Career Center – Salary Negotiations

How much is my work worth to my employer and to myself?

Salaries in a job can vary considerably. The size of the company, the sector and the location are key factors that influence salary levels. Income can also vary significantly depending on the further training and certificates a person has.

Money shouldn’t be everything, of course, but a solid salary is naturally very important for the future. When starting out in your career, this is where the foundations are laid for your future salary progression. Furthermore, job adverts often ask you to state your salary expectations in your application. This is the latest point at which you should start giving the matter some thought. An applicant should never go into salary negotiations unprepared, but should prepare specifically for the ‘negotiation game’.

The following factors, for example, influence the level of salary:

• Level of education (vocational training, higher education)
• Work experience
• Hierarchical level of the advertised post
• Place of employment (country, region, town)
• The company’s sector
• The company’s commitment to collective agreements
• Economic situation (boom = higher salaries)
• Size of the company

Your salary expectations should be stated taking the above factors into account and put forward during the interview. You should work out a range for yourself for the negotiation, including a lower ‘bottom line’. It is, of course, also important to bear in mind your personal financial needs for living expenses and provision for the future (health, retirement, insurance), which you should keep clearly in mind.

In addition to the monthly salary, the following benefits, amongst others, may be included in the negotiations:

• Working time arrangements: e.g. flexitime, sabbaticals, etc.
• Direct insurance
• Occupational pension schemes
• Business loans
• Special payments
• Discounts
• Employee shares
• Benefits in kind: company car, mobile phone, laptop, etc.