5 Ways How HR Managers Can Be Successful in Salary Negotiations

By hrlineup | 16.07.2020

As an HR manager you’ve been on the other side of salary negotiations. You know that the process feels like a battle and potential employees dont want to come off as pushy. But now that you’ve crossed over, you understand too well the link between an employee feeling valued and wanted in the company and their productivity.

For an employee, the goal is to get fair compensation for the effort they bring on board. While you are focused on remaining within the company budget and getting the right talent. Therefore, even as employees learn salary negotiations skills, you should too.

To get you started, below are some job offer negotiation strategies you can employ.

1.    Research on the market

Never go into salary negotiations blind. Always research the market and get a feel of the economic climate in your region. Use a similar sized company in your industry and area as a yardstick for negotiating a job offer.

You can collect relevant information on salary surveys and from fellow HR managers. Yes, your network will come in handy during this process.

2.    Open the negotiation with a competitive offer instead of low balling the candidate

Unfortunately, getting the right talent for a company is not a walk in the park. Anyone who is skilled enough for the position knows what they are worth and aren’t willing to settle for less. Moreover, offering fair compensation for what they bring to the table makes them feel valued and are more productive.

As such, instead of undercutting the candidate, make a competitive offer less you risk losing them to your competition.

3.    Leave room for a counter-offer

You wouldn’t be negotiating a job offer if there is no counter-offer right? Depending on the position expectations and the initial offer, the candidate might table a different figure in mind. Listen to their desires and accommodate them where possible. Alternatively, there is always room for appraisals.

4.    Be prepared to ask tough questions and understand their constraints.

Prepare a list of unexpected questions like “Do you have any other offers?” or “Are we your top choice?”. The goal of such questions is to try and throw the candidate off-balance and to see if they land on their feet. Here, honesty is key.

5.    Close the deal

If the HR negotiations go well and you agree on a salary package, close the deal right there or send a follow up email welcoming the candidate to the company.

There is a lot at stake during salary negotiations. Though you shouldn’t give in to candidate demands, you need to find a middle ground for the company and the candidate. It’s your job to find a win-win salary package.

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