Seeking Advice: How Do You Handle Salary Negotiations and Candidate Analysis in HR?

I have been working as an HR Executive for a year now. Currently, I am responsible for handling recruitment. I would like to learn more about How to Negotiate with Candidates Regarding Salary and How to Analyze Interview Candidates. Your assistance on these topics would be greatly appreciated.

Thank you in advance.

As explained by Deepa, salary negotiation is the most important task for HR personnel. Here is what I suggest: When you negotiate the salary, kindly sit in a separate cabin only with the interviewed candidate. When the candidate enters the cabin, offer him/her a cup of tea or coffee. Then, discuss his/her performance in the interview in a professional manner, and ask for his/her current pay slip.

Next, inquire about his/her salary expectations, even if he/she has already provided this information in the application form. For example, if a candidate like XYZ has stated a salary expectation of 21,000/-, you can immediately ask if he/she would consider an offer of 20,900/-. If the response is negative, ask for the exact figure that would make him/her accept the offer. Once you have this final figure, proceed with the negotiation as follows:

Begin by explaining the facilities provided by your company, followed by the welfare measures available. During the conversation, also touch upon the career growth opportunities within your company. Then, outline a rough CTC structure, detailing all the allowances covered, and be prepared to adjust the figures as needed.

Please let me know if you need further assistance or clarification.

Best regards

Swathi Vennala: You have raised two issues, which are interrelated.

Usually, qualified, skilled, and experienced individuals switch companies in pursuit of a better salary, perks, position, or job satisfaction. When considering engaging a candidate, it is important to evaluate their past employment, job roles, projects, and standing in their previous organization. If the candidate is well-qualified and experienced, assessing their qualifications, abilities, and skills through an interview may not be necessary. However, understanding the reasons for leaving their previous job requires analysis. It is essential to gauge their interest in the current role through group discussions with department heads or one-on-one discussions with the relevant Unit Head and management.

If the candidate is deemed suitable, the next step is determining their salary.

Most companies have a standardized pay scale structure. In private sectors, especially in IT companies, quality testing firms, and MNCs, it is common practice to provide fixed increments or a percentage-based raise every six months or quarterly, based on performance as per company policy. Such increments are typically tied to performance evaluations. In some cases, annual raises are performance-based and contingent on tenure in the current role.

In certain companies, senior employees earn more than junior staff based on their experience in a particular role. However, in some organizations, salaries are set by management according to qualifications and experience.

In the specific scenario where your candidate was earning a lower salary in their previous job, they should be placed at a higher pay stage relative to other executives with similar qualifications and experience to recognize their potential. Further progress is contingent on their performance and adherence to company policies. If the candidate continues in their current role, sustained acceptable performance will naturally lead to further advancements.

If the candidate is a good fit and their services are required in your company, this proposal can be communicated to them.

Regards,
SPKR

There are two types of candidates:

1. Who are in a job today and are happily working with their present employer but need a change for financial betterment.

2. Who have already left their present job due to some reason, are jobless today, and are searching for a job.

Both of the above candidates have the same qualifications, experience, and skills, and their last drawn salaries are also almost the same. However, HR can negotiate with them totally differently.

Thank you so much for your response. Whatever you all suggested to me is very helpful. I would like to know a few things.

I am working in a small company that does not provide benefits. How can I negotiate? How can I find out the actual salary of candidates that they are receiving from their previous company? Many candidates provide fake information.

Thank you.

As I explained in an earlier post, negotiating salary is the most important task for any HR personnel. As an HR professional, you should request the pay slip from the candidate's current company. If the candidate refuses, then you can ask for their bank statement.

If you have any questions, please feel free to contact me via email.

Thank you.

Salary Negotiation Tips

Before the salary negotiation with a candidate, you should make the candidate comfortable by offering tea or coffee. Then, inquire about their expected salary and the minimum salary below which they cannot accept the offer.

You can request the candidate's current salary slip. If they do not have one, you may ask for their bank statement as salary slips can be manipulated, but bank statements cannot. Based on their current salary, negotiate with the candidate within the market standard, which typically involves a 15-20% increase from their current salary.

If the candidate is still unsatisfied with the salary offer, you can persuade them by highlighting the benefits provided by the company, such as PF, medical insurance, transportation facilities, meals, and others. Allow the candidate some time to think it over.

Conduct all negotiations in a private setting and advise the candidate not to disclose the salary details to anyone as employee salary information is highly confidential.

Regards,
Arun Tiwari

Hope you received great advice from our fellow members. I am not going to say anything new other than this :) As far as my knowledge goes, I am sharing my views. You could add this along with the existing views.

Salary Negotiation Tips

When it comes to salary negotiation, you should keep two things in mind:

1. Allocated budget for that position
2. Candidate's current salary

With these two factors, you could come to a fair idea of where to start your negotiation and to what extent you could go for that particular position.

Additionally, people are easily convinced if they are offered additional perks or incentive schemes that are attractive. You would have a fair idea based on the many ideas shared above regarding additional benefits:

1. Fixed Salary
2. Promotion or appraisal patterns
3. Incentives/benefits (Monetary & Non-Monetary)
4. Your Company's/Client's strength (About the goodwill of the organization)
5. Where the candidate would be in about 3 to 5 years

You could always elaborate on the above points to convince a candidate. I am not 100% sure if he/she would be convinced, though.

Analyzing Candidates

Moving on to analyzing the candidate, I apologize I cannot explain it here. It's a lengthy process as it involves two aspects (Telephonic & Face-to-face). I will consolidate and let you know soon.

Regards.

Negotiation is very difficult because it depends on function to function and position. For example, we must not define a tech person solely based on qualifications.

It would be beneficial for you to establish benchmarks by studying various companies and individuals. This will certainly assist you in your endeavors.

Best Regards,
Muralidhar T

We should define even if Form 16 is not available for some employees who are below the tax line. In such cases, we should rely on the bank statement with a stamp.

- We should negotiate only on CTC, not annual benefits.
- Also, calculate statutory benefits.

Best Regards,
Muralidhar T