Remuneration
Remuneration, or pay, comes in two forms: salary or wages.
Salary is annualised pay - Over the course of the year (or per annum) you might earn $50,000. This amount is divided and paid regularly - weekly, fortnightly or monthly.
Wages are an hourly rate of pay - Your rate of pay could be $18 per hour. The agreed rate is earnt for every hour worked and paid regularly – normally weekly or fortnightly.
Total package
When discussing pay, it’s worth finding out the ‘total package’.
On top of wages or salary, employers may provide staff benefits. Ask if any benefits are included and make sure you are clear about what is and isn’t included in the total package. Check out our Total Package Value and minimum wage calculator.
Accommodation
On most farms when working fulltime you will live on farm in accommodation which is often provided for you.
Find out what you need to consider when talking about accommodation with a prospective, future or current employer here.
Negotiating a new pay rate
Here are some tips and techniques for negotiating a new pay rate:
- Be honest – be genuine and straight up. If you are being greedy and unrealistic about your remuneration expectations, the negotiation won’t go well. Clearly state your position and be prepared to either respond, accept less than you want to be earning, or walk away from the role.
- Time it right – the best time to negotiate your remuneration is once the employer wants you. This may not be at your first interview, it could be at the end of your second interview or during a phone call after your interview. Once the employer has decided it’s you they want working on their farm, they will be more open to negotiating the pay rate.
- Be realistic – do your research and make sure you have a good understanding of what your skills are worth in the industry. If you’ve only been farming for a year, you can’t expect to earn a Farm Manager salary rate. Aim to get the balance right between accepting a low pay rate where you feel underpaid and undervalued - and asking for too much and appearing greedy. This is a tough balance and you need to give it some thought and ask advice from someone you trust.
- Compromise - don’t forget you’re negotiating to come to an agreement, so you may need to compromise. Don’t be afraid to think outside the square. For example, if you are within $1,000 and close to agreeing a pay rate, you might want to ask if the farm will financially support your farm training or study. Training has value for both yourself and for the farm business as you will gain new skills. Think smart – what things could be of value to you, but of little cost to a farm owner/manager?
Budgeting
Once your pay rate is agreed, make a budget so you can get your finances sorted and make sure you are making good use of the money you earn. Your agreed pay rate will be taxed, you will need to work out what your regular expenses are (like rent, phone costs, food etc.) then find out what you should have left over. You may want to set up a direct payment into a savings account depending on your long term financial goals.
For budgeting tips and resources, visit Sorted.org.nz
For information on retirement savings, visit KiwiSaver.govt.nz