googoosan

Hi,

I currently work in London, and make £46144 per year. I have been asked if I would be interested to move to our Sydney office, assuming a greater role. This is a good opportunity in terms of career growth, however I am not sure about what should the salary negotiation be?

What would be a decent conversion of my current salary plus 15 % rise according to Sydney's cost of living standards? Will 150 k AUD be too much to ask? What is the least salary that I can compromise for? 120 k?

- Jay

mvagusta

Other threads on the cost of living have suggested a ratio of 2.5 would reflect a similar standard of living.

So using this +15% rise would equate to $133,000 based on your current salary.

Although I would chance my luck and ask for more. It's easier to come down than to go up.

Steve2009

In my experience you don't always get a chance to negotiate when your first offer is outside the budget. Although the recent situation was that I didn't realise I was being groomed for a counter offer.

googoosan

Thank you guys! I did ask for 150 k, but they seem to be really surprised. Considering Sydney's higher cost of living, I think it is reasonable to ask for that much.

They would come back to me with an offer soon. I will keep you posted.

thanks,
Jay

mvagusta

I might be worth you checking some prices online for houses and cars so you have some ammo when they come back.

If they were surprised, it's possible that they are using the current exchange rate as a basis for they're calculations and this would equate to $85000 approx with a 15% rise.

The current exchange rate does not reflect prices in Oz unfortunately.

Bermudashorts

I would also be really surprised if somebody on £46 in London demanded $150k in Sydney. This is just out of whack every way I look at it.

I worked in London for best part of 15 years, in my profession (accountant), £46k would be a pretty low salary and would be what I expect to pay a trainee accountant. Now I am in Sydney and I am running a large team, I only pay $150k or more to a small number of some reasonably senior accountants.

There is no way in my world that £46k London is equivalent to $150k Sydney. They would have to be desperate to pay that and indeed they may be.

Doing the maths this is about 1 x 3.2, you should be looking at about 1 x 2.3 or 2.4, so I think $110k would be more realistic.

mvagusta

Have you added on his 15% pay increase after the conversion?

bcworld

He did say a 'greater role'. That role might pay GBP60k in London, in which case $150k isn't so unrealistic. OP, do you know what your 'greater role' would pay in London?

Kalenge

But you're coming from London which has a higher cost of living than Sydney.
http://en.wikipedia.org/wiki/List_of...iate_employees

$150k in Sydney sounds way too high for your £46k in London as a straight comparison.
What type of job and what's your role? Surely your company will only pay somewhere around the going rate that the job and role fetches in Sydney?

Bermudashorts

I don't think 15% pay increases are a given with every job move, but even so 15% over and above £46k is nowhere near $150k. It is perhaps $125k?

Perhaps what he really needs to do is see what jobs at his level pay in Sydney instead of coming up with a nice to have salary.

If we had a UK office and sombody on £46k wanted to come over on $150k, I would not be mincing my words in telling them what to do.

googoosan

Thanks all for your replies. My future role would be a Consulting Engagement Manager in IT. My current role is that of a Business Consultant.

Perhaps I need to research more about what's the current market rate in Sydney for a Project/Engagement Manager cum Senior Business Consultant. My work would be very similar to a Senior Associate type role in a Management Consultant firm. Lots of travel and onsite work.

They are indeed looking at the exchange rates, which is stupid, as the AUD is at its peak right now. If I had moved 3 years ago, I would have probably made more.

HelenTD

Great point. There have been quite a few threads on BE recently about the cost of living in Sydney, particularly rent. If you are expected to travel as part of your job, wouldn't you need to be in a more central location, handy for airport as well as office? These areas tend to have higher rents and shorter commuting compared to outer suburbs with at least a 1 hour commute.

googoosan

They got back to me saying they wouldn't go beyond 100 k.

mvagusta

It looks like they've definately used the current exchange rate. That means in real terms using a factor of 2.3 then your actually going to take a wage drop with no 15% increase.

I would research the actual cost of living for you to live on the same terms as you do now in the Uk and present this to them.

If it's for you it won't go by you.

Bermudashorts

I don't think they have used current exchange rate, if they had I think the offer would be well below 100k even with 15pc added on. Perhaps the company offered the going rate as they saw it and it wasn't a mathematical exercise for them.