After weeks of networking, interviews, research, and marketing, you have finally found the right fit for your company. But before you can hire them, you have to be ready to negotiate salary.
While many people may think that the stress of salary negotiations is on the potential employee, you know that this moment can be difficult for your hiring team as well. Your company benefits from paying as little as possible, and yet if you argue too strongly with the candidate, they may decide to seek out a position elsewhere.
How to Negotiate Salary
If you need help negotiating salary with potential employees, consider the following tips:
- Research Beforehand – Research plays an important role in hiring and salary negotiations. You want to take a look at what others in the industry are offering their employees for this position. You then want to consider what this employee is actually worth and adjust the salary accordingly. The more you know about similar positions, the more leverage you’ll have in negotiations.
- Don’t Let Good Candidates Lowball – In our current economy, there are a lot of potential employees who are thrilled at the prospect of nailing a solid job. This can make candidates offer to work for less than they are worth. While this sounds tempting, you should make sure that you never let good candidates lowball themselves during negotiations. If you accept an offer for a lower salary than they are worth, you risk them searching for better pay in the future. Paying a reasonable amount is better for improving loyalty.
- Let Them Know a Plan – If your company is not currently at a place where you can offer a higher salary, you should make the other benefits clear. If there are opportunities for growth in your business, such as quick advancements, you should explain them. Talk about what the raise system will look like, and what sort of benefits they will get if they work for you. You may not always be able to sell on salary, but you can win them over with other benefits of their loyalty and hard work.
The last thing that a business wants after a lengthy hiring process is to lose a talented candidate. These tips should make it far easier to land the perfect fit for your company at a price that works for your company and your new employee.