You're faced with a candidate demanding a salary increase. How do you determine their true market value?

A fairly situational question, but here are a few considerations: - Compensation for an external candidate should consider internal pay parity for similar skills and levels. Know your range flexibility. - Assess the business case and criticality. Can you afford to let this candidate go and find alternate talent? - Consider how long you've been searching for this skill. If it's recent, you might risk continuing the search within a buffer window. Once you understand the market better, you can decide. - If the skill is easy to find, prioritize candidates who fit your compensation range. - Find the reason for increased compensation expectations. If the candidate has a parallel offer, the above considerations will help you decide next steps.

To determine their true market value, research industry standards and salary surveys specific to their role and location, consider their experience and skillset relative to similar positions, and assess the current economic conditions and demand for their expertise.

This is both art and science. One factor - your current compensation structure, and specifically those currently on staff with a comparable role and comparable experience. They are your initial benchmark. Next comes the market and sourcing what you can prove (somewhat) is both current and accurate data on salaries for the role. Then comes the X-factors, which includes how many or few candidates are out there that could replace this person, how much they are likely to demand, and how long it may take to hire one. Finally there is the value that person delivers in their inherent knowledge of your organization. That learning curve could be worth 10% or more in the form of higher salary. Highly subjective valuation on each.

Always try to meet in the middle, keep their demand as well as what you have to offer on the table, and then find a way around add up a few perks instead of monetary benefits if you can.

To find out if a candidate's salary demand is fair, follow these steps: Check Market Rates: Look up salary ranges for similar jobs in the same area. Use salary surveys, job websites, and industry reports. Compare Skills and Experience: See how the candidate's skills and experience stack up against others in similar roles. Special skills or lots of experience can justify a higher salary. Match the Role: Make sure the job’s duties match the candidate's experience. A higher salary might be needed if the job has extra responsibilities. Check Fairness: Ensure any salary offer is fair compared to other employees in similar positions within the company. This way, you can decide if the candidate’s salary request is reasonable.

If the candidate has the right skills, experience and attitude and the ask is aligned with your budget and expectations, don‘t even compare with what others are offering a similar candidate in the market. Offer the best what the candidate deserves. Your goal is to get the right candidate for a role. Your analysis should be based on the quality and value that the candidate could possibly bring to the company in the future. Think from a bigger perspective especially when recruiting for crucial roles.

Quando um candidato apresenta uma pretensão salarial maior do que a oferecida, é fundamental realizar uma análise abrangente para determinar seu verdadeiro valor de mercado. Primeiro, avalio suas competências em soft skills e hard skills, bem como suas experiências anteriores. Em seguida, comparo essas informações com o plano de salários da empresa e com os colaboradores que já desempenham a mesma função. Essa análise é crucial para garantir que não se perca um talento que possa agregar valor à equipe, enquanto se mantém um plano de desenvolvimento justo e consistente para todos os funcionários. Dessa forma, é possível equilibrar as expectativas salariais com a realidade do mercado e as políticas internas da empresa.

I look at what would happen if I had to replace them and their skill set. It’s expensive to replace employees but even more expensive to replace someone that brings value!

If the skills of the candidate meet or exceed those desired by the company and he is able to show quantifiable accomplishments in his field that could add real value to the company why not step up and pay him well to bring in the best. If you undervalue him coming in the door, you may not get to keep this person long. If you have a winner in front of you, offer your best up front. It will pay great dividends in the future. Play the long game and get a great addition to your team that will bring everyone up.

In my experience, here’s what helps us understand the market value of an employee: 1.⁠ ⁠Skills and Certifications: If they’ve attained specialized skills and certifications it increases their market value and they definitely deserve a raise! 2.⁠ ⁠Performance and Contributions: Review the employee’s past performance and contributions to the organization. 3.⁠ ⁠Demand and Supply: Lastly, analyse the demand for the role and the availability of qualified candidates. High demand and low supply can increase the market value of an employee.

Take into account internal equity when setting compensation. Compare the candidate's potential salary with those of current employees in similar roles to ensure that the offer is both competitive and fair. Maintaining internal equity is crucial for a harmonious work environment and helps prevent employee dissatisfaction. If the candidate's salary request threatens this balance, you may need to negotiate or adjust the offer. However, if their skills justify the request and equity can be preserved, the higher salary may be warranted.

When evaluating a candidate, prioritize their skills, experience, and attitude, ensuring the offer aligns with your budget and expectations. Avoid comparing solely based on market standards; instead, offer what the candidate truly merits. The objective is to secure the ideal candidate for the position, focusing on their potential contributions and long-term value to the company. This broader perspective is crucial, particularly when recruiting for pivotal roles.

Consider internal equity within your company. Review the salaries of current employees in similar positions to ensure that you’re offering competitive yet fair compensation. Internal equity helps maintain a harmonious work environment and can prevent discontent among staff. If you find that the candidate’s salary request would disrupt this balance, it may be necessary to negotiate or reassess the offer. However, if their skills warrant it and equity can be maintained, their request might be justifiable. Feel free to let me know if you need any further adjustments!

Compare the candidate's requested salary to the compensation of existing employees in similar roles within your company. Ensure internal pay equity to avoid potential morale issues.

Consider your company's budget for salaries and factor in recent financial performance. Balancing the candidate's request with what the company can afford is crucial.

Consider your company’s compensation philosophy and budget constraints. Align the salary offer with your overall compensation strategy, including bonuses, benefits, or equity options, ensuring sustainability within your budget.

Evaluate your company’s compensation philosophy and budget constraints. Each company has its own approach to compensation; some may prioritize bonuses and benefits over base salary, while others may offer equity or other non-monetary perks. Ensure that the salary you’re considering aligns with your company’s overall compensation strategy and that it’s sustainable within your budget. This approach helps you make a decision that supports both the candidate’s needs and your company’s financial health. Feel free to reach out if you need any further refinements!

Engage in an open dialogue with the candidate about their salary expectations. Ask them to justify their request by providing reasons or examples of their achievements that warrant the increase. This conversation can also reveal the candidate’s motivations and whether there is flexibility in their demands. Understanding their perspective is key to finding common ground and reaching an agreement that satisfies both parties. Let me know if there’s anything else you’d like to add or adjust!

Listen carefully to the candidate's justification for their salary request. Understand their needs and priorities to determine if there's room for compromise.

Engage in an open dialogue with the candidate about their salary expectations. Understand their motivations and justifications. This conversation can reveal flexibility in their demands and help find common ground.

A Highly skilled and long tenured candidate will always consider additional factors along with the lucrative compensation. - Work life balance - Mode of Work - Flexible work hours - Upskilling / Challenging work environment.

Develop a negotiation strategy considering all the above factors. If the candidate’s market value justifies their request but exceeds your budget, consider alternative compensation forms like flexible working arrangements or professional development opportunities. Be prepared to present data supporting your counteroffer and focus on the value the candidate brings to the company.

Develop a negotiation strategy that considers all the above factors. Be prepared to present data on market value, internal equity, and company compensation to support your counteroffer. Focus on the value the candidate brings to the company and explore alternative forms of compensation, such as bonuses or stock options, if needed.

Before accepting an offer, A candidate will always consider all the factors and choose whichever aligns his expectations. The Hiring team should be flexible enough to be at par with those expectations. Be It compensation or others benefits. Especially if it'll help the organisation's long term goals. Whenever any negotiation is needed, the candidate should feel free to convey his/her expectations so the sense of belongingness will develop even before joining the organisation.