Salary negotiation strategies for aid workers and consultants: A primer

You’re in the running for an amazing international development job, and the question of compensation comes up. What do you do? “People shy away from negotiating salary because they’d rather avoid conflict, but it’s really about creating a win-win for both you and the employer,” said Shana Montesol Johnson, a certified career and executive coach based in the Philippines who frequently works with international development professionals. Here are some tips on negotiating the salary you deserve — whether you’re an experienced independent consultant or a recent graduate looking for a full-time position with a nonprofit or donor agency. Take cultural differences into account Salary negotiations vary from culture to culture. For example, most Japanese companies offer very little room for salary negotiations, and some won’t negotiate at all. “How cultures negotiate is complex,” said Robin L. Pinkley, a conflict resolution expert and the co-author of the book “Get Paid What You’re Worth.” It is important to be aware of what is going on in the economy and the job market in a particular location, she said. Her advice: “Be informed about the industry and the country.” Keep in mind that generational differences and gender might factor into negotiating styles. “People need to understand the other party to the best of their ability,” Pinkley said. It’s especially important to do your homework on the business and cultural norms of a particular country or culture if you’re seeking to work for a local organization. If you are negotiating with a large international non-governmental organizations, you might not need to know as much about the customs in the country you’re applying in. “In the case of development professionals who are applying to work for organizations that routinely hire expats,” Johnson said, “these employers may have greater understanding for someone who is coming from a different cultural context.” Wait until you know they want you It is best to avoid discussing compensation until you are certain an aid group or consultancy is ready to make an offer, experts on salary negotiation say. Those who bring up salary too early may risk being dropped from the hiring process altogether, said Jack Chapman, a career and salary coach and author of “Negotiating Your Salary.” “Often, it takes a while for an employer to recognize your value,” he noted. Candidates may have to fill out an online form that requires a precise answer for a minimum salary. If you don’t need to be specific, it is best to say something like, “Salary commensurate with the market” for the particular position. You may also respond with an answer such as, “I’d like to know more about the position before we discuss salary.” At the same time, be careful not to appear uncooperative or as though you are withholding information. Aid groups — like all employers — want to make sure they can actually pay your desired salary. Valarie Barksdale, a recruitment specialist for Catholic Relief Services, said she prefers to talk openly about salary expectations during the pre-screen interview. “We want to make sure we’re in the same ballpark,” she said. Recent research suggests that final salary deals tend to end up closer to the first offer than the second. So, be aware that if a recruiter makes the first offer, your salary will likely be closer to their amount than the one you had in mind. Do your research Before the question of compensation comes up, know what your idea of a very generous salary would be, what would be satisfactory, and what your minimum requirement would be. “At some point you will be discussing it,” said Chapman. “So, have some numbers figured out ahead of time.” Research the market, and know what comparable jobs in the industry in that location would pay. Online resources for salary information include PayScale.com and Salary.com. The Devex website also offers helpful advice on international development salaries and networking opportunities with professionals in your field that may help you attune your expectations. If you need to compare the cost of living in different cities, the United States Department of State publishes information about living costs abroad, while the Economist Intelligence Unit has a worldwide cost of living index on its website. Remember taxes It’s crucial for international development professionals, particularly those working abroad, to think about taxes. If you’re a Mexican citizen applying to work for an NGO somewhere in Africa, for example, where would you have to pay taxes? How much would it cost you? Are there any tax benefits — or disadvantages — to working outside of your homeland? Many countries have signed tax treaties with each other that provide reduced taxation rates or exemptions from taxation when withholding certain parts of your income. While it may be hard to gauge the impact such bilateral agreements would have on your eventual compensation, it is worth reading up on them to decide whether you would want to claim the privileges they contain. If you are a U.S. citizen or resident alien working abroad, you may be able to claim the foreign earned income exclusion, and you also may be able to exclude or deduct some foreign housing costs. If you are being treated as an independent contractor, then you will need to pay self-employment taxes, which include both the employee and the employer’s share of social security. Find out how the organization plans to pay you, and take this into consideration when you’re mulling over an offer. If you’re seeking to work with the United Nations or one of the multilateral banks, you’re in luck: Most of them have granted citizens from member states an exemption from national income taxation. In member states that do tax the emoluments of citizens working for the U.N., staff will get reimbursed. And additional perks may apply. For