If you’ve implemented our 3 ways to attract more applicants and found the best job candidate for your position, then the finish line is in sight!
Now all you have to do is agree on the job candidate’s salary. While some hiring managers love negotiations, others hate them. Regardless of which camp you fall in, we hope the salary negotiation tips below prove helpful.
1. Decide to negotiate or not
Remember, you don’t have to negotiate. Instead, you can provide the candidate with your best offer, stating it is non-negotiable.
2. Plan before negotiation
If you decide to negotiate, plan ahead. Know the maximum and minimum amount you are willing to offer the job candidate. Then stick to the range!
3. Know the laws
Minimum wage laws vary by location and are prone to change. If this is applicable to your negotiation, make sure you’re up-to-date.
4. Do your research
Know the market rate for the position you are hiring for. You’ll need to consider your industry, the role, the location of your business, and if your job is in demand. Pro-tip: ask other local business owners instead of purely relying on online information.
5. Respect the job candidate's research
A job candidate who understands the market price for their skills demonstrates that they have done their homework. If this is the case, don’t think that because they are negotiating up they are undesirable — in fact, this is likely the type of person you want to hire!
6. Listen to the job candidate
Listening closely to the job candidate can provide important clues for a negotiation. You’ll learn what the candidate values to help you reach an agreement. Listening closely will also build respect, which is particularly important should you hire this job candidate.
7. Create a winning package
Remember, a salary negotiation has other components other than simply salary. If you can’t meet the demands on salary, consider offering additional benefits, creative perks, performance-based bonuses, vacation time, or scheduling considerations.
Pro-tip: offer an extra day of vacation around major holidays. It’s only one (potentially slow) day for you, but it means a lot to job candidates.
8. Discuss room for advancement
Room for advancement does not cost anything upfront but is highly important to a job candidate. Many times job candidates and employers can agree to a deal because there is room for advancement.
9. Be respectful & honest
Employees are your company’s greatest investment. You should approach conversations with prospective employees with respect and honesty. You want the job candidate to not only accept the offer but also feel great about coming to work for you.
10. Explain your reasoning
Assuming you are being respectful and honest, explaining the reasoning behind the nature of your salary negotiations could seal the deal.
For example, you may have just opened a business and therefore you don’t have the resources to pay market rate. While a candidate may want a higher salary, they still may accept the offer in hopes of growing with your business.