Posted by Jonathan Kidder on March 10, 2023March 10, 2023

To ensure successful negotiation of a complete salary compensation package with candidates, it is crucial to be prepared and initiate this discussion from the first contact with them, whether it’s over the phone or in person. It can be frustrating to go through the entire recruiting process only to have the candidate reject your salary offer. Pre-closing techniques, effective communication, and other strategies can aid in avoiding this.

A recent survey by Monster revealed that salary is the top consideration for 73% of job candidates when evaluating a job offer. In fact, 58% of respondents turned down an offer due to low salary. Additionally, 75% of recruiters have observed more candidates initiating salary negotiations. These statistics underscore the importance of being prepared to negotiate salary during the hiring process.

Familiarize Yourself with Salary Laws (North America):

Salary laws differ by state, but in the United States, there are three primary laws that safeguard job candidates:

Although it may be beneficial to know a candidate’s current compensation to ensure their salary expectations align with the position’s salary range, it may be illegal to inquire in some states. In certain jurisdictions, asking candidates to reveal their salary history or current earnings is prohibited.

New pay transparency laws may necessitate that your business reveal the salary range on your job posting. This could save you significant time because individuals who would not apply due to a low range will not waste their time applying. Regardless of your company’s policies, your employees and potential candidates are permitted to discuss their wages and earnings under the National Labor Relations Act.

As conversations about the gender pay gap and other wage disparities grow, these salary laws are becoming increasingly prevalent. The objective is to create an equitable playing field and provide individuals from different backgrounds with equal opportunities.

Pre-Closing Leads:

Here are some tips for pre-closing a candidate on their salary expectations:

Set expectations early: Make sure to discuss salary expectations early on in the recruiting process to ensure that you and the candidate are aligned.

Research industry standards: Do your research to understand the typical salary range for similar roles in your industry and location, and use this information to inform your salary negotiations.

Understand the candidate’s priorities: Ask the candidate about their priorities when it comes to compensation, such as base salary versus benefits or work-life balance. This can help you tailor your offer to their needs.

Be transparent: Be open and honest about the salary range for the position and what factors could impact the final offer. This will help build trust with the candidate.

Consider non-monetary incentives: If the candidate’s salary expectations are higher than what you can offer, consider other non-monetary incentives such as flexible work arrangements, professional development opportunities, or additional vacation time.

Keep the conversation going: Make sure to keep the conversation going throughout the recruiting process and check in with the candidate to ensure that you are still aligned on salary expectations. This will help avoid any surprises or misunderstandings later on.

By following these tips, you can pre-close a candidate on their salary expectations and ensure a smoother negotiation process when it comes time to make an offer.

Reviewing Barriers:

There can be various barriers that prevent a candidate from accepting a job offer. Here are some of the most common ones and ways to resolve them before closing:

Compensation: One of the most common barriers is salary and benefits. Candidates may receive a more attractive offer from another company or may feel that their compensation package is not competitive enough. To resolve this issue, make sure to discuss salary expectations early on in the process and be transparent about what you can offer. Consider offering a competitive salary, bonus, or other benefits that match the candidate’s expectations and the market standards.

Lack of growth opportunities: Candidates may be looking for career advancement or growth opportunities that your company cannot provide. To resolve this issue, highlight the potential career path and growth opportunities within your organization. Show them how they can grow their skills, take on new responsibilities, and advance their careers with your company.

Company culture and values: Candidates may not feel that they align with the company’s culture or values. To resolve this issue, ensure that you communicate your company’s culture and values early in the recruiting process. Share information about your company’s mission, values, and culture, and give candidates the opportunity to ask questions and meet with team members.

Location: Candidates may be hesitant to accept a job offer if the location is not ideal for them. To resolve this issue, discuss the location early on in the recruiting process and highlight any benefits or perks that come with working in the area. Consider offering relocation assistance or remote work options, if feasible.

Timing: Candidates may not be ready to accept a job offer due to timing issues, such as needing to finish a project or waiting for other job offers. To resolve this issue, communicate with the candidate throughout the recruiting process to understand their timeline and needs. Be flexible and accommodating whenever possible.

By addressing these barriers before closing, you can increase the chances of a candidate accepting your job offer and joining your team.

Dealing with Push backs:

Dealing with push back from candidates who are reluctant to give you a salary range can be a challenging situation for any recruiter or hiring manager. However, there are several strategies that you can use to handle this situation effectively:

Explain the importance of salary range: One way to approach the conversation is to explain to the candidate why you need a salary range. For example, you can mention that it helps to ensure that the compensation package is fair and competitive, and it also helps to manage expectations on both sides.

