Part of the process of hiring a new employee is negotiating a fair salary. It may be a difficult conversation to have, but talking to your new employee about salary is expected. Here are some tips on how to conduct a successful salary negotiation.
STEP 1:
Start with the basics. You never know how much a new employee is going to want to negotiate. So start with a fair salary offer. Discuss how others in the company are paid in comparison, and what the employee can expect to be paid for such a position. The employee may be more than happy to accept your first offer without any negotiating. If not, consider these other tips on how to conduct a successful salary negation.
STEP 2:
Know your limits and stay within them. Remember that you're in charge during salary negotiations. Don't be bullied by new employees into paying out more than you or the company can afford. Know what your limits are and resolve to stay within them. Let the employee know what his negotiable, and what isn't. Stand firm and don't give in to unrealistic salary requests.
STEP 3:
Discuss benefits and bonuses that the employee can expect on top of the salary. If you have little negotiating abilities when it comes to base salary, imply this to the new employee by stating we are offering you $Xo,ooo a year to start, which is in line with your colleagues. In addition, you can expect the following benefits'. Salary may not be negotiable, but these other areas may be. Talk to your new employee about his eligibility for benefits, paid tuition, vacation, a signing bonus and even company stocks. He might also benefit from having a company car or cell phone. Reiterate the benefits of these non-monetary things when conducting a successful salary negotiation. It may be just the thing to get him to agree to your salary offer.
STEP 4:
Aim for an outcome that both parties are happy with. A successful salary negotiation is not about winning. It's about coming to a number that both you and your new employee are happy with. Be fair and realistic during negotiations. You want your employee to feel valued as he begins work with your company (instead of angered or resentful of the low pay). Mutual agreement is the best approach to conducting a successful salary negotiation.
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