When extending a salary offer to a new hire, it can be difficult to know exactly what number to land on. Considering the experience and skill level that the candidate offers as well as the budget allowed by the company, it’s all about respect and strategy. You want to focus on a strategy that allows everyone to win. Below are 3 tips on how to effectively negotiate a new hire salary.

Create a Salary Range

Going into the interview, it is expected that both the potential candidate and the hiring manager will have an idea of what they believe the salary for the position should be. Having an established salary range prepared ahead of time will help filter out any confusion or frustration for both parties involved. For example, if the position has a salary range of $12-$15 per hour than the expectations are more realistic for both the candidate and the hiring manager. You are less likely to have someone ask for $25 per hour if they are aware that the salary range is $12-$15. Be sure you leave room in your salary range for negotiation. Say your salary cap is $18, creating a lower range will allow you to offer more during the negotiating process should the candidate ask for a higher salary or if you feel as though their skill level and experience deserves more compensation.

Be Transparent and Direct

Often candidates can be very clear and forthcoming about what they feel they are worth and how much they can accept if offered the job. The best ways to address compensation conversations during the interview is to be transparent and direct about what you company is willing to offer for the position without over promising or causing financial restraints on your company. Ask the candidate what they are expecting in terms of compensation early on in the process to avoid any uncertainty or confusion down the road.

Learn Your Candidate

One of the best ways to address compensation issues before the negotiating process begins it by learning about the desires of your candidate. Do not assume that salary is their number one focus. Some candidates put more focus on medical benefits, time off or flexibility. This will be helpful when discussing salary. For example, a candidate that is concerned about flexibility within their hours or medical benefits to cover their family will be more enticed by an offer highlighting those things rather than a high salary payout. Learn with is important to your candidates and focus more on the needs and desires of the person rather than the money offered.

When negotiating salary with a new hire, it can be an uncomfortable situation but it doesn’t have to be. If everyone leaves the interview on the same page, then the negotiating process can move smoothly and professionally. Be prepared with a salary range, offering transparency and getting to know the candidates needs and desires. This will help you land on an offer that will allow everyone to win.