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Tip #1: Do your research
Don't start salary talks with the question: 'What are you making at your current job?' says former marketing director at Conde Nast, Jim Hopkinson in a Monster.com article.
The 'problem with this question is, unless you plan on doing an extensive background check, is you won't know if the candidate is telling the truth, taking their salary +20%, or picking a number out of hat.'
That's why it's up to you to do the research and know the market value of the employee you want to hire. You must take things like years of experience, geographic location and demand for the position into account.
He adds 'you should have a number in mind that makes sure that the return on investment is worth it.'
Salary negotiations are a two way street. You have to meet your candidate half way. That's why we recommend you use this last tip as well.
Employment Contracts, Recruiting and Independent Contractors…
Make sure you use a legally correct recruitment procedure and updated employment contracts in your company.
There's a fine line between determining whether someone is an independent contractor or an employee. Don't get caught out. Use this independent contractor policy and checklist to ensure you get it right every time!
The way a prospective employee handles salary negotiation should give you a good indication of their character.
For example, are they too timid to ask for what they're worth? Do they get frustrated or demanding if your initial offer doesn't align with their thinking? Or, do they calmly and confidently approach this part of the interview like a business transaction?
According to Hopkinson, a candidate who's done extensive research on current market rates and shows you his research for the rate he wants and ultimately knows their true worth and stands by it is someone you want on your team.
You must never disregard the candidate's point of view. Consider the applicant's view and be polite even if you don't agree with the rate he wants.
There you have it. We hope these tips will help you handle salary negotiation well when you recruit new employees. If you have questions about this topic, feel free to ask our experts at the Labour & HR Club.