Do you have problems negotiating salaries? Does your team get upset when new staff make more than they do. It can all be resolved with one simple approach.
Once you decide you really want that person, the next step is to negotiate her salary and benefits. Everybody has a minimal salary they won’t go below—but if it’s higher than you are willing to pay—it doesn’t mean that you can’t hire her.
The negotiating secret—give her the higher salary she wants, but defer it until she can prove that she’s worth it. For example, if she wants $25/hour and you are only willing to pay $20, suggest accelerated salary increases. Start her off at $20/hr, raise it to $22/hr in 3 months after she has proven her worth, then to $24/hour in 6 more months, and finally to $25/hr 6-12 months after that. She just wants to know that you will eventually pay her what she wants and is probably willing to wait.
You might also transpose her usual benefits (medical, etc.) into salary. For example, if you provide $2,000/year in medical insurance that she doesn’t need, drop it and give her an equivalent $1.00 an hour of salary (use the $1/hr = $2,000/yr in benefits).
If you just agree to her high salary, and it is higher than your current employee’s salaries, there will be a mutiny, and all will want commensurate raises, especially if you haven’t hired in a long time and your salary increases have not kept up with the current market. If they become upset and you need to raise their salaries, use the same accelerated salary increases approach if at all possible.
You will eventually learn many ways to negotiate salaries and benefits, but the most important thing is that it must be fair to both the new employee and the practice—also consider how much you might lose if that needed person is not hired at the higher salary.
If considering staffing changes you might find the “Ultimate Organization & Hiring Kit” of value to create the best team for you.
