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Negotiation is probably one of the most challenging yet inevitable parts at work. For HR practitioners, negotiation about compensation package between employer and employee are common.
That said, few people realise that a negotiation is considered successful only when both parties feel happy about the outcome. No one really wins if either party feels they have capitulated during the process. However, when done right, negotiation can be the start of a long-lasting employment relationship.
Recently, CTgoodjobs shared 4 strategies that you can use during your next C&B negotiation.
1. Keep up with the market trends
In the age of technology, it is not a challenge anymore to get information like the salary offered by your competitors and what part of a job is considered undesirable to job seekers. HR managers should take the information into account when designing compensation packages, while keeping abreast of the latest salary trends in their specific industries.
2. Be reasonable with counter offers
HR practitioners are often accused of exploiting their bargaining room. Keep in mind that you are not necessarily looking for the candidate with the lowest expected salary, but you should use the proposed salary as an indicator of how candidates value themselves.
On the other hand, employers should look at the big picture and see the benefits that offering reasonable packages bring to the company. If the employee is not happy with the salary in the first place, it’s just a matter of time that they leave for another job.
3. Know the candidate inside out
Even if the candidate expects a salary higher than the pay range, don’t throw their resume to the bin just yet. Spend some time on reference checks if possible to see what the candidate can offer to the company. You may change your mind after understanding their value.
4. Don’t skim on benefits
Most companies have limited budgets, but keep in mind that perks and benefits are alternative incentives to extra bugs on salary. Incorporating benefits as part of the package can be effective in boosting morale as well as attracting potential talent.