Once you find the right job candidate for your business, the last thing you want to do is lose them over salary. Pitching benefits against salary to present the perfect package can be a tough balancing act particularly for a smaller business. So when a great candidate has a choice of roles to take, how can you work to convince them that your offer is the best on the table?
Salary negotiation tips
Effective salary negotiation is definitely one of the dark arts, a skill developed and refined by Jedi like exponents over many years. As a small business when you’re up against a bigger rival backed up by a full end-to-end recruitment or human resources department it can be a difficult situation. This is one scenario where help from a third party recruiter, such as Owen Payne, can certainly come in handy.
The following tips may help with the negotiation –
- Prior to extending an offer, establish a base salary range for the position. Use the number of years’ experience you’ve outlined in the job description, and get a sense of the going rate in your area for the skills/experience required.
- Outline in the initial offer letter the value of all your given benefits – including the number of days’ holiday per year and the bonus structure/terms for the position. Most good candidates will receive multiple offer letters and will want to compare the benefits packages to see which one provides ancillary services/support that are important to them.
- Keep in mind that larger companies will most likely outbid smaller ones for technical talent, so it’s vital to sell the candidate on upward mobility, potential learning experiences, and company culture. An experienced candidate might evaluate your bid to another and observe that he/she has the opportunity to grow with you. This is a key piece of information to learn early on when your company is courting a new applicant.
- Include a “cushion” for negotiation in the opening salary offer value. In other words, do not present the applicant the highest amount you have in mind. For most mid-level engineering positions, having an upper limit that is attractively higher than the base should give you some room to maneuver.
Partnering with Owen Payne
Many industries are currently experiencing skills gaps when it comes to recruiting new staff. If the right person comes along you want to ensure that you’re in a position to engage fully with good applicants.
Partnering with a recruitment agency, such as Owen Payne, can bring many benefits. An agency understands the process, has a wide range of contacts and generally will have access to many more possible candidates for any given role. They can shortcut the screening process and generally deal with much of the ground-work leaving a business best placed to enter the picture when a decision is close to being made.