After settling on the right candidate for the job, the only remaining bit is for employers to make an offer to that job candidate and one thing that should be emphasized here is compensation. Both employer and employee must come to an agreement on the salary, as it should make both the parties feel valued and fairly appreciated. This is where compensation negotiation comes in, and it entails careful planning and high-level strategy for it to be a success.

Employers should ensure that they start salary planning negotiations from a point of respect. The hiring manager should make the offer strategically, as this will determine the long-term success of the business and this role. That is why certain things should be considered before extending that salary offer to a potential employee:

1. Consider your salary ranges

If you do not have a salary range, it is important to establish it first, at least for each of the position you are hiring for. You need to have a lower and upper band that will help you start the salary negotiation. Make sure that your lowest offer is in line with the industry standards at all times so as to make the offer attractive to the candidate. Your candidate will definitely be using the available resources to determine salary requirements for the position he has applied for, and he will use the information obtained to negotiate a better salary as well.

2. Be transparent

Most candidates today are aware of how much their skill and abilities are worth and so, your candidate will have a figure in mind by the time you start the negotiations. They will know how much they can accept that will be fair to you and what will be more than fair to them. For this reason, it is good to be as transparent as you can be, without lowering yourself to a disadvantage. Ask them what they are looking for and start your salary compensation plan negotiations from there.

3. Offer additional monetary compensation

Your candidate will definitely want to know what more is on offer other than the stated figures and this is where you mention the performance bonuses, shares in the company and other monetary compensations that are included in your corporate compensation plan. Experts suggest you mention these early in your corporate planning salary negotiations so as to allow your candidate time to evaluate the full value of the package you are offering.

4. Put the candidate first, numbers second

It is important to make it clear to your candidate that his wants and needs will always come before anything else in the business. Establish what would be more important to your candidate, for instance in terms of compensation, vacation, flexibility and health benefits, so you can create a package that will give your employees just what they want/need. The most important thing for any employer is to come up with a package that will make both him and his candidates feel good during the planning executive salary negotiations.

Salary negotiation for employers is very important as it determines the success of a hiring process. Give your candidate time to consider what you are presenting to them and allow them an opportunity to ask questions and adjust the offer.