People Management & HR

The 5 Most Effective Salary Negotiation Tips for HR

 Unveiling guidelines for effective salary negotiation.

  • 4 min Read
  • December 9, 2023

Author

Escalon

Table of Contents

Whenever there’s a new hire, the company and the employee go through the infamous but extremely common “negotiation waltz.” Most of us have been there at some point in our careers where the employees ask for more, and HR tries to keep it minimal. Data from Fidelity Investments reveal that nearly 42% of candidates have asked for a higher salary while negotiating a job offer. 

Schedule a call today

In an ideal world, HR should be able to handle negotiations without sacrificing the company’s or incoming employees’ needs. But it’s easier said than done.

Striking a balance that addresses potential hires’ concerns while aligning with the organization’s financial goals and overall objectives requires careful planning and preparation.

Here are five salary negotiation tips for recruiters.

1. Get an in-depth understanding of salary trends within the industry


Research market salary to orient your approach to the negotiation. In this regard, do the following:

  • Establish upper and lower salary bands for the position you’re hiring.
  • Ensure the lowest offer is still in line with industry standards and is attractive to your candidate. 
  • Monitor your industry’s most in-demand skills and roles and adjust the salary ranges accordingly.
  • Refer to government resources like the Bureau of Labor Statistics or private survey sites like Glassdoor or Salary.com to understand the industry standards on salary expectations.

2. Put people first


Understand what’s important to your candidate — compensation, flexibility, vacation time, and health benefits. Then, work to create an employment offer that accommodates those needs. So, remember: 

  • During job interviews, identify what matters most to the candidate; for instance, flexibility to work from home might be worth more to them than a higher base salary.
  • If a pay rise is challenging, consider adjusting other corporate benefits such as health benefits, paid time off, flexible work arrangements, allowances, and bonuses.
Talk to us about how Escalon’s PeopleOps can help you improve HR effectiveness.

3. Ensure transparency


Transparency and honesty are essential in every salary negotiation. So, remember to:

  • Reassure candidates that you’re their advocate, stressing your top objective is to give them the best possible offer.
  • Be fair and honest when setting employment packages and offering a pay rise.
  • Clarify the reasons behind your decisions and strive to accommodate reasonable requests to ensure employees feel heard and respected.
  • Ensure that the lines of communication are kept open and that employees can voice suggestions or concerns before shutting any idea down.

4. Add monetary compensation


Consider offering a signing bonus, relocation reimbursement, or commission structure if your salary negotiation numbers aren’t flexible. These inducements allow you to pay a candidate more while keeping their base pay within the specified range. In this regard, do the following:

  • Get creative with offerings other than salary to create a compelling offer. 
  • Give candidates some time to consider what you’re presenting to them. Additionally, allow them to ask questions and adjust the offer.

5. Prepare your talking points


Employers need to explain their decisions based on facts and data. But sometimes, these points come across differently due to poor explanations or missed issues when explaining. To combat this:

  • Have notes and data to support the key points and address any follow-up questions the employee may pose.
  • Practice the delivery of the critical issues before the negotiation to avoid any miscommunication or forgetting to mention any details.

The final word


Remember, this is not about winning. It’s about reaching an agreement on a salary that meets your business objectives and simultaneously makes the candidate feel valued and fairly compensated. Prioritize preparation and use the guidelines above to generate better negotiation outcomes.

Schedule a call today

Want to know more about setting up the perfect HR processes? In addition to HR, benefits, recruiting, and payroll through its PeopleOps, Escalon’s Essential Business Services include FinOps (CFO services, taxes, bookkeeping, and accounting) and Risk (business insurance). Talk to an expert today.

This material has been prepared for informational purposes only. Escalon and its affiliates are not providing tax, legal or accounting advice in this article. If you would like to engage with Escalon, please contact us here.

Talk to our team today to learn how Escalon can help take your company to the next level.

  • Expertise you can trust

    Our team is made up of seasoned professionals who bring years of industry experience to the table. You gain a trusted advisor who understands your business inside out.

  • Quality and consistency

    Say goodbye to the hassles of hiring, training and managing in-house finance teams. You will never have to worry about unexpected leave of absence or retraining new employees.

  • Scalability and Flexibility

    Whether you’re a small business or a global powerhouse, our solutions scale with your needs. We eliminate inefficiencies, reduce costs and help you focus on growing your business.

Contact Us Today!

Tap into the latest insights from experts in your industry

Private Equity

The Key to Private Equity Success: Strong Financial Oversight and Compliance

Private equity deals are becoming larger and more complex, making financial preparation a critical part of the process. Take Novartis’s...

Read More
Accounting & Finance

Navigating Grant Management and Financial Reporting for Biotech Startups 

Biotech startups operate in a unique financial landscape, where securing grants, venture capital, and government funding is crucial for driving...

Read More
Accounting & Finance

Financial Compliance in the Decentralized Era: What Web3 Startups Need to Know 

As the world leans into the decentralized era, Web3 startups are at the forefront, exploring the possibilities of blockchain, cryptocurrencies,...

Read More
People Management & HR

Payroll Services: Streamlining Processes in High-Turnover Consumer Goods Settings 

  Managing payroll can be complicated in any industry, but it becomes especially challenging in the consumer goods sector, where...

Read More
Accounting & Finance

Navigating Payroll for Nonprofit Organizations: Staying Compliant with Grant Funding Rules 

Nonprofit organizations often rely on grant funding to carry out their missions, whether that involves community development, education, healthcare, or...

Read More
Media & Entertainment

Compliance in the Media World: Navigating Intellectual Property and Contracts 

In today’s hyper-connected media landscape, safeguarding intellectual property (IP) and expertly managing contracts are indispensable for success. Media companies—from traditional...

Read More
Accounting

Introducing C3: Your All-in-One Financial Management Platform

Managing your business’s finances can often feel like juggling too many tasks at once, especially when you’re trying to keep...

Read More
Startups

Sourcing Passive Candidates: Strategies for Expanding Your Talent Pool with Outsourcing 

  One of the most valuable sources of talent for startups is the pool of passive candidates—individuals who aren’t actively...

Read More
Startups

Managing Cash Flow in SaaS: Leveraging Outsourced Accounting to Scale Faster 

Cash flow is the lifeblood of any business, and this holds especially true for Software as a Service (SaaS) companies....

Read More