Tips for a Successful Salary Negotiation
A positive employer and a positive employee are the result of a successful salary negotiation. Here are tips for conducting a successful salary negotiation.
Salary Negotiation From the Employer's Point of View
Consequently, the employer's salary negotiation leeway depends on these factors:
* the level of the job within your organization,
* the scarcity of the skills and experience needed for the job in the job market,
* the career progress and experience of the individual selected,
* the fair market value for the job you are filling
* the salary range for the job within your organization
* the salary range for the job within your geographic area,
* the existing economic conditions within your job market,
* the existing economic conditions within your industry, and
* company-specific factors that might affect the given salary such as comparative jobs, your culture, your pay philosophy, and your promotion practices.
Salary Negotiation Tips
While they are not meant to comprehensively detail how to conduct a salary negotiation, I offer you these hints and tips to ensure you conduct successful salary negotiations.
* Salary negotiation is not about winning – unless both parties win. If either party feels they have capitulated, not negotiated, both parties lose.
* Make every effort to identify the most recent salary and benefits your candidate received. Most organizations ask for salary on their job applications and in their job postings and ads. Some candidates offer W-2 forms and other proof of salary. You can also ask former employers during reference checking. You may not be able to match the salary but you will have a good idea of what the candidate will seek during salary negotiations.
While these tips are not meant to comprehensively detail how to conduct a salary negotiation, I offer you these hints and tips to ensure you conduct successful salary negotiations.
* Know what your salary negotiation limits are. Base your limits on your internal salary ranges, the salary paid employees in similar positions, the economic climate and job searching market, and the profitability of your company.
* Recognize that, if your salary is not negotiable, and even if it is, superior candidates will negotiate with you in other areas that may be negotiable. These include benefits, eligibility for benefits or paid COBRA, tuition assistance, paid time off, a signing bonus, stock options, variable bonus pay, sales commissions, car allowance, paid cell phone, severance packages, and relocation expenses. In fact, sophisticated candidates will negotiate in all of these areas and more.
* Even if you are convinced of the candidate’s potential positive impact within your organization, and a negotiating candidate is likely to keep reminding you, most organizations have limits. You will regret violating your limits; even if you have to start your recruitment over, you will save yourself years of headaches and prohibitive costs.
* If your initial offer is not negotiable, or barely negotiable, try to indicate that to the candidate when you make the offer. Recently, I made an offer to a special candidate whom an organization had been trying to hire. (They waited to make an offer until the right position opened up.)