How to approach salary discussions when emigrating to OZ

How to approach salary discussions when emigrating to OZ

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turbotoaster

Original Poster:

659 posts

179 months

Friday 7th July 2023
quotequote all
Im hoping for anyone on here to steer me in the right direction on the approach to take with this.

Field service engineer in the UK, live in the midlands(stoke)

£35k per year.
3 bed semi with double garage £157k(100k left on mortgage)
wife and 2 kids(10/8).
62% of my take home wage is paid out in bills(inc food)


Company I work for is all over the world.

Colleague has just been offered a job in Australia, working in Perth doing same job.

He is moving from £35k a year here to £65k over there.
Comparable house in Perth is £270k

Did the maths and the 62% works out the same based on mortgage/bills.

So for him happy days.


I contacted HR over there on the off chance of anything else coming up and they said they will have a role in Sydney coming up(not advertised currently), same wages as Perth

At the time of asking I hadnt research house prices in Sydney as I didnt know there was a role there but after the initial Teams meeting which went very well I started to look deeper in it.

Im finding that a comparable house over there is £450k, and thats me living 90mins away from Sydney, to make the numbers work to put me at 62% I would need £95k

Now I cant accept £65k as that would put me worse off than living in the UK, but I think it would be a good move for myself and my family, ignoring the financials.


So I thought about how could I put myself in a better bargaining position to ask for a better wage, the company can use the online portal to see every site job ive done, see all my training and skills and while I am a good engineer, there isnt anything that makes me massively better than anyone else.

I came up with an idea that because I have lots of holidays to use that I could get OZ to pay for my flights and hotel and I would come and work there for 3 weeks, my wages are paid by UK from my holiday entitlement (UK HR are ok with this) and OZ can bill me out which will cover the total costs within the first week.

When I told OZ this idea they liked the sound of it.

This would show them what im like as individual and at the end of the 3 weeks sit down with the MD over there face to face and see if I can work out a wage deal rather than simply over Teams.

If it doesnt work out I had an experience going to OZ which I will never likely be able to afford to do myself.


Ive always read about when trying to negotiate you simply shouldn't say.....give me money because I deserve it, or that houses are expensive, because thats not their problem, its mine.

But since they know all of my skills/training, its not really like I can pull many rabbits out of the hat, the only one I real have is that I have provided training for customers in this role and in the last company I worked for, the service manager from OZ liked that when I told him, from a financial point of you my skills can be a valued added feature to when we sell the products, for example if they are building a plant and need 150 instruments, you need to train the in house maintenance engineers how to use them, fault find, calibrate, that is something that can justify the extra cost of our instruments above other brands

I know they are struggling to get engineers, they have lots of work backing up, they are trying to get someone from South America for example who cant pass the english exam.


So any tips really, im kind of hoping someone sees this who has been in a similar position, either moving abroad or maybe to a London role and how you put your case across when really you know you can do a good job, can literally hit the ground running from day one with no training(identical role and product knowledge)

Or maybe anyone whos a company owner, If you struggling to get a certain type of employee, someone showed interest but wanted more money, is there a way that it could be put to you that you be open to increasing it by a decent margin.

Happy to add any further information you require to assist, its hard to know who to speak to on this who can give me some impartial advice

shtu

3,711 posts

153 months

Friday 7th July 2023
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Your big problem is salary - if they budget the role at 65k, it's a very hard sell to negotiate up to 95k, no mater how good you are or how much they like you.

Have a look at other local employers, see what the market rate is.

Gooose

1,491 posts

86 months

Saturday 8th July 2023
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Your salary could do with 5k on top really, if you’re good for the company. Plenty of jobs out there paying 40k plus

turbotoaster

Original Poster:

659 posts

179 months

Saturday 8th July 2023
quotequote all
shtu said:
Your big problem is salary - if they budget the role at 65k, it's a very hard sell to negotiate up to 95k, no mater how good you are or how much they like you.

Have a look at other local employers, see what the market rate is.
I had a look on Glassdoor to try and get an idea and what they are offering is comparable to what it said on there so I cant use higher local market rates.