instance, U.S. citizens working for the World Bank get a quarterly payment to cover the U.S., state and local income taxes on their World Bank wages. Use silence to your advantage When an employer makes you a salary offer, repeat the number and then remain quiet. The recruiter may counter with a higher salary offer, or they may ask what you had in mind. If an organization makes a lower offer than you wanted, let them know what an ideal salary range would be, and share your rationale for a higher salary. It is always okay to ask questions about what is considered standard compensation, according to Pinkley. Is there room to negotiate? If not, why not? What criteria is the aid organization using to make its offers? Once you find out the criteria, you can address why you should be earning more. Instead of describing your needs or salary history, emphasize the skills and abilities you will bring to the organization. Having a rare skill that is in demand or of particular value to the consultancy you’re eager to work with may give you an advantage when it comes to negotiating for higher pay. For example, you may be among a handful of water experts who have worked in Pakistan. Sometimes knowing foreign languages can boost your negotiating stance. For instance, although the International Committee of the Red Cross works with interpreters, sometimes delegates can obtain additional salary benefits if they master a language valuable to the ICRC. Tips for consultants If you’re an independent consultant, make sure you’re charging a competitive fee that will cover your annual salary, any overhead costs and your desired profit. Keep in mind, however, that having a slightly lower rate might help you land a consulting gig. Especially if you are new to the market, or a particular partner organization, you don’t want to charge more for your services than your competitors. When organizations hire consultants, they typically base the rates they are willing to pay on the salary history of the consultants that they have engaged in the past. They may also be bound by donor requirements: The U.S. Agency for International Development, for instance, does not pay independent consultants more than 10 percent above the consultant’s most recent annual income. That means a chief-of-party who took a pay cut for a previous job may be paid at a lower rate than some of their junior officers on the same USAID-funded project. How can you get an accurate idea of what you’re worth? Within entities such as the World Bank, consultants have access to matrices that show daily rates based on education level, types of consulting, and years of experience. However, many organizations, especially smaller companies or NGOs, won’t have this information. If you are unable to find data on the organization’s website, networking may help. Other consultants you know or get to know through the Devex website may be willing to share how much they have earned at particular organizations, in specific sectors — public or nonprofit — or regions. Sometimes consultants don’t like to disclose information about their fees. If you can’t find out what other consultants charge but you’ve been doing similar work as a staff employee, begin with your most recent salary. Ask for time to consider the offer Once the employer has given you a firm figure, ask for some time to think things over. Remain enthusiastic about the position and the organization so that the employer doesn’t interpret the request as lack of interest in the job. Ask them to send you the offer in writing to make sure you’re on the same page, and find out when they need an answer. “Always be very polite and respectful in your negotiations, whether it is by phone, in person or in an e-mail,” said Johnson. “You don’t want to get a reputation as someone who is difficult to deal with.” Be creative, and take benefits into account If you’re thinking about working for one of the development banks or a government agency, there may be a fixed salary range. For example, a recent job announcement for a GS-14 program analyst for USAID listed an annual salary range of $105,211 to $136,771. Salary negotiation experts say that you might be able to convince an organization to bump you up to the next grade level for a job. However, be prepared to provide evidence that you should be upgraded. Although nonprofit salaries are more competitive than they used to be, most don’t have a lot of flexibility when it comes to pay. They may, however, be willing to negotiate about non-financial perks such as your ability to work from home once a week. Don’t forget to take benefits into account, especially if you are a consultant working overseas. During the negotiation process, be sure to discuss any perks such as relocation, housing, children’s education allowance, reimbursement of travel-related expenses, “danger pay” for certain locations, health insurance, and trips home. “It’s a missed opportunity if you don’t do at least one round of negotiation,” Johnson said. “But don’t look at just salary. The organization may have flexibility in other areas that may be important to you.” If you’re unsure about the final offer you’re presented, find out what advancement opportunities exist at the donor, consultancy or nonprofit. How often are salaries renegotiated? Is there a chance to win a bonus payment based on superior performance — and if so, what are the criteria? And if you think you are the right person for the job, consider accepting it even if your salary offer is below what you had originally hoped for: After all, the professional experience and connections you’ll gain may lead to ever more promising — and well-paid — jobs. Read more career advice on salaries: - UN Salaries: What You Need to Know - Humanitarian Relief Salaries: What You Need To Know - Salaries for Development Engineers: A Primer - Entry-Level Salaries at CARE Read more career advice articles.