2014-12-08 00:00:00 Money & Finance English https://d3hrajprm8dqcv.cloudfront.net/wp-content/uploads/2017/05/08195019/Negotiate-Salary.jpg Tips to Negotiate Salaries

Tips to Negotiate Salaries

3 min read

When it comes to hiring, your company needs to ensure it attracts the best. There are many factors that contribute towards making your company an ideal option for bright candidates looking for opportunities. One of these is a competent salary on offer. As an employer it is important to understand how to negotiate salary with a potential candidate. This will enable you to present the best possible deal to the candidate while not compromising on your pay policies. Here are some of the best tips that will enable you to learn how to negotiate salary with promising interviewees: 1. Assess the market: It’s always best to do your research and find out what similar competitors in the industry are offering for the same position. This is so that you can extend an offer that will be close to the interviewee’s other available offers. Conduct independent research to figure out the accepted range estimates in the industry for salary as well as benefits. Once this is done it will be easier to figure out what kind of an offer can be made to the candidate. 2. Negotiate gradually: Maintain some room for negotiation in the initial price you offer the candidate. Instead of offering the highest possible amount you can pay them right at the first time, try to first make an initial offer and understand the needs of the candidate. Once the candidate states his/her expectations and negotiates with you further, it will give you the opportunity to present your highest and final offer to them. 3. Maintain written records: In order to avoid misunderstandings it is always best to maintain a written record of the initial and final offer, to be sent to the candidate. There might be some elements that get lost in translation while discussing over the phone or in person during the interview which are best put down on paper for clarity. Presenting your written offer in person is also a good idea; that way you can make your position clear to the candidate right at the beginning. 4. Highlight the benefits of working for your company: If you are unable to match the exact salary expectations of the candidate, you may want to talk about your company and the benefits of working there, as well as some of the perks you may offer that others in the industry may not. Convince the candidate of the opportunities he/she would have as an employee both for their career as well as for their well-being. Be open to questions about growth prospects for the candidate, performance bonuses and so on. 5. Ask yourself important questions: Before you begin negotiations, ascertain the position you are in. What sets this candidate apart? Does he/she bring in talent or skills that will be worth it in the long run for the company? Will it be worth procuring them for the salary they expect, keeping in mind their potential? Will the company be willing to fight a counteroffer if the candidate comes back with one? 6. Stay prepared for all possible responses: After you make your offer, there are many ways in which the candidate could respond, for which you would have to be prepared. The candidate could ask for more time, produce a counteroffer, ask for further negotiations on the final offer and angle for a higher compensation. You would have to come up with convincing replies that would win the candidate over if he/she is a good fit for the company. There is a lot of research and skill involved in learning how to negotiate salary with the right candidate. Presenting your case clearly and convincingly, and evaluating the candidate’s potential well while making an offer that is commensurate with the candidate’s skills & expertise will help you procure the brightest and the best.

Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

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