The problem is Sydney is the most expensive place in the country yet the wages are the same as the cheapest place in the country, so it seems they dont take cost of living into consideration......this is pretty much the same as the UK branch, everyone gets offered pretty much the same regardless of house prices, it means that some people have it easy(like me) and some really struggle the further south you go(my colleague house was double the price of mine)

If i cant negtiate on skill, would putting all the facts and figures infront of them so they can see why I need more, its not a greed thing, its so I can actually buy a house as there is no point selling my house here and simply renting over there until death.

I think the lowest I could go to is £78k as that would leave me £1k a month after all bills are paid which would be the same as the UK, though as things in OZ are more expensive I understand it wouldnt quite go as far

turbotoaster

Original Poster:

659 posts

179 months

Saturday 8th July 2023
quotequote all
Gooose said:
Your salary could do with 5k on top really, if you’re good for the company. Plenty of jobs out there paying 40k plus
I asked earlier in the year, told no
Dont really want to leave though as im fairly settled in the role i have, hence I thought this might be an opportunity for me to earn more money within the same company but the house prices are putting me off

JoeRRS

145 posts

165 months

Saturday 8th July 2023
quotequote all
Have you taken superannuation payments into consideration? It was 9.25% of monthly when I lived in Perth.

I lived in Perth for 2.5 years starting in 2014 and the cost of living compared to the UK even then was a big difference. I decided to not sign a contract extension and left taking what I have in my superannuation pot minus 30 odd % tax and used it as a house deposit in the UK.

edc

9,315 posts

258 months

Saturday 8th July 2023
quotequote all
As you've experienced most companies pay on a cost of labour basis not cost of living. Therefore your best bet is to understand the labour market and the urgency/demand/need in the business. On the one hand a position being open a long time might indicate a scarcity of skills and a potential willingness to flex the pay structure, but on the other hand you could read quite the opposite. No business is the same so you will need to understand or second guess the levers and who is pulling them.

pistonheadforum

1,174 posts

128 months

Saturday 8th July 2023
quotequote all
What is it you want to acheive here? Increase in salary in the UK or do you want to work abroad?

If it's that you want to work in Aus (maybe even to see if it's for you - sometimes it's not what you think it is) then perhaps ask to be seconded to the Sydney office for the same local salary but they pay rental for a place. Pick a time of maybe 1 month or so to let yout get a freel for the country.

This would at least allow you to test the waters abroad with the least risk. Obviously it would just be yourself not the rest of your family in the UK but this might be enough to let you know it's not all rosey and not for you.

Be aware that the risk here is that they backfill your UK quickly so you are not irreplacable.

If the real problem is stay in the UK but get a bump up in salary then you probably need to interview for alternative posts and then tell them you have an offer and are moving purely because of wages. This is the perenial problem of they give you more money to stay but it sours the relationship - this is less of an issue at the moment with the cost of living increases as people are being forced to do this so there is an external bogey man who can be blamed.

If you go away for a month and they have struggled to cope with your absence then it does increase you barganing power for a wage rise in the UK.

pistonheadforum

1,174 posts

128 months

Saturday 8th July 2023
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It's maybe worth saying that the problem you have is solved countless times by going freelance/consultancy where you can move around and name your price but this is much harder to do in all trades.

Good luck in whatever you decide.

turbotoaster

Original Poster:

659 posts

179 months

Saturday 8th July 2023
quotequote all
JoeRRS said:
Have you taken superannuation payments into consideration? It was 9.25% of monthly when I lived in Perth.

I lived in Perth for 2.5 years starting in 2014 and the cost of living compared to the UK even then was a big difference. I decided to not sign a contract extension and left taking what I have in my superannuation pot minus 30 odd % tax and used it as a house deposit in the UK.
no as thats pension money, that wont pay the mortgage, bills or feed my family

edc said:
As you've experienced most companies pay on a cost of labour basis not cost of living. Therefore your best bet is to understand the labour market and the urgency/demand/need in the business. On the one hand a position being open a long time might indicate a scarcity of skills and a potential willingness to flex the pay structure, but on the other hand you could read quite the opposite. No business is the same so you will need to understand or second guess the levers and who is pulling them.
Well I will get to speak to the MD of the OZ division, looking online the money they are offering is decent, so I cant complain about it but maybe im looking at it from a jaded point of view because I live in a cheap area, maybe if I was from the south where house prices are alot higher I would feel differently about it.

