Salary hikes and negotiations are not new to the corporate world. We often hear of candidates expecting a pay raise or companies being obliged to appreciate the hard work of their employees. A negotiation can leave the candidate feeling wanted or devalued. Nevertheless, successful salary negotiation can help companies attract and retain good employees.
This article deliberates on the different sides of a pay raise negotiation and helps you tackle it easily.
Expect a salary negotiation at the very beginning of recruitment. Creative professionals regularly receive multiple job offers, and there will be greater chances for them to slip away for better payment. This increases the prospects for a candidate to ask for a better salary. So, it is always a good move to be prepared for salary negotiation.
Know the need: Make sure you know what you need, starting with organizing each position. Set the job level according to the current market and the skills and experience required for that position to succeed. The negotiation to increase the salary can make the employers helpless. Employers can get capitulated while trying to save the workforce. It could result in higher pay. It is always productive to first know the need of the company and the financial boundaries while providing and appreciating an employee for the hard work and dedication. Be aware of the condition.
Be clear with how you pay: Take the time to determine the market value of every position in the company, considering years of experience and current demand for the skills needed. Collecting data from everywhere possible will help get a clear picture of the position and set a suitable remuneration for the company’s position in compliance with the current market value. Read everything about the salary range for the job that you are filling. The more the knowledge, the easier the negotiation is.
These tips and hints will help you successfully negotiate a pay raise.
With a competitive market full of skilled candidates, negotiations for pay raise is the key to making reasonable offers and keeping the best people. Find everything an organization needs to know here.
Have clarity: When an employee asks for a higher salary than that is offered, consider the difficulty in conducting another search to fill the position. There are three options: make a counteroffer, stand firm, or agree to an increase. Above all, be clear with what the company needs in the first place before taking a decision or making an offer.
Add perks to the package: Non-cash compensation is often the best option when the expected cash cannot be provided. However, if the package is attractive, you can include other perks and opportunities that can make a difference. Think about variable bonus pay, sales commissions, car allowance, flexible schedules, teleworking, paid smartphone, severance packages, paid time off and relocation expenses. This will be an excellent deal to make, and people will choose to stay.
Know the financial boundaries: While looking for a new hire, make sure the hiring managers are well aware of the company’s salary ceiling. When there is an agreement for a pay raise, it should be done considering the staff morale. It will be easier for the managers to negotiate when there is clarity about the company’s financial stability.
Be ready to let go: Employees can sometimes become evasive or hard to mend while negotiating, then think that it might be time for them to leave. But if the employee is genuinely talented and can be given a pay raise, managers should see to it. When it comes to tough negotiations, managers can let go of the employee. Let there be no bias. See that a pay raise is provided in relevant and genuine situations only to save the company’s financial status.
Ensure it is written and signed: It is crucial to get the employees to sign the offer letter once both parties accept the negotiation. Managers should see that the negotiation and pay raise follow the obligations both parties agreed on are clearly stated in the letter.
Think ahead: The pandemic has forced many companies to stay away from the office and remain remote. This allows employees to live wherever they want, increasing the flexibility of the salary negotiation. Expect and be prepared for the future.
Work on rejections: There may be situations when employers lose employees after doing their best. Such situations are eye-openers for the company to re-write the strategies for pay raise negotiations. Knowing why someone is rejected or did not accept the pay scale is critical information that every employer should save for reworking.
There are a lot of factors at stake when negotiating salary with a potential employee. Managers should be aware of the company, the employees and the business market around in order to negotiate relevantly. Use the tips outlined in this article to ensure that you hire the right person and pay the right amounts.