These days, all job candidates are able to find tips online for negotiating a higher salary in the human resources office. They know what to expect and what is reasonable to request, so it’s nearly impossible to avoid the conversation. Instead, you need to go into it expecting a negotiation, and prepare your own counteroffers. Here are five things to consider when you’re negotiating with a new hire. With these tips, both you and the new hire can leave satisfied!
- Be flexible. A higher salary is not the only way to compensate an employee. If you cannot go above a certain price point, think of alternative benefits you would be willing to offer, such as company stock options, flextime or new equipment to help them in their role. Employers are getting increasingly creative with their benefits packages than they have been in the past, and in many cases, these alternatives can be less expensive than an outright salary increase, while being of much greater value to the candidate.
- Come with the right intentions. In most cases, the employee is not negotiating with you in order to gouge you, they are simply asking for what they see as fair compensation. Many hiring managers become offended early in the negotiation process, which hinders a productive conversation with the new hire.
- Know your industry. Keep tabs on what other employers of your size and industry are offering in terms of compensation packages. In order to recruit and hire the best, what you offer should be competitive enough for employees to feel content and satisfied working for you. If they feel they could be happier elsewhere, they might begin to resent working for your company.
- Know that your other employees might find out. It is not illegal for employees to discuss their salaries and benefits packages, so employees who are close to one another might discuss what they are getting. If a new hire receives an outsized salary compared to others in the same role, it sends a clear message that you perceive them as more valuable than the rest of the team, which is likely to create morale problems.
- Know when to give up. Depending on how hard it is to fill the position you’re interviewing for, this point might vary, but there are ways to know if you and the candidate are not going to be able to agree. If you’ve covered all of your other bases and know that your offer is the best you can do, then you will have to explain to the candidate that you are unable to offer anything more.
Negotiating with your new hires is the best way to get everyone’s needs on the table and start the employment relationship off on the right foot. However, it’s important to maintain perspective. Both you and the candidate should leave feeling that you had a respectful conversation, even if you ultimately did not come to an agreement. For more advice on the recruitment and hiring process, read more on our blog or contact us!