How To Negotiate Salary With Candidate? (8 Key Tips For HRs)

Advaitaa RaviAdvaitaa Ravi

If you are looking to hire new people, it's important to know how to negotiate salary. Here are some tips on how to negotiate salary with candidate.

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January 18, 2023
How To Negotiate Salary With Candidate? (8 Key Tips For HRs)
How To Negotiate Salary With Candidate? (8 Key Tips For HRs)

Candidates are within their right to negotiate after receiving an offer, and it’s usually an expected part of the hiring process. That’s why salary negotiation in recruitment must include careful planning and strategy. So, how to negotiate salary with candidate as a recruiter or hiring manager? This article will help you with how to do salary negotiation in India.

Employ the following strategies when a candidate wants to negotiate the desired salary.

Quick summary

As an HR manager, you will learn about 10 key tips to negotiate salary with candidates.

  • Reassure candidates that you’re their advocate
  • Show the candidate how your company culture supports their life
  • Research market salary to establish a fair salary range
  • Understand what’s important to your candidate
  • Consider other benefits besides cash
  • Communicate effectively
  • Look beyond the resume
  • Explore compensation alternatives
  • Mention career advancement
  • Know when to walk away

Also learn about the common mistakes when doing salary negotiations with candidates, and how to avoid them.

10 Key Tips To Negotiate Salary With Candidate

1. Reassure candidates that you’re their advocate

  • Candidates often withhold information — about their expectations or about other offers — out of fear that you’ll somehow use it against them.
  • Be open and honest with the candidate by stressing how your top objective is to give them the best possible offer. This way, they’ll be eager to accept and happy to stay in their new role for a long time.

2. Show the candidate how your company culture supports their life

  • Employees spend a vast amount of their time at work and they want to be at a place that aligns with their values and preferences. Can they bring their dog to the office? Is childcare offered? Is the workplace inclusive?
  • Share your culture upfront to help the candidate see the holistic value of your company as a prospective employer.

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3. Research market salary to establish a fair salary range

  • Conduct research on market salary to create a lower and higher salary boundary for this position and stick to it.
  • The mapping of salary ranges not only makes sure that the salary you’re offering is competitive but also builds transparency. 
  • This transparency assists candidates in the future too when they’re looking for a pay raise or they will clearly see how they can move up to another position. 

4. Understand what’s important to your candidate:

  • During job interviews, try and discover what the candidate cares deeply about for instance, having the flexibility to work from home might be worth more to them than a bump in base salary. 
  • Imagine how you negotiate with the HR (human resource) manager if you were an employee in that situation. This will help you understand how to do salary negotiation with candidate with ease.

5. Consider other benefits besides cash:

  • If you can’t match a candidate’s starting salary request, try to sweeten the deal with benefits or perks such as vacation time, group health insurance, etc.
  • Benefits can have a strong impact on the candidate’s decision to accept or decline your offer.

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6. Communicate effectively

  • When you’re speaking with the candidate, no matter what you’re talking about salary, the additional benefits, or the job, you need to communicate what’s on your mind effectively.

7. Look beyond the resume 

  • During the hiring process, you’ve gone through your fair share of resumes. You’ve marked some of them as good while you’ve tossed others aside due to lack of experience or skills. 
  • However, hiring beyond what’s in the resume is beneficial for you. You will find that each candidate brings something unique to the table. Sometimes when they’re lacking the needed master's degree, for example, they can make up for it with their skills or being the perfect culture fit. You really need to understand the role you’re looking to fulfill and what the candidate offers.

8. Explore compensation alternatives:

  • Sometimes, a higher salary just isn’t an option. If that’s the case, there are other things you might negotiate for. Instead discuss adding other types of compensation like a signing bonus, performance bonuses, a pension, or stock options.
  • Such offerings will help your employees be more efficient, focused, and productive.

9. Mention career advancement:

  • If the candidate’s compensation requirements are higher than the role allows, discuss the potential realistic compensation package of the role to give the candidate a more long-term view.
  • Let them know that even though their first year may not align, many employees reach a higher compensation package in their second year.

10. Know when to walk away:

  • If a candidate becomes overly aggressive, evasive, or difficult to reach, consider thanking them for their time and moving on.
  • When you decide what to do, weigh both the value they bring to the business and if there are other available candidates with similar qualifications and experiences.

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Common mistakes when doing salary negotiation with candidate, and how to avoid them

Negotiating an offer with a candidate is not about successfully negotiating. It’s about reaching a salary agreement that meets your business objectives and makes the candidate feel valued and appropriately compensated.

As a result, always be prepared on how to negotiate salary in the interview process. Below is a list of what NOT TO DO in the event you have to negotiate with a candidate.

Don’t trash talk other companies:

  • If a candidate is interviewing at your company and a competing organization, it’s important to focus on what your company brings to the table. Ground your salary negotiation example conversation in facts.
  • It’s ok to compare your benefits package to theirs, for salary negotiation conversation example, but bringing up rumors about other companies that you’ve heard secondhand or read on sites like Glassdoor is tacky.

Don’t be aggressive or impatient:

  • A lot of the time candidates just need to understand the initial offer to make a counteroffer.
  • If they seem a little hesitant, give them time to think about the offer or offer them a couple of days to get back to you.
  • Try to support them through the process and let them know they can come to you if they have questions.

Don’t ignore biases:

  • When negotiating with a job candidate, understand that bias, whether deliberate or unconscious, can influence your decisions.
  • For instance, women often pay a penalty when they negotiate and are more likely to receive feedback that they are “intimidating,” “too aggressive,” or “bossy.”
  • When negotiating with a candidate, always take a step back and think about your biases.

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More people work, less paperwork

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Want To Take Care Of Your New Employees' Health To Increase Productivity?

We hope you have learned a lot about how to negotiate with candidates on salary.

Why don't you look after the health of your new employees by providing employee health benefits like group health insurance?

It’s definitely one of the additional benefits prospective employees are looking for, so you will have the upper hand! 

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1. Why is salary negotiation important in recruitment?

Since salary negotiations can significantly affect both your financial well-being and career growth, they are an essential component of the hiring process. Negotiating a higher pay will provide you more money to save or invest, which will increase your financial security and enable you to accomplish your long-term objectives.

The wage you are given might also affect your ability to make money in the future because it can serve as a benchmark for future raises and promotions. You might be able to boost your earning potential over the course of your career by obtaining a higher compensation.

2. What are the 3 best tips for negotiating salary with an employee?

Do research: It's critical to have a solid idea of the market value of your abilities, experience, and qualifications before engaging in a salary negotiation. To get an idea of the market rate for someone with your qualifications, research compensation information for comparable positions in your industry and area. This will provide you with a solid starting point for negotiating a reasonable salary.

Describe your value: Make careful to express your worth to the firm in detail during the discussion. Your relevant background, accomplishments, and any special contributions you can provide the company can all be listed here. You can effectively argue for a higher wage by highlighting your worth.

Keep an open mind: While it's vital to speak up for yourself and bargain for a fair wage, it's as crucial to keep an open mind and be willing to compromise. Take into account the entire package being provided, including the benefits, leave, and other perks, and be prepared to haggle over them if required. You might be able to come to a beneficial compromise by being adaptable.

How To Negotiate Salary With Candidate? (8 Key Tips For HRs)
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