Your company is growing, and it’s time to hire new talent. However, there aren’t many candidates out there willing to work with your current salary level. You even have a list of experienced candidates, but they are negotiating like pro -asking for an unreasonable raise.
Ahem; now what will you do?
The negotiation stage is where both parties try to find common ground on salary and benefits. While some managers hate the back-and-forth aspect of negotiations, we see it as an opportunity to find out if there’s a good fit for both parties. It’s also an opportunity to see how candidates handle themselves in face-to-face discussions.
What should you be looking for in a candidate when you initiate the salary discussions? How do you decide what to offer them? Will this hurt the company? Can they back out of the offer, and if so, will they? These pressing questions, along with a few important factors, can decide the success of the salary negotiation round.
So, what are some of those factors you should keep in mind when it comes to salary negotiations? In this article, we have compiled useful salary negotiation tips that will help you prepare for these types of negotiations with new hires.
Have a look.
It’s Not Only About Money
Good employees understand that if they work well, decent pay will follow. However, many employees work keeping the money aspect in mind. This affects their productivity and marks the beginning of “things going haywire.”
During the salary negotiation stage, your goal shouldn’t be to hire the candidate for the lowest possible salary. Rather, you should look to come to a mutual agreement where the candidate is happy with the salary offered to them, and your company’s budget isn’t compromised either.
The point: Saving a couple of thousand bucks while hiring may look good temporarily. But remember, hiring a high-quality candidate can help you achieve your company’s goals by many folds, way more than a few thousand bucks!
Get Inside The Candidate’s Mind
Every job seeker appears for an interview with a salary range in mind. The bottom end is their least expectations, while the top end is what they’d term their “dream salary.” Honestly, not many candidates make it there.
If you step inside the boots of the potential job seeker, you’d know that their average expectations are somewhere in the middle range.
The experience slabs also matter. You’d be pretty happy with the base pay the company has to offer if you think of yourself as a fresher who can’t keep many conditions on the table.
However, you may want up to a 30% hike on your current salary if you’re an experienced employee.
Job seekers also use many salary comparison tools like Ambition Box and Monster Salary calculator to understand the ideal salary range for their experience. So, it makes sense to say that today’s job seeker was more proactive regarding their salary than a job seeker ten years ago.
How To Close The Negotiation Round
You may interview several candidates for a job opening. Some of the candidates will accept the salary you’ve to offer; others will press for a negotiation.
This is where understanding the various negotiation strategies and tactics comes into play. Being able to read the other person’s mind, use the right words, and control the conversation will give you an edge.
Also, if you get a counteroffer from a candidate that is close to your budget, you should consider accepting it. If the candidate asks for a salary well about the budget, the best way to deal with the situation is to be honest.
You can tell them that other candidates are more skilled and willing to settle for what the company has to offer.
Final Word
Negotiation is an important skill to master if you’re part of a business. Not only is hiring, but it can also come in handy in other cases too, like closing a sales deal.
Which tip from this article did you like the most? Let us know in the comments!
