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The Philosophy of numbers (salary negotiation)

To start with when I discuss “the philosophy of numbers” I mean understanding how people react to the numbers of a salary offer. Like how much more excited they are by 80K vs. 79.5K when it’s only a $500 difference and having the ability to make an offer that makes them happy to accept vs. merely willing to come on board.

So after recently going round and round with a client of mine my questions is when it comes to salary offers and talking about the philosophy of numbers candidates get it; recruiters get it, even HR gets it, but how come company hiring officials don’t?

To set the stage I was reviewing with my client a potential salary offer and suddenly realized that I was now fighting just to get my candidate a lateral offer, when it is now one of the best markets in the last decade and his skills are difficult to find. However, it seems that the problem wasn’t with my candidate, but that his skills seemed to be weaker than the candidate they hired in the same role (& at similar money) eighteen months ago. Therefore there was no way he could be paid that much and he would need to come in at lower than his current rate.

Of course there is validity on all sides of this discussion, but when push comes to shove if you want to hire someone, than you need to understand what is being communicated by your salary offer. While keeping your internal equity in line is one key, so is making sure the new employee doesn’t feel like you stuck it to them just to hit your numbers. Because if the emotional attachment that comes with accepting the offer (can you say “I do”) doesn’t get created during this process the probability that this employee is there 2, 3, or 4 years later is greatly reduced.

So as I view my role with the hiring company (1. providing them with the best available talent and 2. To help them to hire and retain said candidates) my advice to them is typically “if you feel that this is the candidate that can do the job and that they will continue to contribute throughout their tenure at your organization then I recommend that you make the best possible offer”. Which means that sometimes you pay 1, 2 or 3 thousand more than you would ideally pay them to get them on board and happy to be there. Because nobody is more motivated to work hard and do a good job than a happy employee.

Posted on Tuesday, July 17, 2007 at 09:30AM by Registered CommenterTheVoiceOfIT in | CommentsPost a Comment

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