Your company’s approach to compensation is part of your employer brand. How you handle offers, promotions, yearly increases, bonuses, equity and benefits affects perceptions about your company and contributes to employee satisfaction. Here are 3 salary negotiating tips you need to know!
1) Develop and Communicate a Strategic and Clear Compensation Strategy
As transparency around salary increases, so too does the importance of having a well-conceived and well-articulated Total Rewards and Compensation strategy. If you haven’t fully articulated your overall package, spend some time with your team to create messaging and materials that will help drive successful salary negotiations with employees and drive competitive differentiation for your Employer Brand. Fostering an atmosphere in which conversations around salary are addressed head-on can help to eliminate bias in the workplace.
2) Leverage your company’s benefits package
If your company pays below the median on standard pay scales, a strong benefits package can help you attract talent. Candidates and employees can be enticed by factors other than pay. If your company is faced with cost pressures and is considering reducing benefits, consider the role benefits play in your overall rewards package.
Research suggests that a strong benefits package can help attract candidates and retain employees.
3) Be Prepared to Answer Questions
Educated candidates and employees will ask smart questions that you should be prepared to answer. Prepare responses to these questions, and educate hiring managers about how to answer them.
- How old is your company and how does it affect how you pay?
- What are my growth opportunities?
- How often will I be eligible for a raise if my performance meets or exceeds expectations?
- What’s the normal approach to salary increases?
- Do all employees normally receive a bonus?
- What’s the historical average bonus percentage payout?
- Is there an annual refresh program for equity?
- What is the formula for equity distribution and vesting?
- Does your company pay men and women equally for equal experience?
- Would taking parental leave affect my chances for promotion?
- How can I use Know Your Worth™ by Glassdoor to stay current with competitive salary ranges?
If you’re interested in learning more about how to develop effective and efficient compensation and benefits strategies, check out Glassdoor’s Guide to Salary Conversions.