When it comes to salary negotiation, the focus is more on candidates demanding for the right salary, however little to no attention has been laid on salary negotiation challenges and mistakes made by hiring managers. Negotiation is an art, and both parties into an agreement need to hone the skills to strike the perfect deal.
In the past, hiring managers held the power in salary negotiation; however with the looming recent talent crisis has turned tables for employers and companies alike looking forward to get the brightest talent on board.
With talent shortage being a serious concern for hiring managers across industries, salary negotiation during such times becomes challenging than ever before. Striking a balance to recruit the best talent and pay right to meet budget constraints is something many professionals are striving to achieve in the competitive market.
It is not unusual for in-demand candidates to receive multiple job offers. However HR professionals hold the key here to strike the best bet to hire the most sought after talents. Here are five potential salary negotiation mistakes made by hiring managers:
When talking about salary negotiation, money is undoubtedly a central element. But money isn’t the only thing to consider during negotiations, the tact lies in asking questions to seek judicious responses to discover what else is more important to the potential new hire.
Be it fancy for designations, or flexible work schedules, benefits and ability to telecommute etc. Sometimes best talents accept such perks in lieu of higher salaries, especially if you are trying to recruit a bright candidate within budget constraints – such emoluments help lure talent.
Many at times, hiring managers meet talented candidates, for whom they are tempted to up the offer and do anything to get them on board. This could also mean going beyond the budget constraints during salary negotiation.
Right skill sets and intelligence in itself, doesn’t make a job candidate the perfect fit for your company culture. The skills sets should be able to clearly define if the candidate is worth consideration to invest for long-run and meet his/her salary demands.
See: 6 Hiring Mistakes Most HR Professionals Do
Most hiring managers are under a presumption that salaries are confidential matters, kept under wraps and never discussed. It is important for you to know that the offer you make to a candidate will soon become public knowledge among your employees.
Here’s when if the compensation package is offered much higher than industry standards, comparisons are drawn between peers and this could lead to feelings of resentment in your team. Negotiate with a clear understanding and standard guidelines of the company’s salary structure, stay within the range.
Most hiring managers make this common mistake during salary negotiate to not clearly understand the candidate, beyond their talent, experience and skill sets to understand what they exactly want from this job opportunity.
Like you pay close attention to a candidate’s personality, it is important to know what the person values the most, their communication style and perhaps more importantly the response to the compensation structure detailed and communicated to the potential hire.
It’s important to be cautious and alerted on the red flags in behaviour especially when you’re talking money.
One of the biggest salary negotiation mistake made by hiring managers is to let a potential strong and perfect fit job candidate leave without an offer, and failing to go a bit extra to meet their salary demands.
Highly skilled talent who are a perfect with the company culture is worth the investment. So even if that means paying a little more to recruit them in the team, you might as well loosen up on budget constraints. The candidate would feel valued and appreciate this encouragement from the new management.
Also read: Most Common HR Mistakes that Impact Business Operations
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