The Ultimate Salary Negotiation Tips for Employers
Imagine interviewing a potential employee with everything you need to scale up. You also have the right workplace and environment that encourages growth and talent. However, you lost them because you couldn’t negotiate a fair salary for them. The pain is even greater in real-life scenarios.
Without a doubt, this is a real-life issue. Negotiating salaries rightly is one of the top problems all employers worldwide face. It is even worse for people that have never done it before. Knowing how to negotiate salaries is a core leadership skill. Every manager can learn and hone this skill with the right strategies.
Check out these reliable ideas that would make you an expert in negotiating salaries with your prospects.
Be Aware of Your Industry Standards
Before interviewing a prospective candidate for a position, collate information on the pay range for such job roles in your field. Ensure you also know the experience levels attached to those salaries. This is one of the best ways to decide on how to negotiate the salary with your potential employees.
Candidates with more experience in that position may likely want more salary when compared to candidates with little or no experience in their respective careers. Another important aspect is to research your core competitors. More so if they are hiring for the same roles and also perform market research.
Check job postings of similar roles and see how the salary range you decide on fares. To be sure you are doing the research the right way, search for job postings in your geographic location.
Also, look for incentives you can add to your salary package that will interest prospects. These include travel stipends, healthcare, bonuses, retirement plans, benefits, etc. Again, the idea is to create a salary package that will make you and the prospect happy. And having all this information and data will ensure you are ready to negotiate an acceptable salary range with your employees.
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Understand and Amplify Your Company's Benefits
One of the most reliable ways to negotiate better is by starting with what you’re worth.
Negotiation skills are essential to getting the best out of your employees, and salary is one area you should consider starting high. Listing what benefits will be available in return for working with you can go a long way towards winning over potential candidates – who doesn’t want more time off or better health insurance?
Prospective candidates are likely to adjust their salary expectations to meet yours if the perks and benefits are worth it. These benefits can include tuition remuneration, medical insurance, flexible workdays, development opportunities, paid leave, etc.
Here is a pro tip: publicize the benefits prospective employees will enjoy when they work for your company. This can even be part of a publicity or marketing strategy. It pays to be proud and loud about these perks.
Never Start Salary Negotiations with Your Best Offer
Many employers make the mistake of leading with their best offer. It will be impossible to get the employees to accept your offer if they want more. If you open talks with $70,000 for an open role, most employees will believe that’s your starting offer. So, even if this is fair and within industry standards, they would want to ask for more.
Also, if you can’t increase the offer if they ask for a raise, they might interpret it as you not having an interest in employing them in the first place. The solution is to start with a particular amount.
Doing this will make prospects make their salary expectation flexible. They will also understand what a reasonable salary range is. You will also have an edge to control the negotiating process by influencing their expectation by giving the first offer. That is known as anchoring. So, if they ask for a raise, it will most likely fall within your salary range. You might even save some money with this approach.
Always Anticipate a Counter Offer
You must always anticipate a counter from your prospective candidates as an employer. It is not unusual for them to ask for a better salary and benefits than what you offer. They want to ensure they are appreciated as they deserve to be.
Please, don’t see a counteroffer as a lack of interest or disrespect. You can even use this counteroffer to understand your prospect’s needs and wants. This information will help you curate a combination of attractive salary and perks packages they will mostly accept.
A reasonable and reliable approach is to start the negotiations by offering slightly lower than what you are willing to pay. Then adjust until both of you meet at a common ground.
If you follow these tips, you will improve your salary negotiation processes with potential employees. If you have reached your offer limit, let your candidate know. That will eliminate the prospect of both of you wasting time. Give them ample time to think about your offer.
Tonika Bruce is a leadership coach and entrepreneur with over 20 years of experience. Learn the basics of leadership and get started on your career in a new direction. For in-depth training with personalized coaching programs: Book an appointment.