The Art of Salary Negotiation
The negotiation of salary throughout the hiring process can often be viewed as a taxing and emotionally charged process with misconceptions often arising between both the employer and potential employees.
These misconceptions can often have a negative impact at the offer stage - ultimately costing the candidate the position and/or potentially damaging the brand of the employer.
These risks can be avoided by a little research and honesty from both parties prior to the offer.
It is vital that candidates’ salary expectation as well as employers’ budgets are ironed out at the start of the process - rather than both parties investing a substantial amount of time only to have things fall over at the last hurdle due to unrealistic expectations.
Candidates need to have an honest and open conversation with their recruiter with regards to their salary expectation, and the various elements that may affect this, such as the role type, company brand, culture, location, work hours etc.
With this in mind, recruiters need to have an understanding of both your desired and true minimum expectation for the role at hand. If this minimum is above the employer’s budget, then it is best to leave things at that, rather than hope that a greater budget may be found should you ‘blow them away’ during the interview process.
From an employer’s perspective, once these salary expectations are known, then it’s equally important not to greatly ‘undercut’ a candidate’s expectation at the offer stage simply to cut costs. As highlighted earlier, this can potentially lead to candidates feeling that they have been undervalued or mislead through the process, causing them to decline further negotiations and thus negatively affecting your brand name in the market.
A little market research from both candidates and employers should be conducted prior to salary bandings being set in stone. A good recruitment consultant should be able to guide with current market rates for any particular position, however it’s also important to remember that factors such as the number of available (and suitable) candidates there are in the market, how pressing or critical the role is for that organisation and the economic condition of that company all come into play when negotiating that salary!