How to tactfully negotiate salaries with your employees
Publish Date: Jan 24, 2014
How to tactfully negotiate salaries with your employees
In 2012, a six-day work stoppage at Lonmin Plc’s Marikana operations in South Africa’s North West province led to deaths of 10 people. CREDIT/AFP (Source: Getty Images)
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By Julius Sengendo

When a potential employee accepts a job offer, you, as the employer, must be willing to negotiate further terms. Nowadays, job seekers join a job interview with detailed knowledge of their employer and respective company.

If you want to close a mutually satisfying deal, you must be equally prepared. The same thing applies when you negotiate with an employee who is already working for you.  

Opt for a formal negotiation

When it comes to employees already working in your business you should go for formal performance and payment review cycle. The majority of businesses choose a semi-annual performance review cycle.

This process is really effective, since it does the following things: Sets a schedule that both the worker and the employer can utilize to get ready for negotiation.

States the desire of the employer to get involved in a negotiation; Reduces the number of off-cycle modifications and negotiations; Sets expectations regarding the vital business goals of the employer.

Negotiate e­fficiently

You can negotiate efficiently with your workers if the process relies on performance management. You should team up with your employees and inform them about your business objectives and recompenses associated with accomplishing those objectives.

This collaboration will bring numerous benefits because your employees will be familiar with the performance expectations of their boss and will do their best to meet or even exceed these expectations.

Potential employees

In case you do not have the possibility to match the salary demand of your potential employees, but you really want to convince them to accept your job offer, opt for non-monetary incentives.

Sometimes, candidates are willing to trade a higher salary for other benefits. For instance, flexible scheduling is an alternative that will surely please the applicant and will not cost you anything. Besides, you can offer them extra time off or the possibility to telecommute.

A signing bonus might also delight a potential employee, so do not hesitate to provide it. As an entrepreneur, it is essential to have good negotiation skills.

You must polish that skill of drawing employees towards your company without necessarily motivating them with huge financial compensations.

As long as you know how to talk to the people, it should be a lot easier to reach into their minds and make them work for you.

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