As a hiring manager, sending an offer letter to the perfect candidate should be an exciting last step following what can be a long and difficult hiring process. However, counter offers and salary negotiations are a common situation that many employers eventually face and need to be adequately prepared for. We often read about the various tips and tricks applicants should consider when negotiating their salary, but what about hiring managers and employers? Below are some tips to help you navigate this scenario.
Know your company’s salary limits
Salary negotiations can often get out of hand when there are no set guidelines. Having an established salary range for each position will help when negotiating with a candidate. For example, if the open position has a set range of $50,000 – $60,000, start by offering the candidate $50,000 and if they come back with a counteroffer of $58,000, there is still room to negotiate.
Setting up internal salary ranges for departments should also be a top priority. If two employees are tasked with the same job, one shouldn’t be making $35,000 per year while the other is making $50,000. Having a desired salary range will not only help when hiring externally, but also with the internal pay structure.
A candidate’s skill set should also be a determining factor when negotiating salaries. Potential hires who bring a unique skill set and an abundant amount of experience should be offered a higher, but reasonable, starting salary in order to prevent frustration from current employees. .
Be transparent about salary offerings
Many job posting sites encourage employers to provide a salary range in order to weed out both under and over-qualified candidates. This can help narrow down the candidate pool and provide those who fit within the desired skill set and salary range.
It is important to remember that many companies have limits. Offering to pay the candidate a disproportionate amount compared to the pay ranges of your current employees can put you in a predicament. By being transparent with the candidate of your company’s salary requirements, it can save the business prohibitive costs. If you feel the candidate will be beneficial to your organization but are unable to provide them more money, try offering non-monetary benefits like flexibility in their work schedule or vacation days.
Develop a committee to help with executive hiring
Finding the right executives to run your organization is a difficult task. Generally, the hiring process is longer and you are dealing with a much larger salary range.
However, appointing a hiring committee can alleviate some of this stress. Hiring committees should include your company’s stakeholders, as well as other prominent members of the organization. By gathering their input, it helps determine what attributes and skill sets they would like to see in a potential candidate.
When hiring for an executive position, because they have many years of experience, you should expect counter offers. In the executive compensation packages, candidates often expect more than just money. Other compensation comes in the form of stock, benefits, company cars and vacation days.
Make salary negotiations positive for both parties
The hiring process can be long and difficult for both the employer and prospect, so when it comes down to salary negotiations, you are going to want it to go as smoothly as possible. With employer reviewing sites like Glassdoor and Yelp, it can hurt your company’s reputation if a potential employee has a bad hiring experience. If the potential candidate decides to refuse the final offer, as frustrating as that may be, it is important to remain cordial.
Salary negotiations can be a difficult situation for employers when looking to hire a qualified candidate, but sometimes necessary in determining whether they are right for your company. By knowing your company’s salary cap, being open and transparent with candidates, preparing for negotiations no matter the position, and remaining positive throughout the hiring process, you have all the tools you need to prepare for a successful salary negotiation.
For more information on what benefits candidates look for in employers, check out our blog, what Gen Z looks for in an employer and why.
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