Tips for Successful Salary Negotiations
Congratulations! You’ve found a superstar with the ideal skills, personality and experience for the position.
But you still have one hurdle to overcome – salary negotiations. Landing the cream of the crop without blowing your personnel budget can be tricky. To help, here is a quick list of strategies for negotiating salary with high performers:
- Have the right mindset. Negotiation is a process, not a war. At all costs, avoid the pitfalls of the “us vs. him/her” mentality. Instead, enter the salary negotiation process open-minded, with the ultimate goal of hiring the best possible candidate for your company.
- Do your homework. Rest assured your candidate will have done his. Before heading into negotiations, prepare yourself by: reviewing the candidate’s salary history; consulting relevant salary surveys; knowing what your competitors are paying; understanding current market and economic conditions; factoring in cost-of-living differences; and developing a comprehensive compensation package.
- Use a negotiating point person. In multiple interview situations, a candidate may ask salary questions of more than one interviewer. Be prepared. Prevent potentially catastrophic communication errors by designating a single person to discuss and negotiate salary with a candidate.
- Never lowball a candidate if there is a good fit. A top candidate knows what he’s/she’s worth. If you lowball him/her in an attempt to save a few dollars, he/she will likely be insulted and reject the offer without even countering.
- Sell the intangibles. Identify a candidate’s “hot buttons” – intangibles which are just as important to him/her as money. Leverage these intangibles (e.g. company culture, stability, challenging work, opportunity for advancement, flexible hours, etc.) to sweeten the deal when your pay range is maxed out.
- Be up-front if you can’t negotiate. If your initial offer is not negotiable (because of budgetary or other constraints), tell the candidate when making the offer. If possible, provide an explanation. The candidate will understand that your base salary offer is firm, and will then move on to negotiating other parts of the compensation package.
Work with Wood Personnel. Avoid the pitfalls of salary negotiations by using our direct hire services. We can handle every step of the process from initial screening through salary negotiations, to ensure you land a top performer without breaking the bank.