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Important Salary Negotiation Tips for Employers

When you start negotiating the package of a potential candidate, there are some things that you can be sure of, and there are some things you need to be sure about. These provide you the points of reference for negotiating the salary of a prospective employee.

Important Salary Negotiation Tips for Employers

Regardless of other smaller issues, the main issues that stand out are:
  • The value of the job role to your company
  • The competition or availability of persons who can fulfill the desired job role
  • The relative suitability of the prospective employee to perform the desired job role
  • The track record of the employee concerning honesty and integrity
  • The track record of the employee concerning achievements and innovativeness
  • Current salary packages offered by your competition at similar job roles
  • Your internal wage structure and the leeway you have to negotiate on different issues of professional concern
Regardless of other numerous elements like criminal record and residence etcetera, these are the things you can be sure about before you move on to the negotiation table with a prospective employee.

The things you can be sure about:
  • If the candidate is a new graduate, he/she may never have had negotiated all elements of a job package
  • Even employees with long experience feel uncomfortable on non-salary components being handicapped by cultural conditioning
  • The candidate will have a fear of losing the offer
  • The candidate may show a lack of assertiveness. This lack of assertiveness is critical because an otherwise valuable employee and company resources may be lost because the employee failed to assert himself/herself at the negotiation table, and then suffered a bout of post-purchase regret after joining
  • The employee would try to put the ball in your court, which is unacceptable without definite figures
  • Today's employee would want a package that addresses the maximum number of his/her professional concerns adequately
What you need to do:

Your approach, of course, would depend primarily upon the value of the job role and the suitability of the prospective employee for that job role. These are some things you need to do:
  • Make the negotiation process smoother by communicating to the employee the general remuneration packages offered by competitors without naming other companies, unless necessary
  • Be aware of professional concerns and communicate your policies that are in place to address those concerns
  • Provide assurance that you can maintain, and in turn, cause the other to give promises
  • Talk about the job, and find out whether the person is worried about money, or about the work - a professional would not lose sight of the job role and duties associated with it because everything depends upon the salary package
  • Remember, the perfunctory clause mouthed in most advertisements is true and vital in life 'Salary is no bar for the right candidate' in most situations
  • Unless the candidate is outstanding, limit yourself within internal salary ranges. Even if the candidate is outstanding don't deviate much from internal salary ranges, and especially not on money
  • Be clear about long-term goals and policies of the company
Salary negotiation has a significant psychological impact on a prospective employee. An employee who joins your organization in a satisfied mood and with a sense of achievement (salary negotiations) will try to work harder and be more motivated. On the other hand, an employee, on whom you left an impression on the salary table of being a weak and worried employer will run at the next opportunity, because he/she would view you just as a stop-gap employer.