One of the hardest parts of an interview is finding a point of agreement when it comes to salary. There is a salary scale that needs to be determined for each position, but where each employee fits on that scale can be different depending on experience, placement and other outside factors. As a hiring manager, it is best to have an idea of where you will land before starting the interview process. Here are 3 tips on hot to best determine employee salary.

Assess and Research

Before determining a salary scale for a position, it is important to evaluate your overall hiring budget and the value of the position being hired. Assess the responsibilities, demands, time commitment and expertise one may need to provide in order to fulfill the position with optimum success. What is the overall value that the position holds for the business? Take your assessment into consideration when determining compensation.

Next, in order to stay competitive in your offer, research the pay ranges for the position within the area of employment. This will give you a good idea of what others are offering and allow you to create an offer with a competitive edge. Researching the average pay scale in the area will also give you insight on how other factors such as education, qualifications and experience influence salary for this position overall.

Create a Floor and a Ceiling

Once you have assessed the value of the position in accordance with the overall business and researched the median pay, you can determine your floor and your ceiling. Create a range based on the most amount of money you are willing to pay as well as the lowest. The lowest is usually easy to determine, simply think of the minimum amount you would prefer to offer. A good way to create the higher end of the scale is to consider your ideal candidate. If the perfect candidate came through the door, what is the maximum salary you would be willing to offer to keep them from going to a competitor? This will help you create a fair and competitive scale that still remains within the compounds of your overall budget.

Leave Room for Negotiation

Negotiation can sometimes be uncomfortable, as a hiring manager, you need to be prepared for candidates and employees to discuss compensation and negotiate their worth. Creating a scale of pay for the position ahead of time will allow room for movement within the conversation. It is important that employees feel valued and appropriately compensated for their work. Employees and candidates with exceptional credentials and work history will likely expect to be able to discuss initial compensation and growth within the position. Being open to negotiation by meeting them half way will more often than not result in higher levels of performance.

Determining employee salary can be tricky, but with a little research and a structured pay scale set in place then you will be prepared to make an offer.