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Salary Negotiation Tips for HR

Here are some important salary negotiation tips for HRs 1. Understand the market 2. Get to know the candidate 3. Explore the best...

Negotiating salary with candidates in the hiring process is a skill in itself. As an HR you might have been on the other side as a candidate to understand the difficulty and nuances in dealing with negotiating salary. So here are some salary negotiation tips for HRs to negotiate salary during interviews.

Salary negotiation tips

Understand the market

In India, the landscape of salary negotiation and employee benefits is actively changing. Today, there is more awareness on perks, good workplace culture, allowances, in-hand salary, CTC (cost to company), tax exemptions, etc. Their awareness can come in handy for you in many ways.

  1. Research on the industry standards and your competitors.
  2. Get to know the range offered as per experience and educational qualifications
  3. Offering salaries lower than industry standards means lower productivity

Get to know the candidate

  1. From the initial rounds, understand the caliber of the candidate, attitude and nature. You can talk with colleagues who have interacted with the candidate.
  2. Understand what is important to the candidate - is it salary, a positive workplace culture, growth, employee benefits? Questions like “why did you leave your last job?”, “what are you looking for career-wise if you join here?” will help you understand it.
  3. Have an understanding of the candidate’s experience or if they are fresher. You can navigate accordingly. A few companies base it on the previous job and give a hike while a few give what they think is suitable for the role and their budget.
  4. Have KPOs (Key Performance Objectives) for the role handy. And if your candidate is less skilled in one or two objectives, you can use it as a point to negotiate.
  5. If your offer is rejected, question the candidate why to negotiate specifically.

Explore the best compensation alternatives

Salaries cannot be the only deciding factor, the added incentives are also accounted for. These could be based upon the nature of the job, work profile and the growth associated and group health insurance and other benefits for employees. It is important to portray to your candidates that the company is willing to accommodate their needs as well.

If your candidate is not satisfied with the package, then there are multiple perks and employee benefits that will help you seal the deal.

salary negotiation tips for HR
  1. Remember that candidates go through reviews on work-life balance, workplace culture, people, and environment of the organization through various platforms like LinkedIn, Glassdoor, or other social media platforms. Don’t exaggerate or lie to them. Instead, be specific and give real-time programs that are in place to ensure the company is employee-friendly.
  2. List all the perks and employee benefits offered including employee health insurance, e-learning allowances, flexible work schedule, corporate wellness programs, team outing, leave policy.
  3. Talk boldly about appraisals, performance, incentives and employee engagements.
  4. Discuss the organizational culture, plans or goals of the company. The more you make it sound positive, the more valuable it becomes.
  5. Reinforce how the company can support the growth of employees personally and professionally.

Know when to give up

After you mention the compensation alternatives, if the candidate is still aggressive about what they want and you can’t seem to convince them, you should move on. You can tell you can’t offer the package being asked and thank them for their time.  Negotiation is coming to the middle-ground and it is okay if it doesn’t work out.

Common mistakes to avoid

  • One of the common salary negotiation tips is having an attitude and language which symbolize the company culture and employee relationship.
  • To glorify your organization, do not bad-mouth any other organization.
  • Patience and politeness are the key elements to be the best in the HR field as they handle diverse people with diverse perceptions and nature and losing calm can affect the organization.
  • Stick to the average market salary and the range mentioned in the job listing.
  • It is a requisite to fathom the company budget for the resource you are looking for.

In general, salary expectations should be talked about in great detail to avoid any unnecessary arguments in the future. In this day and age, when individuals look for a job opportunity, they make sure that they get perks and benefits on top of their gross salary. The market is changing rapidly, individuals look for growth opportunities as well. Employee benefits help you attract top talent in the industry and also lower the attrition rate.

Group health insurance policy is the best compensation alternative! Get it for your employees.


We at Pazcare provide group health insurance policy to companies and start-ups with as low as 2 employees. Along with GHI we also provide

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