What salary should I ask for
in an interview
Salary is still one of the most difficult areas on all levels of the recruitment scale.
Do not leave it up to the recruitment consultant or company to understand your salary breakdown. Make sure you know exactly what you are getting and what you can expect. It is vitally important that your recruitment consultant as well as the client knows your expectations.
Make sure you know what the cost of hidden benefits amounts to, as this will impact on your total cost to company.
To understand your salary, you need to understand the difference between Cost to Company, Gross Salary, Basic Salary and Net Salary.
Cost to Company (CTC) Salary means every single cent in an annual package that is given to you. Whether it is a bonus, thirteenth check, paid parking, lunch, clothing allowance, a car, petrol, or a cellular phone. Every cent of the total cost to company is paid by the company, and it includes all the hidden luxuries a company gives its staff – even the weekend lodge or the occasional rugby tickets, etc. Basically, things you use or are given but do not pay for.
Basic Salary is just that: the basic figure without any benefits or added costs over and above. Make sure that you are very clear when speaking to a client or recruitment consultant regarding your current salary. Ninety percent of people interpret a salary breakdown differently. If you name your current salary to a client or a consultant, do not assume they will understand what you are earning. Usually, when a client talks about basic salary, it means there are still benefits over and above. The basic salary plus medical and pension and a thirteenth check. Basic salary is always worked out over twelve months. Check with the person you are meeting with. Always ask if that is the entire package.
Gross Salary is when the benefits are included in the basic figure. This means that you need to deduct medical and provident fund/pension fund from the figure to get the basic salary. This is still not the full package; it is the basic salary plus the medical and provident or pension. There still might be other benefits over and above this figure.
Net Salary is the money you take home or put in your pocket after all deductions have made. It is what you take home at the end of the month, meaning what you can spend!
On an interview, when asked about what salary you are looking for, the best possible answer is to mention your current package: what you are currently earning. However, do not just say you earn, for example, R20,000. Specify whether this is basic salary, net salary, gross or total cost to company.
When you say R20,000 to the client, they might think you are talking about your total package, while you might assume they know you are talking about your take-home net pay. There is a huge difference between the two.
Salary is always tricky. The best way to answer this question is to say, “My current package is (X-amount), and I get ... (discuss benefits, commissions and when your next increases are expected).” Then say, “I take home (X-amount) after deductions. From what we have discussed, this opportunity is really something I see as challenging (and then substantiate this). I am certain that your organisation would make me an offer that is fair and market related, in which case I would be very keen to consider.”
Remember, if the interviewer pushes you for a figure, a good way to leave it is to say that you would accept a lateral move on your current package.
This is a worst case scenario. Then you know the company will not offer you less than what your current package is. It will also show that you are interested in the opportunity and company and not just making a move for more money.
Be aware that companies do not have to increase your salary or offer you more. However, consistency regarding offers and what you can expect within industries across the board is normally 10% to 15% more than your current salary, unless you have a specific skills that is in high demand.
When money is the only thing that motivates you to make that move or accept that job, maybe it is because it is not the right opportunity or time to make that move. Do not accept just any new job; make sure it is a career move and in line with your NAP.
Always make sure you know what medical aid you are on and how many dependants are on the medical aid. This can affect the offer tremendously. Make sure you understand the implications of taking different scales and different medical aid options. Sometimes companies do not offer medical aid at all.
Make sure you understand what this fund is and what percent the company contributes. This can affect your net (take-home) salary.
THIRTEENTH CHECKS/BONUSES
Companies do not automatically have a guaranteed thirteenth check. They might have a one, but it can be based on performance and not guaranteed. Make sure you know what the client offers.
Some companies offer fourteenth or even fifteenth checks. This is a huge incentive for anyone but it is at the discretion of the company.
Bonuses are very often a new substitute for a thirteenth check. Make sure you are aware whether the bonus is guaranteed or not. Knowing all the benefits can very often be the difference between saying yes or no to an opportunity.
Always ask about cell phone allowances, car, petrol, housing, food, and clothing allowances.