Making a job offer to a person requires balance. Leaving the 'balance', in this case, means reaching a salary agreement that respects your company's financial limits and the hired person feels respected, rewarded fairly, and of course, motivated. The outcome of a salary negotiation will make a person feel liked or unappreciated by your company.
The modern HR business partner seeks to make offers strategically designed for the long-term development of your company and your team. Among the current practices is the study of salary composition, whose objective is to understand what motivates a person to accept a job offer, in addition to the salary – of course. The objective of this text is not to take away the importance of these variables, but to speak objectively about salary.
According to a survey by Glassdor, the salary is not only one of the five determining factors in a person's decision to accept a job opportunity, but it is also the first in the survey's degree of importance.
Another factor that you, the HR manager, cannot fail to consider, is to face the fact that with the information age, people have greater access to information about remuneration in the labour market and this has brought more autonomy for argumentation at the time of a negotiation. salary.
The following tips will help you conduct fair salary negotiations that satisfy both parties.
Determine your limits and needs.
You have a salary negotiation window from the moment you propose a job to a candidate until they accept the offer, so make sure you know to what extent your salary range is and the need for the role are compatible within the market, in addition, consider what your company needs are, as not to waste your time, or that of the professionals who will be out of reach for your vacancy.
Your lower range should still be competitive in the market, so consuming industry research can be a determining factor when making your proposal. If you feel that your lower compensation is too far behind, try to negotiate with company management flexibilities regarding requirements, seniority, or possible extra salary compensation for performance.
Dungeon Master Tip: Don't make an offer until you understand if it's going to be attractive. Ask about all expectations for the person you are interviewing about what they expect from the future of the company, their position, and their salary (not only for the proposal but in the future). From there you will have more tricks to know whether to prepare a job proposal.
Be transparent and know how to sell your company.
As we discussed in the introduction, it is important for you to be aware that your candidate will also use research tools to determine their compensation needs and to negotiate a salary.
It is almost certain that in your interviews, people will let you know their current or most recent salary prior to negotiation and this information should be treated with caution.
People expect you to be honest with them and know how far they can take an offer, so don't be fooled, understand your position in salary negotiations upfront in your phone previews or in your first interview.
If you understand that it makes sense to follow through from a financial point of view, go ahead and sell your business very well: reinforce the purpose.
Elon Musk, the founder of Tesla, employs an audacious strategy to recruit employees for his company. He “sells” his company to candidates for the purpose of “changing the world”. His brand is so strong that he ends up attracting highly qualified talent with a strong desire to achieve this vision, which is the main motivation for accepting a job offer. Perhaps there is still doubt about what the salaries and benefits of a Tesla employee are. Although Tesla employees earn more than the national average in the US ($31,000 a year), they still earn less than reputable companies like Ford and General Motors (GM). To give you an idea, Tesla's average annual salary is $56,000, while Ford's is $64,000 and GM's is $77,000. This demonstrates that while salary and compensation are important considerations for candidates, other factors such as company values and vision are also critical.
Prioritize people over numbers.
If your proposal isn't good enough for one person, it might be best not to make it. Even, making a recommendation on how she can get an even better proposal in other segments, positions, or companies, can make you and your organization gain a follower of the brand and culture.
There is no vacancy that only one person can fill. You will eventually find the best person for your chair.
Need help with a difficult hire you haven't found in a while? We can help you.
If you are sure that your company can promise a talent, a future, but not now, be transparent with the alternatives and try something different, for example, a package that focuses on people's well-being can be a big differentiator. Consider alternatives such as working from home a few days a week, it can optimize costs for the company and many candidates would be attracted to this option as it offers them more freedom and flexibility. Today, there are numerous benefits that can be included in a job offer.
Think about other financial rewards, for example, creating offers that don't require them to sacrifice their salary range, such as variable pay, recognition awards, or stock options. These suggestions can be implemented early in the salary negotiation, allowing people to assess whether or not their package is worth it.
Oh, finally, don't forget to give yourself time to consider their suggestions and avoid being too pushy for an answer. Open space for questions and try to make the person comfortable to clarify doubts and perhaps make a counterproposal.
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