Written by John McGill on December 12, 2019.
This article contains five useful tips that organisations should use when negotiating with potential future employees.
The art of negotiation is essential to any company's hiring process. Applicants have a particular number in mind when they send in their resume, so it's crucial that businesses have their own figure in mind to use as a negotiation tool.
This process can be a challenging one. How high are companies willing to go to secure the best candidate? What other benefits can business leaders offer to offset the cost of salary?
Here are five tips organisations should use when negotiating with potential future employees:
1. Create a range to work within
Applicants come to the table with both a low and high number they're willing to accept in terms of remuneration, so it's wise for businesses to do the same. Consider how much current employees are making within this role. Try to stick to this window, if possible, only working outside of it if the perfect candidate comes along.
2. Utilise market wage standards
To create your remuneration - specifically base salary - caps, look to the current job marketplace for what other companies are offering employees for the same or similar roles. With this information in mind, businesses can be sure they aren't offering a number that is too high - or too low - for potential candidates. Strategic Pay publishes remuneration reports on a regular basis for this exact purpose.
Employees will come prepared with their own research, so it's in an organisation's best interest to have completed their own studies into what applicants may be expecting.
3. Look between the lines
It's common for businesses to pay extra close attention to an applicant's education and experience. While those factors certainly play a role in a company's search, it shouldn't be the only thing they're looking for. Overall, organisations should try to find the right fit for the role. It could be someone with less experience, but who is a quick learner and will acclimate well to the work environment.
Every role requires a specific type of person, so businesses should be open to the possibility of finding someone who may different from what they thought they were looking for originally.
4. Work together
It may seem strange, but working with particularly strong employees can help companies find a middle ground that works for both parties. No business wants to let go of their perfect hire if the salary requested falls outside their range. Instead, organisational leaders should ask good candidates what elements of the negotiation are flexible. Businesses may find that applicants are willing to accept a lower base salary if the benefits package meets their needs.
Try trading an extra few days of paid time off or the option to work from home two days a week for reduced compensation. Once companies know what is most important to a potential employee, they can better create a remuneration package that suits both sides.
5. Be responsive
Remuneration negotiations can be a lengthy process and candidates are frequently applying to - and taking interviews for - other positions at the same time. To ensure potential hires remain interested, businesses should remain responsive. If it's a company's turn to counter an applicant's offer, they should communicate with the candidate. Even a simple email stating that the organisation is reviewing a person's most recent request goes a long way to keep a possible worker engaged in the negotiation.
If companies need assistance with remuneration, from setting up a pay structure to incentivising employees, they should look no further than Strategic Pay Limited. Contact a consultant now for any and all of your requests for remuneration and more. To contact a consultant CLICK HERE >