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Unveiling guidelines for effective salary negotiation.
December 9, 2023
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.
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.
Research market salary to orient your approach to the negotiation. In this regard, do the following:
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:
Transparency and honesty are essential in every salary negotiation. So, remember to:
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:
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:
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.
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.
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