Hiring Managers: Know How to Negotiate Salary - Kim Shark

Know How to Negotiate Salary

After tendering a job offer, employers should be prepared to negotiate the compensation package should the candidate request an adjustment. Job seekers today have access to an abundance of information on salary negotiation through websites and books, so many will attempt to negotiate your offer and will enter the meeting knowledgeable on the topic. To reach a fair deal, you need to be equally prepared.

The first step is not unlike that in any other sort of bargaining. If the candidate suggests a higher figure than you’ve offered, you can choose to raise the amount of your proposal, waiting for the candidate to respond or counteroffer, and, ideally, arriving at an agreement that’s within the salary range you’ve set for the position.

If the candidate keeps pushing, whether you want to exceed the established range generally depends on two factors: one, how badly you want the individual; and two, the policies and precedents in your company. Two questions to ask yourself before you move forward:
· Are other, equally qualified candidates available if the applicant says no? If the answer is yes, the leverage to make accommodations rests with the company.
· Has the job been particularly hard to fill, or are market conditions making finding and recruiting suitable candidates difficult? If the answer is yes, the leverage rests with the candidate.
· Will a stronger offer be significantly out of line with existing pay levels for comparable positions in your company or hiring manager’s department? Recognize that if you decide to go beyond the firm’s pay scale to win a really stellar candidate, you risk poor morale among existing staff should they learn that a new hire in the same role is being paid at a higher rate. And the best-kept secrets often do get out.

If you’re not able to match a candidate’s salary request, consider expanding other components of the package. Applicants are often willing to compromise on base compensation if concessions are made in other areas. Flexible scheduling is one candidate-pleasing option that will cost you little to nothing. Providing additional time off or opportunities to telecommute may also be acceptable to a candidate in lieu of higher wages.

Don’t get so caught up in negotiations that you lose sight of what is appropriate for your organization. Sometimes you just have to walk away. If your attempts to woo a reluctant candidate fall short, the best thing to do in many cases is to cut your losses and look somewhere else. The goal at this point should be to end the process so that the candidate leaves with a feeling of being treated fairly and with dignity. If carried out effectively, though, your salary negotiation has a very good chance of ending on a positive note.

Submitted by Robert Half Finance & Accounting. Robert Half Finance & Accounting, a division of Robert Half International, is the world's first and largest specialized financial recruitment service. The company has more than 360 offices worldwide and offers online job search services at www.roberthalffinance.com. Follow Robert Half Finance & Accounting on Twitter at twitter.com/RobertHalfFA.