5 Things You Need To Do When Negotiating Salary

HR expert Laurie Ruettimann in a recent article, explains human resources leaders as “experience brokers” who operate as “liaisons and ensure operational integrity and excellence.” Being in human resources, professionals usually follow their own set of hard & fast rules, even if there might not be any strict guidelines in company policies.

The most serious and sensitive conversation that HR executives have is regarding salary, whether for freshers or experienced individuals. As an HR manager, you get to meet a lot of eager and enthusiastic people when interviewing for positions. If people are coming for your interviews, it means they know about the company, role, and from their understanding, you seem like a good employer. The only challenge is to meet applicants’ salary expectations or present your counteroffer in a way that they still consider it.

But when it comes to negotiating salary with candidates, what are the fundamental no-no’s and do-do’s? We’ve prepared a list of the 5 most vital things to discuss or avoid when this part of the hiring process comes up:

#1 Know the Market

This is an essential checklist item, but we didn’t want to miss mentioning this. Check online job boards and pay scale listing websites to update yourself on the market salaries for the role you’re conducting interviews. Your networks will come handy to find out what insight other companies and professionals have to offer. Not to mention, this data should be reliable.

Define strict criteria of the raise you want to offer and the ranges you’d want to shuffle between for different candidates. Build a competent system for understanding which candidates derve how much raise; this should be technical and have a reasonable explanation.

#2 Collect Data About Your Company and Team

The market is the playground, and there’s a lot of players, big and small, so you need to know how your group is doing to let new players in. Understand what your company’s latest decision is regarding salaries and compensation. What updates have been introduced in HR policies since the last hiring drives? This is more precautionary than advisory, and only to minimize the risk of human error. Talk to the concerned teams to know how they’re doing and what they’re exactly looking for. This will give you a better picture and help you given an articulate explanation of the offer to the candidates.

#3 Hear Out Your Candidate

Give your candidate the chance to speak and explain why they feel they deserve what they desire. Applicants are likely to have a good reason for asking higher packages, and it’s not they just want you to hand it over. They are willing to work and contribute to your company’s objectives and vision, the least they’re due is a free chance to express why they want an above-average package.

You’ll get a good idea of what the candidate is looking for and protect you from dismissing candidates simply because they asked for a sum higher than your range.

#4 Ask About Salary Sooner Than Later

Play the progressive card and make the salary one of the first things to discuss. Since both you and your candidates have the salary in mind, it’s often best to address the elephant in the room right away. You can ask about the salary they seek during your first communications with candidates or even include the question on your online application using your recruiting and hiring software. If someone has an unrealistic number in mind, you can move onto other candidates early in the hiring process.

#5 Offer Shopping?

Offer Shopping is said to happen when Once the company makes an offer to a candidate corresponding open requirement is blocked or closed. Companies end up waiting for 30 days to 90 days notice period for the candidate and the number of times the candidate just does not bother to even inform the company about not joining until the last day. This puts the company in a very tight spot, as companies are counting on the candidate’s commitment.

To minimize the damage your company suffers from such candidates, keep an open pipeline with more candidates. Neither confirm nor deny the candidates that these positions are open or closed and be clear with them. Tell them the situation you’re in and be clear whether you want these candidates to come in for another round or not.

It’s best not to run behind the candidate who absconded after the confirmation, because if they’re like this before they got hired imagine what they’d have done if they did join your company. You probably dodged a bullet. Spend your time on looking for candidates with a better attitude and inspiration, because although merit and expertise are important, an ethical character is more important in an employee.

To Recap

If you do your research, you’ll often find your salary range aligns with your candidates. Negotiations will be quick and painless since both parties will be working toward a similar figure.

There is a lot at stake when you negotiate salary with your chosen potential employee. Use all of these salary negotiation tips to ensure that you don’t blow the opportunity to hire an excellent, qualified, and extraordinary employee.

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