Struggling with Salary Negotiations? Seeking Advice to Avoid Losing Top Candidates

Dear Cite HR members,

Greetings!

I have gathered a lot of material on various topics, but I am struggling to find information on salary negotiation. I understand that this is a critical aspect that can determine the success of recruitment and selection processes, as it may impact whether a candidate accepts an offer or not.

In a recent situation at my new company, a highly qualified candidate declined the offer due to salary issues. Although this occurred before my tenure, I was involved in the final follow-up, and my senior expressed disappointment at losing such a promising candidate. I am eager to avoid similar situations in the future.

As I am new to this area, I seek guidance on key points to consider during salary negotiations:
- What factors should be kept in mind?
- How to articulate and what to communicate?
- How frequently should salary discussions take place?
- Is it preferable to conduct negotiations over the phone, in person, or a combination of both?
- Are there effective methods to ensure that both the employee and employer are satisfied?

I truly value your insights and suggestions on this matter.

Regards,
Shweta Swarnkar

Hi Shweta,

Basically, salary negotiation is always a problem with HR professionals.

To get the desired candidate in, we need to remember certain key points while negotiating the salary, such as:

1) Check the intensity or the urgency of the opening you are looking for.

2) When you have a preliminary round of an interview, always try to find out the expectations of CTC.

3) If you feel that you will not be able to fit him/her into your specified salary range, try to find out if it is negotiable or if they would like to stick to the initial offer amount.

4) While negotiating with the candidate, explain the organization's structure and where they can fit in. Also, inform the candidate about the appraisal procedures and growth prospects if they turn out to be an excellent performer.

5) Sometimes, as HR professionals, we need to exceed our budgets depending on the position and the urgency of finding the right candidate.

6) Explain the other benefits that your organization offers.

These are a few tips you can follow for effective negotiation.

Bye,

Niel.

Hi Swetha,

Well said by Nilesh. As an HR professional, we need to market our services effectively. In this case, aspects like pricing/salary are not the only considerations. One should also consider the after-sales services (compensation & benefits, career growth opportunities, conducive work environment, open discussions, etc.), durability (company and employee growth, market share, future expansion, etc.).

These are the key points for discussion, and I am confident that a detailed explanation and understanding are essential in negotiations. Ultimately, we aim to attract the best candidates with strong soft skills.

Keep up the good work and stay proactive.

Thanks,
Tarun

I totally agree with the above remarks. It's all about marketing. But I personally feel that when we sell our company, at times we are able to close the position, but we lose the resource over time. At the end of the day, what matters to employees is money. We need to be a little careful while presenting dreams about the company; we shouldn't show what is not there or possible. It should be a little more realistic.

My personal experience shows that many employees leave the company in the initial days because what was shown to them is not happening. So, it is always important to answer all the queries of the candidates at the time of the interview.