilled in the art of negotiation don't always get the best deal possible. But successful negotiation is largely dependent on the situation. Getting worked up about the many processes involved and trying to bed down this "art" can be off-putting and cause unnecessary anxiety when, in fact, being prepared and arming yourself with the right information is all it takes to be successful. In life, one particular negotiation that is critical to tackle successfully is your employment contract. While finding a recruitment partner who understands what you want, helps you gather the relevant information and prepares you for the negotiation is ideal, if you wish to tackle the process on your own, there are some key elements you need to be aware of. A question of timing Your first job interview should be used for two fundamental things: selling yourself to your prospective employer and gaining as much information as you can. This is not the time to negotiate anything. Unless it is brought up by the employer, keep your views about prospective salary, working hours, benefits and such to yourself. A second interview is a clear indication that the prospective employer appreciates your value and is interested in hiring you. This is the time to begin negotiating, but with the right attitude and the right information at hand. Do your homework. Make sure you talk to independent sources (such as people working in the field) to get a clear perspective on market-related salaries. The Internet provides a wealth of information in the form of salary surveys, qualification information and information on the prospective employer (the company website, blogs, media comments and so on). Gathering information will give you a balanced view before the second interview. Taking the lead Let your prospective employer lead the process as far as possible by informing you of the salary package and benefits associated with the position offered. If you are asked about your expectations, however, your ideal answer should be that you are looking for a market-related package and are interested in reviewing any offer they wish to present. Sometimes a prospective employer will insist that you provide it with your preferred outline. In this case, remember the following: Your package consists of salary and benefits, which could range from medical aid and pension, to flexible working hours. It is important that you understand what is on offer. When giving a salary figure, know what your minimum net figure is and inflate that by no more than 10%-15%. While just a guideline, this approach is reasonable and a "buffer" for the prospective employer to negotiate down. Understand what you can negotiate by asking questions and getting a feel for the company's flexibility. Coming across as too demanding can be detrimental to securing the job. What can I negotiate? If you are entering the job market for the first time, negotiating anything other than salary figure and associated benefits can be difficult. Expecting flexible working hours, for example, while not impossible, may be viewed as completely unreasonable. If, however, you are adamant about the inclusion of certain benefits, then the second interview is the time to raise these. Read the Basic Conditions of Employment Act - it will give you a balanced view of the statutory basics versus company goodwill when it comes to discussing benefits. The company culture will also become obvious. Making an informed decision The second interview should be used to gather information, clarify technicalities, discuss your salary package and, ultimately, get a feel of whether it is the right job offer for you. Deductions There is a fundamental difference between cost-to-company, gross and net pay. It is acceptable to ask for a breakdown, or even a mock pay slip before signing a contract so you are clear about what you will get. Benefits Medical aid and pension are, in most cases, the standard benefits provided. While these incur statutory deductions (whether a percentage or in full) these are implemented for your own wellbeing and, as such, most companies see them as non-negotiable. What can often be negotiated is the type of medical aid chosen. Company policy Ask your prospective employer about the company and its policies, including: maternity leave; study leave and payment; expense reimbursements; and work flexibility (virtual office arrangements). While you should not look to negotiate these particular points in a second interview, it is appropriate to ask whether the company is open to negotiation further down the line. Other key areas to clarify include: working hours (and overtime expectations); starting date; amount of travel expected; physical premises (which may not be the same as for the interview). Where should I sign? It is inadvisable to go back and forth on offers, so make sure the second interview is your complete negotiation platform. Make sure you know what you want by the second interview and before any paperwork is completed. Be honest. If you have four or five job interviews lined up, inform your prospective employer. If they want to hire you, more often than not the human resources process can be sped up to place a solid offer on the table. Read through the contract thoroughly and if you can, get an industry expert to vet it too. Make sure the contract accurately reflects the outcome of the second interview. If you are comfortable with the contract, make sure two copies are signed by both parties and keep one on hand for yourself. Ethics do matter It is critical to be viewed as ethical at all times. Make sure you get all the information you need to make an informed decision about signing an employment offer rather than causing unnecessary running around or frustration to the employer. Bear in mind that it is viewed as exceptionally unprofessional to back out of a signed employment contract or just not appear for your scheduled first day at work. In more cases than not, any unethical behaviour will come back to haunt you in the professional world. In fact, more and more companies and recruitment agencies are implementing clauses within employment contracts which ensure a financial penalty for the prospective employee if the contract is breached. Being prepared and gathering as much information as possible will allow you to make an informed decision. Once you've signed the offer of employment, you'll be excited, energetic and ready to be an ambassador for the company hiring you. The company will be as excited to have found the right candidate.