HR managers and talent teams must\u00a0leverage data and prioritize preparation in the recruiting and hiring processes when engaging in contract negotiations counter-offers.<\/p>
The labor market could experience a shift in today’s uncertain economy. This means it\u2019s essential for employers to move beyond reactive recruiting responses to a data-driven, talent-centric strategy that includes actionable solutions for pay negotiations and addressing counter-offers.\u00a0<\/p>
The information below will provide negotiation tactics to ensure competitive, fair market rates and strategies for countering the counter-offer. \u00a0<\/p>
The pandemic and Great Resignation or Great Reshuffle altered the compensation landscape for many industries and individual job roles. Employers that don\u2019t account for the current market dynamics risk overpaying candidates, losing desirable candidates and even damaging the organization\u2019s brand when compensation and benefits packages don\u2019t align with contemporary standards.\u00a0<\/p>
To enlist top talent at a fair salary (for traditional full-time employees) or a fair market rate (for contingent workers), consider these contract\u00a0negotiation preparation tactics<\/a>:\u00a0<\/p> Tracking, evaluating and comparing data related to job roles and their corresponding skill sets provides several benefits to contract negotiations, including but not limited to:\u00a0<\/p> Organizations that employ contingent workers<\/a> or independent contractors should maintain rate cards for each role and update these cards regularly, or at least every two years. When refreshing rate cards, consider the current job market conditions, evolving role categories, progressing skill sets and emerging technologies.\u00a0<\/p> This is not encouragement to overspend on a desired candidate but a recognition that contract negotiation is a balancing act that, in today\u2019s climate, still leans toward talent.\u00a0<\/p> Before extending an offer that anchors further negotiations, hiring leaders should attempt to gather details about the candidate\u2019s expected rate and their motivations for considering the role. With this information and up-to-date wage data, employers can establish a viable compensation range and identify compromises the candidate may be willing to make in the negotiation process.\u00a0<\/p> Salary and benefits remain crucial considerations for job seekers, but they are not necessarily the most important factors.\u00a0<\/p> For example, Procom\u2019s 2021 Voice of Talent report<\/a> indicated that flexible work options were just as important to job seekers as compensation, with nearly 70% of workers identifying flexibility as \u201cvery important.\u201d In contract discussions, it\u2019s important to highlight compelling reasons beyond salary and benefits why candidates may want to join your organization:\u00a0<\/p> Be intentional about communicating your organization\u2019s distinguishing characteristics through your brand and throughout the hiring process.\u00a0<\/p>Leverage hiring and workforce data\u00a0<\/h4>
Prioritize talent over budget\u00a0<\/h4>
Emphasize compelling reasons beyond salary\u00a0<\/h4>
Act with timeliness\u00a0<\/h4>