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The 5 Most Effective Salary Negotiation Tips for HR

Posted by Kanika Sinha

December 9, 2023

 Unveiling guidelines for effective salary negotiation.

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. 

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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 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.
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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.

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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.


Kanika Sinha
Kanika Sinha

Kanika is an enthusiastic content writer who craves to push the boundaries and explore uncharted territories. With her exceptional writing skills and in-depth knowledge of business-to-business dynamics, she creates compelling narratives that help businesses achieve tangible ROI. When not hunched over the keyboard, you can find her sweating it out in the gym, or indulging in a marathon of adorable movies with her young son.

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