Negotiating Salary – Five Strategies for Success

Research on negotiating salary shows that up to 80 percent of job offers are negotiable but that only a small number of job candidates actually enter into negotiations of the job offer and salary with prospective employers. The main reason given is that candidates feel ill-equipped to negotiate and as a result are intimidated by the negotiation process. You don’t have to be an expert negotiator to successfully negotiate a job offer. Knowing these basic negotiation strategies helps you to properly plan your salary negotiation and feel confident in the negotiation process.

Delay the salary discussion for as long as possible in the hiring process

The best time for negotiating salary is after a firm job offer has been made. Your negotiating power is at its peak when the company has been convinced of your potential value to them and has decided that you are the best candidate for the job. If the salary question comes up early in the interview process it is best to remain as non committal as possible and suggest that your salary requirements are “open” or “negotiable” until you have learned more about the job. If pressed to give an amount state a wide range within which your salary requirements fall. Avoid giving a specific salary figure on the application form and rather put “competitive” or “open to discussion”.

Find out the value of your skills in the marketplace

Information is your greatest tool in negotiating salary. Research your competitive market value. What are other organizations in your field and geographical area paying for your skills and experience? It is much easier to persuade the company to agree with your salary request if your negotiation proposal is firmly based in hard fact such as what people with similar skills and in similar jobs are currently earning. You can research salary data in a number of ways including visiting various free salary websites, asking people in similar positions, calling professional and trade associations, asking recruiters and employment agents and looking at similar job postings. Know what you are worth to this specific company Understanding your company-value helps you determine your real bargaining power.

What is your value to this particular company?

Consider factors such as the supply and demand ratio of your skills and experience in this industry and area, the number of candidates the company has interviewed, how urgently the company needs to fill the job and the direct and indirect contribution to company profitability of this position.

Evaluate the entire compensation package

Benefits can contribute up to 30 percent of the whole compensation package. Include the benefits in your salary calculations to get a more accurate picture of the dollar value of the whole compensation package. Put a direct dollar value on benefits such as medical, dental and life insurance, company bonuses, profit sharing, direct expense coverage such as parking, phone etc, company services such as child care and paid overtime. Decide which aspects are important to you and what you can negotiate to balance the base salary.


Mortgage Income Multipliers And Affordability Calculators What’s Best

Mortgage Income Multipliers
Mortgage income multipliers are one of the tools that are used by mortgage lenders in order to work out how much they are prepared to lend each person looking for a mortgage or remortgage. Usually this is either three times the income of a person applying for a mortgage alone or two and half times the incomes of two or more people applying for a mortgage together, whichever one gives the highest figure. Some mortgage lenders are more generous with their lending and these can be even more flexible if the loan to value is quite low.

An example of how mortgage income multipliers work
If you look at the Abbey and their mortgage income multiplier you will see that they will use the information on a borrowers credit rating to calculate how much they are willing to lend them. This could lead to a borrower being able to apply for a mortgage which is up to five times the amount of their annual salary.

Mortgage Affordability Calculator
One of the latest and now most common ways in which a lender can calculate how much they can let you borrow is by using a mortgage affordability calculator. These work by looking at your lifestyle and ability to pay a mortgage rather than using an income multiplier. This can lead to a borrower being able to borrow more than previously allowed with income multipliers.

At the moment there are around 25 lenders on the market who can use a mortgage affordability calculator to work out the amount they could potentially lend a person. If you have a high credit rating, have no dependants and two incomes you could borrow even more.

Some of the high street lenders who use a mortgage affordability calculator are Standard Life, Halifax and Alliance & Leicester.

Enhanced mortgage affordability calculator
Today some lenders will offer a borrower more money if they opt for a five to ten year fixed rate mortgage with them. This is seen as much less of a risk to the lender as the repayments remain the same for a much longer period and are more likely to be budgeted for with relative ease.

Mortgage borrowing advice
If you would like find out more about how much you can borrow on a new mortgage there are many websites that link to a mortgage affordability calculator at many of the mortgage lenders. Alternatively you might want to use one of the many mortgage calculators on a mortgage comparison website. You could speak to an independent mortgage advisor and discuss any area of mortgage borrowing with a dedicated mortgage advisor.