Negotiating salary terms with employees can be challenging. After you received a candidate’s response to your offer, it’s time to negotiate. Nowadays, job seekers have access to a lot of information on how to bargain salary terms – you should be prepared as most candidates will enter the meeting armed with essential data and smart strategies. To reach a mutual agreement, here are some questions to ask when negotiating salary terms with future employees.
“Are you willing to compromise?”
Both employers and employees should be willing to compromise when bargaining salary terms. As the employer, you are the one to make the first offer. A candidate can accept, reject or negotiate better incentives. Based on his experience, you can ask whether or not he’s willing to compromise. Making concessions doesn’t mean you’re giving up power or authority. It just means both you and the job seeker are interested in finding mutual ground and close a good deal. For example: if the candidate really wants to work for you, but the salary is too low, you could convince them to accept by improving the initial offer. Talk about bonuses based on work performance, paid vacation after 6 months, and so on.
“Can we talk about this over lunch?”
Not all company owners are willing to connect with their employees by taking them out for lunch. However, when you’re negotiating salary terms, you are advised to leave your guard down and think in the best interest of your company. Setting up weekly gatherings outside the office is an excellent way of bonding with your people. Discuss salary expectations, mention future raises, and raise the bar by setting up a weekly competition. This way, you will speed things up, and your employees will be a lot more motivated to do their jobs right.
“Are you thinking of leaving the company in the next 5 years?
Generally speaking, employers want to hire dependable people. For that to happen, it is important that ask employees if they’re planning on leaving in the next 5 years. If they are, then you won’t feel pressured to raise their salaries anymore; if they’re not leaving and they want to work for you long-term, then you will be compelled to negotiate better salary terms. As a company owner, CEO or entrepreneur, it is important to be reasonable. It’s basically impossible for someone to stay with a company and not have some kind of salary expectations in 5 years.
“Do you have other pending job offers?”
As an employer, you must ask candidates whether or not they have other pending job offers. Prepare yourself to negotiate if you really want them on your team, even if that may involve offering better salaries. When a potential employee that you really want to hire has more than one job offer to accept, you must be willing to negotiate financial incentives.
“Can we negotiate salary expectations?”
Many employers don’t want to negotiate their first offer, which basically means that a potential employee will observe that he will have to work in a hostile environment. Although you can’t offer more money, this doesn’t mean that you have to be rude. Showcase a professional attitude, talk about future salary raises, and bring other matters into the discussion. Argument your statement and look a smart way to bargain salary expectations. Reach an agreement and compel the employee to make concessions as well. “I’ll agree to a 10% salary raise in 6 months if you can help the company revenue increase by 2%.” Talk about the numbers and always think in the best interest of your organization.
When recruiting, employers usually search for candidates with the experience, demeanor, and skills they think will bring value to their companies. The qualifications for a certain position can differ among organizations, and from position to position. Nevertheless, employers have a tendency to look for hard-working, reliable people who can impact their companies on a positive level with top-quality, consistent work. It’s not always that simple to tell which candidates will bring great value, and which just be “okay”. You may need some negotiation training to be able to set aside competent employees from the mediocre ones. Studies have shown that 46% of new employees quit in the first year. By negotiating salary terms with their people, employers can boost productivity. Provided that the employee is a valuable one, this strategy can bring valuable returns in the long run.
Image Source: Flickr