If I simply accepted their standard wage packet I would end up being worse off than the UK and I wouldnt be able to buy a house due to the standard mortgage multiplier

pistonheadforum said:
What is it you want to acheive here? Increase in salary in the UK or do you want to work abroad?

If it's that you want to work in Aus (maybe even to see if it's for you - sometimes it's not what you think it is) then perhaps ask to be seconded to the Sydney office for the same local salary but they pay rental for a place. Pick a time of maybe 1 month or so to let yout get a freel for the country.

This would at least allow you to test the waters abroad with the least risk. Obviously it would just be yourself not the rest of your family in the UK but this might be enough to let you know it's not all rosey and not for you.

Be aware that the risk here is that they backfill your UK quickly so you are not irreplacable.

If the real problem is stay in the UK but get a bump up in salary then you probably need to interview for alternative posts and then tell them you have an offer and are moving purely because of wages. This is the perenial problem of they give you more money to stay but it sours the relationship - this is less of an issue at the moment with the cost of living increases as people are being forced to do this so there is an external bogey man who can be blamed.

If you go away for a month and they have struggled to cope with your absence then it does increase you barganing power for a wage rise in the UK.
Im not trying to use it to get more money out of the UK.

Im wanting to move my family to OZ because I believe it will be a better life, but when im crunching the numbers its going to be worse financially, hence thats the issue im trying to overcome.

I know I can go myself and use my holiday days to see if its everything I think it is, but at the end of the 3 weeks, if the numbers still dont add up then we cant go regardless of whether its much nicer place to live.

I cant use other jobs to try and ask for more money, people have done that before and it hasnt worked and they have left.

I also dont want to go contracting, I need the security of permanent employment

Jamescrs

4,874 posts

72 months

Saturday 8th July 2023
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From everything you have said OP I think you know yourself that it's highly unlikely the numbers are going to work for you based on the lifestyle you want to achieve and it seems even less likely the company is going to increase the wages to an acceptable level for you.

It sounds like your best option would be to wait and hope a vacancy comes up in a cheaper part of Oz again

ocrx8

869 posts

203 months

Sunday 9th July 2023
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Super (pension) is currently at 11% and will increase 0.5% per annum until reaching 12%.

Sydney wages should be higher than Perth, if they’re saying you’re on an equal footing to Perth that’s not realistic. For what it’s worth, living 90 minutes outside of Sydney isn’t the Sydney lifestyle you’ll be imagining.

Cost of living has its ups and downs; fuel/public transport much cheaper whereas a visit to the supermarket is akin to having your pants pulled down. Yes, even vs where UK supermarket prices now are. Equally the food in Aus is much better quality so I guess you do indeed get what you pay for.

Do it for a couple of years, rent initially and see if it works?

Pit Pony

9,242 posts

128 months

Sunday 9th July 2023
quotequote all
Gooose said:
Your salary could do with 5k on top really, if you’re good for the company. Plenty of jobs out there paying 40k plus
This 1000 times over.

What is the market rate for the job??

Engineers are underpaid in the UK because they don't know, because they don't do thier research. I bet he could get £50k without having to move house.

So back to the question of the original post.

What is the market rate.

A very quick Google says 112,000 Australian dollars to 155k A$

At current exchange rate this is £58k to £80k

Looking at your house prices, I would suggest that you look at it like a move to London.

I would also suggest that the OP thinks about the massive upheaval to his family. Its a massive thing yiu are asking your wife to do.....Why not get consent to let, but dont sell up, and go out for 3 years with a view to coning back.

I suspect that there's a bit of envy about the work colleague, and it's made you want to follow his lead. Maybe find your own nirvana?? Harsh ? Probably.

turbotoaster

Original Poster:

659 posts

179 months

Sunday 9th July 2023
quotequote all
ocrx8 said:
Super (pension) is currently at 11% and will increase 0.5% per annum until reaching 12%.

