"What's your salary expectation?" Asked HR manager of a company to a candidate sitting across the table who has already been approved by key decision makers including the Business Head.
"At least 40 percent hike over current take home salary," candidate replied, confidently.
HR Manager frowned and shoot back, "isn't it too high?"
"I don't think," candidate said. "Since this assignment requires relocating from another apart of the country, and also because I already have an offer in hand with 30 percent hike."
A blunt and to the point justification that didn't really make the other person happy at all, but he responded.
"Look, ours is a renowned company and we growing very fast. If you do well, you can grow as well."
"Also, if we give you the hike that you're demanding it'd completely disrupt our internal salary structure. So, we can offer you a maximum hike of 20 percent only. " He finished, bringing their discussion to an end.
"Is it the final offer?" candidate inquired, in an attempt to stretch it a bit further.
" Well, I'll try to take a special approval for another 5 percent, but that's maximum."
"Okay, let me think it over for a day and come back to you."
"Thanks," said HR manager, concluding their discussion inconclusively.
Nothing happened there after, and that candidate joined another organization with a 30 percent hike.
So all efforts to identify and recruit a candidate who would have made a lot of difference to the bottom line of the company went down the drain, just because existing structure couldn't allow him to be in!
Above discussion, more or less, represents a typical negotiation process prevailing in most of the talent starving companies, clearly indicating that it's not a talent crunch but their inability to afford candidates with right skills at the market price is what makes them suffer most.
From HR perspective, as the HR manager explained during the above mentioned interview, recruiting someone with a much higher salary than what are other employees drawing at that level would certainly create a demotivational environment in the organization.
And I agree, it will. But then, what's the solution?
Please share your take on this issue, highlighting a few practical solutions to this problem. In the following post, I shall let you know about mine and that would be something revolutionary!
"At least 40 percent hike over current take home salary," candidate replied, confidently.
HR Manager frowned and shoot back, "isn't it too high?"
"I don't think," candidate said. "Since this assignment requires relocating from another apart of the country, and also because I already have an offer in hand with 30 percent hike."
A blunt and to the point justification that didn't really make the other person happy at all, but he responded.
"Look, ours is a renowned company and we growing very fast. If you do well, you can grow as well."
"Also, if we give you the hike that you're demanding it'd completely disrupt our internal salary structure. So, we can offer you a maximum hike of 20 percent only. " He finished, bringing their discussion to an end.
"Is it the final offer?" candidate inquired, in an attempt to stretch it a bit further.
" Well, I'll try to take a special approval for another 5 percent, but that's maximum."
"Okay, let me think it over for a day and come back to you."
"Thanks," said HR manager, concluding their discussion inconclusively.
Nothing happened there after, and that candidate joined another organization with a 30 percent hike.
So all efforts to identify and recruit a candidate who would have made a lot of difference to the bottom line of the company went down the drain, just because existing structure couldn't allow him to be in!
Above discussion, more or less, represents a typical negotiation process prevailing in most of the talent starving companies, clearly indicating that it's not a talent crunch but their inability to afford candidates with right skills at the market price is what makes them suffer most.
From HR perspective, as the HR manager explained during the above mentioned interview, recruiting someone with a much higher salary than what are other employees drawing at that level would certainly create a demotivational environment in the organization.
And I agree, it will. But then, what's the solution?
Please share your take on this issue, highlighting a few practical solutions to this problem. In the following post, I shall let you know about mine and that would be something revolutionary!
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