You’ve been through several rounds of interviews, narrowed down a pretty wide talent pool and now you’re ready to make the offer. This is typically when all the cards come out on the table. The candidate reveals what he or she needs in order to accept the job, and your company offers what it believes the position, and the professional, is worth. Salary negotiations with candidates who know they are a good catch can sometimes take more back and forth. Contract employees who know they won’t be offered vacation or benefits are more likely to negotiate aggressively.
As an employer, you have to ask yourself: How much is this position worth in today’s job market? How much is this position worth to my business? Then, you have to decide where your salary offer falls. If you offer too low, a top candidate may baulk. If he or she accepts, but feels this is being underpaid, the quality of work may not be as productive and profitable as you hoped. That’s why it’s essential that you, as the employer, know your employees’ market values. Negotiations can go much more smoothly when you balance the quality of your candidate and the responsibilities of your open position.
Determine Your Profit Needs
What do you need to pay for this position in order for your company to profit off this partnership? Your goal should be to know the salary range for an employee with this candidate’s background, experience and credentials. When you enter a discussion about the salary, be sure to take the cost of living in your area into consideration. A .net developer in Buffalo needs to make a completely different salary than one in a New York City. You should know these details before you even post the opening.
Understand the necessary qualifications
When interviewing candidates, you may find that the best fit has the minimum qualifications, but not the preferred. On the other hand, maybe the top applicant has all the preferred qualifications and additional training on top of that. Being under-qualified or overqualified for a job will certainly impact your salary offer. You may really like a candidate’s personality, but if he or she comes in with a skills gap, that could be risky. Perhaps the applicant is a recent graduate with impressive training but limited work experience. These are all issues that can impact your salary negotiations.
Assess the candidate’s accomplishments
If a candidate is reaching for a higher salary, they need to prove their case. Don’t be afraid to ask, “Why should we pay you that much?” Examine the candidate’s performance reviews. If an applicant’s previous boss reports that he or she was perpetually late and missed deadlines, then their past work performance might not prove their worth a higher salary. However, if an applicant has more significant training, been ahead on quotas, taking on more responsibility or volunteered for decision-making roles, they might have a good argument for a pay increase.
Salary negotiations can be stressful, but also revealing. Employers must come to the table with fully knowledgeable of a candidate’s worth for maximum leverage. You don’t want this to turn into a war – that’s no way to start out with a new employee. However, finding a balance in the negotiation is guaranteed to reveal how you and your new hire will work as a team.
Looking for contract employees in manufacturing, engineering or IT? Call TxMQ Staffing. Let our experienced recruiters do the negotiating for you.