February 1, 2023 | 6 min read
Summary: Here's how to make a strong case for a salary package that truly reflects your skills and experience.
Making a strong case for a salary package that truly reflects your skills and experience won’t just help your hip pocket in the here and now – your future self will thank you for it too.
Like your job but not sure you’re being paid what you’re worth? Or are you going for a new position and not feeling confident about having the inevitable salary conversation?
In general, women are less likely to ask for more money when they are offered a job, and more likely to stay at a lower-paid job.1 Reasons vary, but some of this reluctance includes being uncomfortable discussing salary, being hesitant to ask and being less confident than men in negotiating.2
It begs the thought: Why? And what can be done about it?
One factor holding women back on negotiating salary is a deep-seated unwillingness to discuss financial matters, even when it’s in our interest to do so, says careers coach Sally-Anne Blanshard, who’s helped hundreds of women, and men, get comfortable talking about remuneration.
“Often, people come at conversations around money from a fear and avoidance base, whether it’s talking about their financial position or doing a budget forecast,” Blanshard says.
“In a work environment, that means women are too often unwilling to rock the boat. Lack of confidence talking about money and managing financial negotiations can mean they subconsciously feel they should be grateful for what they’ve got. They can find it very difficult to be assertive about what they’re actually worth to the organisation.”
The good news is, it doesn’t have to be that way. With a little planning and a shot of courage, you can tackle the topic head-on. Here are some guiding principles to help you secure a pay packet which reflects the contribution you make, and the value you bring to your employer.
Making sure you’re being paid appropriately starts with understanding what someone with your skills and experience is worth on the open market. That means knowing what a successful applicant could expect to be paid, if a job just like yours came up tomorrow.
If you’re unsure, Blanshard says, find out.
Scanning jobs ads on sites like Seek, reading salary surveys, and talking to recruiters if you receive an approach can all help you get a handle on what other workers in your sector with similar responsibilities earn.
If you’re an existing employee, a key way to talk about salary is to talk about the contribution you make. And that begins with some thinking.
Consider and make notes on your own role – past, current and future:
Viewed through this lens, you should of course demonstrate that you’re delivering everything on your current job description – after all, that’s what you’re being paid to do.
But it also shows your employer you’re worth extra because you’re not just doing extra – taking on additional responsibilities, making customers happier, identifying new business opportunities or securing unexpected wins – but you’re also delivering extra. And that the company is benefitting as a direct result.
Preparing your story this way helps elevate a salary conversation from ‘money’ to ‘value’; to the value that you deliver, and therefore why you’re worth it.
Learning to hold your own in a salary negotiation can be empowering and rewarding.
After that, securing a salary that reflects your market worth doesn’t just mean more money in the bank each month, or a better lifestyle for you and your family. You can also pay it forward – to yourself.
Superannuation is calculated as a percentage of your base wages or salary (currently 10.5 per cent) and the extra dollars you earn today could help boost your super account balance and help you enjoy a more comfortable retirement down the track. See if your retirement is on-track and explore things you can do if it’s not.
It’s never too early too early or too late to build your super. Your employer may already be contributing to your super account. But you might be thinking of adding a little more, because even small additional amounts, into your super today, can make a big difference down the track. And by contributing more, you may even end up paying less income tax.
That’s something worth fighting for, in the here and now. Keep reading to discover more ways to grow your super and invest in your future.
1 Research from the University of Sydney suggests that, while women are now just as likely as men to want to negotiate over pay, they’re less likely to have the opportunity to do so. Original article ‘Negotiating the Gender Wage Gap’, https://onlinelibrary.wiley.com/doi/full/10.1111/irel.12228
2 ‘The Gender Pay Gap is Real’, https://www.monster.com/career-advice/article/the-gender-wage-gap
Use our retirement calculator to see whether you're on track to living the lifestyle you want
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This article has been prepared by NULIS Nominees (Australia) Limited ABN 80 008 515 633 AFSL 236465 (NULIS) as trustee of the MLC Super Fund ABN 70 732 426 024. NULIS is part of the Insignia Financial group of companies comprising Insignia Financial Ltd ABN 49 100 103 722 and its related bodies corporate (‘Insignia Financial Group’). The information in this article is current as at November 2023 and may be subject to change. This information may constitute general advice. The information in this article is general in nature and does not take into account your personal objectives, financial situation or needs. You should consider obtaining independent advice before making any financial decisions based on this information. It is recommended that you consider the relevant Product Disclosure Statement (PDS) and Target Market Determination (TMD) before you make any decisions about your superannuation. You can obtain the latest copy of the PDS (or other disclosure documents) and TMD by calling us on 132 652 or by searching for the applicable product at mlc.com.au. You should not rely on this article to determine your personal tax obligations. Please consult a registered tax agent for this purpose. Opinions constitute our judgement at the time of issue. The case study examples (if any) provided in this article have been included for illustrative purposes only and should not be relied upon for decision making. Subject to terms implied by law and which cannot be excluded, neither NULIS nor any member of the Insignia Financial Group accept responsibility for any loss or liability incurred by you in respect of any error, omission or misrepresentation in the information in this communication.