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Is your Candidate asking for too much?

Dec 23, 2022

With the Assembly Bill 168 in effect, employers are banned from inquiring about a candidate’s salary history. This law change will cause hiring managers and recruiters to have to tweak their salary negotiation tactics.

Here are our suggestions for salary negotiations:

  • Remove any questions about compensation from applications (verbal and written).
  • Make sure to reevaluate your recruitment process and develop a new strategy to vet candidates.
  • Ask candidates about their expected or target salary instead of their compensation history.

While reevaluating your recruitment process, you might want to take note of these negotiation tactics and apply them.

1. Research the Average Rates

There’s no need to ask around. If you want to know the average salary of a specific job, you can find it online. By knowing the average income, you’ll gain the upper hand when a candidate makes a counter offer.

2. Source Passive Candidates

It’s hard to negotiate with an Active Candidate that has job offers from different companies. If you want less competition, spend time sourcing Passive Candidates. Unlike inbound/active candidates, they are more likely to accept your compensation package because there are less competing offers.

3. Be Upfront

It’s not easy to talk about money but you don’t want to be kept guessing. If you already have a set budget, it’s best to let your candidate know. There’s no need to waste both parties’ time and energy. If a candidate’s target salary is too high, you may respond with the following.

“I just want to be honest with you. Your target salary is outside our range. If this is still negotiable, I would like to invite you for an interview and further discuss the role with you. If not, I understand and will not be wasting anymore of your time.”

4. Get Creative

Nowadays, candidates are looking at the overall compensation package, not just the salary. According to a survey by the One Medical Group, 59% of employees consider benefits to be “very important.” Offer your candidate perks that would be more beneficial to them. Think of benefits that won’t break the bank. For example, stock options and flextime.

Read more about how to create desirable benefits here.

5. Is the Candidate Worth It?

Re-examine your candidate’s credentials. Ask your team for their opinions. If the candidate is clearly your best option, are you willing to invest in them and go over your budget? Don’t rush your decision.

Always plan out your job offer. If you’re lucky, the candidate will accept the initial compensation package. However, it’s always best to have several back up offers ready. You don’t want to keep going back and forth with the candidate.

​Need help sourcing Passive Candidates? Utilize headhuntr.io’s Candidate Intelligence.

It’s the moment recruiters and hiring managers dread: Negotiating a Salary. You might have found the perfect candidate, only for them to turn down your job offer at the last moment.

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