Many people accept the first offer they receive because they are relieved to get a job or worried that negotiating will make the employer withdraw. A polite, well-prepared negotiation rarely costs you the offer, and the difference it makes compounds over every year you stay in the job.
Understand what is being offered
In South Africa, private-sector salaries are often quoted as cost to company (CTC) — the total the employer spends on you, including its contributions to retirement funds, medical aid and other benefits. Your basic salary, and especially your take-home pay, will be lower. Before negotiating, ask for a breakdown:
- basic salary;
- retirement fund contributions (employee and employer);
- medical aid contribution;
- allowances (travel, cellphone, housing);
- bonuses — guaranteed (such as a 13th cheque) or performance-based;
- leave days and other benefits.
Our guide to understanding your payslip explains the deductions you can expect.
Research the market rate
Find out what similar roles pay: salary information in job adverts for comparable posts, salary surveys published by recruitment companies, and conversations with people in the field. Note the range, not a single number, and consider location and experience level.
When to negotiate
The best moment is after you receive an offer, when the employer has decided it wants you. If you are asked about expectations earlier, give a researched range and say that you are open to discussing the full package.
How to negotiate
- Thank them and show enthusiasm for the role.
- Make a specific, reasoned request. "Based on my five years' experience in payroll and the market rate for similar roles, I was hoping for a basic salary closer to R… Is there flexibility?"
- Consider the whole package. If the salary is fixed, ask about other items: a later review date, additional leave, study assistance, flexible hours or a higher grade.
- Get the final offer in writing before you resign from your current job.
In the public service
Salaries in the public service are set by salary level, so there is far less room to negotiate. The advertised level is fixed. In some cases, a department may be able to offer a higher notch within the level — for example to match the salary you already earn — if you can provide proof of your current salary. Ask the human resources office about this before accepting. Our guide to salary levels explains how notches work.
Things to avoid
- Inventing a competing offer.
- Making demands without reasons.
- Focusing on your personal expenses rather than the value you bring.
- Accepting a verbal promise without anything in writing.