Factors to be considered when negotiating salary

For an employee, salary is their means of livelihood and a lot depends on their salary. In a country like ours where struggle is real and going by daily activities requires money, reasonable amount of salary needs to be earned to pilot the affairs of one's families. In this generation, many are working wherever they are working today because they don't want to be idle not because the money being paid is enough for them. But in a well developed organisation, probably the ones owned by federal government or some private investors, salary negotiations is very important and necessary for sustainable living.

source

In determining salary negotiations, some factors are to be considered which would help the salary earner to handle his or her responsibilities and live a peaceful life.

Living expenses

This is one of the most important factor when negotiating for salary, this includes rent, utilities, food, transportation and healthcare. It is essential to put these things in consideration when as it would be inappropriate living a house where one have to pay a rent three times or five times above one salary. This is the reason why it is important to consider proximity of one's residence to the place of work because of the transportation expenses. Access to good health facilities is also to be considered as it would be bad on the side of a earner to earn as low as an amount that can't provide quality health service when one is indisposed. Also, the cosy of food should be considered especially in a country when no amount of money is enough to buy food stuffs. Other utilities such as buying of clothes and other necessary things that made human good-looking is also to be considered because working in a formal setting requires one to dress appropriately then money is needed to purchase some of these things.

Saving and Investments

It's not so good for one not to have a saving or an investment despite working. Many people don't have savings as what they are earning is not enough to take care of their daily needs not to talk of investing. It is expected for everyone to have a save up money as emergency funds incase of unforseen circumstances. Without This, many people find themselves stranded when emergency surfaces and they ended up indebted by borrowing money from every available sources which they might find difficult to return as at when necessary due to insufficient money earned.

Salary trends

Salary negotiations should be based on salary being earn in one's field or profession. One shouldn't be earning less than others in the same field. For professionals such as medical doctor, nurse, and laboratory technologist should earn an amount equivalent to the service they render in the society but it's so bad that in our society today, they are underpaid.

Company size and financial strength

This is very important , I have seen someone teaching in a private school and earning as low as #15,000. A family woman at that with two children, I do think and imagine how she is coping to handle her part of the responsibilities in the home. If the company is large, it is expected to pay more. More profitable companies shouldn't deprive their employees of good amount of salaries. Therefore the company size and financial strength should be considered when negotiating salary.

Level of education and years of experience

These are also important factors to be considered, higher education level are expected to earn more. An employee with masters or PhD has the qualification to earn more than a higher national diploma employee. Putting years of experience into consideration is also needed because there are some that are lord in their fields due to the years they've spent in that field. They know the indepth of their profession, they should be considered for a higher pay than a fresher who is just coming in to learn with zero year of experience. Experience is what keeps some organisations in the face of competition, a company could fall off the market if they can't handle the pressure from competitors due to lack of experience.

Relevant certifications

Lastly, there are employees with higher certification, just as in professional field, taking an accountant for an example. Obtaining a chattered accountant certification is by hardwork and several exams and once this certification is obtained, such employee should be given his or her entitlement of higher pay to someone with a Bsc in accountancy. Such certificate should be an added advantage to such employee and this should be considered when negotiating for salary.

Thanks for your time and your comments will be appreciated.

Posted Using INLEO