The Art of Equilibrium: Mastering Salary Negotiations in Recruitment

RECRUITER'S ROLE IN SALARY NEGOTIATIONS

From a recruiter's standpoint, how do you approach salary negotiations between a candidate and an employer?

Recruiters face a delicate balancing act between securing the best salaries for candidates and managing client expectations. A recruiter's income is directly linked to the candidate's base salary; the higher it is, the more the recruiter earns. However, it's critical not to overprice the candidate, which could lead the client to back out due to perceived overpayment. Equally important is to ensure candidates are aware that a higher salary comes with increased expectations. These expectations aren't just about job performance but often include leadership responsibilities and a significant time commitment.

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The danger is that candidates seeking a substantial salary boost may not be ready for these additional responsibilities. It's not about setting anyone up to fail; rather, it's about ensuring a fair and reasonable pay increase while managing expectations on both sides. A recruiter must balance the client’s budgetary limits with the candidate's aspirations for a salary uplift, being transparent about the responsibilities that accompany higher pay.

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Ultimately, the goal is for both the client and candidate to feel satisfied, with the client acquiring a valuable team member without overspending, and the candidate receiving a worthwhile salary increase without stepping out of their comfort zone. The principle is universal: the more one invests, the higher one's expectations, analogous to services ranging from one to five-star hotels. A recruiter's success lies in striking this equilibrium and guiding both parties to a mutually beneficial conclusion.

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MARKET ANALYSIS FOR SALARIES

How does Van Kaizen stay informed about current salary trends across different industries to advise clients and candidates effectively?

Van Kaizen has carved a niche in conducting bespoke salary surveys, offering clients a deep dive into market rates, bonus structures, and benefits prevalent within their industry and among their competitors. Our global footprint as an international company allows us to gather a broad spectrum of data from around the world, providing us with a unique advantage.

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We utilise live data, primarily from candidates we've headhunted over the past year. With just under 40 headhunters operating in 20 countries across six continents, we consistently feed a wealth of salary information into our Applicant Tracking System (ATS). This data is invaluable as it represents what individuals are currently earning, and with many repeat candidates, we can track salary progression over time, giving us solid benchmarks for salary increases on a biannual basis.

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Our extensive database allows for highly accurate, jurisdiction-spanning insights. Unlike some firms that may focus on Europe alone, Van Kaizen's comprehensive approach covers regions including Latin America, Asia, the Baltics, Scandinavia, and the Americas, enabling us to identify and understand salary trends globally.

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In cases where a client requests information on a sector we've less frequently engaged in, we proactively gather the necessary data from the market to ensure we provide our clients with the most up-to-date and precise salary information. This commitment to thorough research and live data analysis underscores Van Kaizen's dedication to delivering superior service and reliable market intelligence to our clients.

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BALANCING CANDIDATE EXPECTATIONS WITH MARKET REALITY

When candidates have salary expectations that don't align with the market, how does Van Kaizen manage these situations?

Managing candidate expectations is a crucial part of a recruiter's role, especially when those expectations don't align with market realities. While some candidates may have friends with unique employment conditions, such as remote working, these are often exceptions rather than the norm. Most clients still prefer employees to work on-site.

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For example, the demand for native Japanese speakers in iGaming was high two years ago, commanding significant salaries due to low supply. However, this demand has since shifted, and those expectations need to be managed accordingly. Candidates who don't adapt their expectations in a changing market may find themselves waiting longer for a job that meets their salary demands.

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Recruiters must therefore clearly communicate the current market rates and set realistic expectations. It’s not about selling a dream; it's about being truthful. Instead of agreeing to unrealistic demands, a good recruiter presents the candidate with options: proceed with the market-aligned offer, wait for a better opportunity, or stick to their original salary expectation. This conversation helps determine whether a candidate's expectations are practical.

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Additionally, time spent job searching can often realign candidate expectations with market conditions. A recruiter's responsibility is to outline these realities candidly, as ultimately, neither the candidate's time nor the recruiter's should be wasted pursuing unfeasible goals. Balancing the drive to earn a commission with the necessity to remain market-realistic is key to effective recruitment.