The Dos and Don’ts of Hiring Negotiations

pexels-photo-872957As a small business owner, you know that hiring quality talent on the first try can be critical to your bottom line. In fact, finding and hiring a suitable candidate can cost your business thousands, or even tens of thousands, of dollars.

When the cost of hiring is so high, what do you do when your offer is countered? Spend the money to start the interview process all over again, or negotiate?

As an owner, being presented with a counter offer may leave a bad taste in your mouth. It’s natural for you to consider the negative personality traits this may reveal about the candidate, such as greed and disinterest. However, in my experience, an attempt to negotiate reveals the following positive personality traits:

  • Intelligence – From the candidate’s perspective, there isn’t much harm in asking for a higher salary. The worst you can say is no, so to not at least ask for a higher salary would be foolish.
  • Confidence – A confident counter offer would tell me that the candidate intends to prove they are worth that value.
  • Enthusiasm – If the candidate only wanted the experience and wasn’t planning on staying with your company long-term, they’d take any offer. It’s understandable for them to want to build a solid base before settling into your business.

If you see these traits in your candidate and want to go ahead with negotiations, you may first want to address this two-part question: How do you negotiate without 1) the candidate changing their mind, and 2) paying more than you can afford? To help guide you, here are some dos and don’ts tips I share with my clients when handling hiring negotiations:

Do

Don’t

  • Welcome negotiation
  • Be insulted by counter offers
  • Initially offer at least $10,000 below the maximum your business can afford
  • Present your best offer at the start
  • Allow the candidate a couple days to consider the offer
  • Let the candidate drag you along for an indefinite amount of time
  • Communicate the reasoning behind your offer
  • Reject their counter offer and stand firm without explanation
  • Consider highlighting or adding to perks other than the salary
  • Go beyond the hiring budget you deemed reasonable

If after a couple rounds of negotiations you two can’t come to an agreement, it wasn’t meant to be. If you are looking for ways to help your business grow including insights on hiring the right candidate on the first try, contact me today!

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