An Employers Guide To Salary Negotiation
Once you finally sit down with the best candidate and offer them the job there’s just one more hurdle to cross: Effective salary negotiation.
It can take a long time to journey through the process of taking on new staff. First the job vacancy has to be approved from management and then the endless CV reading, shortlisting and interviews.
The salary negotiation experience is often an anxious affair as both parties have a lot to gain and much to lose. If employers get the negotiations right then new employees will come aboard with a strong sense of motivation and achievement and this is often linked to their perception of their ability to negotiate ‘up’ their salary. When they do, you can be sure they will want to prove they are worth it, both to the company and to you.
Get it wrong and psychologically it can affect your team, your growth and the attitude of the employee. Often, for the sake of saving a few pounds, employers will secure the services of an employee entering the company concerned that their skills and abilities aren’t valued, and perhaps, encouraging them to look elsewhere almost as soon as they join.
For the employer, there are always budget confines to work within; company salary structures must be maintained. As such during salary negotiations employers are forced to walk a fine balance between making the candidate feel valued yet maintaining control over salary expectations.
You might find yourself in front of an outstanding candidate, in which case you might be tempted to go beyond the the standard salary range of the company.
In order to achieve the best results from these negotiations employers must be clear about the long term goals of the company and the role the candidate has in them.
If an employer conveys a sense of being a weak and unsupportive during salary negotiations, then you run the risk of having them join with reservations and fears not quelled.
Salary expectations go hand in hand with benefits. By providing a work environment that celebrates the employee’s role within it the organisation can overcome lower than industry standard wages, go too far and no one will join.
The reverse can also be true, pay them too much, without getting any engagement, and you might see them flitter off to the next well paid job.
For employers there are a key points they need to be aware of to make the candidate feel thoroughly briefed on their roles, their salary, the company, expectations and industry standards.
Know your market – By doing your research you will know what your competitors in the industry are offering. You will know if they are hiring and what projects they are undertaking in order to ensure your offering is competitive.
Know your organisation – Be clear on what your company can and cannot offer in terms of salary. They will be able to convey career progression opportunities and highlight their company’s strengths.
Know your team – Understand the impact new recruits have on your existing team. People talk and soon enough everyone will know the new guy is on more money than them.
Allay candidate fears – Put the candidate at ease, understand their biggest concerns or fears, whether financial or otherwise and minimise them. Often salary isn’t the greatest concern, job role, duties, flexibility and other benefits are also big factors.