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Dear All,
I am working as a HR Executive since 1 year,Now i am handling Recruitment..i want to know about "How to negotiate with the candidate Regarding salary" and "How to analyze the interview candidate".Kindly help me.
Thanks for advance.
5th October 2013 From India, Visakhapatnam
Negotiating with an employee is the most difficult task of an HR.
I would suggest while discussing salary with an employee its very very important to explain other benefits the company provides. It may include pick and drop facility, PF benefits, mediclaim policies the company offers to existing employees, providing cab during late night hours to all employees, etc.
Explain each benefit one by one. Do not just keep telling the benefits all at once. Bring out some other topics in between these advantages.
Hope it helps. Please let me know if you need more.
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5th October 2013 From India, Mumbai
Dear Swati,

As explained by Deepa, salary negotiation is most important work of HR personnel.

Here what I suggest you when you negotiate the salary, kindly sit in separated cabin only with interviewed candidate. When candidate enters the cabin, offers him/her cup of tea or coffee. Then tell him/her about his/her performance in the interview only in professional way, demand his/her pay sleep of current employer.

Then ask him/her, his/her expectation though he /she has written the expectation amount of salary in the Application form. Suppose XYZ candidate has written 21000/- salary expectation in the form then immediately ask him/her if you will offer 20900/-, will he/she join? He/she will reply not like that. Then you ask him/her accurate expectation figure which means less than that he/she will not join. After knowing his/her final figure you start negotiation as mentioned follow.

You start to explain facilities which are provided by your company one by one. Then you explain him/her the welfare measures provided by your company. In this talking, in between also explain career growth in your company. Then you prepare a rough CTC structure in which you can change the figure and explain the all allowances covered in that CTC.
5th October 2013 From India, Surat

Swathi Vennala: You have raised Two issues, which are inter related.

Usually qualified, skilled and experienced persons jump from one company to another, in search of good pay packet, perks,better position,job likings etc., If the candidate is really worth to be engaged, we have to examine his past service, nature of job, projects handled, and his status in the past company. Since he is qualified,skilled and experienced, interviewing him to assess his qualification,ability,skill may not be required. How ever, reason for quitting the previous job, requires some analysis and it is also essential to examine his interest in the present job either in a group discussion with head of departments or one to one discussion by the concerned Head of the Unit and also by the management.

If the candidate is found suitable, then fixing his salary is the next step

Usually every company will be having a master pay scale structure.In private especially IT companies,Quality Testing,MNC's, it is usual practice to release fixed amount or % of pay as an increment,once in six months or quarterly, based on the performance as per management policy. This type of hike is always linked to performance. In few cases, the hike will be annual and it will also be based on performance and service in the present post.

In such companies Seniors will be drawing more than the Jr's in terms of Experience in the particular position.

How ever in few companies, pay will be fixed by the Management according to qualification and experience.

In the instant case if your candidate was drawing less salary in previous job,then he is to be placed in the next higher stage of pay (what other executives with similar qualification/service are drawing) in order to elevate him. Further elevation depends on the service condition as explained above (based on the policy of the Management) If he remains in the present job,his performance is acceptable and also essential, naturally further elevations is to be considered.

This can be proposed to the candidate, if the candidate is found suitable and his service is required in your company.

7th October 2013 From India, Bangalore
There are two types of candidates :
1. Who is in job today and happily working with his present employer, but needs change for financial betterment and
2. Who has already left his present job, due to some reason, and he is jobless today, and searching for a job.
Both the above candidates are having same qualifications, and experience, and skills, and also their last drawn salaries are also almost same. However, HR can negotiate with them totally differently.
7th October 2013 From India, Mumbai
Thank you so much for your response. what ever you all suggested me its very helpful.
I would like to know few things..
I am working in a small company they are not providing benefits SO, how can I negotiate.
How to know about the candidates actual salary which they are drawing from previous company,many of the candidates providing fake information.
9th October 2013 From India, Visakhapatnam
Dear Swathi,
As I explained you in earlier post that negotiating salary is the most important task of any HR personnel. Being an HR personnel, you should demand pay slip of current company and if candidate refuses then ask him/her bank statement.
Any query, contact or mail
9th October 2013 From India, Surat
Pay slips can be manupulated, and are not 100 percent reliable
To some extent bank statement will give you clear picture of monthly salary. But if you want to know the yearly package/CTC, you may rely on Form 16, issued by employer for IT purpose.
After employee joins, you may send verification form to his ex-employer, and you can check the correctness.
9th October 2013 From India, Mumbai
SPKR: Swathi Vennala, you can follow the method as suggested by Mr..Abhayabandekar.It is the right path SPKR
11th October 2013 From India, Bangalore
Dear Swati,
Before the salary negotiation with candidate, you should make comfortable the candidate by asking tea, coffee then ask their expected salary & the salary below that he/she candidate can't join.
You can ask candidate's current salary slip if he/she don't have you can ask for bank statement, salary slip can be manipulated but bank statement can't. Then on behalf of his current salary you can negotiate the salary with the candidate as per market standard which is around 15-20 % hike of current salary.
If still candidate is not happy with the salary you can convince the candidate by telling benefits provided by the company like PF, Medi claim, Cab facility, Meal and others. You can give some time to candidate for think about it . Do all negotiation in close cabin & ask him to not disclose the salary with anyone cause the salary part of and employee is highly confidential.
Arun Tiwari
15th October 2013 From India, Gurgaon
Hi Swathi,

Hope you had a great advice from our fellow members. I am not going to say anything new other than this :) As for as my knowledge i am sharing my views. You could just add this along with the existing views.

With regards to salary negotiation you should keep two things in mind

1) Allocated budget for that position

2) Candidate's current drawing salary

With these two you could come to a fair idea where you should start your negotiation and to which extent you could go for that particular position

Apart from this people would easily get convinced if they get any additional perks/incentive scheme which is more attractive. You would have fair idea based on so many ideas shared above pertain to additional benefits.

1)Fixed Salary

2)Promotion or appraisal pattern

3)Incentive/benefits (Monetary & Non Monetary)

4)Your Company's/Client's strength(About the Goodwill of the organization)

5)Where he would be after about 3 or 5 years

You could always elaborate on above things to convince a candidate. I am not 100% sure if he/she would.

Next with regards to analyze the candidate. I am sorry i cannot explain over here. Its a lengthy process because it has two things in it(Telephonic & Face to face). I will consolidate and let you know soon.
15th October 2013 From India, Tiruchchirappalli
Dear Ms Swathi,
Negotiation is very diffcult becoze it depends on function to function and position, for an exemple there are must be we cannot define tech person as per qualification and others
Better you need to take some bench marks of the various companies and persons then definately it will help to you
Best Regards
muralidhar T
15th October 2013 From India, Visakhapatnam
Dear Swathi,
we should define even form 16 not availabel some of employees who are below of tax line,
then we should depends on bank statement with stamp.
* we should negotion only on CTC, not annual benifits
* Also caleculate statutory benifits
Best Regards
Muralidhar T
15th October 2013 From India, Visakhapatnam
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