Once a candidate has been shortlisted for final selection, salary negotiation becomes the next most important step to ensure that the new recruit comes on board happily.
It is merely a matter of matching apples to apples and deciding upon the raise that you have budgeted for the position.
Just list down the complete details of the candidate's CTC. Please ensure that nothing is missed out.
Then decide the percentage hike that you would like to offer based on their existing CTC. Once the proposed hike is acceptable to them, give the candidate a detailed breakdown of the CTC as per the remuneration structure your company offers. Explain any unique features that your organization may be offering.
List out the details of the candidate's remuneration structure in an Excel sheet. Once you have decided on the CTC you propose to offer (and they have accepted the same), match the salary components being offered to make your offer fair.
It is essential to bring a new recruit on board with a smile.
Salary negotiations are a skill that is mastered over time with experience.
Best Wishes,
Vasant Nair
Explain each component to their satisfaction.
Then, of course, give them the offer letter or the letter of intent (LOI).
Congratulate them, shake hands, and express that you are looking forward to their coming on board soon.
Best Wishes,
Vasant Nair