Sydney wages should be higher than Perth, if they’re saying you’re on an equal footing to Perth that’s not realistic. For what it’s worth, living 90 minutes outside of Sydney isn’t the Sydney lifestyle you’ll be imagining.

Cost of living has its ups and downs; fuel/public transport much cheaper whereas a visit to the supermarket is akin to having your pants pulled down. Yes, even vs where UK supermarket prices now are. Equally the food in Aus is much better quality so I guess you do indeed get what you pay for.

Do it for a couple of years, rent initially and see if it works?
Im not really a city person, so would have no enjoyment living in an apartment or a very busy area.

So I would want to live away from all that, ideally within walking distance to the beach, if im going to do it, I want the relaxed outdoors lifestyle, i was looking just past the central coast, lower end of Newcastle., using the M1 to get down to Sydney, I am field based so will travelling all over the area and my place of work starts at home, so dont mind the travelling.

As mentioned earlier, yes the Super is good, but that doesnt put food on the table

The 2year thing I will mention below

Pit Pony said:
This 1000 times over.

What is the market rate for the job??

Engineers are underpaid in the UK because they don't know, because they don't do thier research. I bet he could get £50k without having to move house.

So back to the question of the original post.

What is the market rate.

A very quick Google says 112,000 Australian dollars to 155k A$

At current exchange rate this is £58k to £80k

Looking at your house prices, I would suggest that you look at it like a move to London.

I would also suggest that the OP thinks about the massive upheaval to his family. Its a massive thing yiu are asking your wife to do.....Why not get consent to let, but dont sell up, and go out for 3 years with a view to coning back.

I suspect that there's a bit of envy about the work colleague, and it's made you want to follow his lead. Maybe find your own nirvana?? Harsh ? Probably.
House prices for something I would want are $700-800k, based on the bank multiplier I would only be able to borrow $500k

My initial plan was to keep my house in the UK as I have 3yrs left at 1.24% so that was my backup plan, go there for 2years renting to see if this was really what wanted, at that point I can apply for permanent residency, sell the house and buy there, if it doesnt work out and we need to come home at least I have a home to come back to.

WIth having a young family I need to be careful what I do as one of the reasons I would like to go is not really the extra money, but more what I think the life for them would be like, but I cant do it if we are alot more financially worse off.


Yes there was a bit of envy of my friend, he told me all about it and I then started doing my own mental arithmetic and thought maybe it would be good for my family also, it was only when I started looking at the house prices on the Eastern side of Australia I couldnt make the maths add up.

As someone else mentioned about other areas..........I guess my main options are:

Work in Sydney area but for more money
Work in a cheaper part of Oz
Dont emigrate

All I can do is put it to them why I need a certain level of income per area, if they cant provide that then its not going to happen.

If I can go at there for 3 weeks for work though I still want to do that just to see what the place is like, as it would be an experience I wouldnt get again.
So if im going to have the discussion about money I would rather do that at the end of the 3 weeks than now and it dies straight away(selfish that maybe when i say it out loud)

Sheepshanks

35,033 posts

126 months

Sunday 9th July 2023
quotequote all
shtu said:
Your big problem is salary - if they budget the role at 65k, it's a very hard sell to negotiate up to 95k, no mater how good you are or how much they like you.
If there's a team of engineers over there it's going to stand out a bit if OP is paid ~50% more than the others. With employment costs on top he's going to look very expensive, which could bring issues with future pay rises or even keeping the job if things quieten down.

turbotoaster

Original Poster:

659 posts

179 months

Sunday 9th July 2023
quotequote all
Sheepshanks said:
If there's a team of engineers over there it's going to stand out a bit if OP is paid ~50% more than the others. With employment costs on top he's going to look very expensive, which could bring issues with future pay rises or even keeping the job if things quieten down.
I know its not there fault that houses cost 75% more in the area they need an engineer, but you would have thought they need to be flexible on pay because of that situation, they cant just expect one side of the country have a comfy life and the other side of struggle.

