Some employers have had difficulty in successfully extending job offers to applicants, especially Millennial professionals. It’s not uncommon to interview applicants who aren’t shy in negotiations with their inflated egos and salary expectations.
In fact, some bosses lament some Millennials have unproven skills but are tactless and have unrealistic expectations about compensation.
So, it’s important to have a negotiating plan before you start the process.
Here are four tips:
1. Return-on-investment mindset
In making sure you get a strong ROI from a new hire, keep in mind that salary and benefits represent recurring costs.
So be careful about your limits and don’t give away your power by falling into a trap of feeling cornered.
No applicant is that good. You’re the boss, so keep the upper hand.
Even if you encounter someone whom you feel is a dream candidate, don’t stop looking. Always have options.
Do your due diligence. Determine what your budget will allow and what your marketplace pay ranges are.
3. Non-financial incentives
If you want to make an offer to a highly qualified candidate but have a tight budget, try being creative by offering non-financial incentives.
Your options can vary from discounted gym membership to telecommuting days.
Your offer might also include a performance clause with the chance to earn more via commission or profit sharing if your business attains certain revenue goals.
4. Discussion of evaluations and salary reviews
A new or existing employee must know that any salary increases would be contingent on performance. An existing employee is a known factor and an educated risk. A new employee — no matter what the track record — is an unknown risk.
They need to develop new business, provide profit-making ideas, or be capable of assuming additional responsibilities to save the company time and money to increase cash flow.
Finally, if it’s a difficult and not an easy process, pass on the applicant.
From the Coach’s Corner, related tips:
Hiring Impact An Impact Person Starts with Screening Resumes — 5 Tips — If you want to hire an impact person, your hiring process is really important. The place to start is using best practices in screening resumes. The wrong hires result in costly turnover — a waste of money and time. Before you start interviewing, the place to start is your screening of resumes.
Hiring for a Small Operation? Conduct Behavioral Interviews — In this economic environment, whether you run a small operation in a big company or you own a small business, you’re wearing many hats. So you need employees who can successfully wear multiple hats, too. What does that entail? It entails several things. To compete successfully, small businesses especially need people who are a good fit culturally.
HR — Avoid the 10 Most Common Background Screening Gaffes — In human resources, all background checks are not equal. “An organization that runs background checks on all of its incoming employees is already doing a lot of things right,” writes Michael Klazema, marketing director of Backgroundchecks.com.
HR – Interviewers Give Higher Marks to Applicants Interviewed Early in the Day — Study has implications for HR professionals and job hunters, alike Interviewers often mistakenly give higher ratings to job job seekers – whom they interview early in the day – at the expense of other applicants. That’s one of the conclusions from research of 10 years of data from more than 9,000 MBA interviews.
“As a business owner or manager, you know that hiring the wrong person is the most costly mistake you can make.”