How do you negotiate salary with candidates?

My professional experience comes from that of an external recruiter. I do agree that all of these baseline understandings play a role in the general compensation range. However, companies should not silo themselves into a train of thought that they must only consider salaries within the baseline ranges.

Understanding the market's salary landscape is pivotal in fair negotiations. It ensures candidates are offered a package that aligns with industry standards and reflects their expertise. Utilizing diverse data sources equips you to make informed decisions, creating a win-win scenario for both parties. Taking into account supply, demand, and individual qualifications ensures a tailored approach to compensation discussions. This knowledge lays the foundation for constructive and mutually beneficial negotiations.

At a minimum, the candidates salary expectation and a range for any position should be discussed. Please note, many salaries, although listed to a certain range, are dependent on qualifications. Candidates can assist in this process by not applying to roles that are clearly listed outside of their target salary range, and companies can help by clearly posting their salary expectations.

Post the budgeted salary range on the job ad. Regardless of if that happens, the way I start every screen is to verify the role, the location and model (hybrid vs onsite vs remote), and the salary range, making sure they are comfortable in that range and with the other baseline requirements. If it's not a match, I'm not wasting their time or the time of myself or the hiring manager with a candidate that just won't join. Then, after the initial interview with the hiring team, post my screen, I have a call, provide any feedback that I might have, ask them their thoughts, and set a baseline; given the range is x - y, where do you see yourself now that you understand the expectations and how your experience can lend to success?

-I believe it’s better to list the compensation band in the JD itself while advertising any new job role. -This is going to save tons of time of both the recruiter and the candidate. - It clearly gives a fair idea to the candidate while applying for the role whether it matches their expectations and the recruiter also need not be wasting their time at the time of the recruitment process

Although it would be better to share the compensation range in the JD. But if because of any reason (such as not publishing organization's internal salary structure publicly etc), I think the best way to set the candidates' expectations is to let them know the budget during our first conversation itself.

I agree with this. Setting expectations early is the key to a successful "negotiation". Oftentimes, by setting the expectations early, you can actually eliminate negotiations altogether. We do this by identifying what a candidate's "no-brainer to accept" offer would be. Throughout the process, we can then work to cultivate that exact offer, which a candidate has already told us they'd accept upfront.

I think our endeavor should never be restricted 'just' on the salary rather to understand the candidates' mission & vision. This not only helps to broaden the scope of the discussion but also provides an opportunity to us to really understand the candidate which otherwise we try & restrict only within formal interviews framework.

Every candidate has unique skills and attributes that play into what they ask for salary. Listening to a candidate's desires, as well as identifying their particular skills, should validate the number they are asking for. I believe that companies should be willing to pay the requested salary (within reason) for candidates that fit what they are looking for. It is not worth missing out on a candidate because they are asking for $3,000 more than the "average range".

Negotiating salary isn't just about figures; it's about understanding each candidate's aspirations and concerns. Listening and empathizing fosters a collaborative atmosphere, allowing for a more fruitful discussion. Recognizing a candidate's worth and expressing enthusiasm can strengthen the connection and lead to more positive outcomes. This approach builds trust, making candidates more receptive to potential offers.

Companies lose more by missing out on a candidate that is asking for $3,000 more than their budgeted range than they would by hiring the person. If a qualified candidate is identified and an offer is made to them, it is in the company's best interest to get this candidate on the team even if it means altering their range.

It is crucial for a recruiter to understand the nonmonetary compensation for an organization as well as have the empowerment to leverage that side of the total compensation package to negotiate and overcome objections if there is a delta between salary being offered and the desired salary. There have been many negotiations where there was a significant delta, but by listening to the candidate and understanding what was important led to being able to supplement the salary with enhanced PTO or development or insurance coverage changes, etc. Never, ever, ever overpromise on compensation or what you can make happen - this impacts someone's life and livelihood, the company, and can even have legal implications.

Transparency and flexibility are vital in salary negotiations. Candidly discuss the factors influencing the offer, grounding it in market data and company policies. Explore diverse components of the compensation package, like bonuses and benefits, to find a mutually beneficial arrangement. This openness fosters trust and demonstrates a commitment to meeting candidates' needs. It paves the way for constructive discussions leading to a satisfactory outcome for all parties involved.

Confirming and documenting the agreed-upon salary is a crucial step. This formalizes the offer and provides clarity to both parties. A well-structured offer letter, encompassing salary specifics, start date, role details, and reporting structure, sets the stage for a successful onboarding process. Promptly addressing any queries from the candidate ensures a smooth transition. This meticulous approach demonstrates professionalism and ensures that all parties are aligned on the terms of employment.

Here are some ideas and steps to effectively negotiate salary with candidates: ✔ Understand Market Rates and Job Role and Establish a Range: ✔ Initiate the Discussion and Ask for Candidate Expectations: ✔ Highlight Non-Monetary Benefits and Discuss the Job Offer in Detail: ✔ Find Common Ground and Leverage Performance Metrics: ✔ Be Open to Flexibility and Communicate Clearly: ✔ Stay Professional and Respectful, Finalize and Document the Agreement: Remember, successful negotiation is about finding a mutually beneficial solution. Both the organization and the candidate should feel satisfied with the outcome.

Don’t underestimate the value or importance of voluntary benefits. While everyone appreciates cash compensation and employer-paid contributions, those things are direct costs to the business and can quickly inflate the cost of acquiring and retaining an employee. Offering voluntary benefits - especially those that improve, simplify, or ease the lives your employees can be a way to increase the value of your total compensation offering without adding to the company’s labor costs. All other things being equal, for two job offers that include equal or similar salary, medical coverage, and perks like PTO and hybrid work options, the one with the more robust menu of voluntary benefits will be more valuable.