Recruitment

How to negotiate salary offers with a new hire

Business Advice | 20 August 2018 | 6 years ago

How to negotiate salary offers with a new hire
Selecting a salary for a role is tricker than you think.

Selecting a salary for a role is tricker than you think. If the package is too low candidates could avoid you. Offer someone too much and your employees might rebel. Here’s how?Aaron Wallis Sales Recruitmentthinks you can get the balance right.

1. Review internal and external factors

Every job role is different. it’s important to consider all of the internal and external factors that could feed into your salary decision.

Useful external factors to consider include the availability of the skills you need are. What is the fair market rate for your geographic area? A higher salary may need to be offered if your business is located in London and the skills you’re after are in high demand.

Internal business factors play a large part as well. For example, if you’ve struggled to find someone for over six months and there’s an urgency to fill the position, you may have to increase your salary offers.

2. Consider implementing salary bands

A combination of salary bands and job grades can be a great tool for communicating expectations to your employees.

Job grades are the definitions of your roles, assessing how junior or senior someone is by a specific job title. Salary bands are the ranges of compensation that can fit within a job title.

Having transparent salary ranges by job title can help guide your hiring managers around the ranges of salary they should offer candidates. It also provides motivation for employees to work their way up through high performance.

3. Think about bonus schemes

An appealing bonus or commission scheme can be a key pull factor for attracting top talent to your business, especially in a sales environment. Try to create a bonus scheme which creates a “win-win” for both your business and the employee, where meeting targets will translate into a higher reward for both parties.

Equally, as crucial as an attractive bonus scheme can be to recruiting staff, it can often be a common pitfall for businesses.

It can be hard to change a bonus scheme once an employee has signed a contract, it’s important to ensure that your commission systems are sustainable and that your not placing your revenues under threat.

4. it’s more than just money

Think about the whole package, aside from the monetary reward that comes with the job. Things like the amount of annual leave you receive within a role, as well the opportunities for flexible working and the workplace culture of your business can count for reasons why a candidate should choose your company.

Similarly, if your business expects long working hours, outside of the normal 9-5, you could suggest that you may need to offer a higher salary to entice a candidate to join your company.

5. Be prepared to walk away

As a hiring manager, the last thing you want to do is lose your target and have to start the recruitment process all over again. Maybe you had a second choice, but even having to go crawling back to them is not without its own issues.

However, you can’t be held hostage, and every role has its pay cap. If you’re simply not getting your candidate to see sense, be prepared to walk away.

Offering an appealing salary in the context of the role and your company’s expectations is essential to attracting staff who will hit the ground running. Often it’s a balance between keeping your budgets on track but also providing an incentive for the top talent out there to join your business.

Related Topics

How to Write a Good Job Advert: 5 Ways to Make People Apply For Your Roles
20 April 2023

How to Write a Good Job Advert: 5 Ways to Make People Apply For Your...

Read More →
5 Ways to Save Costs of Recruitment
19 April 2023

5 Ways to Save Costs of Recruitment

Read More →
Can I Ask Job Candidates to Carry Out Sample Tasks?
17 April 2023

Can I Ask Job Candidates to Carry Out Sample Tasks?

Read More →
How Much Does a Recruitment Agency Charge?
14 April 2023

How Much Does a Recruitment Agency Charge?

Read More →
How To Write A Thank You Email After A Job Interview
10 November 2022

How To Write A Thank You Email After A Job Interview

Read More →
How to Politely Decline a Job Interview
2 November 2022

How to Politely Decline a Job Interview

Read More →

If you enjoy reading our articles,
why not sign up for our newsletter?

We commit to just delivering high-quality material that is specially crafted for our audience.

Join Our Newsletter