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by Matthew Asser, The Covenant Group
After creating a new position, setting a salary range, interviewing several candidates and selecting a person whom you would like to hire, the next step will be making an offer to the finalist. This is the second in an ongoing series about compensation concerns. While I discussed setting a salary range for a new position in my last post, today I shall be covering how to come to an agreement if your final candidate decides to negotiate his or her wage.If you prepare for this scenario ahead of time, you will be better equipped to manage the negotiation process. Consider the likelihood that the candidate will push for a higher wage, and decide how much you want this particular person on your team and how much more you are willing to give. Then ask the candidate what he or she thinks would be a fair figure.
Before agreeing to a proposal, think about the long-term impact — you may be able to stretch your budget and satisfy a talented candidate’s asking price, but is the salary sustainable? Six months or one year down the line, will you be able to cover a raise for strong performance? What is the likelihood of this person remaining loyal to your firm for many years to come? Because the hiring and onboarding processes are so involved and time-consuming, you need to be sure you will be getting a return on your investment.
Also ask the candidate to explain why he or she feels the additional compensation is warranted. The person may argue that he or she is considering a higher offer from another company or might list talents that could benefit your organization. Since you have already determined how much you are willing to pay for the candidate’s abilities and whether this is the only best hire for the job, you will be able to weigh his or her argument and counter with your reasoning for the sum that you offered.
Having a salary scale and ladder system for your organization’s stratum capabilities will prove useful in this scenario, as the two create a concrete structure that you can reference in your negotiations, showing the candidate how you expect him or her to rise in the ranks and what he or she can expect to earn in the future. If you come to a deadlock, consider offering the higher wage if the candidate is willing to take on additional responsibilities.
Matthew Asser has spent the last few decades gaining expertise in how financial services firms can optimize their operations, marketing, new products, business development and client relationship management practices. He’s well-versed in the challenges that an entrepreneur may struggle with, and as a Senior Coach and Facilitator, helps clients achieve business change through The Covenant Group’s extensive financial advisor training programs.
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Norm Trainor is the Founder and CEO of The Covenant Group, a company that specializes in educating and coaching financial advisors and entrepreneurs and providing them with business tools to enhance their performance. He can be reached at email@example.com or 1-877-903-3878 X333. Read more from the author/contributor here.
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