I understand how challenging it could have been before finding a perfect member for the team. It’s quite interesting that the challenges are finally paying off and a potential employee is now in sight. One last thing still separates your company and the employee’s signature – salary negotiation! Well, that’s it. And you really need to know how to negotiate salary with employee to seal the good work you’ve started.
There is a need for every hiring manager to understand that salary negotiation with job candidates is a crucial task they must complete credibly during the selection process. Considering how competitive the job market has become these days, professional candidates go for not just a job opening but also for a better pay. Hence, you must learn how to negotiate salary with employee appropriately. The negotiation process will help you to determine if the potential employee stays with your company or could move on to the next job.
It is often said that when the negotiating parties come to a point of compromise and/or are both happy with the outcome, then the negotiation is successful. That being the case, while negotiating salary with employee, the hiring manager must ensure to play the right card. And this card begins with having an appropriate guideline on how to negotiate salary with potential employee. It’s the only promising format in bringing the employee to that point of compromise.
Tips to know in salary negotiation with employees
1. Determine the employee’s value
The first tip to note in learning the tricks in negotiating salary with employee is that the individual’s value to the company is your major target. You shouldn’t just begin to engage a potential employee in a long negotiation process when you are not certain with the value they would bring to the company. Hence, a good knowledge of the individual’s potential and value is a brilliant starting point.
2. Know your salary scale
Having settled how much value the individual brings to the organization, the hiring managers need also to be well familiar with the various salary systems in the company. This signals you on the bounds; the amount you can’t promise. When an HR is ignorant of the salary scale and offers a salary higher than the actual salary scale, there is a risk of insubordination from older staff.
3. Know what the market says
HR managers that know how to negotiate salary with employee understand that the market counts in salary negotiation. Beyond what your company is willing to offer the potential employee, there is a need to also understand the market offer for that position. Most of your competitors are willing to pay higher in order to attract the best in the market. Hence, you need to keep yourself abreast with such vital information.
4. Non-cash compensations can help
One fact remains that salary negotiations involve more the cash you are offering. Most hiring managers are faulty in this regard. They feel it’s necessary to match the candidates request only in cash. When you, as a hiring manager, cannot match the employee’s salary request in cash, consider making it up with non-cash compensations. When a candidate understands that the overall take-home package is worth it, they would be willing to compromise on the cash salaries.
Salary negotiation with a potential employee must not always be successful. Most times it’s because they have an offer somewhere else and are pushing to make hiring them worth more. Know when to walk away and thank the candidate for their time if you have exhausted your limits. If you were able to reach an agreement with the candidate, then congratulations! Quickly put the offer into writing and have them sign up to join your team.