Navigating Salary Expectations in Recruitment: How Do You Handle Negotiations and Trends?

Hi there,

I am taking care of the recruitments in the HR department. I really feel that when I ask the expected salary from the candidates during the interview, I don't get a satisfactory answer. Either they say that it is negotiable or will ask for a 30-40% hike in the current salary. Since salary is one of the important components while recruiting new employees, please help.

- Is a 30-40% hike in salary during a job change a trend?
- How should I deal with candidates who say that salary is negotiable?
- Is negotiating on salary good, and will this negotiation help in retaining them for long?

Jyotsna

I am working in a pharmaceutical company. We generally need medical representatives.

Jyotsna

Hi Jyotsana,

My name is Amit Seth, and I am basically from Lucknow, but currently, I am working with an IT company in Ahmedabad. I believe this is a common challenge that we all face during recruitment processes.

In my opinion, besides considering salary expectations, it is essential to assess the candidate's dedication level, commitment, attitude towards the future, and other relevant aspects. This approach can contribute significantly to employee retention.

It is a common practice for individuals to seek a 30-40% salary increase when switching to another company. When a candidate mentions that salary is negotiable, it is crucial to delve deeper into why they are leaving their current job and why they are interested in joining the new organization. This exploration can help determine the candidate's suitability for the role.

I disagree with the notion that salary negotiation is the only factor to focus on, as a higher salary elsewhere might tempt an employee to leave. Therefore, conducting additional assessments, as mentioned above, is crucial to ensure long-term employee retention.

Recruitment may not be a challenging task, but retaining employees proves to be a more demanding endeavor.

Regards,
Amit Seth.

Hi Jyotsna,

Thank you for your email. Your response is greatly appreciated. I will make sure to remember these points for future interviews. I fully agree that recruitment may not be a significant issue, but retention certainly poses a challenge.

Best regards,
Amit

Hi,

If the candidate says it is negotiable, we have had success by asking for a range. We explain to them that we need this information to take the candidature forward. Candidates expect a 10-30% hike in salaries, depending on the time of the last increment.

When we decide to pay, we look at, among other things:

1. Total experience, quality (depth, cross-functional exposure, international exposure, autonomy in complex decision-making, etc.), and quantity (number of years of experience).
2. Annual multiple for our industry. For example, in our industry, the median salary for people with more than five years of experience is INR 125,000 for every year of experience (5 years of experience: 6.25 lacs).
3. Rarity of skill set. Rare skills command a premium.
4. Internal pay parity. We cannot destabilize our complete system to accommodate one person. No one is that important.

I hope this answers some of the questions you had. I will be happy to answer any further questions you may have on this.

Dear Pancham,

I really feel that your reply was apt. It will surely help in shortlisting candidates.

I have not understood the following point: Annual multiple for our industry. For example, in our industry, the median salary for people with more than five years of experience is INR 125,000 for every year of experience. (5 years experience: 6.25 lacs) :( Please explain.

Waiting for your reply.

Jyotsna

Hi Jyotsana,

It is very hard when we are asked the exact expected salary during the interview, but it will be very easy when you analyze all these things - past experience and salary. Ask whether he/she is getting CTC or gross. Study the resume deeply to understand if he/she prioritizes money, working culture, or job profile. We can negotiate with him/her on the other perks that we are offering. When he/she switches to another company, how much of an increase in salary did he/she receive? We should introduce to him/her our salary status, meaning for this position and experience, we can offer you. In negotiation, our point will be strong on all the above points.

Hi,

Perhaps every recruiter faces this kind of problem. First, take a look at your internal company and assess the situation, i.e., if you categorize your company into three levels – junior, middle, and senior management – identify the grades within each level and understand the salary range available for each grade. This will provide you with a fair idea about the present trends within the company.

Subsequently, when recruiting for a specific position, you will have a better understanding of the salary range you can offer. For example, if an executive HR in the company is currently earning somewhere between 2.4 to 3.0 lakhs, consider offering a raise in and around this range to help stabilize the internal system.

Typically, negotiating salary increase percentages is a game of negotiations or satisfaction. If an individual anticipates a 10% raise and you offer 20%, providing a 12% raise might lead to greater satisfaction. Conversely, if the expectation is 20% and you offer 10%, it could lead to complications.

Therefore, experience plays a crucial role in accurately determining the appropriate percentage increase.

Regards,

Hi Vikrant/Srinivasan/Pancham/Amit/all,

Thanks for your suggestion. Can you all please answer one more thing... Is it okay if we tell the candidate the salary package we are offering beforehand? Many people have told me not to disclose our salary package at the beginning. Even when I post jobs on Naukri.com, I tend to hide salary details. I have noticed that many postings on the website do the same. What would you suggest?

Jyotsna

Hello Sir/Madam,

My name is Jigar Patel. I have 5 years of experience in Chemical Sales & Marketing. Last week, I went for an interview at one of the leading chemical companies. During the interview, the HR person asked about my salary expectations. I mentioned that I am looking for a 20% increase from my current salary. However, he informed me that my demand was not realistic.

I would appreciate it if someone could advise me on the norms for salary increments when changing jobs. Additionally, what would be a reasonable expectation for a salary increase in such a scenario?

Thank you,

Jigar Patel