How can I convince a great candidate to join for less pay?

Question:

I recently interviewed a candidate for a regional sales manager position, and was very impressed with the interview. In fact, I am very keen on getting him on-board immediately. However, we are currently in the salary negotiation phase and the salary he is expecting is more than we are willing to offer as basic compensation. But if the additional bonus on target achievement is considered, the pay we have for offer is more than his expectation. With that in mind, how do I convince him to accept our offer?

Answer:

As a recruiter, it is always an exhilarating feeling when you realize that you have found that perfect match in a candidate. However, before you start celebrating and add ‘position closed’ next to the job title, the last and sometimes trickiest hurdle to pass is salary negotiation. From the employer side, salary negotiation means getting the candidate to agree on a figure that is within their budget. Employers also have to make sure that the candidate finds the offer lucrative. Salary negotiation is not about winning- if either party feels they have bent down to the other, both parties lose. For some positions (for example, senior level positions or those requiring specialized skill-sets), you may be tempted to go over your salary range to get a particular candidate on-board.

However, this would result in a disproportionate salary matrix, when compared to the pay ranges of your current employees. This might result in discomfort for both parties; the work of the new hire might be placed under excessive scrutiny, and resentment maybe felt among fellow employees. Meanwhile, from the candidate’s side, successfully negotiating their salary allows them to display their negotiation skills – which are a requirement for most positions. Candidates very rarely have a ‘take it or leave it’ approach to their salary figure so you can rest assured that this great candidate will not walk out at this stage without negotiating further. Having that said, here are a few pointers from Bayt.com to help you carry out a successful salary negotiation:

1. Try to be as clear in your job description as possible and mention the sales targets so that the candidate has a clear understanding of what your company expects. With these key deliverables and sales targets clearly mentioned, the candidate would have a general idea of the salary figure even before you approach the subject.
2. Determine the salary range and know your negotiation limits. When setting the salary rage consider your internal salary levels, market salary for similar positions (check Bayt.com Salaries), the state of the job market (check Bayt.com’s quarterly Job Index report), and the profitability of your company. To make sure that your offer is competitive in the industry, you can also take a look at the published Bayt.com’s Salary survey results.
3. Even if your basic salary figure is non-negotiable, seasoned candidates will negotiate with you in other areas that may be negotiable. These include benefits, bonus pay, sales commissions, car allowance, paid cell phone and relocation expenses, etc. To communicate your offer you can say something along these lines:

“We would like to offer you (your limit amount) in base salary plus the potential to earn up to (bonus amount) in bonuses during your first year.” Explain the career growth plan clearly to the candidate and let him know how much he will be making in bonus pay as he progresses. Remember, successful salary negotiation is where both the employer and employee leave the table feeling like they’ve got a good deal. Happy hiring!