Salary Negotiation Tips: A Guide for Job Seekers and Employers

Salary Negotiation Tips: A Guide for Job Seekers and Employers

Salary negotiations are generally left for the end even though Glassdoor reports salary and compensation as one of the five most important considerations for candidates. In a 2018 Jobvite survey, 75% of recruiters witnessed an increase in initiation of salary negotiation by candidates. Often, candidates are fielding multiple offers and choose the option that offers them the best compensation. In a competitive market, salary negotiations can be intimidating for a job seeker. Contending with an employer’s best offer is risky because many new companies let go of talented candidates citing budget constraints.

Negotiating salary with candidates - an HR guide

Based on the candidate’s resume and initial impression, HR must get an idea of the candidate’s expectations before going further into the interview. As the interview progresses and first impressions from the interview panel come through, share an overview of the company culture and growth opportunities. Through these simple conversations, HR can work towards creating realistic expectations for the candidate and enable them to decide whether they want to pursue the role or be open for negotiations. If the candidate decides not to pursue the role then the recruitment team will save time and resources on the interview process, however, if they continue then a reasonable negotiation can be expected.

Negotiating salary with a recruiter – a guide for the candidate

Firstly, know your value. Do a quick market research to understand the current salary for someone

• 1. With your level of experience
• 2. With your qualifications
• 3. Working with a bigger/smaller/same-sized company as yours
• 4. Overall salary trends in the field

Companies in the same industry may have similarities, but there are nuanced differences too. So, thoroughly research the company you are applying for and understand their compensation structure, salary structure and other perks that they offer. You must also factor in the prospects in terms of potential for growth in the role, how much time you want to spend with the organisation, and where it can lead you in your career (in the same company or elsewhere).

Normalise the discussion

Salary negotiation is integral to the recruitment process, hence, the discussion must be normal. When a candidate applies for a job, they are applying for an opportunity to grow in their career, for better pay, better work conditions, better brand association, and work culture. Similarly, the company is searching for a resource person with a high-value proposition in terms of their experience, their knowledge, rapport with the team during the interview, how well they have understood the role, and vision of what they will achieve in that position. When these expectations are matched, salary discussions become easier. The recruiter knows their budget and the candidate knows what their expectations are. Both can work towards finding mutual terms and set limits on how much they are willing to compromise.

Know when to say “no”

For a candidate, your salary must

• 1. Be more than what you are currently earning.
• 2. It must cover your expenses and there must be sizable savings.
• 3. It must lead to higher compensation in future.

If the salary does not match your expectations, then there must be other worthwhile offers such as

• 1. Flexible schedule
• 2. Bonus
• 3. Stock options
• 4. Professional development opportunities

For a recruiter, the salary must

• 1. Justify the candidate’s talent
• 2. Fall in the fair salary range as per market standards
• 3. Meet the candidate’s expectations as much as possible
• 4. Compensated with other benefits

It is about finding mutually acceptable terms

The HR's role in the recruitment process is to assure the candidate that they are on their side. Although salary is a big consideration, depending on the employee's age, level of experience, ambitions, and personal situations, they will be willing to negotiate if you have a strong value proposition. For instance, a newcomer or someone with 1-2 years of experience will consider the brand value and learning opportunities in the role. Someone with financial responsibilities or a family will try to strike a balance between compensation and flexibility. It is important to find out the decision-making factors that could influence a candidate.

For a company, there will be numerous applicants with different strengths and you have to know how far you are willing to exert yourself for the role.

For both parties, ultimately, negotiation is a compromise that they must be willing to make. It is important to be clear on how far you are willing to compensate before you enter the room and sit across from one another.