Provide a range: If the candidate is unwilling to give you a specific number, you can provide them with a salary range for the position based on industry standards, the company’s budget, and the candidate’s qualifications and experience.

Focus on total compensation: Instead of focusing only on base salary, you can discuss the candidate’s overall compensation package, including bonuses, benefits, and other perks. This may help to shift the conversation away from base salary and towards the value of the total package.

Discuss potential for growth: Another way to handle push back on salary range is to talk about the potential for growth and advancement within the company. You can explain that the salary range may increase over time as the candidate takes on more responsibilities and gains experience.

Overall, the key to dealing with push back on salary range is to approach the conversation with empathy and transparency. By understanding the candidate’s concerns and needs, you can work together to find a mutually beneficial solution.

Competing Offers:

If your candidate already has a pending offer from a competitor, it’s important to act quickly and strategically to increase the chances of them accepting your offer instead. Here are some steps you can take:

Ask about the other offer: Ask the candidate about the details of the other offer, such as the salary, benefits, and timeline. This will give you a better understanding of what you’re up against.

Highlight your company’s strengths: Emphasize the unique aspects of your company, such as the culture, values, growth opportunities, and benefits. Highlight what sets your company apart from the competitor and why it’s a better fit for the candidate.

Make a competitive offer: If possible, offer a competitive salary and benefits package that matches or exceeds the offer from the competitor. Be creative and consider offering other perks, such as flexible work arrangements or additional vacation time.

Show urgency: Communicate a sense of urgency to the candidate, indicating that you are interested in them and want them to join your team as soon as possible. This can help create a sense of excitement and urgency around your offer.

Follow up: Make sure to follow up with the candidate regularly throughout the process to keep them engaged and informed. Address any concerns or questions they may have promptly.

Be respectful: While you want to make a strong case for your company, it’s important to be respectful of the candidate’s decision and not pressure them into accepting your offer. Ultimately, it’s up to the candidate to decide what’s best for their career.

Don’t have the highest comps?

If your compensation package is not the highest offering, there are still several ways you can sway a candidate to choose your company over others. Here are some strategies to consider:

Emphasize your company culture: Highlight your company’s culture, values, and work environment. Explain how your company is a great place to work, with a supportive and collaborative team, and opportunities for growth and development.

Offer additional benefits: While your compensation may not be the highest, you can still offer additional benefits such as flexible work arrangements, wellness programs, professional development opportunities, or generous vacation time.

Highlight the job opportunity: Focus on the specific job opportunity and its potential for growth, challenge, and impact. Discuss the responsibilities of the role and how it aligns with the candidate’s career goals and interests.

Show passion and enthusiasm: Demonstrate your passion and enthusiasm for the company and the candidate. Share your excitement for the role and how the candidate can contribute to the success of the team.

Be transparent: Be transparent about the compensation package and why it may not be the highest. Explain how your company is investing in other areas, such as company growth, innovation, or technology, and how this benefits employees in the long term.

Leverage your network: Leverage your network to provide references and testimonials from current employees who can attest to the positive culture, work-life balance, and growth opportunities at your company.

By using these strategies, you can sway a candidate to choose your company even if your compensation package is not the highest. Remember, compensation is just one factor in a candidate’s decision-making process, and other factors such as company culture, benefits, and growth opportunities can be equally important.

How to handle a counter-offer?

If a candidate receives a counter offer from their current employer, it can be challenging to navigate as a recruiter. Here are some steps you can take to handle a counter offer:

Understand the candidate’s motivation: First, try to understand why the candidate is considering a counter offer. Is it due to compensation, job duties, work environment, or something else? Understanding their motivation can help you address their concerns and craft a more compelling offer.

Reassure the candidate: Reassure the candidate that you are committed to their success and that you value their skills and experience. Remind them of the benefits of joining your organization and how it can help them achieve their long-term career goals.

Discuss the potential risks of accepting a counter offer: Counter offers are often used by employers to retain talent, but they can also be a short-term solution that doesn’t address underlying issues. Discuss the potential risks of accepting a counter offer, such as broken trust with the current employer, limited growth opportunities, and reduced job security.

Consider adjusting your offer: If the candidate is hesitant due to compensation, consider adjusting your offer to make it more competitive. Discuss other factors that may be important to the candidate, such as work-life balance, benefits, or growth opportunities, and adjust your offer accordingly.

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Jonathan Kidder

With more than 12 years of recruitment experience, Jonathan has helped startups and small businesses find the talent they need. He runs the blog WizardSourcer, which explores the latest trends in talent sourcing, provides reviews of recruitment tools, and features interviews with prominent figures in the industry.