But I guess maybe they do because thats what they do in the UK, hence everyone down south has been with the company along time, they arnt get engineers down there, as the current ones bought houses before prices were to extreme

Pete54

208 posts

117 months

Sunday 9th July 2023
quotequote all
The OP lives in a 'cheap' area and wants to move to somewhere significantly more expensive. To even contemplate that your company is going to give you a 50% increase in salary, 'cos he would like it, shows little understanding of what makes the world go around.

Earlier someone said 'think of it being like a move to London' - exactly correct. Anywhere with expensive housing and general cost of living will mean some serious compromises need to be made. For the OP to then not even welcome changing jobs 'because he is settled' etc does not mark him out as ambitious or a 'high flier'.

The OP is not going to move to London, or Sydney, or realistically anywhere much more expensive than where he is, unless an serious element of realism enters his thinking.

turbotoaster

Original Poster:

659 posts

179 months

Sunday 9th July 2023
quotequote all
Pete54 said:
The OP lives in a 'cheap' area and wants to move to somewhere significantly more expensive. To even contemplate that your company is going to give you a 50% increase in salary, 'cos he would like it, shows little understanding of what makes the world go around.

Earlier someone said 'think of it being like a move to London' - exactly correct. Anywhere with expensive housing and general cost of living will mean some serious compromises need to be made. For the OP to then not even welcome changing jobs 'because he is settled' etc does not mark him out as ambitious or a 'high flier'.

The OP is not going to move to London, or Sydney, or realistically anywhere much more expensive than where he is, unless an serious element of realism enters his thinking.
ok, so how would you do this then, if they are offering you a role but you dont earn enough to be able to buy a house, even if it means you live 2hrs away from your area of work and also move from 12years left on your mortgage to 20years and thats still not enough.

I dont how you could mark me out as ambitious unless i simply divorce my wife and leave my young kids to go and work there.

Im not after more money, just because I want it, but I still need to buy a house and if the wages wont allow me to do that is my compromise I must rent until death?

When i have said im not welcoming changing jobs, this post was exactly that, I like the idea of it all but I cant seem to make the numbers work at all, same reason I wouldnt move to London unless I could also buy a house.

usn90

1,640 posts

77 months

Tuesday 11th July 2023
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I can’t see this working out for you, simply on the basis you’ve said yourself, other company’s in the area are offering similar salary to what you’ve been offered, and not only that but your company adopt the same policy here in the uk, I.e a flat rate of pay regardless of you living in central London or Aberdeen.

If they are desperate you never know, there may be some wiggle room, but 50% considering all the above is pushing it imo, and not only that, even if they met your demands at 95, I’d personally get cold feet knowing all the above, because at this point your very expensive compared to everyone else, and I’d always be suspicious they’d have me out at the first opportunity, and then what?
You’ve moved to the other side of the world knowing full well you wouldn’t survive on the market rate for your role, it’s not as though you could walk into another company for the same salary

If it was me and I had my heart set on it, I’d wait for another job coming up in Perth

Edited by usn90 on Tuesday 11th July 12:13


Edited by usn90 on Tuesday 11th July 12:14

StevieBee

13,570 posts

262 months

Tuesday 11th July 2023
quotequote all
Let's ignore the naysayers (who are not wrong, by the way but I'm the eternal optimist) and focus on the negotiation.

The only way you'll stand a chance of getting anywhere near your target salary is to demonstrate to the company that you'll make them at least double that amount. And think about your total cost to the company, not just your salary. Add at least 20% to that and this is what the company is in for when they hire you.

So the trick is to look for things where they're subbing stuff out that you could do, turning work away because they don't have the capacity that you could provide, loosing work because they can't do something that you can do and so on. You need to establish meaningful financial metrics for these things and produce a spreadsheet with two columns: One that's headed "Without Turbotoaster' and the other "With Turbotoaster". What you're looking for is the financial benefit you would bring to the company compared to you not being there and that that value is significantly more than what you're looking for.

Easier said than done but that's the only way you'll stand a chance.