This Is How You Should Approach Candidate Salary Negotiations Now

Money isn’t everything. Candidates want a range of benefits, from flexibility to better corporate social responsibility, but cash can still make or break a hiring campaign. Candidates have never been better informed about salaries. In addition to actively using pay benchmarking tools, Search engines like Google will provide estimates of a job’s salary even if it isn’t in the advert. If you want to recruit, providing and communicating an attractive package is crucial. Recent Monster research shows that 45% of companies are increasing salaries in 2024 based on candidate expectations. Meanwhile, the majority of Gen-Z (52%) are calling for higher wages due to the cost-of-living crisis, as they feel the impact of food and rent rises more than older workers.

Valuing the Job

Employment is fundamentally about supply and demand: Workers with specific skills and experience influence the supply in the job market while hiring companies create the demand. When recruiting a new employee, you’ll need to decide on the salary package you can offer. Ensure your job advert attracts the right level of candidate and aligns with what your current employees earn. The necessity for an employee and the rarity of their skills are key to determining the job’s worth. Our Salary Calculator tool can help you gauge the market value for various roles: or do a search for similar roles and check out your hiring competition. 

Setting Salary Expectations

By including a salary range in the job description, you help candidates understand what to expect. Remember that most candidates value their skills highly and will aim for the upper end of your salary bracket. Too wide a bracket may put off candidates who worry they will go through the process then get a low offer. Be prepared

Key Negotiation Tips

  • Focus on the Outcome: Don’t worry about who starts the salary discussion; concentrate on reaching a mutually beneficial conclusion. The candidate likely will only take the job if the salary is right.
  • Be Prepared: Candidates will research alternative job adverts and use salary calculators. Be ready to explain the rationale behind your job’s salary and answer what you are looking for to pay the higher end rather than the lower.
  • Know Their Background: Identify the candidate’s most recent salary and benefits. Candidates typically expect at least a 10%-15% increase.
  • Aim for Mutual Satisfaction: Negotiation should feel like something other than a win-lose situation. If candidates feel undervalued, they may leave soon, leading to higher recruitment costs.
  • Avoid Overpromising: Don’t agree to a salary you can’t deliver. Ensure any promises can be approved by your finance department.
  • Consider Conditional Increases: If you can’t agree on a starting salary, consider offering a guaranteed increase after the probation period.

Beyond Salary: Offering Additional Benefits

Money isn’t the only bargaining tool. Here are some additional benefits you might want to put into the mix.

  • Flexibility: 31.4% of workers want to work entirely remotely,and34.3% want hybrid working. Yet only 7% of recruiters make more flexibility apriority.
  • Commission: Common in sales roles, but there can be other performance-based bonuses. However, they should be achievable and
  • Profit Sharing or Share Options: Based on the company’s success,
  • Additional Paid Holidays: Attractive to young employees or those with families.
  • Paid Training Courses: This Shows investment in the employee’s future, and can also help address the skills shortage.
  • Life Insurance: Provides peace of mind for employees and their families.
  • Subsidised Travel or Season Ticket Loans: Well-received assistance in the cost of commute can be attractive.
  • Childcare Support: In-house facilities or partnerships with local nurseries.
  • Subsidised Food & Drink: Reduces living costs over time.

Have a plan for when candidates find out about these benefits. If these are making up for a lower salary, how and when can you communicate them to avoid putting candidates off applying? These must form part of your Employer Branding strategy.

Summary and Action Points

  • Ensure salary packages are competitive by benchmarking.
  • Use a narrow salary range to set candidate expectations.
  • Be prepared for salary negotiations with research and justification.
  • Offer additional benefits to enhance the attractiveness of your job offer.

By carefully considering these factors, you can attract and retain top talent.