The whole point of going through the recruitment process is to offer someone the job with a decent salary. But what happens if your offer falls short of the candidate’s expectations? Are you willing to negotiate?
If you’re working with a recruitment agency, they will help you identify the best salary for the role. The recruiter will help you manage a candidate’s expectations, the negotiation and a replacement candidate if it comes to that. If you’re managing the recruitment process in-house, there is a lot more research involved.
As a hiring manager, you need to prepare for salary negotiations. It’s one of the biggest obstacles that you need to overcome in the recruitment process. Our five tips below will help you through any negotiation process.
1. Offer the industry standard from the start
Start with a respectable salary, do your research and get an understanding of the industry average and what top competitors in your sector offer. If you start by offering a low salary, you immediately rule out the top talent, and you miss out on a potential hire that could add significant value to your business. Set a ceiling of what you can pay and stick to it.
Candidates know their worth. They’ve done their research online using job websites, read salary surveys and Glassdoor. Millennials are particularly good at doing their online research, and they know what a good starting salary is and what is a low ball offer. Be sure that you’ve researched what other companies are offering, particularly what your competitors offer.
2. Be open to negotiating
Remember that you’re starting a working relationship with the candidate. If you are unwilling to negotiate, then this sets the tone for that relationship and may turn the candidate off working with you and your organisation.
Be open to listening to the candidates counter offer, their reasoning behind it and what value they will bring to your business. Take time to think about the counter offer and discuss internally with relevant stakeholders. By giving their counteroffer some consideration, you are showing that you respect the candidate and you are building trust.
3. What else can you offer?
Money may not be the primary motivator. You can offer subsidised health insurance, gym membership, company car or phone or work from home days. These are all great benefits to offer during the negotiation stage, and they’re likely to win most potential employees over.
If you the motivation is money then look at financial incentives that will encourage productivity for example commission, shares or a sign on bonus.
4. Plan B
Before responding to negotiations, evaluate how urgently you need this hire. Consider how long it will take to find another viable candidate, how soon you need this person to start, and can you afford to pay what this candidate wants. Remember, you picked this person for a reason. Are you willing to walk away from them to look for someone else?
5. Time to take the offer away
If after your best offer, the candidate is still trying to negotiate then it’s time to walk away and its time to take the offer off the table. If a candidate is still negotiating the chances are they have another offer. Stick to your ceiling and if you aren’t getting anywhere walk away.